Section 687A.033 - "Covered claim" defined1. "Covered claim" means an unpaid claim or judgment, including a claim for unearned premiums, which arises out of and is within the coverage of an insurance policy to which this chapter applies if the insurer becomes an insolvent insurer, the policy was issued by the insurer or assumed by the insurer in an assumed claims transaction, and one of the following conditions exists: (a) The claimant or insured, if a natural person, is a resident of this State at the time of the insured event.(b) The claimant or insured, if other than a natural person, maintains its principal place of business in this State at the time of the insured event.(c) The property from which the first party property damage claim arises is permanently located in this State.2. The term does not include: (a) An amount awarded as punitive or exemplary damages.(b) A fine or penalty paid to a governmental authority.(c) An amount sought as a return of premium under any retrospective rating plan.(d) An amount due any reinsurer, insurer, insurance pool, underwriting association, health maintenance organization, hospital plan corporation, professional health service corporation or self-insurer as subrogation recoveries, reinsurance recoveries, contribution, indemnification or otherwise.(e) Except as otherwise provided in this paragraph, any claim filed with the Association:(1) More than 25 months after the date of the order of liquidation; or(2) After the final date set by the court for the filing of claims against the liquidator or receiver of the insolvent insurer, whichever is earlier. The provisions of this paragraph do not apply to a claim for workers' compensation that is reopened pursuant to the provisions of NRS 616C.390 or 616C.392.
(f) A claim filed with the Association for a loss that is incurred but is not reported to the Association before the expiration of the period specified in subparagraph (1) or (2) of paragraph (e).(g) A first-party claim by an insured whose net worth exceeds $10,000,000 on December 31 of the year immediately preceding the date the insurer becomes an insolvent insurer.(h) A third-party claim relating to a policy of an insured whose net worth exceeds $25,000,000 on December 31 of the year immediately preceding the date the insurer becomes an insolvent insurer.(i) A claim that would otherwise be a covered claim, but is an obligation to or on behalf of a person who has a net worth greater than that allowed by the insurance guaranty association law of the state of residence of the claimant at the time specified by such law, and which association has denied coverage to that claimant on that basis. (j) A first-party claim by an insured which is an affiliate of the insolvent insurer.(k) A fee or other amount relating to goods or services sought by or on behalf of any attorney or other provider of goods or services retained by the insolvent insurer or an insured before the date the insurer was determined to be insolvent.(l) A fee or other amount sought by or on behalf of any attorney or other provider of goods or services retained by any insured or claimant in connection with the assertion or prosecution of any claim, covered or otherwise, against the Association.(m) A claim for interest.3. For the purposes of paragraphs (g) and (h) of subsection 2, an insured's net worth on the applicable date shall be deemed to include the aggregate net worth of the insured and all of the insured's subsidiaries and affiliates as calculated on a consolidated basis.4. The provisions of paragraphs (g) and (h) of subsection 2 do not apply to a claim for workers' compensation.5. The provisions of paragraph (h) of subsection 2 do not apply to third-party claims against the insured where the insured has applied for or consented to the appointment of a receiver, trustee or liquidator for all or a substantial part of the insured's assets, filed a voluntary petition in bankruptcy, filed a petition or an answer seeking a reorganization or arrangement with creditors or to take advantage of any insolvency law, or if an order, judgment or decree is entered by a court of competent jurisdiction, on the application of a creditor, adjudicating the insured bankrupt or insolvent or approving a petition seeking reorganization of the insured or of all or substantial part of its assets.6. As used in this section, "affiliate" means a person who directly or indirectly owns or controls, is owned or controlled by, or is under common ownership or control with, another person. For the purpose of this definition, the terms "owns," "is owned" and "ownership" mean ownership of 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; 2015, 3476; 2021, 112Amended by 2021, Ch. 27,§8, eff. 10/1/2021.Amended by 2015, Ch. 522,§256, eff. 7/1/2015.Added to NRS by 1985, 1072; A 1987, 1065; 1989, 565; 1993, 1396; 1999, 2521; 2001, 2215; 2003, 3307; 2005, 1497