Senate Bill No. 405

Senate Bill No. 405-Committee on Government Affairs

(On Behalf of the Risk Management Division
of the Department of Administration)

May 19, 1997
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Referred to Committee on Government Affairs

SUMMARY--Revises provisions governing fund for insurance premiums. (BDR 27-476)

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 the fund for insurance premiums; making various changes concerning deposits to and expenditures from the fund; 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 331.187 is hereby amended to read as follows:
331.187 1. There is created in the state treasury the fund for insurance premiums as an internal service fund to be maintained for the use of the risk management division of the department of administration.
2. Each state agency shall deposit in the fund an amount equal to its insurance premium and other charges for potential liability, self-insured claims and administrative expenses, as determined by the risk management division.
3. Expenditures from the fund must be made by the risk management division to the insurer for premiums of state agencies as they become due and for claims which are obligations of the state pursuant to NRS 41.0349 and 41.037. If the money in the fund is insufficient to pay [the] a claim, it must be paid from the reserve for statutory contingency account.
Sec. 2 NRS 331.188 is hereby amended to read as follows:
331.188 1. [Insurance recovery accounts in the fund for insurance premiums may be established as necessary.] Except as otherwise provided in subsection [4,] 2, all money received from insurance companies in payment of losses incurred upon buildings and other property belonging to the state must be deposited in [these accounts.
2. Money in these accounts may be expended only by the board, commission or officer having control or management of the buildings or other property damaged or destroyed for the repair, replacement or reconstruction of the damaged or destroyed property, and the money must be paid out on claims as other claims against the state are paid.
3. Any unexpended amount remaining in an insurance recovery account 3 years after the creation of the account, reverts to the state general fund.
4. This section does not apply to money] the fund for insurance premiums.
2. Money received from insurance companies under first-party coverage in payment of losses incurred upon buildings and other property controlled and administered by the department of transportation [. That money] must be deposited in the state highway fund.
Sec. 3 This act becomes effective on July 1, 1997.