New Requirements for Arbitration Clauses - 15-003-W Replaces

BRIAN SANDOVAL Governor STATE OF NEVADA BRUCE H. BRESLOW Director  SCOTT J. KIPPER Commissioner # DEPARTMENT OF BUSINESS AND INDUSTRY DIVISION OF INSURANCE 1818 East College Pkwy., Suite 103 Carson City, Nevada 89706 (775) 687-0700 • Fax (775) 687-0787 Website: doi.nv.gov E-mail: insinfo@doi.nv.gov Bulletin No. 13-008 October 22, 2013 ## NEW REQUIREMENTS FOR ARBITRATION CLAUSES Effective October 1, 2013, Assembly Bill 326 (2013) added a new section to Chapter 597, Miscellaneous Trade Regulations and Prohibited Acts, of the Nevada Revised Statutes. Under the new law, if an agreement includes a provision that requires a person to submit to arbitration, the agreement must include a specific authorization indicating that the person has affirmatively agreed to the provision. If this specific authorization is not present, the arbitration provision is void and unenforceable. This bulletin serves to alert insurance companies of this new law and to set forth related filing requirements of the Division of Insurance (“Division”) in relation to this new law. Any insurer submitting a policy or endorsement for approval by the Division that includes a mandatory arbitration provision must also submit the authorization indicating that the insured has given affirmative approval. The Division will not approve any filing with a mandatory arbitration clause that does not include the required specific authorization provision. Insurers with currently approved forms that include mandatory arbitration clauses are not required to re-file the approved forms, but they must file the required authorization provision in a formal filing no later than December 31, 2013. Questions regarding this topic may be submitted by email to pcinsinfo@doi.nv.gov. SCOTT J. KIPPER Commissioner of Insurance