Assembly Bill No. 114-Committee on Labor and Management
(On Behalf of the Division of Industrial Relations
of the Department of Business and Industry)
February 3, 1997
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Referred to Committee on Labor and Management
SUMMARY--Revises provisions relating to certification and authorization of insurer to provide industrial insurance. (BDR 53-594)
FISCAL NOTE: Effect on Local Government: No.
Effect on the State or on Industrial Insurance: No.
EXPLANATION - Matter in italics is new; matter in brackets [ ] is material to be omitted.
AN ACT relating to industrial insurance; eliminating the duty of the division of industrial relations of the department of business and industry to certify or authorize insurers to provide industrial insurance; clarifying that unauthorized insurers are prohibited from providing industrial insurance in this state; and providing other matters properly relating thereto.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
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Section 1 NRS 616A.465 is hereby amended to read as follows:
616A.465 1. Except as otherwise provided in this section, the division shall:
(a) [Certify or authorize whether an insurer meets the requirements of chapters 616A to 617, inclusive, of NRS to provide industrial insurance;
(b)] Regulate insurers pursuant to chapters 616A to 617, inclusive, of NRS [;
(c)] ; and
(b) Investigate insurers regarding compliance with statutes and the division's regulations . [; and
(d) If necessary, suspend the certification or authorization of an insurer to provide industrial insurance.]
2. The commissioner is responsible for reviewing rates, investigating the solvency of insurers, authorizing private carriers pursuant to chapter 680A of NRS and certifying:
(a) Self-insured employers pursuant to NRS 616B.300 to 616B.330, inclusive, and 616B.336;
(b) Associations of self-insured public or private employers pursuant to NRS 616B.350 to 616B.446, inclusive; and
(c) Third-party administrators pursuant to chapter 683A of NRS.
3. The department of administration is responsible for contested claims relating to industrial insurance pursuant to NRS 616C.310 to 616C.385, inclusive. The administrator is responsible for administrative appeals pursuant to NRS 616B.215.
4. The Nevada attorney for injured workers is responsible for legal representation of claimants pursuant to NRS 616A.435 to 616A.460, inclusive, and 616D.120.
5. The division is responsible for the investigation of complaints. If a complaint is filed with the division, the administrator shall cause to be conducted an investigation which includes a review of relevant records and interviews of affected persons. If the administrator determines that a violation may have occurred, the administrator shall proceed in accordance with the provisions of NRS 616D.120 and 616D.130.
Sec. 2. NRS 616B.463 is hereby amended to read as follows:
616B.463 1.Before a private carrier may provide industrial insurance pursuant to chapters 616A to 617, inclusive, of NRS, the private carrier must be authorized by the commissioner pursuant to chapter 680A of NRS and maintain such security of the kind described in NRS 680A.120 and 680A.140 as may be required.
2. A private carrier shall not provide industrial insurance pursuant to chapters 616A to 617, inclusive, of NRS as an unauthorized insurer pursuant to subsection 9 of NRS 680A.070.
Sec. 3. NRS 680A.070 is hereby amended to read as follows:
680A.070A certificate of authority is not required of an insurer with respect to any of the following:
1. Investigation, settlement or litigation of claims under its policies lawfully written in this state, or liquidation of assets and liabilities of the insurer, other than collection of new premiums, all as resulting from its former authorized operations in this state.
2. Except as otherwise provided in subsection 2 of NRS 680A.060, transactions thereunder after issuance of a policy covering only subjects of insurance that are not resident, located or expressly to be performed in this state at the time of issuance, and lawfully solicited, written and delivered outside this state.
3. Prosecution or defense of suits at law, except that no insurer unlawfully transacting insurance in this state without a certificate of authority may institute or maintain, other than defend, any action at law or in equity in any court of this state, either directly or through an assignee or successor in interest, to enforce any right, claim or demand arising out of such an insurance transaction until the insurer, assignee or successor has obtained a certificate of authority. This provision does not apply to any suit or action by the receiver, rehabilitator or liquidator of such an insurer, assignee or successor under laws similar to those contained in chapter 696B of NRS.
4. Transactions pursuant to surplus lines coverages lawfully written under chapter 685A of NRS.
5. A suit, action or proceeding for the enforcement or defense of its rights relative to its investments in this state.
6. Reinsurance, except as to a domestic reinsurer or the reinsurance of a domestic insurer, unless the reinsurance is authorized pursuant to subsection 1 of NRS 681A.110.
7. Transactions in this state involving group life insurance, group health or blanket health insurance, or group annuities where the master policy or contract of such groups was lawfully solicited, issued and delivered pursuant to the laws of a state in which the insurer was authorized to transact insurance, to a group organized for purposes other than the procurement of insurance or to a group approved pursuant to NRS 688B.030 or 689B.026, and where the policyholder is domiciled or otherwise has a bona fide situs.
8. The issuance of annuities by an affiliate of an authorized insurer if the affiliate:
(a) Is approved by the commissioner;
(b) Is organized as a nonprofit educational corporation;
(c) Issues annuities only to nonprofit institutions of education and research; and
(d) Reports and pays any premium tax on the annuities required pursuant to chapter 680B of NRS.
9. Transactions , other than for workers' compensation insurance or for industrial insurance provided pursuant to chapters 616A to 617, inclusive, of NRS, involving the procurement of excess liability insurance above underlying liability coverage or self-insured retention of at least $25,000,000, if procured from an unauthorized alien or foreign insurer who does not solicit, negotiate or enter into such transactions in this state by any means, and if procured by a person:
(a) Whose total annual premiums for property and casualty insurance , not including workers' compensation or industrial insurance, is $1,000,000 or more; and
(b) Who employs 250 or more full-time employees.
A person who procures insurance in accordance with this subsection shall report and pay any premium tax on the insurance required pursuant to NRS 680B.040.
Sec. 4. This act becomes effective at 12:01 a.m. on July 1, 1999.