As Nevada’s 2023 legislative session recently came to a close, Gov. Joe Lombardo signed Assembly Bill 398 (ch. 121) into law.
This will prohibit insurers from issuing or renewing a liability insurance policy that contains a provision reducing the stated policy limit by the costs of defense — including legal fees and costs — or otherwise limits the availability of coverage for such defense costs.
Unfortunately, this piece of legislation flew under the radar of various insurance trade associations and chambers of commerce in the state.
The Nevada Credit Union League’s executive summary is intended to alert Nevada credit unions to this change that will take effect on October 1, 2023, address key questions about the law and what it means for credit unions and credit union service organizations (CUSOs), and provide an update on steps being taken to provide further clarification and guidance.
The League will provide Nevada credit union leaders with updated information as it becomes available.
For questions, please email Robert Wilson, senior vice president of state government affairs for the League.