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).

1-1 Section 1. Chapter 40 of NRS is hereby amended by adding thereto

1-2 the provisions set forth as sections 2 to 6, inclusive, of this act.

1-3 Sec. 2. Except as otherwise provided in this section and NRS 40.670:

1-4 1. Notwithstanding the provisions of subsection 1 of NRS 40.680, a

1-5 claimant may commence an action in district court in a complex matter.

1-6 If the claimant commences an action in district court he shall:

1-7 (a) File and serve the summons and complaint as required by law;

1-8 and

1-9 (b) At the same time and in the same manner as the claimant serves

1-10 the summons and complaint upon the contractor, serve upon the

1-11 contractor a written notice specifying in reasonable detail to the extent

1-12 known the defects, and any damages or injuries to each residence or

1-13 appurtenance that is the subject of the claim. The notice must describe in

1-14 reasonable detail each defect, the specific location of each defect, and the

1-15 nature and extent that is known of the damage or injury resulting from

1-16 each defect. If an expert opinion has been rendered concerning the

2-1 existence or extent of the defects, a written copy of the opinion must

2-2 accompany the notice. An expert opinion that specifies each defect to the

2-3 extent known, the specific location of each defect to the extent known,

2-4 and the nature and extent that is known of the damage or injury

2-5 resulting from each defect, based on a valid and reliable representative

2-6 sample of the residences and appurtenances involved in the action,

2-7 satisfies the requirements of this section.

2-8 2. The contractor shall file and serve an answer to the complaint as

2-9 required by law.

2-10 3. Not later than 30 days after the date of service of the answer to the

2-11 complaint, the contractor and claimant shall meet to establish a schedule

2-12 for:

2-13 (a) The exchange of or reasonable access for the other party to all

2-14 relevant reports, photos, correspondence, plans, specifications,

2-15 warranties, contracts, subcontracts, work orders for repair, videotapes,

2-16 technical reports, soil and other engineering reports and other

2-17 documents or materials relating to the claim that are not privileged;

2-18 (b) The inspection of the residence or appurtenance that is the subject

2-19 of the claim to evaluate the defects set forth in the notice served pursuant

2-20 to subsection 1; and

2-21 (c) The conduct of any tests that are reasonably necessary to

2-22 determine the nature and cause of a defect or any damage or injury, and

2-23 the nature and extent of repairs necessary to remedy a defect or any

2-24 damage or injury. The party conducting the test shall provide reasonable

2-25 notice of the test to all other parties and conduct the test at a reasonable

2-26 time.

2-27 4. At the meeting held pursuant to subsection 3, the claimant and

2-28 contractor shall:

2-29 (a) Establish a schedule for the addition of any additional parties to

2-30 the complaint or to file any third-party complaint against an additional

2-31 party who may be responsible for all or a portion of the defects set forth

2-32 in the notice served pursuant to subsection 1;

2-33 (b) Unless the claimant and contractor agree otherwise in writing,

2-34 select a mediator and proceed with mediation as provided in subsections

2-35 2 to 6, inclusive, of NRS 40.680; and

2-36 (c) If the claimant and contractor agree, select a special master and

2-37 jointly petition the court for his appointment pursuant to subsection 7.

2-38 5. Each party added to the complaint or against whom a third-party

2-39 complaint is filed pursuant to subsection 4 shall file and serve an answer

2-40 as required by law.

2-41 6. If the claimant or contractor adds a party to the complaint or files

2-42 a third-party complaint, then not later than 60 days after the date

2-43 determined pursuant to paragraph (a) of subsection 4, the contractor,

3-1 claimant and each party added to the complaint or against whom a

3-2 third-party complaint is filed shall meet to establish a schedule for the

3-3 activities set forth in paragraphs (a), (b) and (c) of subsection 3.

3-4 7. If a special master has not been appointed, the contractor,

3-5 claimant or a party added to the complaint or against whom a third-party

3-6 complaint is filed may petition the court for the appointment of a special

3-7 master at any time after the meeting held pursuant to subsection 3. The

3-8 special master may:

3-9 (a) Take any action set forth in subsection 4 of NRS 40.680;

3-10 (b) Exercise any power set forth in Rule 53 of the Nevada Rules of

3-11 Civil Procedure; and

3-12 (c) Subject to the provisions of NRS 40.680, if the parties fail to

3-13 establish a schedule or determine a date as required in subsection 3, 4 or

3-14 6, establish the schedule or determine the date.

3-15 8. Unless the mediation required pursuant to paragraph (b) of

3-16 subsection 4 is completed or the contractor and claimant have agreed in

3-17 writing not to mediate the claim pursuant to paragraph (b) of subsection

3-18 4, a party shall not propound interrogatories or requests for admission,

3-19 take a deposition or file a motion that is dispositive of the action except:

3-20 (a) Upon agreement of the parties; or

3-21 (b) With the prior approval of the court or special master.

3-22 9. If a residence or appurtenance that is the subject of the claim is

3-23 covered by a homeowner’s warranty that is purchased by or on behalf of

3-24 a claimant pursuant to NRS 690B.100 to 690B.180, inclusive, a claimant

3-25 shall diligently pursue a claim under the contract.

3-26 10. Unless the parties agree otherwise, not less than 60 days before

3-27 the date of the mediation pursuant to paragraph (b) of subsection 4 is

3-28 convened, the contractor shall make a written response to the claimant

3-29 that meets the requirements set forth in subsection 3 of NRS 40.645.

3-30 11. If the claimant is a representative of a homeowner’s association,

3-31 the association shall submit any response made by the contractor to each

3-32 member of the association in writing not more than 30 days after the date

3-33 the claimant receives the response.

3-34 12. The claimant shall respond to the written response of the

3-35 contractor within 45 days after the response of the contractor is mailed to

3-36 the claimant.

3-37 Sec. 3. Except as otherwise provided in NRS 40.670, if a contractor

3-38 receives written notice of a constructional defect that is not part of a

3-39 complex matter not more than 1 year after the close of escrow of the

3-40 initial purchase of the residence, the contractor shall make the repairs

3-41 within 45 days after the contractor receives the written notice unless

3-42 completion is delayed by the claimant or by other events beyond the

3-43 control of the contractor, or timely completion of repairs is not

4-1 reasonably possible. The contractor and claimant may agree in writing to

4-2 extend the period prescribed by this section. If the contractor fails to

4-3 comply with this section, he is immediately subject to discipline pursuant

4-4 to NRS 624.300.

4-5 Sec. 4. If, after complying with the procedural requirements of NRS

4-6 40.645 and 40.680, or section 2 of this act, a claimant proceeds with an

4-7 action for damages arising from a constructional defect:

4-8 1. The claimant and each contractor who is named in the original

4-9 complaint when the action is commenced are not required, while the

4-10 action is pending, to comply with the requirements of NRS 40.645 or

4-11 40.680, or section 2 of this act, for any constructional defect that the

4-12 claimant includes in an amended complaint, if the constructional defect:

4-13 (a) Is attributable, in whole or in part, to such a contractor;

4-14 (b) Is located on the same property described in the original

4-15 complaint; and

4-16 (c) Was not discovered before the action was commenced provided

4-17 that a good faith effort had been undertaken by the claimant.

4-18 2. The claimant is not required to give written notice of a defect

4-19 pursuant to subsection 1 of NRS 40.645 or subsection 1 of section 2 of

4-20 this act to any person who is joined to or intervenes in the action as a

4-21 party after it is commenced. If such a person becomes a party to the

4-22 action:

4-23 (a) For the purposes of subsection 1 of NRS 40.645 or subsection 1 of

4-24 section 2 of this act, the person shall be deemed to have been given notice

4-25 of the defect by the claimant on the date on which the person becomes a

4-26 party to the action; and

4-27 (b) The provisions of NRS 40.600 to 40.695, inclusive, and sections 2

4-28 to 6, inclusive, of this act apply to the person after that date.

4-29 Sec. 5. 1. Notwithstanding the provisions of NRS 40.600 to 40.695,

4-30 inclusive, and sections 2, 3, 4 and 6 of this act, a claimant may not

4-31 commence an action against a subdivider or master developer for a

4-32 constructional defect in an appurtenance constructed on behalf of the

4-33 subdivider or master developer in a planned unit development, to the

4-34 extent that the appurtenance was constructed by or through a licensed

4-35 general contractor, unless:

4-36 (a) The subdivider or master developer fails to provide to the claimant

4-37 the name, address and telephone number of each contractor hired by the

4-38 subdivider or master developer to construct the appurtenance within 30

4-39 days of the receipt by the subdivider or master developer of a request

4-40 from the claimant for such information; or

4-41 (b) After the claimant has made a good faith effort to obtain full

4-42 recovery from the contractors hired by the subdivider or master developer

5-1 to construct the appurtenance, the claimant has not obtained a full

5-2 recovery.

5-3 2. All statutes of limitation or repose applicable to a claim governed

5-4 by this section are tolled from the time the claimant notifies a contractor

5-5 hired by the subdivider or master developer of the claim until the earlier

5-6 of the date:

5-7 (a) A court determines that the claimant cannot obtain a full recovery

5-8 against those contractors; or

5-9 (b) The claimant receives notice that those contractors are bankrupt,

5-10 insolvent or dissolved.

5-11 Tolling pursuant to this subsection applies only to the subdivider or

5-12 master developer. Notwithstanding any applicable statute of limitation or

5-13 repose, the claimant may commence an action against the subdivider or

5-14 master developer for the claim within 1 year after the end of the tolling

5-15 described in this subsection.

5-16 3. Nothing in this section prohibits the commencement of an action

5-17 against a subdivider or master developer for a constructional defect in a

5-18 residence sold, designed or constructed by or on behalf of the subdivider

5-19 or master developer.

5-20 4. Nothing in this section prohibits a person other than the claimant

5-21 from commencing an action against a subdivider or master developer to

5-22 enforce his own rights.

5-23 5. The provisions of this section do not apply to a subdivider or

5-24 master developer who acts as a general contractor or uses his license as a

5-25 general contractor in the course of constructing the appurtenance that is

5-26 the subject of the action.

5-27 6. As used in this section:

5-28 (a) "Master developer" means a person who buys, sells or develops a

5-29 planned unit development, including, without limitation, a person who

5-30 enters into a development agreement pursuant to NRS 278.0201.

5-31 (b) "Planned unit development" has the meaning ascribed to it in

5-32 NRS 278A.065.

5-33 (c) "Subdivider" has the meaning ascribed to it in NRS 278.0185.

5-34 Sec. 6. 1. If a claimant attempts to sell a residence that is or has

5-35 been the subject of a claim governed by NRS 40.600 to 40.695, inclusive,

5-36 and sections 2 to 6, inclusive, of this act, he shall disclose, in writing, to

5-37 any prospective purchaser of the residence, not less than 30 days before

5-38 the close of escrow for the sale of the residence or, if escrow is to close

5-39 less than 30 days after the execution of the sales agreement, then

5-40 immediately upon the execution of the sales agreement or, if a claim is

5-41 initiated less than 30 days before the close of escrow, within 24 hours

5-42 after giving written notice to the contractor pursuant to subsection 1 of

5-43 NRS 40.645 or subsection 1 of section 2 of this act:

6-1 (a) All notices given by the claimant to the contractor pursuant to

6-2 NRS 40.600 to 40.695, inclusive, and sections 2 to 6, inclusive, of this act

6-3 that are related to the residence;

6-4 (b) All opinions the claimant has obtained from experts regarding a

6-5 constructional defect that is or has been the subject of the claim;

6-6 (c) The terms of any settlement, order or judgment relating to the

6-7 claim; and

6-8 (d) A detailed report of all repairs made to the residence by or on

6-9 behalf of the claimant as a result of a constructional defect that is or has

6-10 been the subject of the claim.

6-11 2. Before taking any action on a claim pursuant to NRS 40.600 to

6-12 40.695, inclusive, and sections 2 to 6, inclusive, of this act, the attorney

6-13 for a claimant shall notify the claimant in writing of the provisions of

6-14 this section.

6-15 Sec. 7. NRS 40.600 is hereby amended to read as follows:

6-16 40.600 As used in NRS 40.600 to 40.695, inclusive, and sections 2 to

6-19 ascribed to them in those sections.

6-20 Sec. 8. NRS 40.605 is hereby amended to read as follows:

6-21 40.605 1. "Appurtenance" means a structure, installation, facility [or]

6-28 associated with [a residence.] or benefiting one or more residences.

6-29 2. As used in this section:

6-30 (a) "Common elements" has the meaning ascribed to it in NRS

6-31 116.110318.

6-32 (b) "Limited common element" has the meaning ascribed to it in NRS

6-33 116.110355.

6-34 Sec. 8.5. NRS 40.625 is hereby amended to read as follows:

6-35 40.625 "Homeowner’s warranty" means a warranty or policy of

6-42 operates in compliance with chapter 695E of NRS and insures all or any

7-1 part of the liability of a contractor for the cost to repair a constructional

7-2 defect in a residence.

7-3 Sec. 9. NRS 40.645 is hereby amended to read as follows:

7-4 40.645 Except as otherwise provided in this section and NRS 40.670:

7-42 unless the [offer] response is limited to a proposal for monetary

8-1 compensation, the method, adequacy and estimated cost of [the] any

8-2 proposed repair.

8-3 (c) May include:

8-4 (1) A proposal for monetary compensation [.] , which may include a

8-5 contribution from a subcontractor.

8-6 (2) If the contractor or his subcontractor is licensed to make the

8-7 repairs, an agreement by the contractor or subcontractor to make the

8-8 repairs.

8-9 (3) An agreement by the contractor to cause the repairs to be made, at

8-10 the contractor’s expense, by another contractor who is licensed to make the

8-11 repairs, bonded and insured.

8-12 The repairs must be made within 45 days after the contractor receives

8-13 written notice of acceptance of the [offer,] response, unless completion is

8-14 delayed by the claimant or by other events beyond the control of the

8-15 contractor [.] , or timely completion of the repairs is not reasonably

8-16 possible. The claimant and the contractor may agree in writing to extend

8-17 the periods prescribed by this section.

8-18 4. [The periods provided in subsections 1 and 3 must be extended by

8-19 60 days if the claim is a complex matter. The parties may stipulate to a

8-20 further extension.

8-21 5.] Not later than 15 days before the mediation required pursuant to

8-22 NRS 40.680 and upon providing 15 days’ notice, each party shall provide

8-23 the other party, or shall make a reasonable effort to assist the other party to

8-24 obtain, all relevant reports, photos, correspondence, plans, specifications,

8-25 warranties, contracts, subcontracts, work orders for repair, videotapes [and]

8-26 , technical reports, soil and other engineering reports and other documents

8-27 or materials relating to the claim that are not privileged.

8-28 [6.] 5. If the claimant is a representative of a homeowner’s association,

8-29 the association shall submit any [offer of settlement] response made by the

8-30 contractor to each member of the association.

8-31 6. As used in this section, "subcontractor" means a contractor who

8-32 performs work on behalf of another contractor in the construction of a

8-33 residence or appurtenance.

8-34 Sec. 10. NRS 40.650 is hereby amended to read as follows:

8-35 40.650 1. If a claimant unreasonably rejects a reasonable written

9-1 (b) Award attorney’s fees and costs to the contractor.

9-2 Any sums paid under a homeowner’s warranty, other than sums paid in

9-3 satisfaction of claims that are collateral to any coverage issued to or by the

9-4 contractor, must be deducted from any recovery.

9-5 2. If a contractor fails to:

9-6 (a) Make an offer of settlement;

9-7 (b) Make a good faith response to the claim asserting no liability;

9-8 (c) Complete, in a good and workmanlike manner, the repairs specified

9-9 in an accepted offer;

9-10 (d) Agree to a mediator or accept the appointment of a mediator

9-11 pursuant to NRS 40.680 [;] or subsection 4 of section 2 of this act; or

9-12 (e) Participate in mediation,

9-13 the limitations on damages and defenses to liability provided in NRS

9-14 40.600 to 40.695, inclusive, and sections 2 to 6, inclusive, of this act do

9-15 not apply and the claimant may commence an action without satisfying any

9-16 other requirement of NRS 40.600 to 40.695, inclusive [.] , and sections 2

9-17 to 6, inclusive, of this act.

9-18 3. If coverage under a homeowner’s warranty is denied by an insurer in

9-19 bad faith, the homeowner and the contractor have a right of action for the

9-20 sums that would have been paid if coverage had been provided, plus

9-21 reasonable attorney’s fees and costs.

9-22 Sec. 11. NRS 40.660 is hereby amended to read as follows:

9-23 40.660 An offer of settlement that is not accepted within :

9-30 settlement under this section may be filed with the court.

9-31 Sec. 12. NRS 40.685 is hereby amended to read as follows:

9-32 40.685 1. Except as otherwise provided in subsection 2, a written

9-43 expert’s opinion; and

10-1 (c) The claimant and the contractor have complied with the

10-2 requirements for inspection and repair as provided in NRS 40.600 to

10-3 40.695, inclusive [.] , and sections 2 to 6, inclusive, of this act.

10-4 3. If a claimant does not prevail in any action which is not barred

10-5 pursuant to this section, the court may:

10-6 (a) Deny the claimant’s attorney’s fees, fees for an expert witness or

10-7 costs; and

10-8 (b) Award attorney’s fees and costs to the contractor.

10-9 Sec. 12.5. NRS 40.687 is hereby amended to read as follows:

10-10 40.687 Notwithstanding any other provision of law:

10-35 information concerning any reservation of rights by an insurer.

10-36 Sec. 13. NRS 40.690 is hereby amended to read as follows:

10-37 40.690 1. A claim governed by NRS 40.600 to 40.695, inclusive,

10-43 inclusive [.] , and sections 2 to 6, inclusive, of this act. The settlement of

11-1 such a claim does not affect the rights or obligations [of any person who is

11-2 not a party to the settlement, and the failure to reach such a settlement does

11-3 not affect the rights or obligations] of the claimant or contractor in any

11-4 action brought by the claimant or contractor against a third party.

11-5 2. A contractor or claimant may require [any third party except an

11-6 insurer, government, governmental agency or political subdivision of a

11-7 government] a party against whom the contractor or claimant asserts a

11-8 claim governed by NRS 40.600 to 40.695, inclusive, and sections 2 to 6,

11-9 inclusive, of this act to appear and participate in proceedings held pursuant

11-10 to [NRS 40.600 to 40.695, inclusive,] those sections as if the [third] party

11-11 were a contractor [.] and the party requiring him to appear were a

11-12 claimant. The party must receive notice of the proceedings from the

11-13 contractor or claimant.

11-14 Sec. 14. NRS 40.695 is hereby amended to read as follows:

11-15 40.695 1. [All] Except as otherwise provided in subsection 2,

11-24 in the proceeding.

11-25 Sec. 15. Chapter 11 of NRS is hereby amended by adding thereto a

11-26 new section to read as follows:

11-27 1. Except as otherwise provided in subsection 2, for the purposes of

11-28 this section and NRS 11.202 to 11.206, inclusive, the date of substantial

11-29 completion of an improvement to real property shall be deemed to be the

11-30 date on which:

11-31 (a) The final building inspection of the improvement is conducted;

11-32 (b) A notice of completion is issued for the improvement; or

11-33 (c) A certificate of occupancy is issued for the improvement,

11-34 whichever occurs later.

11-35 2. If none of the events described in subsection 1 occurs, the date of

11-36 substantial completion of an improvement to real property must be

11-37 determined by the rules of the common law.

11-38 Sec. 16. NRS 11.203 is hereby amended to read as follows:

11-39 11.203 1. Except as otherwise provided in NRS 11.202 [,] and

11-42 observation of construction, or the construction of an improvement to real

12-1 property more than 10 years after the substantial completion of such an

12-2 improvement, for the recovery of damages for:

12-3 (a) Any deficiency in the design, planning, supervision or observation of

12-4 construction or the construction of such an improvement which is known or

12-5 through the use of reasonable diligence should have been known to him;

12-6 (b) Injury to real or personal property caused by any such deficiency; or

12-7 (c) Injury to or the wrongful death of a person caused by any such

12-8 deficiency.

12-9 2. Notwithstanding the provisions of NRS 11.190 and subsection 1 of

12-10 this section, [where] if an injury occurs in the [tenth] 10th year after the

12-11 substantial completion of such an improvement, an action for damages for

12-12 injury to property or person, damages for wrongful death resulting from

12-13 such injury or damages for breach of contract may be commenced within 2

12-14 years after the date of such injury, irrespective of the date of death, but in

12-15 no event may an action be commenced more than 12 years after the

12-16 substantial completion of the improvement.

12-17 3. The provisions of this section do not apply to a claim for

12-18 indemnity or contribution.

12-19 Sec. 17. NRS 11.204 is hereby amended to read as follows:

12-20 11.204 1. Except as otherwise provided in NRS 11.202 [and 11.203,]

12-42 deficiency which is not apparent by reasonable inspection.

13-1 Sec. 18. NRS 11.205 is hereby amended to read as follows:

13-2 11.205 1. Except as otherwise provided in NRS 11.202 [and 11.203,]

13-24 deficiency which is apparent by reasonable inspection.

13-25 Sec. 19. Chapter 113 of NRS is hereby amended by adding thereto a

13-26 new section to read as follows:

13-27 1. Upon signing a sales agreement with the initial purchaser of

13-28 residential property that was not occupied by the purchaser for more

13-29 than 120 days after substantial completion of the construction of the

13-30 residential property, the seller shall:

13-31 (a) Provide to the initial purchaser a copy of NRS 11.202 to 11.206,

13-32 inclusive, and section 15 of this act and NRS 40.600 to 40.695, inclusive,

13-33 and sections 2 to 6, inclusive, of this act;

13-34 (b) Notify the initial purchaser of any soil report prepared for the

13-35 residential property or for the subdivision in which the residential

13-36 property is located; and

13-37 (c) If requested in writing by the initial purchaser not later than 5

13-38 days after signing the sales agreement, provide to the purchaser without

13-39 cost each report described in paragraph (b) not later than 5 days after the

13-40 seller receives the written request.

13-41 2. Not later than 20 days after receipt of all reports pursuant to

13-42 paragraph (c) of subsection 1, the initial purchaser may rescind the sales

13-43 agreement.

14-1 3. The initial purchaser may waive his right to rescind the sales

14-2 agreement pursuant to subsection 2. Such a waiver is effective only if it is

14-3 made in a written document that is signed by the purchaser.

14-4 Sec. 20. NRS 113.100 is hereby amended to read as follows:

14-5 113.100 As used in NRS 113.100 to 113.150, inclusive, and section

14-18 property.

14-19 Sec. 21. NRS 624.300 is hereby amended to read as follows:

14-20 624.300 1. Except as otherwise provided in subsection 6, the board

14-42 disciplinary action under NRS 624.3016, the correction of any condition

15-1 resulting from the act does not preclude the board from taking disciplinary

15-2 action.

15-3 4. If the board finds that a licensee has engaged in repeated acts that

15-4 would be cause for disciplinary action, the correction of any resulting

15-5 conditions does not preclude the board from taking disciplinary action

15-6 pursuant to this section.

15-7 5. The expiration of a license by operation of law or by order or

15-8 decision of the board or a court, or the voluntary surrender of a license by a

15-9 licensee, does not deprive the board of jurisdiction to proceed with any

15-10 investigation of, or action or disciplinary proceeding against, the licensee

15-11 or to render a decision suspending or revoking the license.

15-12 6. [The] Except as otherwise provided in section 3 of this act, the

15-13 board shall not take any disciplinary action pursuant to this section

15-14 regarding a constructional defect, as that term is defined in NRS 40.615,

15-15 during the period in which any claim arising out of that defect is being

15-16 settled, mediated or otherwise resolved pursuant to NRS 40.600 to 40.695,

15-17 inclusive, and sections 2 to 6, inclusive, of this act, unless the disciplinary

15-18 action is necessary to protect the public health or safety.

15-19 7. If discipline is imposed pursuant to this section, the costs of the

15-20 proceeding, including investigative costs and attorney’s fees, may be

15-21 recovered by the board.

15-22 Sec. 22. NRS 690B.100 is hereby amended to read as follows:

15-23 690B.100 As used in NRS 690B.100 to 690B.180, inclusive, unless

15-39 insures against any consequential losses caused by the defects or failures.

15-40 Sec. 23. NRS 690B.140 is hereby amended to read as follows:

15-41 690B.140 An insurer who issues policies of insurance for home

15-43 personal property for use in fulfilling its obligations to repair or replace

16-1 components, systems or appliances of the home under its contracts of

16-2 insurance for home protection, in an amount not to exceed [25] 35 percent

16-3 of its assets, as determined pursuant to NRS 681B.010, unless the

16-4 commissioner, whenever he deems it appropriate, waives this limitation by

16-5 regulation.

16-6 Sec. 24. NRS 690B.160 is hereby amended to read as follows:

16-7 690B.160 1. A contract of insurance for home protection must

16-41 renewal of the contract.

17-1 (c) Insurance which provides coverage before the home is sold if the

17-2 sale is not made. The cancellation must be made in accordance with the

17-3 contract provisions.

17-4 3. Insurance for home protection is not renewable unless its terms

17-5 provide otherwise.

17-6 Sec. 25. NRS 690B.180 is hereby amended to read as follows:

17-7 690B.180 An insurer who issues policies of insurance for home

17-12 2. Assume reinsurance from any other insurer.

17-13 Sec. 26. The amendatory provisions of this act do not apply to a claim

17-14 initiated or an action commenced pursuant to NRS 40.600 to 40.695,

17-15 inclusive, and sections 2 to 6, inclusive, of this act, unless the claim was

17-16 initiated or the action was commenced on or after July 1, 1999.

17-17 Sec. 27. This act becomes effective on July 1, 1999.