NevadaAB51283rd Regular Session (2025)HouseWALLET

AN ACT relating to insurance; establishing the policies of insurance to which certain requirements relating to coverage for legal defense costs are applicable; including certain insurance that provides for certain payments for certain legal services and certain expenses in the definition of “casualty insurance”; and providing other matters properly relating thereto.

Sponsored By: Assembly Committee on Commerce and Labor

Signed by Governor

BDR 57-1089

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 2 benefits, 0 costs, 0 mixed.

Legal fees won’t reduce liability limits

The law bars insurers from issuing or renewing certain liability policies that let defense costs reduce the policy limit. It applies to car liability, liability for your owner-occupied primary home, commercial general liability, commercial auto, and health-care professional liability. Defense costs, legal fees, and claim expenses are covered without cutting into the stated liability limit or being otherwise limited. This rule does not apply to risk retention groups, captive insurance that does not cover third-party liability, or nonadmitted insurers.

Legal-expense coverage treated as casualty insurance

The law treats insurance that pays or reimburses the cost of specific legal services or legal expenses as casualty insurance. These policies follow the rules for casualty coverage. It does not include prepaid legal service plans where an organization hires lawyers and pays fixed fees with no extra payment per service.

Sponsors & Cosponsors

Sponsor

  • Assembly Committee on Commerce and Labor

    Affiliation unavailable

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 62 • No: 0

Senate vote 5/19/2025

Final Passage - Senate (1st Reprint)

Yes: 20 • No: 0

House vote 4/22/2025

Final Passage - Assembly (1st Reprint)

Yes: 42 • No: 0

Actions Timeline

  1. Chapter 95.

    5/29/2025legislature
  2. Approved by the Governor.

    5/29/2025legislature
  3. Enrolled and delivered to Governor.

    5/23/2025legislature
  4. In Assembly. To enrollment.

    5/20/2025House
  5. Read third time. Passed. Title approved. (Yeas: 20, Nays: None, Excused: 1.) To Assembly.

    5/19/2025Senate
  6. Read second time.

    5/16/2025Senate
  7. From committee: Do pass.

    5/15/2025Senate
  8. Read first time. Referred to Committee on Commerce and Labor. To committee.

    4/29/2025Senate
  9. In Senate.

    4/28/2025Senate
  10. To Senate.

    4/25/2025House
  11. From printer. To engrossment. Engrossed. First reprint.

    4/25/2025House
  12. To printer.

    4/22/2025House
  13. Read third time. Passed, as amended. Title approved, as amended. (Yeas: 42, Nays: None.)

    4/22/2025House
  14. Dispensed with reprinting.

    4/21/2025House
  15. Read second time. Amended. (Amend. No. 192.)

    4/21/2025House
  16. Placed on Second Reading File.

    4/21/2025House
  17. From committee: Amend, and do pass as amended.

    4/21/2025House
  18. From printer. To committee.

    3/25/2025House
  19. Read first time. Referred to Committee on Commerce and Labor. To printer.

    3/24/2025House

Bill Text

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