Which law allows automobile policies in Nevada to exclude coverage for another named insured?

The correct answer is state law, as Nevada law provides the framework within which automobile insurance policies can be structured, including guidelines regarding coverage exclusions. Specifically, Nevada statutes allow insurance companies the option to exclude coverage for specific individuals under a policy, including named insureds in certain situations. This means that in crafting their policies, insurers have the ability to stipulate who may or may not be covered, reflecting the state's legislative approach to insurance regulations.

Understanding this context is crucial, as it highlights the role of state-specific regulations in shaping insurance practices. Federal law does not typically govern insurance at this level of detail, as insurance regulation is traditionally the purview of state legislation. The administrative code is concerned with the rules and regulations set forth by state agencies, while case law refers to judicial interpretations of statutes and legal principles developed through court decisions. In this case, the explicit authorization for exclusions in automobile policies comes directly from state law, making it the correct answer.