Recent legislative efforts in Nevada to eliminate “defense within limits” provisions in commercial insurance policies could significantly disrupt the state's professional liability insurance market, according to a new report from the Risk and Insurance Management Society (RIMS).
The report, “RIMS Legislative Review: Exploring Nevada’s ‘Defense Within Limits’ Laws,” was authored by Katherine J Henry, a member of the RIMS Public Policy Committee, with support from Aaron Campbell, an associate at Bradley.
The analysis outlines three major risks associated with the proposed changes and offers strategies for managing these challenges.
The report identifies the following concerns if the legislation is enacted: higher insurance costs that could be passed on to consumers, the potential exit of insurers from the Nevada market due to unpredictable legal expenses, and compliance difficulties for commercial insurance buyers operating nationwide.
Currently, the report is available exclusively to RIMS members for 60 days. After this period, it will be accessible to the broader risk management community.
RIMS will host its Legislative Summit March 19-20 in Washington, D.C., at the US Chamber of Commerce. The event will feature an educational program on March 19, offering insights from risk professionals, elected officials, and congressional staff on key legislative issues affecting the risk management and insurance industries.
On March 20, attendees will meet with lawmakers and their staff to discuss RIMS' stance on current and proposed legislation.
The RIMS Public Policy Committee works to advance risk management by analyzing legislative, regulatory, and legal developments, recommending policy positions, and educating members on how these changes could impact the industry.
Additionally, RIMS operates a political action committee, RISK PAC, which enables RIMS members to contribute financially to the campaigns of US elected officials who support the organization’s legislative priorities. Contributions of any amount are accepted from US-based RIMS members.
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