Section 686A.680 - Standards applicable to insurers under automobile policies1. An insurer that adjusts and settles a claim for an automobile total loss shall use the method set forth in paragraph (a) or (b).(a) The insurer may elect to offer a replacement automobile which is a specific comparison automobile available to the claimant, with all applicable taxes, license fees and other fees incident to transfer of evidence of ownership of the automobile paid, at no cost other than any deductible provided in the applicable policy. The insurer may prorate license fees and limit payment to the unused period of the fees. The offer and any rejection of the offer must be documented in the claim file.(b) The insurer may elect to make a cash settlement based upon the cost, less any deductible provided in the applicable policy, to purchase a comparable automobile including all applicable taxes, license fees and other fees incident to transfer of evidence of ownership of a comparable automobile. The cost must be determined using one of the following valuation methods:(1) The average of the cost of two or more comparable automobiles which : (I) Are currently available or were available within the most previous 90 days in the local market area; or(II) If not currently available or available within the most previous 90 days in the local market area, are currently or were available within any extended period or in any expanded market area, so long as the extension or expansion is no greater than necessary to identify two or more such automobiles;(2) The average of two or more price quotations for a comparable automobile obtained by the insurer from two or more licensed dealers located within the local market area; or(3) The value of a comparable automobile as determined by any source of statistically valid fair market values for automobiles if the method used by the source to determine the value: (I) Gives primary consideration to the value of automobiles in a claimant's local market area and considers data for automobiles outside that area only if relevant data for a claimant's local market area is not available or is insufficient to produce a statistically valid fair market value;(II) Uses a database or other data resource that is capable of producing statistically valid fair market values for at least 85 percent of all makes and models of automobiles for the most recent 15 model years, taking into account the value of all major options for such automobiles; and(III) Produces a statistically valid fair market value for an automobile that is based on current data available from the area surrounding the location in which a claimant's automobile was principally garaged or on any adjustment to those parameters that is necessary to ensure statistical validity. Except as otherwise provided in subsection 2, the amount of a cash settlement must not be less than the lowest valuation obtained using a valuation method set forth in subparagraph (1), (2) or (3), as adjusted by any deductible, taxes, license fees and other fees.
2. Any deviation in the amount of a cash settlement from a valuation obtained pursuant to paragraph (b) of subsection 1 must be supported by documents giving particulars of the condition of the automobile. Any deductions from the cost, including a deduction for salvage, must be measurable, discernible, itemized and specified as to the amount and must be appropriate in amount. When determining the deduction for salvage, the insurer shall take into account any decrease in value caused by an inspection of the vehicle if the vehicle was in a drivable condition before the inspection and the person that performs the inspection is unable to restore the vehicle to the same drivable condition as before the inspection. The basis for the settlement must be documented in the claim file and fully disclosed to the claimant in writing.3. Where liability and damages are reasonably clear, an insurer may not recommend that a third-party claimant make a claim under his or her own policies solely to avoid paying claims under the insurer's insurance contract or policy.4. An insurer may not require a claimant to travel unreasonably to inspect a replacement automobile, to obtain a repair estimate or to have the automobile repaired at a specific repair shop.5. An insurer shall, upon the claimant's request, include the first-party claimant's deductible, if any, in subrogation demands. A subrogation recovery must be shared on a proportionate basis with the first-party claimant, unless the deductible amount has been otherwise recovered. No deduction for expenses may be made from the deductible recovery unless an outside attorney is retained to collect the recovery. The deduction may then be for no more than a pro rata share of the allocated loss adjustment expense.6. If an insurer prepares an estimate of the cost of automobile repairs, the estimate must be in an amount for which it may be reasonably expected the damage can be satisfactorily repaired. The insurer shall give a copy of the estimate to the claimant and may furnish to the claimant the names of one or more conveniently located repair shops. Any such repair shop must be operated by a person having a license issued by the Department of Motor Vehicles, if such a license is required by NRS 487.610.7. When the amount claimed is reduced because of betterment or depreciation, all information supporting the reduction must be contained in the claim file and fully disclosed to the claimant in writing. The deductions must be itemized and specified as to amount, and must be appropriate in amount.8. When the insurer elects to repair a damaged automobile, the insurer shall cause the damaged automobile to be restored to its condition before the loss at no additional cost to the claimant, other than as stated in the applicable policy, within a reasonable time.9. The insurer may not use, as a basis for cash settlement with a claimant, an amount which is less than the amount which the insurer would pay if repairs were made, other than in total loss situations, unless the amount is agreed to by the claimant.Nev. Admin. Code § 686A.680
Comm'r of Insurance, M-9 § 9, eff. 2-21-80-NAC A 12-15-88; 3-28-96; A by R031-17AP, eff. 5/16/2018