1. 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:

   1. (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
   2. (b) Otherwise limits the availability of coverage for the costs of defense, legal costs and fees and other expenses for claims.

2. 2. The provisions of this section do not apply to:

   1. (a) A risk retention group, as defined in NRS 695E.110.
   2. (b) Captive insurance that does not cover third-party liability.
   3. (c) A nonadmitted insurer, as defined in NRS 685A.0375.

3. 3. As used in this section, “policy of liability insurance” includes only a policy of casualty insurance that:

   1. (a) Provides insurance against legal liability arising from the ownership or operation of a motor vehicle, as defined in NRS 485.050;
   2. (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;
   3. (c) Is a policy of commercial general liability insurance;
   4. (d) Is a policy of commercial automobile insurance; or
   5. (e) Provides insurance covering the professional liability of a provider of health care, as defined in NRS 41A.017.

(Added to NRS by 2023, 1110; A 2025, 513)