Philip J. Tacason | Lewis Brisbois On June 3, 2023, Nevada Governor Joe Lombardo signed into law Assembly Bill (AB) 398, which prohibits insurers from renewing or issuing insurance policies that include provisions that reduces the limit of liability by the costs of defense. AB 398 states: Section 1. Chapter 679A of NRS is hereby… Continue reading Nevada “Outlaws” Cost-Reducing Liability Insurance Policies, with Guidelines to Insurers
Tag: Nevada
Nevada Businesses Brace for Ban on ‘Eroding Limits’ Liability Policies
Jim Sams | Claims Journal A new Nevada law that takes effect Oct. 1 prohibits liability insurance policies with “eroding limits,” potentially increasing the cost of premiums and reducing availability, insurance experts say. Such policies, also called “wasting,” “burning” or “defense within the limits” policies, include the cost of defending lawsuits as part of the… Continue reading Nevada Businesses Brace for Ban on ‘Eroding Limits’ Liability Policies
Nevada Update: Nevada Commissioner of Insurance Updates Burning Limits Statute with Emergency Regulation
William S. Bennett | SDV Insights Following significant backlash in reaction to the Nevada legislature’s new law prohibiting enforcement of any provisions in liability insurance policies dictating that defense costs are included within the limits of insurance, the Nevada Division of Insurance issued an emergency regulation further clarifying the law.1 The regulation modifies two key… Continue reading Nevada Update: Nevada Commissioner of Insurance Updates Burning Limits Statute with Emergency Regulation
The End of Eroding Limits Policies in Nevada is Just the Beginning
Connor L. Kridle and Sarah J. Odia | Payne & Fears On June 3, 2023, Nevada Gov. Joe Lombardo signed into law AB 398 (the Act) which modifies the Nevada insurance code by restricting the types of liability policies that can be offered in the state. The End of Eroding Limits Policies in Nevada First, the Act… Continue reading The End of Eroding Limits Policies in Nevada is Just the Beginning
An Uncharted Frontier: Nevada First State to Prohibit Defense-Within-Limits Provisions
Geoffrey B. Fehling and Andrew S. Koelz | Hunton Andrews Kurth Nevada recently became the first state to prohibit defense-within-limits provisions in liability insurance policies. Defense-within-limits provisions—resulting in what’s called “eroding” or “wasting” policies—reduce the policy’s applicable limit of insurance by amounts the insurer pays to defend the policyholder against a claim or suit. These… Continue reading An Uncharted Frontier: Nevada First State to Prohibit Defense-Within-Limits Provisions