2005 Nevada Revised Statutes - Chapter 687A — Insurance Guaranty Association

CHAPTER 687A - INSURANCE GUARANTYASSOCIATION

NRS 687A.010 Shorttitle.

NRS 687A.020 Applicability.

NRS 687A.030 Definitions.

NRS 687A.031 Associationdefined.

NRS 687A.033 Coveredclaim defined.

NRS 687A.035 Insolventinsurer defined.

NRS 687A.037 Memberinsurer defined.

NRS 687A.039 Netdirect written premiums defined.

NRS 687A.040 Nevada Insurance Guaranty Association created.

NRS 687A.050 Boardof Directors.

NRS 687A.060 Obligations,rights, powers and duties of Association.

NRS 687A.070 Planof operation.

NRS 687A.080 Powersand duties of Commissioner.

NRS 687A.090 Subrogation;exceptions.

NRS 687A.095 Claimagainst person insured by insolvent insurer which is not covered claim.

NRS 687A.100 Exhaustionof remedies of insured.

NRS 687A.103 Reimbursementof Association by insolvent insurer.

NRS 687A.107 Hearingto determine whether insurer insolvent.

NRS 687A.110 Detectionand prevention of insolvency: Powers and duties of Board of Directors.

NRS 687A.115 Detectionand prevention of insolvency: Powers of Commissioner.

NRS 687A.120 Examinationof Association; annual financial report.

NRS 687A.130 Associationtax exempt; exception.

NRS 687A.140 Ratesand premiums to include recoupment of amount paid by Association.

NRS 687A.150 Immunityfrom liability.

NRS 687A.160 Proceedingsinvolving insolvent insurer: Stay; defense by Association.

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NRS 687A.010 Shorttitle. This chapter shall be known and may becited as the Nevada Insurance Guaranty Association Act.

(Added to NRS by 1971, 1943)

NRS 687A.020 Applicability. Except as otherwise provided in subsection 5 of NRS 695E.200, this chapter applies to alldirect insurance, except:

1. Life, annuity, health or disability insurance;

2. Mortgage guaranty, financial guaranty or otherforms of insurance offering protection against investment risks;

3. Fidelity or surety bonds or any other bondingobligations;

4. Credit insurance as defined in NRS 690A.015;

5. Insurance of warranties or service contracts;

6. Title insurance;

7. Ocean marine insurance;

8. Any transaction or combination of transactionsbetween a person, including affiliates of the person, and an insurer, includingaffiliates of the insurer, which involves the transfer of investment or creditrisk unaccompanied by the transfer of insurance risk; or

9. Any insurance provided by or guaranteed by agovernmental entity.

(Added to NRS by 1971, 1943; A 1973, 312; 1977, 434;1987, 1333; 1993, 1396; 1995, 1773, 2057; 1997, 579; 1999, 1833)

NRS 687A.030 Definitions. As used in this chapter, unless the context otherwiserequires, the words and terms defined in NRS687A.031 to 687A.039, inclusive,have the meanings ascribed to them in those sections.

(Added to NRS by 1971, 1943; A 1977, 434; 1985, 537,1073)

NRS 687A.031 Associationdefined. Association means the NevadaInsurance Guaranty Association created pursuant to NRS 687A.040.

(Added to NRS by 1985, 1072)

NRS 687A.033 Coveredclaim defined.

1. Covered claim means an unpaid claim or judgment,including a claim for unearned premiums, which arises out of and is within thecoverage of an insurance policy to which this chapter applies issued by aninsurer which becomes an insolvent insurer, if one of the following conditionsexists:

(a) The claimant or insured, if a natural person, is aresident of this State at the time of the insured event.

(b) The claimant or insured, if other than a naturalperson, maintains its principal place of business in this State at the time ofthe insured event.

(c) The property from which the first party propertydamage claim arises is permanently located in this State.

(d) The claim is not a covered claim pursuant to thelaws of any other state and the premium tax imposed on the insurance policy ispayable in this State pursuant to NRS680B.027.

2. The term does not include:

(a) An amount that is directly or indirectly due areinsurer, insurer, insurance pool or underwriting association, as recovered bysubrogation, indemnity or contribution, or otherwise.

(b) That part of a loss which would not be payablebecause of a provision for a deductible or a self-insured retention specifiedin the policy.

(c) Except as otherwise provided in this paragraph, anyclaim filed with the Association:

(1) More than 18 months after the date of theorder of liquidation; or

(2) After the final date set by the court forthe filing of claims against the liquidator or receiver of the insolventinsurer,

whichever isearlier. The provisions of this paragraph do not apply to a claim for workerscompensation that is reopened pursuant to the provisions of NRS 616C.390 or 616C.392.

(d) A claim filed with the Association for a loss thatis incurred but is not reported to the Association before the expiration of theperiod specified in subparagraph (1) or (2) of paragraph (c).

(e) An obligation to make a supplementary payment foradjustment or attorneys fees and expenses, court costs or interest and bondpremiums incurred by the insolvent insurer before the appointment of aliquidator, unless the expenses would also be a valid claim against theinsured.

(f) A first party or third party claim brought by oragainst an insured, if the aggregate net worth of the insured and any affiliateof the insured, as determined on a consolidated basis, is more than $25,000,000on December 31 of the year immediately preceding the date the insurer becomesan insolvent insurer. The provisions of this paragraph do not apply to a claimfor workers compensation. As used in this paragraph, affiliate means aperson who directly or indirectly owns or controls, is owned or controlled by,or is under common ownership or control with, another person. For the purposeof this definition, the terms owns, is owned and ownership mean ownershipof an equity interest, or the equivalent thereof, of 10 percent or more.

(Added to NRS by 1985, 1072; A 1987, 1065; 1989, 565;1993, 1396; 1999,2521; 2001, 2215;2003, 3307; 2005, 1497)

NRS 687A.035 Insolventinsurer defined. Insolvent insurer means aninsurer which has been issued a certificate of authority by the Commissioner totransact insurance in this state, either at the time the policy was issued orwhen the insured event occurred:

1. Against which a final order of liquidation with afinding of insolvency has been entered by a court of competent jurisdiction inthe insurers state of domicile or in Nevada; or

2. Which is involved in judicial proceeding in itsstate of domicile or in Nevada related to the determination of its solvency,rehabilitation or liquidation, if the court conducting those proceedings hasissued an order prohibiting the insurer from paying claims for more than 30days.

(Added to NRS by 1985, 1072)

NRS 687A.037 Memberinsurer defined. Member insurer means anyperson, except a fraternal or nonprofit service corporation which:

1. Writes any kind of insurance to which this chapterapplies, including the exchange of reciprocal or interinsurance agreements ofindemnity.

2. Is licensed to transact insurance in this state.

(Added to NRS by 1985, 1073)

NRS 687A.039 Netdirect written premiums defined. Net directwritten premiums means direct gross premiums written in this state oninsurance policies to which this chapter applies, less return premiums anddividends paid or credited to policyholders on such direct business. The termdoes not include premiums on contracts between insurers or reinsurers.

(Added to NRS by 1985, 1073)

NRS 687A.040 Nevada Insurance Guaranty Association created. There is hereby created a nonprofit unincorporated legalentity to be known as the Nevada Insurance Guaranty Association. All memberinsurers must be members of the Association as a condition of their authorityto transact insurance in this state. The Association shall perform itsfunctions under a plan of operation established and approved pursuant to NRS 687A.070 and shall exercise itspowers through a Board of Directors established under NRS 687A.050.

(Added to NRS by 1971, 1944; A 1985, 1074)

NRS 687A.050 Boardof Directors.

1. The Board of Directors of the Association shallconsist of not fewer than five nor more than nine persons. The members of theBoard shall be appointed by the Commissioner and shall serve at his discretion.Vacancies on the Board shall be filled in the same manner as initialappointments.

2. A majority of the members appointed shall be thedesignated representatives of member insurers. If practicable, one of themembers appointed as a designated representative of the member insurers must bean officer of a domestic insurer. The Commissioner shall consider among otherthings whether all member insurers are fairly represented.

3. Members of the Board may be reimbursed from theassets of the Association for expenses incurred by them as members of the Boardof Directors.

(Added to NRS by 1971, 1944; A 1977, 435; 2003, 2806)

NRS 687A.060 Obligations,rights, powers and duties of Association.

1. The Association:

(a) Is obligated to the extent of the covered claimsexisting before the determination of insolvency and arising within 30 daysafter the determination of insolvency, or before the expiration date of thepolicy if that date is less than 30 days after the determination, or before theinsured replaces the policy or on request cancels the policy if he does sowithin 30 days after the determination. The obligation of the Association topay a covered claim is limited to the payment of:

(1) The entire amount of the claim, if the claimis for workers compensation pursuant to the provisions of chapters 616A to 616D,inclusive, or chapter 617 of NRS;

(2) Not more than $300,000 for each policy ifthe claim is for the return of unearned premiums; or

(3) The limit specified in a policy or $300,000,whichever is less, for each occurrence for any covered claim other than acovered claim specified in subparagraph (1) or (2).

(b) Shall be deemed the insurer to the extent of itsobligations on the covered claims and to that extent has any rights, duties andobligations of the insolvent insurer as if the insurer had not becomeinsolvent. The rights include, without limitation, the right to seek and obtainany recoverable salvage and to subrogate a covered claim, to the extent thatthe Association has paid its obligation under the claim.

(c) Shall assess member insurers amounts necessary topay the obligations of the Association pursuant to paragraph (a) after aninsolvency, the expenses of handling covered claims subsequent to aninsolvency, the cost of examinations pursuant to NRS 687A.110 and other expensesauthorized by this chapter. The assessment of each member insurer must be inthe proportion that the net direct written premiums of the member insurer forthe calendar year preceding the assessment bear to the net direct writtenpremiums of all member insurers for the same calendar year. Each member insurermust be notified of the assessment not later than 30 days before it is due. Nomember insurer may be assessed in any year an amount greater than 2 percent ofthe net direct written premiums of that member insurer for the calendar yearpreceding the assessment. If the maximum assessment, together with the otherassets of the Association, does not provide in any 1 year an amount sufficientto make all necessary payments, the money available may be prorated and theunpaid portion must be paid as soon as money becomes available. The Associationmay pay claims in any order, including the order in which the claims are receivedor in groups or categories. The Association may exempt or defer, in whole or inpart, the assessment of any member insurer if the assessment would cause thefinancial statement of the member insurer to reflect amounts of capital orsurplus less than the minimum amounts required for a certificate of authorityby any jurisdiction in which the member insurer is authorized to transactinsurance. During the period of deferment, no dividends may be paid toshareholders or policyholders. Deferred assessments must be paid when paymentwill not reduce capital or surplus below required minimums. Payments must berefunded to those companies receiving larger assessments because of deferment,or, in the discretion of the company, credited against future assessments. Eachmember insurer must be allowed a premium tax credit for any amounts paidpursuant to the provisions of this chapter:

(1) For assessments made before January 1, 1993,at the rate of 10 percent per year for 10 successive years beginning March 1,1996; or

(2) For assessments made on or after January 1,1993, at the rate of 20 percent per year for 5 successive years beginning withthe calendar year following the calendar year in which the assessments arepaid.

(d) Shall investigate claims brought against the fundand adjust, compromise, settle and pay covered claims to the extent of theobligation of the Association and deny any other claims.

(e) Shall notify such persons as the Commissionerdirects pursuant to paragraph (a) of subsection 2 of NRS 687A.080.

(f) Shall act on claims through its employees or throughone or more member insurers or other persons designated as servicingfacilities. Designation of a servicing facility is subject to the approval ofthe Commissioner, but the designation may be declined by a member insurer.

(g) Shall reimburse each servicing facility forobligations of the Association paid by the facility and for expenses incurredby the facility while handling claims on behalf of the Association and pay theother expenses of the Association authorized by this chapter.

2. The Association may:

(a) Appear in, defend and appeal any action on a claimbrought against the Association.

(b) Employ or retain persons necessary to handle claimsand perform other duties of the Association.

(c) Borrow money necessary to carry out the purposes ofthis chapter in accordance with the plan of operation.

(d) Sue or be sued.

(e) Negotiate and become a party to contracts necessaryto carry out the purposes of this chapter.

(f) Perform other acts necessary or proper toeffectuate the purposes of this chapter.

(g) Perform any administrative acts requested by theCommissioner in furtherance of the purposes of this title and, if the cost ofthe action is not paid for by the Association or its member insurers, theNevada Industrial Insurance Act.

(h) If, at the end of any calendar year, the Board ofDirectors of the Association finds that the assets of the Association exceedits liabilities as estimated by the Board of Directors for the coming year,refund to the member insurers in proportion to the contribution of each thatamount by which the assets of the Association exceed the liabilities.

(i) Assess each member insurer equally not more than$100 per year for administrative expenses not related to the insolvency of anyinsurer.

(Added to NRS by 1971, 1944; A 1977, 435; 1993, 1397;1995, 2057; 1999,2522; 2003, 3308;2005, 2131)

NRS 687A.070 Planof operation.

1. The Association shall submit a plan of operation tothe Commissioner, together with any amendments necessary or suitable to assurethe fair, reasonable and equitable administration of the Association. The planof operation and any amendments become effective upon approval in writing bythe Commissioner. If the Association fails to submit a suitable plan ofoperation within 90 days following May 5, 1971, or if at any time thereafterthe Association fails to submit suitable amendments to the plan, theCommissioner shall adopt reasonable regulations necessary or advisable toeffectuate the provisions of this chapter. The regulations continue in forceuntil modified by the Commissioner or superseded by a plan submitted by the Associationand approved by the Commissioner.

2. All member insurers shall comply with the plan ofoperation.

3. The plan of operation must:

(a) Establish the procedures for performance of all theduties and powers of the Association under NRS687A.060.

(b) Establish procedures for managing assets of theAssociation.

(c) Establish the amount and method of reimbursingmembers of the Board of Directors under NRS687A.050.

(d) Establish procedures by which claims may be filedwith the Association and establish acceptable forms of proof of covered claims.Notice of claims to the receiver or liquidator of the insolvent insurer shallbe deemed notice to the Association or its agent and a list of those claimsmust be periodically submitted to the Association or similar organization inanother state by the receiver or liquidator.

(e) Establish regular places and times for meetings ofthe Board of Directors.

(f) Establish procedures for keeping records of allfinancial transactions of the Association, its agent and the Board ofDirectors.

(g) Provide that any member insurer aggrieved by anyfinal action or decision of the Association may appeal to the Commissionerwithin 30 days after the action or decision.

(h) Establish procedures for submission to theCommissioner of selections for the Board of Directors.

(i) Contain additional provisions necessary or properfor the execution of the duties and powers of the Association.

4. The plan of operation may provide that any or allduties and powers of the Association, except those under paragraph (c) ofsubsection 1 and paragraph (c) of subsection 2 of NRS 687A.060, are delegated to a personwho performs or will perform functions similar to those of this Association intwo or more states. This person must be reimbursed as a servicing facility andmust be paid for performance of any other functions of the Association. Adelegation under this subsection takes effect only with the approval of boththe Board of Directors and the Commissioner, and may be made only to a personwho extends protection not substantially less favorable and effective than thatprovided by this chapter.

(Added to NRS by 1971, 1946; A 1981, 106)

NRS 687A.080 Powersand duties of Commissioner.

1. The Commissioner shall:

(a) Notify the Association of the existence of aninsolvent insurer not later than 3 days after he receives notice of thedetermination of insolvency by a court or makes a determination of insolvencypursuant to NRS 687A.107, whichever isearlier.

(b) Upon request of the Board of Directors of theAssociation, provide the Association with a statement of the net direct writtenpremiums of each member insurer.

2. The Commissioner may:

(a) Require that the Association notify the insureds ofthe insolvent insurer and any other interested parties of the determination ofinsolvency and of their rights under this chapter. Such notification must be bymail at their last known address, but if sufficient information fornotification by mail is not available, notice by publication in a newspaper ofgeneral circulation is sufficient.

(b) Suspend or revoke, after notice and opportunity forhearing, the certificate of authority to transact insurance in this State ofany member insurer which fails to pay an assessment when due or fails to complywith the plan of operation. As an alternative, the Commissioner may levy a fineon any member insurer which fails to pay an assessment when due. The fine mustnot exceed 5 percent of the unpaid assessment per month, except that no finemay be less than $100 per month.

(c) Revoke the designation of any servicing facility ifhe finds claims are being acted upon unsatisfactorily.

(d) Request the Association to perform any actsspecified in paragraph (g) of subsection 2 of NRS 687A.060.

(Added to NRS by 1971, 1947; A 1985, 1074; 2005, 2133)

NRS 687A.090 Subrogation;exceptions.

1. Any person recovering under this chapter shall bedeemed to have assigned his rights under the policy to the Association to theextent of his recovery from the Association. Every insured or claimant seekingthe protection of this chapter shall cooperate with the Association to the sameextent as the person would have been required to cooperate with the insolventinsurer. Except as otherwise provided in subsection 2, the Association does nothave a cause of action against the insured of the insolvent insurer for anysums it has paid out.

2. The Association may recover the amount of moneypaid to or on behalf of an insured of an insolvent insurer:

(a) If the aggregate net worth of the insured and anyaffiliate of the insured, as determined on a consolidated basis, is more than$25,000,000 on December 31 of the year immediately preceding the date theinsurer becomes an insolvent insurer; or

(b) If the Association paid the money in error.

3. The receiver, liquidator or statutory successor ofan insolvent insurer is bound by any settlements of covered claims by theAssociation or a similar organization in another state. The court havingjurisdiction shall grant those claims priority equal to that to which theclaimant would have been entitled in the absence of this chapter against theassets of the insolvent insurer. The expenses of the Association or similarorganization in handling claims must be accorded the same priority as theliquidators expenses.

4. The Association shall periodically file with thereceiver or liquidator of the insolvent insurer statements of the coveredclaims paid by the Association and estimates of anticipated claims on theAssociation, which statements shall preserve the rights of the Associationagainst the assets of the insolvent insurer.

5. As used in this section, affiliate means a personwho directly or indirectly owns or controls, is owned or controlled by, or isunder common ownership or control with, another person. For the purpose of thisdefinition, the terms owns, is owned and ownership mean ownership of anequity interest, or the equivalent thereof, of 10 percent or more.

(Added to NRS by 1971, 1947; A 2003, 3310)

NRS 687A.095 Claimagainst person insured by insolvent insurer which is not covered claim. A claim asserted against a person insured by an insurerwhich has become insolvent which, if it were not a claim by or for the benefitof a reinsurer, insurer, insurance pool or underwriting association, would be acovered claim, may be filed directly with the receiver of the insolventinsurer. These claims may not be asserted in any action against the insured ofthe insolvent insurer.

(Added to NRS by 1977, 434; A 1993, 1399)

NRS 687A.100 Exhaustionof remedies of insured.

1. Any person having a claim against his insurer,including, but not limited to, a claim for damages caused by an uninsuredmotorist, under any provision in his insurance policy, which is also a coveredclaim shall first exhaust his right under the policy. Any amount payable on acovered claim under this chapter must be reduced by the amount of theapplicable limit under the claimants insurance policy, regardless of whetherthe claimant recovers the full amount payable under that policy or exhaustsonly a lesser amount.

2. Any person having a claim which may be recoveredunder more than one insurance guaranty association or its equivalent shall seekrecovery first from the association of the place of residence of the insured.However, if the claim is a first party claim for damage to property with apermanent location, recovery must first be sought from the association of thelocation of the property. If the claim is a workmans compensation claim,recovery must first be sought from the association of the residence of theclaimant. Any recovery under this chapter must be reduced by the amount of therecovery from any other insurance guaranty association or its equivalent.

(Added to NRS by 1971, 1948; A 1993, 1399)

NRS 687A.103 Reimbursementof Association by insolvent insurer. If theAssociation pays any claims on behalf of an insurer which is an insolventinsurer within the meaning of subsection 2 of NRS 687A.035, the insurer may not acceptany new business in this state until it has reimbursed the Association for thepayment of the claims, including the administrative expenses incurred by theAssociation in acting upon and paying the claims.

(Added to NRS by 1985, 1073)

NRS 687A.107 Hearingto determine whether insurer insolvent.

1. The Commissioner may conduct a hearing to determinewhether an insurer is an insolvent insurer within the meaning of subsection 2of NRS 687A.035. The Commissionershall notify the insurer which is the subject of the hearing not less than 3days before the hearing. The Commissioner may consider any evidence at thehearing which he deems relevant to the determination of the solvency of theinsurer.

2. The Commissioner shall make his determination inwriting within 15 days after the hearing. The Commissioner shall adoptregulations governing hearings pursuant to this section.

(Added to NRS by 1985, 1073)

NRS 687A.110 Detectionand prevention of insolvency: Powers and duties of Board of Directors. To aid in the detection and prevention of insurer insolvencies:

1. The Board of Directors shall, upon majority vote,notify the Commissioner of any information indicating any member insurer may beinsolvent or in a financial condition hazardous to the policyholders or thepublic.

2. The Board of Directors may, upon majority vote,request that the Commissioner order an examination of any member insurer whichthe Board in good faith believes may be in a financial condition hazardous tothe policyholders or the public. Within 30 days of the receipt of such request,the Commissioner shall begin such examination. The examination may be conductedas a National Association of Insurance Commissioners examination or may beconducted by such persons as the Commissioner designates. The cost of suchexamination shall be paid by the Association and the examination report shallbe treated as are other examination reports. Except as permitted by paragraph(c) of subsection 1 of NRS 687A.115,the Commissioner shall not release an examination report to the Board ofDirectors prior to its release to the public. The Commissioner shall notify theBoard of Directors when the examination is completed. The request for anexamination shall be kept on file by the Commissioner, but it shall not be opento public inspection prior to the release of the examination report to the public.

3. The Board of Directors may, upon majority vote,make reports and recommendations to the Commissioner upon any matter germane tothe solvency, liquidation, rehabilitation or conservation of any memberinsurer. Such reports and recommendations are not public documents.

4. The Board of Directors may, upon majority vote,make recommendations to the Commissioner for the detection and prevention ofinsurer insolvencies.

5. The Board of Directors shall, at the conclusion ofany insurer insolvency in which the Association was obligated to pay coveredclaims, prepare a report on the history and causes of such insolvency, based onthe information available to the Association, and submit such report to theCommissioner.

(Added to NRS by 1971, 1948; A 1977, 437)

NRS 687A.115 Detectionand prevention of insolvency: Powers of Commissioner. Toaid in the detection and prevention of insurer insolvencies:

1. The Commissioner may:

(a) Notify the insurance commissioners of the otherstates and territories of the United States and of the District of Columbiawhen he revokes or suspends a license, or when he makes any formal order that acompany restrict its writing of insurance, obtain additional contributions tosurplus, withdraw from the state or reinsure any part of its business or anyother account for the security of policyholders or creditors.

(b) Report to the Board of Directors any action setforth in paragraph (a) and the receipt of a report from another insurancecommissioner indicating that the action has been taken elsewhere. The reportshall contain all significant details of the action taken or the reportreceived.

(c) Report to the Board of Directors when he hasreasonable cause to believe from any examination of any member insurer, whethercompleted or in process, that the member insurer may be insolvent or in afinancial condition hazardous to the interests of policyholders or the public.

(d) Furnish to the Board of Directors the early warningtests developed by the National Association of Insurance Commissioners. TheBoard may use the information furnished to carry out its duties. The report andthe information contained therein is not a public record and shall be keptconfidential by the Board of Directors until it is made public by the Commissioneror other lawful authority.

2. The Commissioner may seek the advice andrecommendations of the Board of Directors concerning any matter affecting hisduties and responsibilities relating to the financial condition of memberinsurers and of insurers seeking admission to transact business in this state.

(Added to NRS by 1977, 433)

NRS 687A.120 Examinationof Association; annual financial report. TheAssociation is subject to examination and regulation by the Commissioner. TheBoard of Directors shall submit, not later than March 30 of each year, afinancial report for the preceding calendar year in a form approved by theCommissioner.

(Added to NRS by 1971, 1949)

NRS 687A.130 Associationtax exempt; exception. The Association is exemptfrom payment of all fees and all taxes levied by this State or any of itssubdivisions, except taxes:

1. Levied onreal or personal property; or

2. Imposed pursuant to the provisions of chapter 363A or 363Bof NRS.

(Added to NRS by 1971, 1949; A 2003, 20thSpecial Session, 228)

NRS 687A.140 Ratesand premiums to include recoupment of amount paid by Association. The rates and premiums charged for insurance policies towhich this chapter applies shall include amounts sufficient to recoup a sumequal to the amounts paid to the Association by the member insurer less anyamounts returned to the member insurer by the Association, or less any premiumtax credits allowed under this chapter, and such rates shall not be deemedexcessive as a result of containing such recoupment allowances.

(Added to NRS by 1971, 1949)

NRS 687A.150 Immunityfrom liability. There is no liability, and nocause of action of any nature shall arise against any member insurer, theAssociation, its agents or employees, the Board of Directors, the Commissioneror his representatives, for any reasonable action taken by them in theperformance of their duties and powers under this chapter.

(Added to NRS by 1971, 1949)

NRS 687A.160 Proceedingsinvolving insolvent insurer: Stay; defense by Association.

1. Upon the application of the Association or insuredand upon cause shown, all proceedings in which the insolvent insurer is aparty, or is obligated to defend a party, in any court in this state must bestayed for 3 months and any time thereafter ordered by the court after the datethe insolvency is determined to permit proper defense by the Association of allpending causes of action. Cause may be established by affidavit showing theunavailability of the insolvent insurers files or records which are reasonablynecessary for the Association to confirm coverage and adjust the claim.

2. If an insolvent insurer has failed to defend aninsured in any action, the Association may apply on its own behalf or on behalfof the insured to have any judgment or order in the action set aside and theAssociation may defend against the action on its merits.

(Added to NRS by 1971, 1949; A 1977, 438; 1987, 928)