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AB 74

Revises provisions relating to insurance. (BDR 57-256)

2025 Regular Session

Modernizes Nevada insurance law by expanding commissioner emergency and enforcement powers, broadening market conduct oversight, and tightening admin and service contract rules.

(Pursuant to Joint Standing Rule No. 14.3.1, no further action allowed.)
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Bill Summary · AB 74

Summary — AB 74 (2024-2025 session)

Title: Revises provisions relating to insurance. (BDR 57-256)
Author: Assembly Committee on Commerce and Labor (on behalf of the Division of Insurance)
Introduced: December 13, 2024 (prefiled Nov 20, 2024)
Current status: Read first time Jan 6, 2025; as of Apr 12, 2025, pursuant to Joint Standing Rule No. 14.3.1, no further action allowed.

Purpose / Intent

AB 74 is a broad revision of the Nevada Insurance Code. Its stated intent includes reorganizing and updating the statutory framework for insurer examinations and market oversight, strengthening the Commissioner of Insurance’s powers and tools (including emergency powers), and revising registration, reporting and financial requirements for administrators and service contract providers. The bill also states the Legislature’s intent to enact changes to a personal vehicle sharing program’s financial responsibility limits (i.e., insurance limits for peer-to-peer vehicle sharing), though that change is expressed as intent rather than an enacted amendment in this version.

Key provisions and changes

  • Reorganizes and reenacts provisions governing examinations of insurers and other regulated persons into a new chapter (sections 2–41). Incorporates elements modeled after the NAIC Market Conduct Surveillance Model Law: requires market-practice data collection/analysis and authorizes follow-up actions, including examinations.
  • Section 42: empowers the Commissioner to issue temporary orders (e.g., during declared emergencies) concerning insurance policies; such orders must be approved by the Governor and are exempted from certain Administrative Procedure Act requirements.
  • Strengthens enforcement tools: expands grounds to nullify charters/certificates, permits limiting (in addition to suspending) certificates of authority, and authorizes cease-and-desist orders and summary suspension of registrations in specified cases.
  • Administrators (registrants who administer service contracts): new reporting obligations for administrative actions/criminal prosecutions; revised application/document, bonding and recordkeeping requirements; authorization to use out-of-state financial institution accounts for fiduciary funds; streamlined revocation where registrant is nonresponsive.
  • Service contract providers: certificate term shortened from 2 years to 1 year, with proportional fee adjustments; revised financial security requirements; service contracts must identify the contract holder; administrators of service contracts must obtain administrator registration and follow administrator rules.
  • Additional changes across the Insurance Code: revise adjuster rules, trade practices and fraud provisions, repeal some obsolete provisions (e.g., home protection insurance rules), transfer certain duties between regulatory offices, update funds/accounts, allow Division attorneys to act as counsel in certain matters, and permit the Commissioner to contract with the NAIC (exempt from state purchasing rules).
  • Designates certain Division of Insurance employees as category II peace officers and provides penalties for violations.

Who is affected

  • Commissioner of Insurance / Division of Insurance (expanded duties and tools).
  • Insurers and other regulated entities (subject to reorganized examination regime and market conduct surveillance).
  • Administrators and service contract providers (new/changed registration, reporting, bonding and operational requirements; more frequent renewals).
  • Providers and consumers in vehicle-sharing programs (legislative intent to change financial responsibility limits).
  • Attorney General’s office and state procurement processes (some changes re: counsel and contracting).
  • Potential downstream effects on consumers (market oversight, emergency consumer protections) and regulated businesses (compliance costs).

Fiscal and procedural notes

  • Fiscal note indicates state-level fiscal effects and potential local impact (increases or newly provides for terms of imprisonment in county or city jails/detention facilities).
  • Some provisions require a two-thirds majority vote (reference to §199 & NRS 683A.08524).
  • As of Apr 12, 2025, the bill’s progress is halted under Joint Standing Rule No. 14.3.1 (no further action allowed).

Bottom line

AB 74 is a comprehensive package to modernize Nevada’s insurance regulatory framework—strengthening market conduct monitoring, giving the Commissioner broader emergency and enforcement powers, and imposing new registration/oversight requirements on administrators and service contract providers. The bill also signals future legislative action on vehicle-sharing insurance limits but, in this version, contains many substantive code reorganizations and regulatory changes that would increase regulatory authority and compliance duties if enacted.

Compiled from official sources — confirm details with the bill’s official record.

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