Prohibited provisions in policy of liability insurance relating to costs of defense, legal costs and fees and other expenses for claims; exemptions

1. Notwithstanding any other provision of law, an insurer, including, without limitation, an insurer listed in NRS 679A.160, shall not issue or renew a policy of liability insurance that contains a provision that: (a) Reduces the limit of liability stated in the policy by the costs of defense, legal costs and fees and other expenses for claims; or (b) Otherwise limits the availability of coverage for the costs of defense, legal costs and fees and other expenses for claims. 2. The provisions of this section do not apply to: (a) A risk retention group, as defined in NRS 695E.110. (b) Captive insurance that does not cover third-party liability. (c) A nonadmitted insurer, as defined in NRS 685A.0375. 3. As used in this section, “policy of liability insurance” includes only a policy of casualty insurance that: (a) Provides insurance against legal liability arising from the ownership or operation of a motor vehicle, as defined in NRS 485.050; (b) Provides insurance against legal liability arising from the ownership of housing that is occupied by the owner as the primary residence of the owner; (c) Is a policy of commercial general liability insurance; (d) Is a policy of commercial automobile insurance; or (e) Provides insurance covering the professional liability of a provider of health care, as defined in NRS 41A.017.