Nevada law authorizes insurance companies to enforce exclusions that limit or eliminate intra-family liability for bodily injuries. NRS 687B.147. Or so said the Nevada Supreme Court in Progressive Gulf Ins. Co. v. Faehnrich, 130 Nev. Adv. Op. 19, 327 P.3d 1061 (2014). However, as we mentioned in our explanation of Faehnrich, the Court made only a passing reference to NRS 687B.147, the law that allows such a limitation or exclusion. The court did not provide any sort of analysis of the law. And there have been no cases that have interpreted the statute. So the Nevada Law Blogs decided to take on this analytical task. And what a task it was.
The statute itself is remarkably confusing. Perhaps that is because it is the product of the messy lawmaking process that some have compared to “sausage making”. However, by looking at the legislative history, the statute becomes more clear. [Continue reading]