NAC690B.245. Disclosure of coverage limitations.

     1. Except as otherwise provided in subsections 5 and 6, an insurer that issues a private passenger automobile insurance policy which limits coverage for permissive users, as defined in the policy, shall disclose those limitations in the manner set forth in subsections 2, 3 and 4.

     2. The insurer shall include a statement on the declaration page of the private passenger automobile insurance policy.

     3. The statement may be imprinted, stamped or imprinted on a sticker. The statement shall be deemed approved by the Commissioner if it is written as follows:

IMPORTANT NOTICE: This policy reduces liability coverage limits when an insured vehicle is operated by a person other than the insured. The limits for bodily injury and property damage liability coverage are reduced to the financial liability limits set forth in NRS 485.185, regardless of the liability limits shown on the declaration page.

     4. The “IMPORTANT NOTICE” portion of the statement must be written in at least 12-point font and in bold, capital letters. The remaining portion of the statement must be written in at least 10-point font.

     5. An insurer may use a statement that is written substantially similar to the statement set forth in subsection 3 if:

     (a) The insurer has filed the statement with the Commissioner; and

     (b) The Commissioner has approved the statement.

     6. If a private passenger automobile insurance policy is currently in effect and the insurer did not include the statement required pursuant to subsection 3, the insurer shall include the statement set forth in subsection 3 if the policy is renewed. At the time of renewal, the insurer shall send to the last known address of the insured by first-class or certified mail:

     (a) A declaration page that includes the statement set forth in subsection 3; or

     (b) A renewal notice that includes, without limitation:

          (1) The name of the insured;

          (2) The number of the policy;

          (3) The year, make and complete identification number of the insured vehicle or vehicles;

          (4) The term of the insurance, including the day, month and year on which the policy becomes effective and expires;

          (5) A description of the coverage and limitations of the policy; and

          (6) The statement set forth in subsection 3.

     (Added to NAC by Comm’r of Insurance by R024-04, eff. 7-26-2004)