Property and casualty fundamentals (insurable interest, indemnity, negligence, policy structure) are covered in the national basics guides. This guide covers the Nevada rules that apply across property and casualty lines: how Nevada defines the kinds of insurance, cancellation and nonrenewal, binders, rates, credit-based insurance scores, comparative negligence and the guaranty association. Citations are to the Nevada Revised Statutes (NRS).

Kinds of insurance

• Property insurance covers real or personal property against loss or damage from any hazard, and consequential loss. It doesn't include title insurance (NRS 681A.060).
• Casualty insurance includes vehicle, liability, workers' compensation and employers liability, burglary and theft, glass, boiler and machinery (including inspection), credit and other listed kinds (NRS 681A.020).
• Surety insurance includes fidelity insurance, guarantees of contract performance, and bonds (NRS 681A.070). A surety insurer can't deny its power to issue a bond it executed (NRS 691B.030). For licensing, surety is part of the casualty line (NRS 683A.261(1)(d)).
• Marine and transportation (inland marine) insurance includes goods in transit, jewelry and precious metals, and bridges and tunnels (NRS 681A.050).

Cancellation and nonrenewal (NRS 687B.310 to .420)

• The limits below apply once a policy has been in effect 70 days, or to any renewal policy. After that point: cancellation only for listed reasons, such as nonpayment, a conviction of a crime that increases the hazard, fraud or material misrepresentation, or a substantial increase in hazard (NRS 687B.320).
• Notice: at least 10 days for nonpayment and at least 30 days for any other permitted reason (NRS 687B.320(2)). The notice states the effective date and the specific reasons (NRS 687B.310).
• Nonrenewal: at least 60 days before expiration for commercial or business policies and 30 days for all others. An insurer that misses the deadline must renew on identical terms (NRS 687B.340).
• Renewal with changes: a premium increase or coverage change needs 30 days' written notice, or the policy renews on the old terms (NRS 687B.350).
• Reasons on request: the insurer gives the facts behind its decision within 6 days of a written request (NRS 687B.360).
• Division review: an insured may ask the Division to review a cancellation or nonrenewal within 30 days of receiving the notice. If the insurer can't show its grounds by clear and convincing evidence, the action is withdrawn (NRS 687B.410).
• Notices (except for nonpayment) explain how to apply to any risk-sharing plan the insured may qualify for (NRS 687B.370).

Binders (NRS 687B.015 to .186)

• A binder is temporary insurance until the policy is issued or the risk is declined. Only an appointed agent of the insurer may issue one.
• A binder lasts no more than 90 days, but may be extended 30 days at a time with the Commissioner's written approval (NRS 687B.182).
• Written binders go to the insured and the insurer within 24 hours (NRS 687B.183). A binder counts as a policy for proof of coverage (NRS 687B.186).

Rates

• Rates may not be excessive, inadequate or unfairly discriminatory, or tend to create a monopoly (NRS 686B.050).
• Rate filings are made at least 30 days before the proposed effective date. The Commissioner approves or disapproves within 30 days after a filing is complete, or it is deemed approved (NRS 686B.070, .110).
• Residual markets: Nevada has no FAIR plan. The Commissioner may set up a plan to provide essential coverage to risks that can't get it, and insurers may form voluntary risk-sharing plans (NRS 686B.180, .200).

Credit-based insurance scores (NRS 686A.680 to .700)

• The insurer or agent discloses at application that credit information may be used.
• An insurer can't deny, cancel or nonrenew based on credit alone.
• Inquiries the consumer didn't start, insurance inquiries, medical collections and multiple loan inquiries within 30 days (counted as one) can't be used against the consumer.
• At renewal, an insured can ask to be rerated with a current score, but no more than once a year.
• Insurers must make exceptions for events such as catastrophes, serious illness, a death in the family, divorce, identity theft, job loss of 3 months or more and overseas military deployment.
• These rules don't apply to commercial policies or surety.

Comparative negligence

A plaintiff whose negligence was not greater than the defendants' recovers damages reduced by their own share. A plaintiff more at fault than the defendants (for example 51% to 49%) recovers nothing (NRS 41.141).

Guaranty association

The Nevada Insurance Guaranty Association pays covered claims of insolvent property and casualty insurers up to the lesser of the policy limit or $300,000 per occurrence, and $10,000 for unearned premium. Workers' compensation is paid in full (NRS 687A.060). Claims must be filed within 25 months of the liquidation order, and other available insurance must be used first (NRS 687A.033, .100). Surplus lines insurers aren't covered.

Common exam traps

• 70 days, not 60, is when Nevada's cancellation limits start.
• 10 days for nonpayment, 30 days for other reasons.
• Nonrenewal: 60 days commercial, 30 days personal. Late notice means renewal on the same terms.
• Binder: 90 days, extended 30 days at a time only with the Commissioner's approval.
• No FAIR plan in Nevada; risk-sharing plans instead.
• Modified comparative negligence with a "not greater than" bar.