Effect on the State or on Industrial Insurance: No.
EXPLANATION - Matter in italics is new; matter in brackets [ ] is material to be omitted.
AN ACT relating to insurance; further limiting the time and amount of recovery by an insured from the Nevada insurance guaranty association; and providing other matters properly relating thereto.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
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Section 1 NRS 687A.033 is hereby amended to read as follows:
687A.033 1. "Covered claim" means an unpaid claim or judgment, including a claim for unearned premiums, which arises out of and is within the coverage of an insurance policy to which this chapter applies issued by an insurer which becomes an insolvent insurer if one of the following conditions exists:
(a) The claimant or insured, if a natural person, is a resident of this state at the time of the insured event.
(b) The claimant or insured, if other than a natural person, maintains its principal place of business in this state at the time of the insured event.
(c) The property from which the first party property damage claim arises is permanently located in this state.
(d) The claim is not a covered claim pursuant to the laws of any other state and the premium tax imposed on the insurance policy is payable in this state pursuant to NRS 680B.027.
2. The term does not include:
(a) [Any] An amount due [any] a reinsurer, insurer, insurance pool or underwriting association, as subrogation [recoveries] or otherwise.
(b) That part of a loss which would not be payable because of a provision for a deductible in the policy.
(c) [Any] A claim filed with the association after the earlier of:
(1) Eighteen months after the date of the order of liquidation; or
(2) The final date set by the court for the filing of claims against the liquidator or receiver of the insolvent insurer.
(d) [Any] An obligation to make a supplementary payment for adjustment or attorney's fees and expenses, court costs or interest and bond premiums incurred by the insolvent insurer before the appointment of a liquidator unless the expenses would also be a valid claim against the insured.
(e) A claim filed with the association for protection afforded under the insured's policy for losses that are incurred but not reported.
Sec. 2 NRS 687A.100 is hereby amended to read as follows:
687A.100 1. [Any] A person having a claim against his insurer, including, but not limited to, a claim for damages caused by an uninsured motorist, under any provision in his insurance policy, which is also a covered claim shall first exhaust his right under the policy. Any amount payable on a covered claim under this chapter must be reduced by the amount of the applicable limit under the claimant's insurance policy, regardless of whether [the] :
(a) The claimant recovers the full amount payable under that policy or exhausts only a lesser amount [.
2. Any] ;
(b) Or not the insurer is a member insurer; or
(c) The resulting total recovery by the claimant is less than it would have been if the insurer had not become insolvent.
2. A person having a claim which may be recovered under more than one insurance guaranty association or its equivalent shall seek recovery first from the association of the place of residence of the insured. However, if the claim is a first party claim for damage to property with a permanent location, recovery must first be sought from the association of the location of the property. If the claim is a workman's compensation claim, recovery must first be sought from the association of the residence of the claimant. Any recovery under this chapter must be reduced by the amount of the recovery from any other insurance guaranty association or its equivalent [.] , even if the resulting total recovery by the claimant is less than it would have been if his insurer had not become insolvent.