Assembly Bill No. 390–Assemblymen Price, Bache and Giunchigliani

 

March 16, 2001

____________

 

Referred to Committee on Commerce and Labor

 

SUMMARY—Revises provisions relating to policy of insurance for motor vehicle. (BDR 57‑1289)

 

FISCAL NOTE:            Effect on Local Government: Yes.

                                    Effect on the State: No.

 

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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

AN ACT relating to insurance; prohibiting an insurer who offers a policy of insurance for a motor vehicle from basing certain decisions relating to the policy on the consumer report of an applicant, policyholder or a member of the household of the applicant or policyholder; providing a penalty; 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 686B.060 is hereby amended to read as follows:

1-2    686B.060  In determining whether rates comply with the standards

1-3  under NRS 686B.050, the following criteria [shall] must be applied:

1-4    1.  Due consideration [shall] must be given to past and prospective loss

1-5  and expense experience within and outside of this state, to catastrophe

1-6  hazards and contingencies, to trends within and outside of this state, to

1-7  loadings for leveling premium rates over time or for dividends or savings

1-8  to be allowed or returned by insurers to their policyholders, members or

1-9  subscribers, and to all other relevant factors, including the judgment of

1-10  technical personnel.

1-11    2.  Risks may be classified in any reasonable way for the establishment

1-12  of rates and minimum premiums, except that classifications may not be

1-13  based on race, color, creed or national origin. [Rates] Except as otherwise

1-14  provided in section 2 of this act, rates thus produced may be modified for

1-15  individual risks in accordance with rating plans or schedules which

1-16  establish reasonable standards for measuring probable variations in

1-17  hazards, expenses, or both.

1-18    3.  The expense provisions included in the rates to be used by an

1-19  insurer may reflect the operating methods of the insurer and, so far as it is

1-20  credible, its own expense experience.

2-1    4.  The rates may contain an allowance permitting a profit that is not

2-2  unreasonable in relation to the riskiness of the class of business.

2-3    Sec. 2.  Chapter 690B of NRS is hereby amended by adding thereto a

2-4  new section to read as follows:

2-5    1.  An insurer shall not:

2-6    (a) Refuse to issue or renew a policy of insurance or establish or

2-7  increase the premium of such a policy;

2-8    (b) Establish, increase or modify any rate relating to a policy of

2-9  insurance; or

2-10    (c) Use any rate prepared by a rate service organization relating to a

2-11  policy of insurance that was established, increased or
modified,

2-12  based, in whole or in part, on the consumer report of a policyholder or

2-13  an applicant for such a policy or the consumer report of a member of the

2-14  household of the policyholder or applicant.

2-15    2.  As used in this section:

2-16    (a) “Consumer report” has the meaning ascribed to it in NRS

2-17  598C.060.

2-18    (b) “Policy of insurance” means a policy of insurance that insures

2-19  against liability arising out of the ownership, maintenance or use of a

2-20  motor vehicle.

2-21    (c) “Rate service organization” has the meaning ascribed to it in NRS

2-22  686B.020.

2-23    Sec. 3. The provisions of this act apply to a policy of insurance that

2-24  insures against liability arising out of the ownership, maintenance or use

2-25  of a motor vehicle that is issued, renewed or modified on or after
October 1, 2001.

2-26    Sec. 4. The provisions of this act do not apply to offenses committed

2-27  before October 1, 2001.

 

2-28  H