NEVADA INSURANCE GUARANTY ASSOCIATION
CITATION & EFFECTIVE DATE
MODEL OR SIMILAR ACT
COVERED LINES OF BUSINESS
All kinds of direct insurance except life, annuity, health and disability; mortgage guaranty, financial guaranty, other insurance protecting investment risk; fidelity or surety bonds or other bonding obligations; credit insurance; insurance of warranties or service contracts; title insurance; ocean marine; any transactions which involve the transfer of investment or credit risk unaccompanied by transfer of insurance risk; any insurance provided by or guaranteed by a governmental entity.
Is covered up to $300,000.
is an unpaid claim under a covered policy issued by an insolvent insurer, and the claimant or insured, if a natural person, is a resident of the state at the time of the insured event, or 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, or the property from which the first party property damage claim arises is permanently located in the state, or the claim is not a covered claim pursuant to the laws of any other state and the premium tax imposed on the related policy is payable in this state. Association is obligated to the extent of covered claims existing prior to the determination of insolvency, and arising within 30 days thereafter. Covered claim shall not include any claim filed with the association more than 18 months after the date of the order of liquidation or after the final date set by the court for the filing of claims against the receiver of the insolvent insurer, whichever is earlier, except for reopened claims for workers’ comp benefits, nor a claim filed for a loss that is incurred but is not reported to the Association before the expiration of the period specified above.
MAXIMUM ANNUAL %
2% of total premiums. $100 per insurer per year administrative expense assessment also permitted.
Premium tax offset for assessments made before January 1, 1993, 10% per year for 10 successive years beginning March 1, 1996; for assessments made on or after January 1, 1993, 20% per year for the five years beginning with the calendar year following the calendar year in which assessments are paid. Rate increase also permitted to extent tax offset and refunds do not compensate insurer in full.
Year preceding year of assessment
LIMITS ON CLAIMS
DEDUCTIBLE OR MINIMUM PER CLAIM
MAXIMUM PER CLAIM
$300,000, No limit for Workers’ Compensation
NET WORTH PROVISION
Covered claim does not include a first party or third party claim brought by or against an insured, if the aggregate net worth of the insured and any affiliate of the insured, as determined on a consolidated basis, is more than $25,000,000 on December 31 of the year immediately preceding the date the insurer becomes an insolvent insurer. The provisions of this paragraph do not apply to a claim for workers’ compensation.
The Association may recover the amount of money paid to or on behalf of an insured of an insolvent insurer if the aggregate net worth of the insured and any affiliate of the insured, as determined on a consolidated basis, is more than $25,000,000 on December 31 of the year immediately preceding the date the insurer becomes an insolvent insurer.
An amount that is directly or indirectly due a reinsurer, insurer, insurance pool, or underwriting association, as recovered by subrogation, indemnity or contribution, or otherwise.
Covered claim does not include self-insured retention or deductible, or an adjustment or attorney’s fees and expenses, court costs or interest and bond premiums incurred by the insolvent insurer prior to the appointment of a liquidator unless the expenses would also be a valid claim against the insured.
CLAIMS COVERED BY OTHER INSURANCE AND OTHER GUARANTY ASSOCIATIONS
Any person having a claim against an insurer, including a claim for damages caused by an uninsured motorist, under any provision in an insurance policy other than a policy of an insolvent insurer, which is also a covered claim, shall be required to exhaust first his right under any such policy. Any amount payable on a covered claim must be reduced by the amount of the applicable limit under the claimant’s policy, regardless of whether the claimant recovered the full amount payable under that policy or exhausts only a lesser amount. Any person having a claim which may be covered by more than one guaranty association shall seek recovery first from the association of the place of residence of the insured, except that if it is a first party claim for damage to property with a permanent location, he shall seek recovery first from the association of the location of the property, and if it is a workers’ compensation claim then he shall first seek recovery first from the association of the residence of the claimant. Any recovery made from this association shall be reduced by the amount of the recovery from any other association.
Insolvent insurer defined as licensed insurer against which a final order of liquidation with a finding of insolvency has been entered by a court of competent jurisdiction in the insurer’s state of domicile or in Nevada, or which is involved in a judicial proceeding related to the determination of solvency, rehabilitation or liquidation, if the court involved in those proceedings has issued an order prohibiting the insurer from paying claims for more than 30 days.
Association is a nonprofit, unincorporated legal entity.
Notice of claims to the receiver of the insolvent insurer shall be deemed to be notice to the association.
Expenses of the association in handling claims shall be accorded the same priority as the liquidator’s expenses.
No cause of action shall arise against any member insurer, the association, its agents or employees, the board of directors, or the commissioner or his representatives for any action taken under this chapter.
All proceedings against an insolvent insurer or any party to be defended by an insolvent insurer shall be stayed for up to three months from the date insolvency is determined or such additional time as may be determined by a court of competent jurisdiction.