Nevada lawmakers are considering legislation that would establish a FAIR Plan association to provide personal and commercial property insurance in areas where traditional coverage is unavailable.
Assembly Bill 437 would require all property insurers authorized in the state to participate in the association and share financial obligations based on their written premiums over the past three years.
Under the proposed bill, FAIR Plan policies would include personal property coverage limits of $750,000 and commercial property limits of $5 million.
A nine-member board would oversee the association, consisting of representatives from mutual and stock insurers, a Nevada-based property insurance trade group, a trade group representing independent agents, an insurance producer, and three consumers. The board would be required to meet at least once annually.
The legislation also grants the state insurance commissioner the authority to assess fees on insurers to establish and fund the association. While insurers could recoup these fees from policyholders, the bill specifies that they could not be used to justify rate increases. The fees would not be classified as premiums for regulatory purposes.
If enacted, Nevada would become the 34th state, along with the District of Columbia, to implement a FAIR Plan, according to the Insurance Information Institute.
Colorado was the most recent state to introduce a FAIR Plan.
While bereft of their own FAIR Plan, Nevada has implemented several state-run insurance programs aimed at enhancing healthcare accessibility and affordability for its residents.
In 2021, Nevada passed legislation to establish a state-run public health insurance option, making it the second state after Washington to do so. The program aims to increase affordability in the individual health insurance market by mandating premium reductions over the next five years.
There is also the Nevada Public Employees' Benefits Program (PEBP), which manages and administers health and life insurance programs for qualified Nevada government employees. Established in 1963, it offers comprehensive medical, prescription drug, dental, vision, life, and long-term disability insurance.
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