NV AB512

Codifies into statute existing regulations that prohibit liability insurance policies from reducing coverage limits by defense costs or otherwise limiting coverage for legal defense costs, fees, and expenses for claims

Specifies the prohibition applies to motor vehicle liability insurance, owner-occupied homeowner liability insurance, commercial general liability insurance, commercial automobile insurance, and health care provider professional liability insurance

Exempts risk retention groups, captive insurance that does not cover third-party liability, and nonadmitted insurers from the defense cost coverage requirements

Adds "legal expenses insurance" as a new category of casualty insurance, defined as coverage that pays or reimburses a person or entity for the costs of specific legal services or legal expenses

Excludes prepaid legal service arrangements from the definition of legal expenses insurance, where members prepay and an organization contracts directly with attorneys for fixed payments