If this State is the insured’s home state and certain insurance coverages cannot be procured from authorized insurers, such coverages, designated in this chapter as nonadmitted insurance, may be procured from unauthorized insurers, subject to the following conditions:
1. The insurance must be procured through a broker licensed as such under this chapter or procured by an insured directly from a nonadmitted insurer as permitted by law.
2. Except as otherwise provided in subsection 5, the full amount of insurance required must not be procurable from an insurer authorized to engage in the business of insurance in this State, after diligent effort has been made to do so.
3. The insurance must not be so exported for the purpose of procuring it at a premium rate lower than would be accepted by any authorized insurer; difference in rates alone will not support the export of the insurance if any authorized insurer is able and willing to carry the risk.
4. Differences, bearing directly upon the cost of insurance, in the terms of policies which otherwise provide substantially the same coverage will not support the export of the insurance.
5. A broker is not required to make a diligent effort to determine whether the full amount or type of insurance can be obtained from admitted insurers when the broker is seeking to procure or place nonadmitted insurance for an exempt commercial purchaser if:
(a) The broker procuring or placing the nonadmitted insurance has disclosed to the exempt commercial purchaser that such insurance may or may not be available from the admitted market that may provide greater protection with more regulatory oversight; and
(b) The exempt commercial purchaser has subsequently requested in writing for the broker to procure or place such insurance from a nonadmitted insurer.
(Added to NRS by 1971, 1673; A 1971, 1939; 2011, 2013)