Nevada Considers FAIR Plan to Expand Property Insurance Access
Nevada lawmakers are evaluating a bill that would establish a FAIR Plan association, aiming to provide property insurance in areas where standard coverage is difficult to obtain. Assembly Bill 437 would require all state-authorized property insurers to participate in the association and share financial obligations proportional to their written premiums over the past three years.
The proposed FAIR Plan policies would offer personal property coverage up to $750,000 and commercial property coverage up to $5 million. A nine-member board would oversee the association, with representatives from various insurance sectors and consumer groups. The board would be obligated to meet at least once a year.
The legislation also grants the state insurance commissioner the authority to assess fees on insurers to fund the association. While insurers could recover these fees from policyholders, the bill explicitly states they cannot be used to justify rate increases, nor would they be classified as premiums for regulatory purposes.
If enacted, Nevada would join 33 other states and the District of Columbia in implementing a FAIR Plan, according to the Insurance Information Institute. Colorado recently launched its own FAIR Plan.
While Nevada does not yet have a FAIR Plan, the state has already implemented several state-run insurance programs to improve residents’ access to affordable healthcare. In 2021, Nevada passed legislation creating a state-run public health insurance option, becoming the second state after Washington to do so. This program aims to lower costs in the individual health insurance market by mandating premium reductions over the next five years.
Additionally, the Nevada Public Employees’ Benefits Program (PEBP) manages health and life insurance programs for qualified Nevada government employees. Established in 1963, PEBP provides a range of insurance options, including medical, prescription drug, dental, vision, life, and long-term disability coverage.
