NRS 678B.385 General Provisions

Statutory Text click to expand

NRS 687B.385 Refusal to issue, cancellation, nonrenewal or increase in premium of policy of motor vehicle insurance due to claims for which insured was not at fault, claims for which insurer made no payment or recovered entirety of payment or inquiries relating to a claim prohibited.

An insurer shall not refuse to issue, cancel, refuse to renew or increase the premium for renewal of a policy of motor vehicle insurance covering private passenger cars or commercial vehicles as a result of any:

      1.  Claims made under any policy of insurance with respect to which the insured was not at fault;

      2.  Claims made under any policy of insurance for which the insurer has not made any payment or for which the insurer recovered the entirety of the insurer’s payment on the claim by means of salvage, subrogation or another mechanism; or

      3.  Inquiries made regarding an actual or potential claim under any policy of insurance regarding:

      (a) The existence of insurance coverage for any matter; or

      (b) Any hypothetical or informational matter pertaining to insurance.

      (Added to NRS by 1987, 1063; A 1997, 3033; 2017, 2354)

Nevada Revised Statutes (NRS) Chapter 678B, Section 385

Plain English Explanation

Under Nevada law anyone who works as a registered cannabis establishment agent must obey the rules or risk losing their card on the spot. NRS 678B.385 lays out exactly what will trigger that immediate revocation:

A registration card is pulled without warning if an agent commits or is convicted of any felony that the law bars (“excluded felonies”). An agent also loses their card if they hand over cannabis or cannabis products to someone who has no legal right to possess them. If video cameras catch an agent stealing product or using cannabis on the premises where they work, that alone is enough to have the card revoked.

The same applies if an agent knowingly submits any false paperwork or material misrepresentation to the Cannabis Compliance Board. Finally, breaking any specific board regulation that is marked as cause for immediate revocation will also get the card pulled.

These rules ensure that agents follow Nevada’s laws and regulations without delay.

Overview of NRS 678B.385

Nevada Revised Statute 678B.385 outlines specific prohibitions for insurers regarding the underwriting and renewal practices of motor vehicle insurance policies in Nevada. This crucial law aims to protect insured individuals from unjustified changes in their insurance policies based on non-fault claims, no-payment claims, or mere inquiries about coverage. It ensures fairness and prevents insurers from penalizing drivers for incidents beyond their control or for seeking information.

Key elements of the statute

• Non-Fault Claims: Insurers cannot penalize insureds for claims where the insured was not at fault.
• No-Payment Claims: If no payment was made on a claim, or if the insurer recovered all payments made (through salvage, subrogation, etc.), the insurer cannot use this as a basis to alter the insurance terms unfavorably.
• Inquiries About Coverage: Making inquiries about potential claims or coverage does not justify adverse adjustments to policy terms or premium rates.

Practical application

Example 1: Non-Fault Accident in Las Vegas

A policyholder involved in a vehicle accident on the Las Vegas Strip, where they were determined not to be at fault, cannot face premium increases or policy cancellation based on this incident.

Example 2: Recovered Payments in Reno

If an insurer pays out a claim for an accident in Reno but later recovers the full amount through subrogation against a third party, they cannot increase the original claimant’s premiums or refuse to renew their policy based on that claim.

Example 3: Coverage Inquiry in Henderson

An insured in Henderson asks about coverage for windshield damage under hypothetical conditions. This inquiry alone cannot lead to premium increases or policy changes by the insurer.

Related statutes

• NRS 686A.310: Governs unfair practices in insurance, detailing what constitutes unfair or deceptive acts, further protecting consumers from unjust insurance practices.
• NRS 687B.145: Discusses adjustments based on claims history, emphasizing that insurers must act fairly in response to claims and must not use claims where the insured was not at fault to increase premiums.

These statutes complement NRS 678B.385 by providing a broader legal framework to ensure fair treatment of insured parties and prevent insurance abuse.

Frequently asked questions about general provisions (NRS 678B.385)

Can my insurance be canceled if I’m not at fault in an accident?

No, under NRS 678B.385, your insurance cannot be canceled for incidents where you were not at fault.

Does an insurer have the right to increase my premium if they paid out a claim but later recovered their costs?

No, if the insurer recovers their costs through mechanisms like subrogation, they cannot use this as a basis to increase your premium.

What protections do I have if I make an inquiry about my insurance coverage?

Making inquiries about your coverage or potential claims does not allow your insurer to penalize you by increasing premiums or changing your policy terms adversely.

NRS 678B.385 is crucial for protecting Nevada drivers from punitive insurance practices related to claims processing and inquiries. It ensures that policyholders are treated fairly and are not penalized for circumstances that are not indicative of increased risk. For more detailed guidance or if facing issues with your insurer, consider consulting a legal professional specialized in insurance law.

Contact our experienced Nevada insurance attorneys