Nevada insurers must pay claims within 30 days or face interest penalties

In the bustling halls of the Nevada State Legislature, a pivotal discussion unfolded on March 5, 2025, as Assembly Bill 52 (AB52) was introduced, aiming to reshape the landscape of insurance claims processing in the state. This bill, designed to enhance the efficiency and transparency of insurance claim payments, has sparked significant debate among lawmakers, insurers, and consumer advocates alike.

At its core, AB52 seeks to address the frustrations faced by claimants when dealing with insurance companies. The bill mandates that insurers must approve or deny claims within strict timeframes—15 working days for claims requiring additional information and 30 days for those submitted electronically. If a claim is approved but not paid within the stipulated period, insurers will be required to pay interest at a rate of 10 percent per annum, calculated from the due date until payment is made. This provision aims to incentivize timely payments and protect consumers from undue delays.

One of the most notable aspects of AB52 is its prohibition against insurers requesting claimants to resubmit information already provided, unless a legitimate reason is given. This measure is intended to prevent harassment and discourage practices that could delay the claims process. Additionally, the bill stipulates that insurers cannot pay only part of an approved claim, ensuring that claimants receive the full amount owed without unnecessary complications.

However, the bill has not been without its critics. Some insurance industry representatives argue that the stringent timelines could lead to rushed decisions, potentially compromising the thoroughness of claim evaluations. They express concerns that the bill may inadvertently increase operational costs for insurers, which could ultimately be passed on to consumers in the form of higher premiums.

Supporters of AB52, including consumer advocacy groups, emphasize the bill's potential to empower claimants and streamline the claims process. They argue that the current system often leaves consumers vulnerable to delays and confusion, and that AB52 could foster a more equitable environment for those seeking compensation for their losses.

As the legislative session progresses, the implications of AB52 extend beyond the immediate realm of insurance claims. If passed, the bill could set a precedent for similar reforms in other states, potentially reshaping the insurance industry's approach to claims processing nationwide. Experts suggest that the outcome of this bill could influence public trust in insurance providers and impact the overall regulatory landscape.

With discussions ongoing and amendments likely, the fate of Assembly Bill 52 remains uncertain. However, one thing is clear: the push for a more transparent and efficient claims process is resonating strongly within the halls of Nevada's legislature, reflecting a growing demand for accountability in the insurance sector. As lawmakers continue to deliberate, the voices of both consumers and insurers will play a crucial role in shaping the final version of this significant piece of legislation.