Contact: Liz Martins, Public Information Officer
Phone: (775) 687-0772
E-mail: emartins@doi.nv.gov   

FOR IMMEDIATE RELEASE– February 23, 2023 

Statement on Nevada Supreme Court’s ruling on temporary credit score ban

CARSON CITY, NV – The Nevada Supreme Court upheld the Division's regulation prohibiting insurance companies from using adverse credit information to increase premiums in personal lines of insurance until May 20, 2024. Credit-based insurance scores, which use credit information to price insurance, were negatively affected for many people when the government imposed the lockdown during the pandemic. This resulted in premium increases for some, which the Division of Insurance determined created an unfairly discriminatory result. The Court found that “[t]he Division acted within the province of its authority when it found that using consumer credit scores against insureds during the pandemic and its aftermath would result in unfair actuarial discrimination.” 

“The Court’s decision provides a helpful analysis of both the Division’s authority to promulgate regulations and how the term ‘discrimination’ may be fairly read in this matter,” said Interim Commissioner Nick Stosic. “The intent of this regulation was to protect those consumers who were already severely affected by the pandemic, without unfairly burdening the insurance companies,” continued Stosic.

The Division is currently evaluating the number of carriers impacted by this decision and will be providing guidance to carriers on how to comply with this ruling.  Regulation R087-20 was approved by the Legislative Commission on December 28, 2020; and it became effective when it was filed with the Secretary of State’s Office on December 29, 2020. The full text of the approved Regulation R087-20 may be found here: https://www.leg.state.nv.us/Register/2020Register/R087-20AP.pdf.

The full text of the Nevada Supreme Court Decision may be found here: R087_20_NV_Supreme_Court_Decision.pdf

About the Nevada Division of Insurance

The State of Nevada Division of Insurance, a Division of the Nevada Department of Business and Industry, protects the rights of Nevada consumers and regulates Nevada’s $22 billion insurance industry. The Division of Insurance has offices in Carson City and Las Vegas. For Fiscal Years 2021 and 2022, the Division investigated 5,062 consumer complaints, answered approximately 25,000 inquiries, and recovered over $8 million on behalf of consumers. For more information about the Division of Insurance, visit DOI.NV.GOV.

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