On Behalf of | Jun 28, 2018 | Firm News

Recently, the Nevada Supreme Court in O.P.H. of Law Vegas, Inc. v. Oregon Mut. Ins. Co.,401 P.3d 218 (Nev. 2017) found that a cancellation notice needed to comply with the statutory requirement of giving the policyholder information about its rights to request information regarding the factual basis for the cancellation and not just providing the specific facts on which the insurer based its cancellation decision.

N.R.S. 687B.360 is Nevada’s insurance policy cancellation statute. The statute requires that when a cancellation notice “does not state with reasonable precision the facts on which the insurer’s decision is based, the insurer shall supply that information within 6 days after receipt of a written request by the policyholder.” However, the statute also provides that “no notice is effective unless it contains adequate information about the policyholder’s right to make such a request.” Interpreting the statute, the Nevada Supreme Court found that a notice cancellation which only explained why the policy was being cancelled, did not comply with the requirement that the policyholder be informed of its right to request additional information. The cancellation was ineffective because it did not comply with the statute.