AB338

Assembly Bill No. 338–Assemblymen Collins, Claborn, Parks, Leslie, Williams, McClain, Giunchigliani, Arberry, Bache, Koivisto, Anderson, Freeman, Tiffany, Manendo, Von Tobel, Ohrenschall, Price, Marvel, Gibbons, Neighbors, Lee, Perkins and Berman

March 1, 1999

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Referred to Committee on Commerce and Labor

SUMMARY—Prohibits insurer from taking certain actions regarding certain types of policies of casualty or property insurance. (BDR 57-1432)

FISCAL NOTE: Effect on Local Government: No.

Effect on the State or on Industrial Insurance: No.

EXPLANATION – Matter in bolded italics is new; matter between brackets [~~omitted material]~~ is material to be omitted. Green numbers along left margin indicate location on the printed bill (e.g., 5-15 indicates page 5, line 15).

AN ACT relating to insurance; prohibiting an insurer from canceling, refusing to renew or increasing the premiums for renewal of a policy of casualty or property insurance purchased for residential property; providing an exception to the prohibition generally; and providing other matters properly relating thereto.

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

1-1 Section 1. NRS 687B.385 is hereby amended to read as follows:

1-2 687B.385 [~~An]~~

1-3 1. Except as otherwise provided in subsection 2, an insurer shall not

1-4 cancel, refuse to renew or increase the premium for renewal of a policy of

1-5 casualty or property insurance covering residential property or a policy

1-6 of motor vehicle insurance covering private passenger cars or commercial

1-7 vehicles as a result of any claims made under the policy with respect to

1-8 which the insured was not at fault.

1-9 2. The provisions of subsection 1 do not apply if an insurer can

1-10 demonstrate a substantial and material increase in the risk that is

1-11 insured beyond that contemplated at the time the policy was issued or last

1-12 renewed.