NV Public Adjuster cheat sheet

Nevada Insurance Code is Title 57 of the Nevada Revised Statutes (NRS); the Division of Insurance (DOI) sits within the Department of Business and Industry and is headed by the Commissioner.

NRS 684A governs producer licensing; NRS 686A governs trade practices and unfair claim settlement; NRS 690B covers casualty and property policy forms and cancellation rules.

A public adjuster in Nevada must hold a producer license with the public adjuster classification, be appointed by the insurer only for that line, and contract with the insured in writing before adjusting.

License renewal is biennial on the last day of the licensee's birth month; continuing education requires 30 hours per two-year term, including 3 hours of ethics, per NAC 683A.

Insurers must acknowledge a claim notification within 15 days and act promptly; the Commissioner may impose civil penalties up to $5,000 per willful violation under NRS 686A.

Unfair claim settlement practices under NRS 686A.310 include misrepresenting policy provisions, failing to act promptly, and compelling litigation by offering substantially less than the amount ultimately recovered.

Insurer cancellation of a homeowner policy requires at least 10 days' notice for nonpayment and 30 days for other reasons; midterm cancellation is limited to specified grounds under NRS 687B.

Nevada requires that any person who sells, solicits, or negotiates insurance be licensed; compensating an unlicensed person for claim assistance is prohibited and subjects both parties to penalties.

Dwelling policy (DP-1, DP-2, DP-3) covers the dwelling structure, other structures, personal property, and loss of use; DP-3 is open peril on the dwelling and named peril on contents.

Homeowners HO-3 covers the dwelling on an open peril basis and personal property on a named peril basis; HO-5 extends open peril to both structure and contents.

Replacement cost pays the cost to repair or replace with like kind and quality without depreciation; actual cash value equals replacement cost minus depreciation.

Coinsurance clauses require the insured to carry insurance equal to a stated percentage of value; a penalty reduces recovery in proportion to any shortfall.

The standard mortgage clause gives the lender rights independent of the insured's acts, including notice of cancellation and loss payment to the extent of its interest.

Business income coverage pays net income lost and continuing normal operating expenses during the period of restoration; extra expense pays costs to avoid or minimize shutdown.

Flood is excluded under standard property forms and must be purchased through the NFIP or a private flood policy; earth movement and ordinance or law are also commonly excluded.

A deductible applies per occurrence, not per item; when multiple coverages apply to one loss, the deductible is applied once unless the form states otherwise.

The claim file should document the first notice of loss, policy verification, coverage determination, damage inspection, valuation method, and every communication with the insured and insurer.

Measure and photograph all damaged areas before repair; document pre-loss condition, cause of loss, and any pre-existing damage to separate covered from non-covered items.

The proof of loss is a sworn statement of the amount claimed; the policy typically requires it within 60 days after the insurer's request, and it can be extended in writing.

Replacement cost claims are commonly paid in two parts: the actual cash value first, then recoverable depreciation after repairs are completed and documented.

A scope of loss itemizes quantities, unit prices, labor, materials, overhead and profit, and sales tax; overhead and profit is generally added when multiple trades are required.

Subrogation lets the insurer pursue a third party after paying the insured; the insured must avoid actions that impair the right of recovery, such as signing a release.

Appraisal resolves valuation disputes when the policy provides it: each party selects a competent appraiser, and the appraisers choose an umpire if they disagree.

Nevada's prompt-payment expectations require timely investigation and communication; unexplained delay or low offers can constitute an unfair claim practice under NRS 686A.310.

A public adjuster represents the insured, not the insurer; the duty of loyalty runs to the policyholder and must be disclosed in writing at the outset.

Compensation must be disclosed in a written contract; Nevada limits public adjuster fees and prohibits charging a fee before any payment is received unless the contract states otherwise.

Fiduciary duty requires holding client funds, such as claim drafts or premium payments, in trust and remitting them promptly to the proper party.

Misrepresentation, twisting, rebating, and commingling of funds are prohibited trade practices under NRS 686A and can result in license suspension or revocation.

Continuing education ethics hours and timely reporting of administrative actions, criminal convictions, or changes of address are ongoing producer obligations.

A conflict of interest exists if the adjuster has a financial interest in the repair vendor or the loss; it must be disclosed and avoided where it could bias the adjustment.

Confidentiality requires that personal and financial information gathered during a claim not be disclosed except as needed to adjust the claim or as required by law.

Recordkeeping: maintain claim records and contract copies for the period required by the Division, and make them available for examination on request.