Nevada Eyes FAIR Plan to Expand Property Insurance Options
Nevada lawmakers are currently reviewing a bill, Assembly Bill 437, that could establish a FAIR Plan association. This association aims to provide crucial personal and commercial property insurance options in areas where traditional insurance coverage is difficult to obtain.
The proposed legislation would mandate participation from all property insurers authorized to operate within the state. These insurers would share financial responsibilities, based on their written premiums over the past three years.
Under the framework of this proposed FAIR Plan, policies would offer personal property coverage up to $750,000, and commercial property coverage up to $5 million. A board of nine members would oversee the association’s operations. This board would bring together representatives from various sectors, including mutual and stock insurers, a Nevada-based property insurance trade group, a trade group representing independent agents, an insurance producer, and three consumer representatives.
The bill also grants the state insurance commissioner the authority to assess fees on insurers to establish and maintain the association. While insurers could potentially recover these fees from policyholders, the legislation explicitly prohibits their use to justify rate increases. Furthermore, the fees would not be classified as premiums for regulatory purposes.
If enacted, Nevada would join 33 other states and the District of Columbia that have implemented a FAIR Plan, according to the Insurance Information Institute. Colorado recently joined these states with their own FAIR Plan.
Nevada’s Existing Insurance Programs
Even without its own FAIR Plan, Nevada has already put several state-operated insurance programs in place designed to improve both the availability and affordability of healthcare for its residents.
In 2021, as the second state after Washington, Nevada enacted legislation to create a state-run public health insurance option. This program aims to enhance affordability within the individual health insurance market by mandating premium reductions over the next five years.
In addition, the Nevada Public Employees’ Benefits Program (PEBP) exists to manage and administer health and life insurance benefits for qualified Nevada government employees. Founded in 1963, PEBP offers extensive coverage encompassing medical, prescription drug, dental, vision, life, and long-term disability insurance.
