Panel to examine builders’ defect insurance

Monday, Sept. 16, 2002 | 11:13 a.m.

CARSON CITY -- A task force appointed by state Insurance Commissioner Alice Molasky-Arman to find a solution to the declining availability and high cost of construction defect insurance policies will hold its first meeting Thursday.

Molasky-Arman said the study committee was created at the request of Gov. Kenny Guinn to come up with recommendations for the 2003 Legislature.

The last two sessions of the Legislature wrestled with the problem but could not come up with any agreement between the construction industry, insurance companies and trial lawyers representing homeowners.

Steve Hill, chairman of the Coalition for Fairness in Construction that represents many building groups, said, "Our goal is to restore common sense and reason to our wildly litigious environment."

Hill, a member of the task force, said, "This problem threatens the livelihoods of thousands of Nevadans employed in the construction industry and pushes the cost of new homes out of reach of working families across the state."

Other members are Joyce Smith, representing subcontractors; Matthew Sharp, representing the Nevada Trial Lawyers Association; Kay Lockhart, representing the Nevada Independent Insurance Agents; Mark Sektnan, representing the American Insurance Association; and Glen Sheard, representing the general public.

The first meeting will be televised between Las Vegas and Carson City.