This chapter shall be known and may be cited as the Nevada Insurance Guaranty Association Act.  (Added to NRS by 1971, 1943)
Except as otherwise provided in subsection 5 of NRS 695E.200, this chapter applies to all direct insurance, except:  1. Life, annuity, health or disability insurance;  2. Mortgage guaranty, financial guaranty or other forms of insurance offering protection against investment risks;  3. Fidelity or surety bonds or any other bonding obligations;  4. Credit insurance as defined in NRS 690A.015, vendors single interest insurance, collateral protection insurance or any similar insurance protecting the interests of a creditor arising out of a creditor-debtor transaction;  5. Insurance of warranties or service contracts, including, without limitation, insurance that provides:  (a) For the repair, replacement or service of goods or property;  (b) Indemnification for the repair, replacement or service of goods or property;   (c) Indemnification for the operational or structural failure of goods or property due to a defect in materials, workmanship or normal wear and tear; or  (d) Reimbursement for the liability incurred by the issuer of agreements or service contracts which provide any benefits described in this subsection;  6. Title insurance;  7. Ocean marine insurance;  8. Any transaction or combination of transactions between a person, including affiliates of the person, and an insurer, including affiliates of the insurer, which involves the transfer of investment or credit risk unaccompanied by the transfer of insurance risk; or  9. Any insurance provided by or guaranteed by a governmental entity.  (Added to NRS by 1971, 1943; A 1973, 312; 1977, 434; 1987, 1333; 1993, 1396; 1995, 1773, 2057; 1997, 579; 1999, 1833; 2021, 111)
As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS 687A.031 to 687A.0395, inclusive, have the meanings ascribed to them in those sections.  (Added to NRS by 1971, 1943; A 1977, 434; 1985, 537, 1073; 2015, 3476; 2021, 112)
"Association" means the Nevada Insurance Guaranty Association created pursuant to NRS 687A.040.  (Added to NRS by 1985, 1072)
"Assumed claims transaction" includes:  1. A policy obligation that has been assumed by an insolvent insurer, before the entry of a final order of liquidation, through a merger between the insolvent insurer and another entity obligated under the policy.  2. An assumption reinsurance transaction in which:  (a) The insolvent insurer assumed, before the entry of a final order of liquidation, the claim or policy obligations of another insurer or entity obligated under a claim or policy;  (b) The assumption of the claim or policy obligations has been approved by the Commissioner, if such approval is required; and  (c) As a result of the assumption, the claim or policy obligation became the direct obligation of the insolvent insurer through a novation of the claim or policy.  (Added to NRS by 2015, 3476)
  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 if the insurer becomes an insolvent insurer, the policy was issued by the insurer or assumed by the insurer in an assumed claims transaction, and 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.  2. The term does not include:  (a) An amount awarded as punitive or exemplary damages.  (b) A fine or penalty paid to a governmental authority.  (c) An amount sought as a return of premium under any retrospective rating plan.  (d) An amount due any reinsurer, insurer, insurance pool, underwriting association, health maintenance organization, hospital plan corporation, professional health service corporation or self-insurer as subrogation recoveries, reinsurance recoveries, contribution, indemnification or otherwise.  (e) Except as otherwise provided in this paragraph, any claim filed with the Association:  (1) More than 25 months after the date of the order of liquidation; or  (2) After the final date set by the court for the filing of claims against the liquidator or receiver of the insolvent insurer,  whichever is earlier. The provisions of this paragraph do not apply to a claim for workers compensation that is reopened pursuant to the provisions of NRS 616C.390 or 616C.392.  (f) A claim filed with the Association for a loss that is incurred but is not reported to the Association before the expiration of the period specified in subparagraph (1) or (2) of paragraph (e).  (g) A first-party claim by an insured whose net worth exceeds $10,000,000 on December 31 of the year immediately preceding the date the insurer becomes an insolvent insurer.  (h) A third-party claim relating to a policy of an insured whose net worth exceeds $25,000,000 on December 31 of the year immediately preceding the date the insurer becomes an insolvent insurer.  (i) A claim that would otherwise be a covered claim, but is an obligation to or on behalf of a person who has a net worth greater than that allowed by the insurance guaranty association law of the state of residence of the claimant at the time specified by such law, and which association has denied coverage to that claimant on that basis.   (j) A first-party claim by an insured which is an affiliate of the insolvent insurer.  (k) A fee or other amount relating to goods or services sought by or on behalf of any attorney or other provider of goods or services retained by the insolvent insurer or an insured before the date the insurer was determined to be insolvent.  (l) A fee or other amount sought by or on behalf of any attorney or other provider of goods or services retained by any insured or claimant in connection with the assertion or prosecution of any claim, covered or otherwise, against the Association.  (m) A claim for interest.  3. For the purposes of paragraphs (g) and (h) of subsection 2, an insureds net worth on the applicable date shall be deemed to include the aggregate net worth of the insured and all of the insureds subsidiaries and affiliates as calculated on a consolidated basis.  4. The provisions of paragraphs (g) and (h) of subsection 2 do not apply to a claim for workers compensation.  5. The provisions of paragraph (h) of subsection 2 do not apply to third-party claims against the insured where the insured has applied for or consented to the appointment of a receiver, trustee or liquidator for all or a substantial part of the insureds assets, filed a voluntary petition in bankruptcy, filed a petition or an answer seeking a reorganization or arrangement with creditors or to take advantage of any insolvency law, or if an order, judgment or decree is entered by a court of competent jurisdiction, on the application of a creditor, adjudicating the insured bankrupt or insolvent or approving a petition seeking reorganization of the insured or of all or substantial part of its assets.  6. As used in this section, "affiliate" means a person who directly or indirectly owns or controls, is owned or controlled by, or is under common ownership or control with, another person. For the purpose of this definition, the terms "owns," "is owned" and "ownership" mean ownership of an equity interest, or the equivalent thereof, of 10 percent or more.  (Added to NRS by 1985, 1072; A 1987, 1065; 1989, 565; 1993, 1396; 1999, 2521; 2001, 2215; 2003, 3307; 2005, 1497; 2015, 3476; 2021, 112)
"Insolvent insurer" means an insurer which has been issued a certificate of authority by the Commissioner to transact insurance in this state, either at the time the policy was issued or when the insured event occurred:  1. Against which a final order of liquidation with a finding of insolvency has been entered by a court of competent jurisdiction in the insurers state of domicile or in Nevada; or  2. Which is involved in judicial proceeding in its state of domicile or in Nevada related to the determination of its solvency, rehabilitation or liquidation, if the court conducting those proceedings has issued an order prohibiting the insurer from paying claims for more than 30 days.  (Added to NRS by 1985, 1072)
"Member insurer" means any person, except a fraternal or nonprofit service corporation which:  1. Writes any kind of insurance to which this chapter applies, including the exchange of reciprocal or interinsurance agreements of indemnity.  2. Is authorized to transact insurance in this state.  (Added to NRS by 1985, 1073; A 2011, 3371)
"Net direct written premiums" means direct gross premiums written in this state on insurance policies to which this chapter applies, less return premiums and dividends paid or credited to policyholders on such direct business. The term does not include premiums on contracts between insurers or reinsurers.  (Added to NRS by 1985, 1073)
"Person" means any individual or legal entity, including, without limitation, a governmental entity.  (Added to NRS by 2021, 111)
"Self-insurer" means a person that covers its liability through a qualified individual or group self-insurance program or any other formal program created for the specific purpose of covering liabilities typically covered by insurance.  (Added to NRS by 2021, 111)
There is hereby created a nonprofit unincorporated legal entity to be known as the Nevada Insurance Guaranty Association. All member insurers must be members of the Association as a condition of their authority to transact insurance in this state. The Association shall perform its functions under a plan of operation established and approved pursuant to NRS 687A.070 and shall exercise its powers through a Board of Directors established under NRS 687A.050.  (Added to NRS by 1971, 1944; A 1985, 1074)
  1. The Board of Directors of the Association shall consist of not fewer than five nor more than nine persons. The members of the Board shall be appointed by the Commissioner and shall serve at the discretion of the Commissioner. Vacancies on the Board shall be filled in the same manner as initial appointments.  2. A majority of the members appointed shall be the designated representatives of member insurers. If practicable, one of the members appointed as a designated representative of the member insurers must be an officer of a domestic insurer. The Commissioner shall consider among other things whether all member insurers are fairly represented.  3. Members of the Board may be reimbursed from the assets of the Association for expenses incurred by them as members of the Board of Directors.  (Added to NRS by 1971, 1944; A 1977, 435; 2003, 2806)
  1. The Association:  (a) Except as otherwise provided in paragraph (b), is obligated to the extent of the covered claims existing before the determination of insolvency and arising within 30 days after the determination of insolvency, or before the expiration date of the policy if that date is less than 30 days after the determination, or before the insured replaces the policy or on request cancels the policy if the insured does so within 30 days after the determination. The obligation of the Association to pay a covered claim is limited to the payment of:  (1) The entire amount of the claim, if the claim is for workers compensation pursuant to the provisions of chapters 616A to 616D, inclusive, or chapter 617 of NRS;  (2) Not more than $10,000 for each policy if the claim is for the return of unearned premiums; or  (3) The limit specified in a policy or $300,000, whichever is less, for each occurrence for any covered claim other than a covered claim specified in subparagraph (1) or (2).  (b) Is not obligated to pay a claimant an amount in excess of the obligation of the insolvent insurer under the policy or coverage from which the claim arises. Any obligation of the Association to defend an insured on a covered claim ceases upon the Associations:  (1) Payment, by settlement releasing the insured or on a judgment, of an amount equal to the lesser of the Associations covered claim obligation limit or the applicable policy limit; or  (2) Tender of the amount described in subparagraph (1).  If the Association determines that there may be more than one claimant having a covered claim or allowed claim against the Association, or against any associations similar to the Association in other states, under the policy or policies of any one insolvent insurer, the Association may establish a plan to allocate amounts payable by the Association in such a manner as the Association in its discretion deems equitable.  (c) Shall be deemed the insurer to the extent of its obligations on the covered claims and to that extent has any rights, duties and obligations of the insolvent insurer as if the insurer had not become insolvent. The rights include, without limitation, the right to seek and obtain any recoverable salvage and to subrogate a covered claim, to the extent that the Association has paid its obligation under the claim. The Association shall not be deemed to be the insolvent insurer for any purpose relating to the issue of whether the Association is amenable to the personal jurisdiction of the courts of any state.   (d) Shall assess member insurers amounts necessary to pay the obligations of the Association pursuant to paragraph (a) after an insolvency, the expenses of handling covered claims subsequent to an insolvency and other expenses authorized by this chapter. The assessment of each member insurer must be in the proportion that the net direct written premiums of the member insurer for the calendar year preceding the assessment bear to the net direct written premiums of all member insurers for the same calendar year. Each member insurer must be notified of the assessment not later than 30 days before it is due. No member insurer may be assessed in any year an amount greater than 2 percent of the net direct written premiums of that member insurer for the calendar year preceding the assessment. If the maximum assessment, together with the other assets of the Association, does not provide in any 1 year an amount sufficient to make all necessary payments, the money available may be prorated and the unpaid portion must be paid as soon as money becomes available. The Association may pay claims in any order, including the order in which the claims are received or in groups or categories. The Association may exempt or defer, in whole or in part, the assessment of any member insurer if the assessment would cause the financial statement of the member insurer to reflect amounts of capital or surplus less than the minimum amounts required for a certificate of authority by any jurisdiction in which the member insurer is authorized to transact insurance. During the period of deferment, no dividends may be paid to shareholders or policyholders. Deferred assessments must be paid when payment will not reduce capital or surplus below required minimums. Payments must be refunded to those companies receiving larger assessments because of deferment, or, in the discretion of the company, credited against future assessments. Each member insurer must be allowed a premium tax credit for any amounts paid pursuant to the provisions of this chapter at the rate of 20 percent per year for 5 successive years beginning with the calendar year following the calendar year in which the assessments are paid.  (e) Shall investigate claims brought against the fund and adjust, compromise, settle and pay covered claims to the extent of the obligation of the Association and deny any other claims. The Association has the right to appoint and to direct legal counsel retained under liability insurance policies for the defense of covered claims.  (f) Is not bound by a release, compromise, waiver, unfunded settlement or judgment executed or entered into within 12 months before an order of liquidation and has the right to assert all defenses available to the Association, including, without limitation, defenses applicable to determining and enforcing its statutory rights and obligations to an applicable claim. The Association is bound by a release, compromise, waiver, settlement or judgment executed or entered into more than 1 year before an order of liquidation if an applicable claim is a covered claim and such settlement or judgment was not a result of fraud, collusion, default or failure to defend. With regard to a covered claim arising from a judgment under a decision, verdict or finding based on the default of the insolvent insurer or the insurers failure to defend, the Association, either on its own behalf or on behalf of an insured, may apply to have such judgment, order, decision, verdict or finding set aside by the same court or administrator that made such judgment, order, decision, verdict or finding and must be permitted to defend such claim on the merits.   (g) Shall notify such persons as the Commissioner directs pursuant to paragraph (a) of subsection 2 of NRS 687A.080.  (h) Shall act on claims through its employees or through one or more member insurers or other persons designated as servicing facilities. Designation of a servicing facility is subject to the approval of the Commissioner, but the designation may be declined by a member insurer.  (i) Shall reimburse each servicing facility for obligations of the Association paid by the facility and for expenses incurred by the facility while handling claims on behalf of the Association and pay the other expenses of the Association authorized by this chapter.  2. The Association may:  (a) Appear in, defend and appeal any action on a claim brought against the Association.  (b) Employ or retain persons necessary to handle claims and perform other duties of the Association.  (c) Borrow money necessary to carry out the purposes of this chapter in accordance with the plan of operation.  (d) Sue or be sued. Such power to sue includes, without limitation, the power and right to intervene as a party before any court in this State that has jurisdiction over an insolvent insurer.  (e) Negotiate and become a party to contracts necessary to carry out the purposes of this chapter.  (f) Establish procedures for requesting financial information from insureds and claimants on a confidential basis for the purposes of applying sections concerning the net worth of first-party and third-party claimants, subject to such information being shared with any other association similar to the Association and the liquidator for the insolvent insurer on the same confidential basis. If the insured or claimant refuses to provide the requested financial information and an auditors certification of the same where requested and available, the Association may deem the net worth of the insured or claimant to be in excess of $10,000,000 or $25,000,000, as applicable, at the relevant time.  (g) Bring an action against any third-party administrator, agent, attorney or other representative of the insolvent insurer to obtain custody and control of all files, records and electronic data related to an insolvent insurer that are appropriate or necessary for the Association, or a similar association in other states, to carry out its duties under this chapter. In such an action, the Association has the absolute right through emergency equitable relief to obtain custody and control of all such files, records and electronic data in the custody or control of such third-party administrator, agent, attorney or other representative of the insolvent insurer, regardless of where such files, records and electronic data may be physically located. In bringing such an action, the Association is not subject to any defense, possessory lien or other lien or other legal or equitable ground whatsoever for refusal to surrender such files, records and electronic data that might be asserted against the liquidator of the insolvent insurer. To the extent that litigation is required for the Association to obtain custody of the files, records and electronic data requested and such litigation results in the relinquishment of files, records and electronic data to the Association after refusal to provide the same in response to a written demand, the court shall award the Association its costs, expenses and reasonable attorneys fees incurred in bringing the action. The provisions of this paragraph have no effect on the rights and remedies the custodian of such files, records and electronic data may have against the insolvent insurer, so long as such rights and remedies do not conflict with the rights of the Association to custody and control of the files, records and electronic data.  (h) Perform other acts necessary or proper to effectuate the purposes of this chapter.  (i) Perform any administrative acts requested by the Commissioner in furtherance of the purposes of this title and, if the cost of the action is not paid for by the Association or its member insurers, the Nevada Industrial Insurance Act.  (j) If, at the end of any calendar year, the Board of Directors of the Association finds that the assets of the Association exceed its liabilities as estimated by the Board of Directors for the coming year, refund to the member insurers in proportion to the contribution of each that amount by which the assets of the Association exceed the liabilities.  (k) Subject to approval by the Commissioner, provide claims handling services to any run-off insurer if the Associations expenses related thereto are fully reimbursed. There is no liability on the part of, and no cause of action of any nature may arise against, any member insurer, the Association or its agents or employees, the Board of Directors of the Association or any person serving as a representative of any director for any action taken or any failure to act by them in the performance of their activities under this paragraph. As used in this paragraph, "run-off insurer" means a property and casualty insurer that has, as determined pursuant to NRS 681B.550 and regulations adopted pursuant thereto:  (1) Total adjusted capital under risk-based capital requirements in an amount less than the authorized control level of risk-based capital as of the end of the preceding year and that has indicated that it will cease writing new insurance policies, either as part of its corrective action plan or pursuant to being placed under regulatory control; or  (2) Total adjusted capital under risk-based capital requirements in an amount less than the mandatory control level of risk-based capital as of the end of the preceding year and that has not been placed into liquidation.  (l) Assess each member insurer equally not more than $1,000 per year for administrative expenses not related to the insolvency of any insurer.  3. With regard to an action involving the Association:  (a) Except for an action by a member insurer aggrieved by a final action or decision of the Association pursuant to paragraph (d) of subsection 1, an action relating to or arising out of this chapter against the Association must be brought in a district court of the State of Nevada. The courts of the State of Nevada have exclusive jurisdiction over all actions relating to or arising out of this chapter against the Association.  (b) Exclusive venue in an action by or against the Association is in the courts of the State of Nevada. The Association may, at the option of the Association, waive such venue as to a specific action.   (c) In any action contesting the applicability of paragraph (g) or (h) of subsection 2 of NRS 687A.033 in which the insured or claimant has declined to provide financial information under the procedure provided in the plan of operation submitted pursuant to NRS 687A.070, the insured or claimant bears the burden of proof concerning its net worth at the relevant time. If the insured or claimant fails to prove that its net worth at the relevant time was less than the applicable amount, the court shall award the Association its full costs, expenses and reasonable attorneys fees in contesting the claim.  (Added to NRS by 1971, 1944; A 1977, 435; 1993, 1397; 1995, 2057; 1999, 2522; 2003, 3308; 2005, 2131; 2021, 114)
  1. The Association shall submit a plan of operation to the Commissioner, together with any amendments necessary or suitable to assure the fair, reasonable and equitable administration of the Association. The plan of operation and any amendments become effective upon approval in writing by the Commissioner. If the Association fails to submit suitable amendments to the plan as needed, the Commissioner shall adopt reasonable regulations necessary or advisable to effectuate the provisions of this chapter. The regulations continue in force until modified by the Commissioner or superseded by a plan, or by amendments to a plan, which are submitted by the Association and approved by the Commissioner.  2. The Association and all member insurers shall comply with the plan of operation.  3. The plan of operation must:  (a) Establish the procedures for performance of all the duties and powers of the Association under NRS 687A.060.  (b) Establish procedures for managing assets of the Association.  (c) Mandate that the Association establish procedures to designate the amount and method of reimbursing members of the Board of Directors under NRS 687A.050.  (d) Establish procedures by which claims may be filed with the Association and establish acceptable forms of proof of covered claims. Notice of claims to the receiver or liquidator of the insolvent insurer shall be deemed notice to the Association or its agent and a list of those claims must be periodically submitted to the Association or similar organization in another state by the receiver or liquidator.  (e) Establish regular places and times for meetings of the Board of Directors.  (f) Mandate that the Association establish procedures for keeping records of all financial transactions of the Association, its agent and the Board of Directors.  (g) Provide that any member insurer aggrieved by any final action or decision of the Association may appeal to the Commissioner within 30 days after the action or decision.  (h) Establish procedures for submission to the Commissioner of selections for the Board of Directors.  (i) Contain additional provisions necessary or proper for the execution of the duties and powers of the Association.  4. The plan of operation may provide that any or all duties and powers of the Association, except those under paragraph (d) of subsection 1 and paragraph (c) of subsection 2 of NRS 687A.060, are delegated to a person who performs or will perform functions similar to those of this Association in two or more states. This person must be reimbursed as a servicing facility and must be paid for performance of any other functions of the Association. A delegation under this subsection takes effect only with the approval of both the Board of Directors and the Commissioner, and may be made only to a person who extends protection not substantially less favorable and effective than that provided by this chapter.  (Added to NRS by 1971, 1946; A 1981, 106; 2021, 118)
  1. The Commissioner shall:  (a) Notify the Association of the existence of an insolvent insurer not later than 3 days after the Commissioner receives notice of the determination of insolvency by a court or makes a determination of insolvency pursuant to NRS 687A.107, whichever is earlier.  (b) Provide the Association with a copy of any complaint seeking an order of liquidation with a finding of insolvency against a member insurer when such a complaint is filed or received by the Commissioner.  (c) Upon request of the Board of Directors of the Association, provide the Association with a statement of the net direct written premiums of each member insurer.  2. The Commissioner may:  (a) Require that the Association notify the insureds of the insolvent insurer and any other interested parties of the determination of insolvency and of their rights under this chapter. Such notification must be by mail at their last known address, but if sufficient information for notification by mail is not available, notice by publication in a newspaper of general circulation is sufficient.  (b) Suspend or revoke, after notice and opportunity for hearing, the certificate of authority to transact insurance in this State of any member insurer which fails to pay an assessment when due or fails to comply with the plan of operation. As an alternative, the Commissioner may levy a fine on any member insurer which fails to pay an assessment when due. The fine must not exceed 5 percent of the unpaid assessment per month, except that no fine may be less than $100 per month.  (c) Revoke the designation of any servicing facility if the Commissioner finds claims are being acted upon unsatisfactorily.  (d) Request the Association to perform any acts specified in paragraph (i) of subsection 2 of NRS 687A.060.  (Added to NRS by 1971, 1947; A 1985, 1074; 2005, 2133; 2021, 119)
  1. Any person recovering under this chapter shall be deemed to have assigned his or her rights under the policy to the Association to the extent of the persons recovery from the Association. Every insured or claimant seeking the protection of this chapter shall cooperate with the Association to the same extent as the person would have been required to cooperate with the insolvent insurer. Except:  (a) As otherwise provided in subsection 2; and  (b) For a cause of action which the insolvent insurer would have had if such sums had been paid by the insolvent insurer,  the Association does not have a cause of action against the insured of the insolvent insurer for any sums it has paid out.  2. The Association may recover the amount of money paid:  (a) To or on behalf of an insured of an insolvent insurer:  (1) If the aggregate net worth of the insured and any affiliate of the insured, as determined on a consolidated basis, is more than $10,000,000 on December 31 of the year immediately preceding the date the insurer becomes an insolvent insurer; or  (2) If the Association paid the money in error.  (b) To any person who is an affiliate of the insolvent insurer.  3. The Association and any association similar to the Association in another state must be recognized as claimants in the liquidation of an insolvent insurer for any amounts paid by them on obligations relating to covered claims as determined under this chapter or similar laws in other states and must receive dividends and any other distributions at the priority set forth in the final order of liquidation. The receiver, liquidator or statutory successor of an insolvent insurer is bound by determinations of eligibility of covered claims under this chapter and by any settlements of covered claims by the Association or a similar organization in another state. The court having jurisdiction shall grant those claims priority equal to that to which the claimant would have been entitled in the absence of this chapter against the assets of the insolvent insurer. The expenses of the Association or similar organization in handling claims must be accorded the same priority as the liquidators expenses.  4. The Association shall periodically file with the receiver or liquidator of the insolvent insurer statements of the covered claims paid by the Association and estimates of anticipated claims on the Association, which statements shall preserve the rights of the Association against the assets of the insolvent insurer.  5. As used in this section, "affiliate" means a person who directly or indirectly owns or controls, is owned or controlled by, or is under common ownership or control with, another person. For the purpose of this definition, the terms "owns," "is owned" and "ownership" mean ownership of an equity interest, or the equivalent thereof, of 10 percent or more.  (Added to NRS by 1971, 1947; A 2003, 3310; 2021, 119)
A claim asserted against a person insured by an insurer which has become insolvent which, if it were not a claim by or for the benefit of a reinsurer, insurer, insurance pool, underwriting association, health maintenance organization, hospital plan corporation, professional health service corporation or self-insurer, would be a covered claim, may be filed directly with the receiver of the insolvent insurer. These claims may not be asserted in any action against the insured of the insolvent insurer.  (Added to NRS by 1977, 434; A 1993, 1399; 2021, 120)
With regard to a claim for an amount described in paragraph (d) of subsection 2 of NRS 687A.033, no such claim for any amount due any reinsurer, insurer, insurance pool, underwriting association, health maintenance organization, hospital plan corporation, professional health service corporation or self-insurer may be asserted against a person insured under a policy issued by an insolvent insurer other than to the extent such claim exceeds the Association obligation limitations set forth in NRS 687A.060.  (Added to NRS by 2021, 111)
  1. Any person having a claim under an insurance policy, whether or not the insurance policy is a policy issued by a member insurer, and the claim under such other policy arises from the same facts, injury or loss that gave rise to the covered claim against the Association, is required first to exhaust all coverage provided by any such policy, including, without limitation, the right to a defense under the other policy. Any amount payable on a covered claim under this chapter must be reduced by the full applicable limits stated in such other insurance policy and the Association must receive a full credit for such stated limits, or, where there are no applicable stated limits, the claim must be reduced by the total recovery. Notwithstanding the foregoing, a person is not required to exhaust any right under the policy of an insolvent insurer.  2. For the purposes of subsection 1, a claim under an insurance policy:  (a) Which provides liability coverage to a person who may be jointly and severally liable with or a joint tortfeasor with the person covered under the policy of the insolvent insurer that gives rise to the covered claim shall be deemed to be a claim arising from the same facts, injury or loss that gave rise to the covered claim against the Association.   (b) Includes, without limitation:  (1) A claim against a health maintenance organization, a hospital plan corporation or a professional health service corporation; and   (2) Any amount payable by or on behalf of a self-insurer.  3. To the extent that the Associations obligation is reduced by the application of subsections 1 and 2, the liability of the person insured by the insolvent insurers policy for the claim must be reduced in the same amount.   4. Any 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 workers 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.  (Added to NRS by 1971, 1948; A 1993, 1399; 2021, 120)
If the Association pays any claims on behalf of an insurer which is an insolvent insurer within the meaning of subsection 2 of NRS 687A.035, the insurer may not accept any new business in this state until it has reimbursed the Association for the payment of the claims, including the administrative expenses incurred by the Association in acting upon and paying the claims.  (Added to NRS by 1985, 1073)
  1. The Commissioner may conduct a hearing to determine whether an insurer is an insolvent insurer within the meaning of subsection 2 of NRS 687A.035. The Commissioner shall notify the insurer which is the subject of the hearing not less than 3 days before the hearing. The Commissioner may consider any evidence at the hearing which the Commissioner deems relevant to the determination of the solvency of the insurer.  2. The Commissioner shall make a determination in writing within 15 days after the hearing. The Commissioner shall adopt regulations governing hearings pursuant to this section.  (Added to NRS by 1985, 1073)
To aid in the detection and prevention of insurer insolvencies:  1. The Board of Directors may, upon majority vote, make recommendations to the Commissioner upon any matter generally related to improving or enhancing regulation for solvency.  2. The Board of Directors may, upon majority vote, make recommendations to the Commissioner for the detection and prevention of insurer insolvencies.  3. The Board of Directors may, at the conclusion of any insolvency of a domestic insurer in which the Association was obligated to pay covered claims, prepare a report on the history and causes of such insolvency, based on the information available to the Association, and submit such report to the Commissioner.  (Added to NRS by 1971, 1948; A 1977, 437; 2021, 121)
To aid in the detection and prevention of insurer insolvencies:  1. The Commissioner may:  (a) Notify the insurance commissioners of the other states and territories of the United States and of the District of Columbia when the Commissioner revokes or suspends a license, or when the Commissioner makes any formal order that a company restrict its writing of insurance, obtain additional contributions to surplus, withdraw from the State or reinsure any part of its business or any other account for the security of policyholders or creditors.  (b) Report to the Board of Directors any action set forth in paragraph (a) and the receipt of a report from another insurance commissioner indicating that the action has been taken elsewhere. The report shall contain all significant details of the action taken or the report received.  (c) Report to the Board of Directors when the Commissioner has reasonable cause to believe from any examination of any member insurer, whether completed or in process, that the member insurer may be insolvent or in a financial condition hazardous to the interests of policyholders or the public.  (d) Furnish to the Board of Directors the early warning tests developed by the National Association of Insurance Commissioners. The Board may use the information furnished to carry out its duties. Except as otherwise provided in NRS 239.0115, the report and the information contained therein is not a public record and shall be kept confidential by the Board of Directors until it is made public by the Commissioner or other lawful authority.  2. The Commissioner may seek the advice and recommendations of the Board of Directors concerning any matter affecting the duties and responsibilities of the Commissioner relating to the financial condition of member insurers and of insurers seeking admission to transact business in this State.  (Added to NRS by 1977, 433; A 2007, 2157)
The Association is subject to examination and regulation by the Commissioner. The Board of Directors shall submit, not later than March 30 of each year, a financial report for the preceding calendar year in a form approved by the Commissioner.  (Added to NRS by 1971, 1949)
The Association is exempt from payment of all fees and all taxes levied by this State or any of its subdivisions, except taxes:  1. Levied on real or personal property; or  2. Imposed pursuant to the provisions of chapter 363A, 363B or 363C of NRS.  (Added to NRS by 1971, 1949; A 2003, 20th Special Session, 228; 2015, 2951)
The rates and premiums charged for insurance policies to which this chapter applies shall include amounts sufficient to recoup a sum equal to the amounts paid to the Association by the member insurer less any amounts returned to the member insurer by the Association, or less any premium tax credits allowed under this chapter, and such rates shall not be deemed excessive as a result of containing such recoupment allowances.  (Added to NRS by 1971, 1949)
There is no liability, and no cause of action of any nature shall arise against any member insurer, the Association, its agents or employees, the Board of Directors, the Commissioner or the representatives of the Commissioner, for any reasonable action taken, or any failure to act, by them in the performance of their duties and powers under this chapter.  (Added to NRS by 1971, 1949; A 2021, 122)
  1. Subject to waiver by the Association in specific cases involving covered claims, all proceedings in which the insolvent insurer is a party, or is obligated to defend a party, in any court in this State must be stayed until the last day fixed by the court for the filing of claims and for such additional time thereafter as may be determined by the court from the date the insolvency is determined or an ancillary proceeding is instituted in this State, whichever is later, to permit proper defense by the Association of all pending causes of action.  2. The liquidator, receiver or statutory successor of an insolvent insurer governed by this chapter shall permit access by the Association or its authorized representative to the insolvent insurers records which are necessary for the Association in carrying out its functions under this chapter with regard to covered claims. In addition, the liquidator, receiver or statutory successor shall provide the Association or its representative with copies of such records upon request by the Association and at the expense of the Association.  (Added to NRS by 1971, 1949; A 1977, 438; 1987, 928; 2021, 122)