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Exec seeks liability legislation


Nevada needs to develop a legislative remedy that deals with the rising costs of construction defect litigation in a positive way while appropriately protecting consumers, an insurance executive said Thursday.

Nevada insurance regulators should not look to mandatory pools for residential contractors’ liability insurance, said Rita Nowak, assistant vice president of property and casualty for the Alliance of American Insurers in Downers Grove, Ill.

During testimony before Nevada Insurance Commissioner Alice Molasky-Arman in Carson City on July 1, Nowak advised against developing a joint underwriting association, such as the state recently did for medical malpractice insurance.

“Such a mechanism could potentially become underfunded,” Nowak said. “There’s going to be solvency issues where there may not be sufficient funds to cover all the losses coming in.

Source : accessmylibrary.com



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