Provides for the establishment of the Fair Access to Insurance Requirements Plan. (BDR 57-103)

REQUIRES TWO-THIRDS MAJORITY VOTE (§ 15)
(Reprinted with amendments adopted on April 21, 2025)
FIRST REPRINT A.B. 437

- *AB437_R1*

ASSEMBLY BILL NO. 437–ASSEMBLYMEMBERS DICKMAN,
GRAY, GURR; DELONG AND GALLANT

MARCH 17, 2025
____________

Referred to Committee on Commerce and Labor

SUMMARY—Provides for the establishment of the Fair Access to
Insurance Requirements Plan. (BDR 57-103)

FISCAL NOTE: Effect on Local Government: No.
Effect on the State: Yes.

~

EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

AN ACT relating to property insurance; creating the Fair Access to
Insurance Requirements Plan Association; requiring
the membership of certain authorized insurers in the
Association; creating the Board of Directors of the
Association and prescribing the duties of the Board;
requiring the Board to establish the Fair Access to
Insurance Requirements (FAIR) Plan; establishing the
requirements of the FAIR Plan; and providing other
matters properly relating thereto.
Legislative Counsel’s Digest:
Sections 2-18 of this bill provide for the establishment of the Fair Access to 1
Insurance Requirements (FAIR) Plan to provide property insurance coverage and 2
commercial property insurance coverage which results from the perils of fire or 3
certain other perils when such coverage is not otherwise available from an 4
authorized insurer in this State. Sections 2-8 define certain terms relating to the 5
FAIR Plan. Section 9 creates the Fair Access to Insurance Requirements Plan 6
Association to establish, offer and maintain the FAIR Plan. Section 9 requires any 7
authorized insurer that offers or sells certain property insurance or commercial 8
property insurance in this State to be a member of the Association. Sections 10-12 9
create the Board of Directors for the Association and prescribe the duties of the 10
Board, which include establishing the FAIR Plan, developing a plan of operation 11
for the FAIR Plan and making amendments to the plan of operation, subject to 12
approval of the Commissioner of Insurance. Section 12 establishes the required 13
contents of the plan of operation for the FAIR Plan. Sections 12 and 17 authorize 14
the Commissioner to adopt regulations relating to the FAIR Plan. Section 13 15
authorizes the Commissioner to revo ke approval of all or part of the plan of 16
operation and make changes to the plan of operation if the plan of operation is 17
insufficient. Sections 14 and 15 establish provisions governing the issuance of 18

– 2 –

- *AB437_R1*
policies and collecting certain fees from Association members. Section 16 19
authorizes the Commissioner to take certain actions against an Association member 20
who fails to pay certain fees or otherwise comply with the plan of operation for the 21
FAIR Plan. Section 18 makes a final action or order of the Commission er relating 22
to the FAIR Plan subject to judicial review. 23

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. Chapter 691A of NRS is hereby amended by 1
adding thereto the provisions set forth as sections 2 to 18, inclusive, 2
of this act. 3
Sec. 2. As used in sections 2 to 18, inclusive, of this act, 4
unless the context otherwise requires, the words and terms defined 5
in sections 3 to 8, inclusive, of this act have the meanings ascribed 6
to them in those sections. 7
Sec. 3. “Association” means the Fair Access to Insurance 8
Requirements Plan Association created by section 9 of this act. 9
Sec. 4. “Association member” means any authorized insurer 10
that offers or sells any property insurance or commercial property 11
insurance in this State. 12
Sec. 5. “Board” means the Board of Directors of the 13
Association created by section 10 of this act. 14
Sec. 6. “Commercial property insurance” means insurance 15
against direct loss to commercial property, including, without 16
limitation, buildings and the contents of buildings, which results 17
from the perils of fire or perils covered under extended coverage 18
insurance, vandalism or malicious mischief. The term does not 19
include commercial vehicle insurance or farm insurance. 20
Sec. 7. “FAIR Plan” means the Fair Access to Insurance 21
Requirements Plan established by the Board pursuant to section 22
11 of this act. 23
Sec. 8. “Property insurance” means insurance against direct 24
loss to residential property, including, without limitation, buildings 25
and the contents of buildings, which results from the perils of fire 26
or perils covered under extended coverage insurance, vandalism 27
or malicious mischief. The term does not include vehicle 28
insurance or farm insurance. 29
Sec. 9. 1. There is hereby created the Fair Access to 30
Insurance Requirements Plan Association, which is a nonprofit 31
unincorporated public entity. All Association members are and 32
remain members of the Association as a condition of the authority 33
of each Association member to transact insurance or reinsurance 34
in this State. 35
2. The Association shall: 36

– 3 –

- *AB437_R1*
(a) Exercise its powers through the Board; and 1
(b) Perform its functions under a plan of operation established 2
and approved pursuant to section 12 of this act. 3
3. The Association is established to provide property 4
insurance coverage and commercial property insurance coverage 5
when such coverage is not otherwise available from an authorized 6
insurer. The Association: 7
(a) Shall establish, offer and maintain a policy of property 8
insurance and a policy of commercial property insurance in 9
accordance with the requirements of the FAIR Plan. 10
(b) Shall assess and share among Association members, on a 11
fair and equitable basis, all expenses, income and losses based on 12
the written premium of each Association member for property 13
insurance and commercial property insurance consistent with 14
sections 2 to 18, inclusive, of this act. 15
(c) May issue policies of property insuran ce and commercial 16
property insurance, reinsure any such policies in whole or in part, 17
cede any such reinsurance or transfer risk to other capital 18
markets. 19
(d) Shall establish an Internet website available to the public 20
which includes information about the FAIR Plan. The Internet 21
website must include a toll -free telephone number that a person 22
may use to obtain information about the FAIR Plan. 23
Sec. 10. 1. There is hereby created the Board of Directors 24
of the Association, as the governing body of the Association and to 25
administer the FAIR Plan, consisting of the following 12 members 26
appointed by the Governor: 27
(a) Two members representing mutual insurers that write 28
property insurance in this State; 29
(b) Two members representin g stock insurers that write 30
property insurance in this State; 31
(c) One member representing a trade association based in this 32
State that represents insurers of various property interests; 33
(d) One member representing a trade association based in this 34
State that represents independent agents who are licensed to write 35
property and casualty insurance in this State; 36
(e) One member who is a producer of insurance licensed to 37
write property and casualty insurance in this State; 38
(f) Two members, one of whom resid es in Northern Nevada 39
and one of which resides in Southern Nevada, representing the 40
interests of consumers and, to the extent practicable, representing 41
consumer advocacy organizations; and 42
(g) Three members, one of whom is a fire chief in Eastern 43
Nevada, one of whom is a fire chief in Northern Nevada and one 44
of whom is a fire chief in Southern Nevada. 45

– 4 –

- *AB437_R1*
2. The term of each member of the Board appointed pursuant 1
to paragraphs (a) to (g), inclusive, of subsection 1 is 3 years. A 2
member may be reappointed for up to three additional terms of 3 3
years in the same manner as the original appointment. A vacancy 4
occurring in the membership of the Board must be filled in the 5
same manner as the original appointment. 6
3. The Board shall annually elect a Chair from amon g its 7
members. 8
4. The Board shall meet at least annually and may meet at 9
such further times as deemed necessary by the Chair. The Board 10
shall adopt rules for its own management and governance. 11
5. The Board may, on its own initiative or at the request o f 12
the Commissioner, and subject to the approval of the 13
Commissioner, amend the FAIR Plan. 14
6. On or before April 1, 2027, and on or before each April 1 15
thereafter, the Board shall submit to the Commissioner, in the 16
form and manner determined by the Commis sioner, a report 17
concerning the FAIR Plan during the preceding calendar year. 18
The report must include information concerning: 19
(a) The financial condition of the FAIR Plan; 20
(b) The number of policies and the coverage available through 21
the FAIR Plan; 22
(c) The number and types of claims made under the FAIR 23
Plan; and 24
(d) A description of the sufficiency of coverage under the 25
FAIR Plan and the sufficiency of finances of the FAIR Plan. 26
7. In addition to the requirements of subsection 6, the 27
Commissioner may require the Board to submit quarterly reports 28
or may examine the affairs of the Association if the Commissioner 29
determines that such action is necessary to ensure the continued 30
solvency of the FAIR Plan. 31
Sec. 11. 1. The Board shall establish the Fair Access to 32
Insurance Requirements Plan, in accordance with the 33
requirements of sections 2 to 18, inclusive, of this act, and any 34
regulations adopted pursuant thereto. 35
2. Rates for the FAIR Plan must: 36
(a) Not be excessive, inadequate or unfairly discriminatory; 37
(b) Be actuarially sound so that revenue generated from 38
premiums is adequate to pay for expected losses, expenses and 39
taxes; 40
(c) Reflect the investment income of the FAIR Plan; and 41
(d) Reflect the cost of reinsurance or other capital risk transfer 42
markets. 43
3. All rate filing documentation and review requirements set 44
forth in this title apply to the FAIR Plan. 45

– 5 –

- *AB437_R1*
Sec. 12. 1. On or before July 1, 2026, the Board shall 1
establish and su bmit to the Commissioner a plan of operation for 2
the FAIR Plan which satisfies the requirements of sections 2 to 18, 3
inclusive, of this act. The plan of operation and any amendments 4
to the plan of operation become effective upon written approval of 5
the Commissioner. 6
2. The plan of operation for the FAIR Plan must provide for: 7
(a) The lines of insurance coverage which are to be written. 8
(b) Coverage limits for: 9
(1) Property insurance, in an amount which must be 10
$750,000 or less; and 11
(2) Commercial pr operty insurance, in an amount which 12
must be $5,000,000 or less. 13
(c) The policy forms which are to be used. 14
(d) The perils which are to be covered. 15
(e) The establishment of reasonable standards for 16
underwriting to determine the eligibility of a risk, which must 17
include the requirement that coverage under the FAIR Plan is 18
only available if: 19
(1) A fire risk assessment is conducted on the property to be 20
covered and the property owner implements the findings and 21
recommendations for mitigation set forth in the assessment. 22
(2) During the 2 years immediately preceding the date on 23
which the coverage begins, not less than three authorized insurers 24
have declined to issue a policy of property insurance or 25
commercial property insurance, as applicable, which cover s the 26
property; and 27
(3) During each 2 -year period in which the property is 28
covered by the FAIR Plan, the owner of the property applies to not 29
less than three authorized insurers for a policy of property 30
insurance or commercial property insurance, as applicable, to 31
cover the property and each authorized insurer to which the owner 32
applies declines to issue such a policy. 33
(f) Any compensation or commission which is to be paid to a 34
producer of insurance who offers the FAIR Plan. 35
(g) Procedures for the collection of fees, including the times at 36
which fees will be collected, from Association members. 37
(h) Assessments against Association members, which must be 38
in the proportion that the premiums received by each assessed 39
Association member bear to premiums received for all assessed 40
Association members, for the 3 most recent calendar years for 41
which such information is available. As used in this paragraph, 42
“premiums received” means premiums received on property 43
insurance lines and commercial property insuranc e lines in this 44
State. 45

– 6 –

- *AB437_R1*
(i) Administration of the FAIR Plan by the Board, including 1
any servicing agreements into which the Board may enter to 2
support the operations of the Association. 3
(j) Any other matter necessary or convenient for the purpose of 4
assuring fair access to the FAIR Plan. 5
3. If the Board fails to submit a plan of operation in 6
compliance with the requirements of this section, or fails to timely 7
submit suitable amendments to the plan of operation, the 8
Commissioner shall adopt regulations th at are necessary to 9
effectuate the provisions of sections 2 to 18, inclusive, of this act. 10
Any regulation adopted pursuant to this subsection must, if the 11
Board subsequently submits a suitable plan of operation or 12
suitable amendments, allow the subsequent plan of operation or 13
amendments, if approved by the Commissioner, to supersede 14
regulations adopted by the Commissioner pursuant to this 15
subsection. 16
Sec. 13. 1. The Commissioner may revoke approval of all 17
or part of an appr oved plan of operation for the FAIR Plan, in 18
compliance with the requirements of this section, if the 19
Commissioner determines that the approved plan of operation is 20
insufficient to satisfy the requirements of sections 2 to 18, 21
inclusive, of this act. 22
2. The Commissioner shall give notice to the Board not less 23
than 30 days before the date on which the Commissioner intends 24
to revoke all or part of the plan of operation. Not later than 30 25
days after the date on which the Board receives notice from the 26
Commissioner, the Board may submit a revised plan of operation 27
or a revised part of a plan for operation to the Commissioner for 28
review and approval. 29
3. If the Board fails to timely submit a revised plan of 30
operation pursuant to subsection 2, the Commissio ner may make 31
changes to the existing plan of operation to ensure the plan of 32
operation satisfies the requirements of sections 2 to 18, inclusive, 33
of this act. Any changes made pursuant to this subsection do not 34
affect the validity of a policy executed before the date on which the 35
changes are effective. 36
4. If the Board subsequently submits a suitable plan of 37
operation which satisfies the requirements of sections 2 to 18, 38
inclusive, of this act and is approved by the Commissioner, that 39
subsequent plan of op eration must supersede any changes made 40
by the Commissioner pursuant to subsection 3. 41
Sec. 14. The Association shall not sell a policy subject to 42
sections 2 to 18, inclusive, of this act directly to any person or 43
entity. A policy of the Association may only be issued through a 44
producer of insurance, who shall, on behalf of a person or entity 45

– 7 –

- *AB437_R1*
and as part of the submittal of an application for a policy, include 1
evidence of not less than three declinations of coverage for the 2
property at issue. 3
Sec. 15. 1. The Association may collect fees from 4
Association members to ensure sufficient revenue to start the 5
Association. An Association member: 6
(a) Who pays a fee pursuant to this subsection may recoup the 7
amount of the fee directly from policyholders; and 8
(b) Shall not increase premiums based on a fee which is 9
assessed pursuant to this subsection. 10
2. The Association may collect fees from Association 11
members as needed, subject to the approval o f the Commissioner, 12
to meet the financial obligations of the Association. An 13
Association member: 14
(a) Who pays a fee pursuant to this subsection may recoup the 15
amount of the fee over a reasonable amount of time in the form of 16
a surcharge on policyholders; and 17
(b) Shall not increase premiums based on a fee which is 18
assessed pursuant to this subsection. 19
3. A fee collected pursuant to subsection 1 or 2 must not be 20
considered a premium for any purpose, including, without 21
limitation, for the computation of an y tax on gross premium 22
income or any commission of a producer of insurance. 23
4. If the Commissioner determines at any time that the 24
Association is or may become unable to meet the financial 25
obligations of the Association, the Commissioner shall direct the 26
Board to assess and collect fees pursuant to subsection 2 in an 27
amount which is sufficient to restore the ability of the Association 28
to meet its obligations. 29
5. The Association may abate or defer, in whole or in part, a 30
fee assessed to an Association me mber if, in the opinion of the 31
Board, payment of the fee would endanger the solvency of the 32
Association member. The Association may assess the amount of 33
any fee or part of a fee which is abated or deferred pursuant to 34
this subsection against other Association members. 35
Sec. 16. If an Association member fails to timely pay a fee or 36
comply with the plan of operation pursuant to sections 2 to 18, 37
inclusive, of this act, the Commissioner may: 38
1. After notice and a hearing, susp end or revoke the 39
certificate of authority to transact insurance or reinsurance in this 40
State of the Association member. 41
2. Impose a fine on the Association member, in an amount 42
which must be the greater of $5,000 or the amount of the fee plus 43
interest and the costs of enforcement by the Commissioner. 44

– 8 –

- *AB437_R1*
Sec. 17. The Commissioner may adopt regulations to carry 1
out the provisions of sections 2 to 18, inclusive, of this act. 2
Sec. 18. A final act ion or order of the Commissioner issued 3
pursuant to sections 2 to 18, inclusive, of this act is subject to 4
judicial review in a court of competent jurisdiction pursuant to the 5
procedure provided in chapter 233B of NRS for contested cases. 6
Sec. 19. Notwithstanding the provisions of section 10 of this 7
act, as soon as practicable on or after October 1, 2025, the Governor 8
shall appoint the members of the Board of Directors of the Fair 9
Access to Insurance Requirements Plan Association as follows: 10
1. For the members identified in paragraph (a) of subsection 1 11
of section 10 of this act, one member to an initial term of 1 year and 12
one member to an initial term of 3 years; 13
2. For the members identified in paragraph (b) of subsection 1 14
of section 10 of this act, one member to an initial term of 1 year and 15
one member to an initial term of 3 years; 16
3. For the member identified in paragraph (c) of subsection 1 17
of section 10 of this act, to an initial term of 2 years; 18
4. For the members identified in paragraphs (d) and (e) of 19
subsection 1 of section 10 of this act, to initial terms of 1 year; 20
5. For the members identified in paragraph (f) of subsection 1 21
of section 10 of this act, one member to an initial term of 2 years 22
and one member to an initial term of 3 years; and 23
6. For the members identified in paragraph (g) of subsection 1 24
of section 10 of this act, to an initial term of 3 years. 25

H