Nevada law lets insurers test property coverage and file rate increases

The Insurance Commissioner runs a program where approved insurers can test property insurance products with certain rule exemptions. The program covers products that insure real or personal property in Nevada, including homes and businesses. Insurers must already offer property insurance in Nevada outside the program and keep doing so during the test. Insurers must apply separately for each product, and the Commissioner must approve the application; the Commissioner may require some rules to remain in force. Before a sale, the insurer or its agent must explain possible exemptions, that the product is not government-endorsed, and that the test may end; disclosures must be in English and Spanish. The program takes effect for regular purposes on January 1, 2026, and expires on January 1, 2030. A product test may last up to 36 months, with one extension of up to 12 months if the Commissioner approves it.

The Commissioner establishes a rate filing route for some property insurance increases, with approval if the Commissioner does not flag a filing within 15 days. The route applies to insurers offering property insurance for real property, other than business and commercial risks. The increase must stay within percentage limits set by the Commissioner, and the filing cannot change other rate information. The Commissioner must move a filing to the regular process if it finds a violation within 15 days; otherwise, the filing is treated as approved. The route excludes property insurance for business and commercial risks. A policyholder cannot be affected by another increase through this route within 12 months. The Commissioner must set the initial percentage limits by June 1, 2026. An increase cannot affect an existing customer before renewal, and the first affected customer cannot face it earlier than 45 days after filing.

Property insurers may exclude wildfire coverage or sell policies that cover only wildfire. Wildfire means an unplanned, uncontrolled fire in combustible vegetation that started outside residential or commercial property. A policy may use a different definition of wildfire only if the Commissioner approves it. A common-interest community association’s wildfire policy may leave out individual units only if it coordinates with or relies on individual owners’ wildfire policies; other insurance duties still apply. These provisions take effect July 1, 2025.

Certain captive insurers may cover homeowners who join an association or choose to join a sponsored insurer’s protected cell. These provisions apply to association captive insurers, sponsored captive insurers, and homeowners who meet the stated membership conditions. An association captive insurer may cover homeowners who join to obtain insurance only if their association owns it; it may cover unit owners only if their unit-owners’ association owns it. A sponsored captive insurer may cover homeowners, including unit owners, who choose to join one of its protected cells. These provisions take effect July 1, 2025.