1. A binder which is issued in accordance with NRS 687B.182 to 687B.187, inclusive, shall be deemed a policy for the purpose of proving that a person has insurance coverage.
2. Any party to a contract or other agreement who refuses to accept such a binder as proof of insurance when that proof is required by that contract or agreement:
(a) Shall be fined not more than $500.
(b) Is liable to the party presenting the binder as proof of insurance for actual damages sustained therefrom.
3. The provisions of this section do not apply to a binder related to a policy of insurance which provides coverage of at least $1,000,000.