What is the "collateral source rule" in Nevada?

Prepare for the Nevada Casualty Law Exam with engaging flashcards and multiple-choice questions. Each question provides helpful hints and explanations, ensuring you're ready for exam day!

The collateral source rule in Nevada stipulates that a plaintiff's compensation from sources independent of the defendant, such as insurance benefits or other forms of compensation, will not be used to reduce the amount of damages the defendant is liable for. This means that if a plaintiff receives benefits from their own insurance or other sources, those benefits do not diminish the damages the defendant must pay in a lawsuit.

This rule is designed to ensure that the injured party is fully compensated for their losses and does not benefit from a reduction in damages due to funds received from separate sources. It reinforces the principle that defendants are responsible for all the harm they cause, irrespective of any other compensatory support the plaintiff may have received.

The focus on only insurance benefits or medical expenses, as noted in some other options, misrepresents the broader application of the rule, which encompasses all types of compensation unrelated to the defendant. Limiting compensation to actual losses also does not align with the intent behind the collateral source rule, as it allows for full recovery without deductions for outside compensation.

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