1. Except as otherwise provided in subsection 7, any natural person may satisfy the requirements of NRS 485.185 by obtaining, in lieu of an owner’s policy of liability insurance, an operator’s policy of liability insurance which meets the requirements of this section and NRS 485.3091.

2. An operator’s policy of liability insurance may only be issued to a person if:

(a) The number of motor vehicles that the person owns is greater than the number of persons in his or her household who possess a driver’s license; and

(b) Each person in his or her household who possesses a driver’s license is covered by an operator’s policy of liability insurance.

3. An operator’s policy of liability insurance must state, in addition to the requirements of NRS 485.3091, that:

(a) The insurer is only liable under the policy for liability incurred by the insured while the named insured is the operator of a motor vehicle or while a motor vehicle owned by the insured is not being operated by any person;

(b) The policy does not provide coverage for any vicarious liability imposed on the owner of the motor vehicle as a result of the operation by another person of a motor vehicle owned by the insured or for any liability imposed by NRS 41.440 or 483.300; and

(c) The coverage provided by the policy may not meet the requirements of the financial responsibility laws of other states,

unless such extended coverage is expressly included in the policy. No operator’s policy of liability insurance may be delivered or issued for delivery in this State unless the insured has signed an endorsement stating that he or she has read and understood the policy and its limitations.

4. An owner of a motor vehicle which is registered or required to be registered in this State and who holds an operator’s policy of liability insurance shall not permit another person to operate the motor vehicle if the owner knows or should have known that the person does not have liability insurance to cover the person’s own operation of that motor vehicle.

5. An operator’s policy of liability insurance must not provide coverage for damages incurred while a person other than the named insured is operating a motor vehicle.

6. An operator’s policy of liability insurance must provide coverage for liability incurred by the insured while a motor vehicle owned by the insured is not being operated by any person.

7. This section does not apply to a lessor, dealer, manufacturer, rebuilder or distributor of a motor vehicle, an owner of a fleet, a common, contract or private motor carrier or any other employer who owns a motor vehicle for use in his or her business.

(Added to NRS by 1987, 1088; A 2001 Special Session, 252)