Nevada insurers face penalties for late claim payments under new AB52_R1 guidelines
April 24, 2025 | House Bills - Introduced, House Bills, 2025 House and Senate Bills, Nevada Legislation Bills, Nevada
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Assembly Bill 52, introduced in the Nevada State Legislature on April 24, 2025, aims to enhance the accountability of insurance companies regarding the timely payment of claims. The bill seeks to address ongoing concerns about delays in claim processing and inadequate communication from insurers to claimants.
Key provisions of Assembly Bill 52 include a mandate for insurers to pay interest on claims that are not settled within specified timeframes. If a claim is not paid within 30 days of approval, insurers will be required to pay interest at a rate of 10 percent per annum, calculated from the due date until the claim is paid. Additionally, insurers must notify claimants within 20 working days if they require further information to process a claim and must approve or deny the claim within 21 to 30 days after receiving the requested information, depending on the submission method.
The bill also prohibits insurers from denying claims without a reasonable basis and restricts them from requesting resubmissions of information already provided, unless a legitimate reason is given. Furthermore, if a claim is approved, insurers cannot pay only a portion of it. The legislation includes provisions for awarding costs and attorney’s fees to the prevailing party in disputes over claims.
Debate surrounding Assembly Bill 52 has highlighted concerns from insurance companies about the potential for increased operational costs and the burden of compliance. However, proponents argue that the bill is essential for protecting consumers and ensuring fair treatment in the claims process.
The implications of this legislation are significant, as it could lead to faster claim resolutions and greater transparency in the insurance industry. Experts suggest that if passed, Assembly Bill 52 may improve consumer confidence in insurance providers and reduce the number of disputes arising from delayed payments.
As the bill progresses through the legislative process, its potential impact on both the insurance industry and consumers will be closely monitored, with discussions likely to continue regarding its provisions and the balance between regulatory oversight and industry flexibility.
Key provisions of Assembly Bill 52 include a mandate for insurers to pay interest on claims that are not settled within specified timeframes. If a claim is not paid within 30 days of approval, insurers will be required to pay interest at a rate of 10 percent per annum, calculated from the due date until the claim is paid. Additionally, insurers must notify claimants within 20 working days if they require further information to process a claim and must approve or deny the claim within 21 to 30 days after receiving the requested information, depending on the submission method.
The bill also prohibits insurers from denying claims without a reasonable basis and restricts them from requesting resubmissions of information already provided, unless a legitimate reason is given. Furthermore, if a claim is approved, insurers cannot pay only a portion of it. The legislation includes provisions for awarding costs and attorney’s fees to the prevailing party in disputes over claims.
Debate surrounding Assembly Bill 52 has highlighted concerns from insurance companies about the potential for increased operational costs and the burden of compliance. However, proponents argue that the bill is essential for protecting consumers and ensuring fair treatment in the claims process.
The implications of this legislation are significant, as it could lead to faster claim resolutions and greater transparency in the insurance industry. Experts suggest that if passed, Assembly Bill 52 may improve consumer confidence in insurance providers and reduce the number of disputes arising from delayed payments.
As the bill progresses through the legislative process, its potential impact on both the insurance industry and consumers will be closely monitored, with discussions likely to continue regarding its provisions and the balance between regulatory oversight and industry flexibility.
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