AB60

Assembly Bill No. 60–Assemblywoman Giunchigliani

CHAPTER........

AN ACT relating to health care; requiring health insurers to include in certain policies of

health insurance coverage for services and prescription drugs and devices related to

contraceptives and hormone replacement therapy; providing a religious exemption

for certain insurers; prohibiting certain health insurers from committing certain acts

concerning coverage for services related to contraceptives and hormone replacement

therapy; and providing other matters properly relating thereto.

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. Chapter 689A of NRS is hereby amended by adding thereto

the provisions set forth as sections 2 and 3 of this act.

Sec. 2. 1. Except as otherwise provided in subsection 5, an insurer

that offers or issues a policy of health insurance which provides coverage

for prescription drugs or devices shall include in the policy coverage for:

(a) Any type of drug or device for contraception; and

(b) Any type of hormone replacement therapy,

which is lawfully prescribed or ordered and which has been approved by

the Food and Drug Administration.

2. An insurer that offers or issues a policy of health insurance that

provides coverage for prescription drugs shall not:

(a) Require an insured to pay a higher deductible, copayment or

coinsurance or require a longer waiting period or other condition for

coverage for a prescription for a contraceptive or hormone replacement

therapy than is required for other prescription drugs covered by the

policy;

(b) Refuse to issue a policy of health insurance or cancel a policy of

health insurance solely because the person applying for or covered by the

policy uses or may use in the future any of the services listed in

subsection 1;

(c) Offer or pay any type of material inducement or financial

incentive to an insured to discourage the insured from accessing any of

the services listed in subsection 1;

(d) Penalize a provider of health care who provides any of the services

listed in subsection 1 to an insured, including, without limitation,

reducing the reimbursement of the provider of health care; or

(e) Offer or pay any type of material inducement, bonus or other

financial incentive to a provider of health care to deny, reduce, withhold,

limit or delay any of the services listed in subsection 1 to an insured.

3. Except as otherwise provided in subsection 5, a policy subject to

the provisions of this chapter that is delivered, issued for delivery or

renewed on or after October 1, 1999, has the legal effect of including the

coverage required by subsection 1, and any provision of the policy or the

renewal which is in conflict with this section is void.

4. The provisions of this section do not:

(a) Require an insurer to provide coverage for fertility drugs.

(b) Prohibit an insurer from requiring an insured to pay a deductible,

copayment or coinsurance for the coverage required by paragraphs (a)

and (b) of subsection 1 that is the same as the insured is required to pay

for other prescription drugs covered by the policy.

5. An insurer which offers or issues a policy of health insurance and

which is affiliated with a religious organization is not required to provide

the coverage required by paragraph (a) of subsection 1 if the insurer

objects on religious grounds. Such an insurer shall, before the issuance

of a policy of health insurance and before the renewal of such a policy,

provide to the prospective insured, written notice of the coverage that the

insurer refuses to provide pursuant to this subsection.

6. As used in this section, "provider of health care" has the meaning

ascribed to it in NRS 629.031.

Sec. 3. 1. Except as otherwise provided in subsection 5, an insurer

that offers or issues a policy of health insurance which provides coverage

for outpatient care shall include in the policy coverage for any health

care service related to contraceptives or hormone replacement therapy.

2. An insurer that offers or issues a policy of health insurance that

provides coverage for outpatient care shall not:

(a) Require an insured to pay a higher deductible, copayment or

coinsurance or require a longer waiting period or other condition for

coverage for outpatient care related to contraceptives or hormone

replacement therapy than is required for other outpatient care covered by

the policy;

(b) Refuse to issue a policy of health insurance or cancel a policy of

health insurance solely because the person applying for or covered by the

policy uses or may use in the future any of the services listed in

subsection 1;

(c) Offer or pay any type of material inducement or financial

incentive to an insured to discourage the insured from accessing any of

the services listed in subsection 1;

(d) Penalize a provider of health care who provides any of the services

listed in subsection 1 to an insured, including, without limitation,

reducing the reimbursement of the provider of health care; or

(e) Offer or pay any type of material inducement, bonus or other

financial incentive to a provider of health care to deny, reduce, withhold,

limit or delay any of the services listed in subsection 1 to an insured.

3. Except as otherwise provided in subsection 5, a policy subject to

the provisions of this chapter that is delivered, issued for delivery or

renewed on or after October 1, 1999, has the legal effect of including the

coverage required by subsection 1, and any provision of the policy or the

renewal which is in conflict with this section is void.

4. The provisions of this section do not prohibit an insurer from

requiring an insured to pay a deductible, copayment or coinsurance for

the coverage required by subsection 1 that is the same as the insured is

required to pay for other outpatient care covered by the policy.

5. An insurer which offers or issues such a policy of health

Sec. 4. NRS 689A.330 is hereby amended to read as follows:

689A.330 If any policy is issued by a domestic insurer for delivery to a

person residing in another state, and if the insurance commissioner or

corresponding public officer of that other state has informed the

commissioner that the policy is not subject to approval or disapproval by

that officer, the commissioner may by ruling require that the policy meet

the standards set forth in NRS 689A.030 to 689A.320, inclusive [.] , and

sections 2 and 3 of this act.

Sec. 5. Chapter 689B of NRS is hereby amended by adding thereto the

provisions set forth as sections 6 and 7 of this act.

Sec. 6. 1. Except as otherwise provided in subsection 5, an insurer

that offers or issues a policy of group health insurance which provides

coverage for prescription drugs or devices shall include in the policy

coverage for:

(a) Any type of drug or device for contraception; and

(b) Any type of hormone replacement therapy,

which is lawfully prescribed or ordered and which has been approved by

the Food and Drug Administration.

2. An insurer that offers or issues a policy of group health insurance

that provides coverage for prescription drugs shall not:

(a) Require an insured to pay a higher deductible, copayment or

coinsurance or require a longer waiting period or other condition for

coverage for a prescription for a contraceptive or hormone replacement

therapy than is required for other prescription drugs covered by the

policy;

(b) Refuse to issue a policy of group health insurance or cancel a

policy of group health insurance solely because the person applying for

or covered by the policy uses or may use in the future any of the services

listed in subsection 1;

(c) Offer or pay any type of material inducement or financial

incentive to an insured to discourage the insured from accessing any of

the services listed in subsection 1;

(d) Penalize a provider of health care who provides any of the services

listed in subsection 1 to an insured, including, without limitation,

reducing the reimbursement of the provider of health care; or

(e) Offer or pay any type of material inducement, bonus or other

financial incentive to a provider of health care to deny, reduce, withhold,

limit or delay any of the services listed in subsection 1 to an insured.

3. Except as otherwise provided in subsection 5, a policy subject to

the provisions of this chapter that is delivered, issued for delivery or

renewed on or after October 1, 1999, has the legal effect of including the

coverage required by subsection 1, and any provision of the policy or the

renewal which is in conflict with this section is void.

4. The provisions of this section do not:

(a) Require an insurer to provide coverage for fertility drugs.

(b) Prohibit an insurer from requiring an insured to pay a deductible,

copayment or coinsurance for the coverage required by paragraphs (a)

and (b) of subsection 1 that is the same as the insured is required to pay

for other prescription drugs covered by the policy.

5. An insurer which offers or issues a policy of group health

insurance and which is affiliated with a religious organization is not

required to provide the coverage required by paragraph (a) of subsection

1 if the insurer objects on religious grounds. Such an insurer shall,

before the issuance of a policy of group health insurance and before the

renewal of such a policy, provide to the group policyholder or prospective

insured, as applicable, written notice of the coverage that the insurer

refuses to provide pursuant to this subsection. The insurer shall provide

notice to each insured, at the time the insured receives his certificate of

coverage or evidence of coverage, that the insurer refused to provide

coverage pursuant to this subsection.

6. If an insurer refuses, pursuant to subsection 5, to provide the

coverage required by paragraph (a) of subsection 1, an employer may

otherwise provide for the coverage for his employees.

7. As used in this section, "provider of health care" has the meaning

ascribed to it in NRS 629.031.

Sec. 7. 1. Except as otherwise provided in subsection 5, an insurer

that offers or issues a policy of group health insurance which provides

coverage for outpatient care shall include in the policy coverage for any

health care service related to contraceptives or hormone replacement

therapy.

2. An insurer that offers or issues a policy of group health insurance

that provides coverage for outpatient care shall not:

(a) Require an insured to pay a higher deductible, copayment or

coinsurance or require a longer waiting period or other condition for

coverage for outpatient care related to contraceptives or hormone

replacement therapy than is required for other outpatient care covered by

the policy;

(b) Refuse to issue a policy of group health insurance or cancel a

policy of group health insurance solely because the person applying for

or covered by the policy uses or may use in the future any of the services

listed in subsection 1;

(c) Offer or pay any type of material inducement or financial

incentive to an insured to discourage the insured from accessing any of

the services listed in subsection 1;

(d) Penalize a provider of health care who provides any of the services

listed in subsection 1 to an insured, including, without limitation,

reducing the reimbursement of the provider of health care; or

(e) Offer or pay any type of material inducement, bonus or other

financial incentive to a provider of health care to deny, reduce, withhold,

limit or delay any of the services listed in subsection 1 to an insured.

3. Except as otherwise provided in subsection 5, a policy subject to

4. The provisions of this section do not prohibit an insurer from

5. An insurer which offers or issues a policy of group health

insurance and which is affiliated with a religious organization is not

required to provide the coverage for health care service related to

contraceptives required by this section if the insurer objects on religious

grounds. Such an insurer shall, before the issuance of a policy of group

health insurance and before the renewal of such a policy, provide to the

group policyholder or prospective insured, as applicable, written notice of

the coverage that the insurer refuses to provide pursuant to this

subsection. The insurer shall provide notice to each insured, at the time

the insured receives his certificate of coverage or evidence of coverage,

that the insurer refused to provide coverage pursuant to this subsection.

6. If an insurer refuses, pursuant to subsection 5, to provide the

coverage required by paragraph (a) of subsection 1, an employer may

otherwise provide for the coverage for his employees.

7. As used in this section, "provider of health care" has the meaning

ascribed to it in NRS 629.031.

Sec. 8. Chapter 695B of NRS is hereby amended by adding thereto the

provisions set forth as sections 9 and 10 of this act.

Sec. 9. 1. Except as otherwise provided in subsection 5, an insurer

that offers or issues a contract for hospital or medical service which

provides coverage for prescription drugs or devices shall include in the

contract coverage for:

(a) Any type of drug or device for contraception; and

(b) Any type of hormone replacement therapy

,

which is lawfully prescribed or ordered and which has been approved by

the Food and Drug Administration.

2. An insurer that offers or issues a contract for hospital or medical

service that provides coverage for prescription drugs shall not:

(a) Require an insured to pay a higher deductible, copayment or

coinsurance or require a longer waiting period or other condition for

coverage for a prescription for a contraceptive or hormone replacement

therapy than is required for other prescription drugs covered by the

contract;

(b) Refuse to issue a contract for hospital or medical service or cancel

a contract for hospital or medical service solely because the person

applying for or covered by the contract uses or may use in the future any

of the services listed in subsection 1;

(c) Offer or pay any type of material inducement or financial

incentive to an insured to discourage the insured from accessing any of

the services listed in subsection 1;

(d) Penalize a provider of health care who provides any of the services

listed in subsection 1 to an insured, including, without limitation,

reducing the reimbursement of the provider of health care; or

(e) Offer or pay any type of material inducement, bonus or other

financial incentive to a provider of health care to deny, reduce, withhold,

limit or delay any of the services listed in subsection 1 to an insured.

3. Except as otherwise provided in subsection 5, a contract subject to

the provisions of this chapter that is delivered, issued for delivery or

renewed on or after October 1, 1999, has the legal effect of including the

coverage required by subsection 1, and any provision of the contract or

the renewal which is in conflict with this section is void.

4. The provisions of this section do not:

(a) Require an insurer to provide coverage for fertility drugs.

(b) Prohibit an insurer from requiring an insured to pay a deductible,

copayment or coinsurance for the coverage required by paragraphs (a)

and (b) of subsection 1 that is the same as the insured is required to pay

for other prescription drugs covered by the contract.

5. An insurer which offers or issues a contract for hospital or

medical service and which is affiliated with a religious organization is

not required to provide the coverage required by paragraph (a) of

subsection 1 if the insurer objects on religious grounds. Such an insurer

shall, before the issuance of a contract for hospital or medical service

and before the renewal of such a contract, provide to the group

policyholder or prospective insured, as applicable, written notice of the

coverage that the insurer refuses to provide pursuant to this subsection.

The insurer shall provide notice to each insured, at the time the insured

receives his certificate of coverage or evidence of coverage, that the

insurer refused to provide coverage pursuant to this subsection.

6. If an insurer refuses, pursuant to subsection 5, to provide the

coverage required by paragraph (a) of subsection 1, an employer may

otherwise provide for the coverage for his employees.

7. As used in this section, "provider of health care" has the meaning

ascribed to it in NRS 629.031.

Sec. 10. 1. Except as otherwise provided in subsection 5, an

insurer that offers or issues a contract for hospital or medical service

which provides coverage for outpatient care shall include in the contract

coverage for any health care service related to contraceptives or hormone

replacement therapy.

2. An insurer that offers or issues a contract for hospital or medical

service that provides coverage for outpatient care shall not:

(a) Require an insured to pay a higher deductible, copayment or

coinsurance or require a longer waiting period or other condition for

coverage for outpatient care related to contraceptives or hormone

replacement therapy than is required for other outpatient care covered by

the contract;

(b) Refuse to issue a contract for hospital or medical service or cancel

a contract for hospital or medical service solely because the person

applying for or covered by the contract uses or may use in the future any

of the services listed in subsection 1;

(c) Offer or pay any type of material inducement or financial

incentive to an insured to discourage the insured from accessing any of

the services listed in subsection 1;

(d) Penalize a provider of health care who provides any of the services

listed in subsection 1 to an insured, including, without limitation,

reducing the reimbursement of the provider of health care; or

(e) Offer or pay any type of material inducement, bonus or other

financial incentive to a provider of health care to deny, reduce, withhold,

limit or delay any of the services listed in subsection 1 to an insured.

3. Except as otherwise provided in subsection 5, a contract subject to

the provisions of this chapter that is delivered, issued for delivery or

renewed on or after October 1, 1999, has the legal effect of including the

coverage required by subsection 1, and any provision of the contract or

the renewal which is in conflict with this section is void.

4. The provisions of this section do not prohibit an insurer from

5. An insurer which offers or issues a contract for hospital or

medical service and which is affiliated with a religious organization is

not required to provide the coverage for health care service related to

contraceptives required by this section if the insurer objects on religious

grounds. Such an insurer shall, before the issuance of a contract for

hospital or medical service and before the renewal of such a contract,

provide to the group policyholder or prospective insured, as applicable,

written notice of the coverage that the insurer refuses to provide pursuant

to this subsection. The insurer shall provide notice to each insured, at the

time the insured receives his certificate of coverage or evidence of

coverage, that the insurer refused to provide coverage pursuant to this

subsection.

6. If an insurer refuses, pursuant to subsection 5, to provide the

coverage required by paragraph (a) of subsection 1, an employer may

otherwise provide for the coverage for his employees.

7. As used in this section, "provider of health care" has the meaning

ascribed to it in NRS 629.031.

Sec. 11. Chapter 695C of NRS is hereby amended by adding thereto

the provisions set forth as sections 12 and 13 of this act.

Sec. 12. 1. Except as otherwise provided in subsection 5, a health

maintenance organization which offers or issues a health care plan that

provides coverage for prescription drugs or devices shall include in the

plan coverage for:

(a) Any type of drug or device for contraception; and

(b) Any type of hormone replacement therapy,

which is lawfully prescribed or ordered and which has been approved by

the Food and Drug Administration.

2. A health maintenance organization that offers or issues a health

care plan that provides coverage for prescription drugs shall not:

(a) Require an enrollee to pay a higher deductible, copayment or

coinsurance or require a longer waiting period or other condition for

coverage for a prescription for a contraceptive or hormone replacement

therapy than is required for other prescription drugs covered by the plan;

(b) Refuse to issue a health care plan or cancel a health care plan

solely because the person applying for or covered by the plan uses or may

use in the future any of the services listed in subsection 1;

(c) Offer or pay any type of material inducement or financial

incentive to an enrollee to discourage the enrollee from accessing any of

the services listed in subsection 1;

(d) Penalize a provider of health care who provides any of the services

listed in subsection 1 to an enrollee, including, without limitation,

reducing the reimbursement of the provider of health care; or

(e) Offer or pay any type of material inducement, bonus or other

financial incentive to a provider of health care to deny, reduce, withhold,

limit or delay any of the services listed in subsection 1 to an enrollee.

3. Except as otherwise provided in subsection 5, evidence of coverage

subject to the provisions of this chapter that is delivered, issued for

delivery or renewed on or after October 1, 1999, has the legal effect of

including the coverage required by subsection 1, and any provision of the

evidence of coverage or the renewal which is in conflict with this section

is void.

4. The provisions of this section do not:

(a) Require a health maintenance organization to provide coverage

for fertility drugs.

(b) Prohibit a health maintenance organization from requiring an

enrollee to pay a deductible, copayment or coinsurance for the coverage

required by paragraphs (a) and (b) of subsection 1 that is the same as the

enrollee is required to pay for other prescription drugs covered by the

plan.

5. A health maintenance organization which offers or issues a health

care plan and which is affiliated with a religious organization is not

required to provide the coverage required by paragraph (a) of subsection

1 if the health maintenance organization objects on religious grounds.

The health maintenance organization shall, before the issuance of a

health care plan and before renewal of enrollment in such a plan,

provide to the group policyholder or prospective enrollee, as applicable,

written notice of the coverage that the health maintenance organization

refuses to provide pursuant to this subsection. The health maintenance

organization shall provide notice to each enrollee, at the time the enrollee

receives his evidence of coverage, that the health maintenance

organization refused to provide coverage pursuant to this subsection.

6. If a health maintenance organization refuses, pursuant to

subsection 5, to provide the coverage required by paragraph (a) of

subsection 1, an employer may otherwise provide for the coverage for his

employees.

7. As used in this section, "provider of health care" has the meaning

ascribed to it in NRS 629.031.

Sec. 13. 1. Except as otherwise provided in subsection 5, a health

maintenance organization that offers or issues a health care plan which

provides coverage for outpatient care shall include in the plan coverage

for any health care service related to contraceptives or hormone

replacement therapy.

2. A health maintenance organization that offers or issues a health

care plan that provides coverage for outpatient care shall not:

(a) Require an enrollee to pay a higher deductible, copayment or

coinsurance or require a longer waiting period or other condition for

coverage for outpatient care related to contraceptives or hormone

replacement therapy than is required for other outpatient care covered by

the plan;

(b) Refuse to issue a health care plan or cancel a health care plan

solely because the person applying for or covered by the plan uses or may

use in the future any of the services listed in subsection 1;

(c) Offer or pay any type of material inducement or financial

incentive to an enrollee to discourage the enrollee from accessing any of

the services listed in subsection 1;

(d) Penalize a provider of health care who provides any of the services

listed in subsection 1 to an enrollee, including, without limitation,

reducing the reimbursement of the provider of health care; or

(e) Offer or pay any type of material inducement, bonus or other

financial incentive to a provider of health care to deny, reduce, withhold,

limit or delay any of the services listed in subsection 1 to an enrollee.

3. Except as otherwise provided in subsection 5, evidence of coverage

subject to the provisions of this chapter that is delivered, issued for

delivery or renewed on or after October 1, 1999, has the legal effect of

including the coverage required by subsection 1, and any provision of the

evidence of coverage or the renewal which is in conflict with this section

is void.

4. The provisions of this section do not prohibit a health

maintenance organization from requiring an enrollee to pay a

deductible, copayment or coinsurance for the coverage required by

subsection 1 that is the same as the enrollee is required to pay for other

outpatient care covered by the plan.

5. A health maintenance organization which offers or issues a health

care plan and which is affiliated with a religious organization is not

required to provide the coverage for health care service related to

contraceptives required by this section if the health maintenance

organization objects on religious grounds. The health maintenance

organization shall, before the issuance of a health care plan and before

renewal of enrollment in such a plan, provide to the group policyholder

or prospective enrollee, as applicable, written notice of the coverage that

the health maintenance organization refuses to provide pursuant to this

subsection. The health maintenance organization shall provide notice to

each enrollee, at the time the enrollee receives his evidence of coverage,

that the health maintenance organization refused to provide coverage

pursuant to this subsection.

6. If a health maintenance organization refuses, pursuant to

subsection 5, to provide the coverage required by paragraph (a) of

subsection 1, an employer may otherwise provide for the coverage for his

employees.

7. As used in this section, "provider of health care" has the meaning

ascribed to it in NRS 629.031.

Sec. 14. NRS 695C.050 is hereby amended to read as follows:

695C.050 1. Except as otherwise provided in this chapter or in

specific provisions of this Title, the provisions of this Title are not

applicable to any health maintenance organization granted a certificate of

authority under this chapter. This provision does not apply to an insurer

licensed and regulated pursuant to this Title except with respect to its

activities as a health maintenance organization authorized and regulated

pursuant to this chapter.

2. Solicitation of enrollees by a health maintenance organization

granted a certificate of authority, or its representatives, must not be
construed to violate any provision of law relating to solicitation or

advertising by practitioners of a healing art.

3. Any health maintenance organization authorized under this chapter

shall not be deemed to be practicing medicine and is exempt from the

provisions of chapter 630 of NRS.

4. The provisions of NRS 695C.110, 695C.170 to 695C.200, inclusive,

695C.250 and 695C.265 do not apply to a health maintenance organization

that provides health care services through managed care to recipients of

Medicaid [~~pursuant to a contract with the welfare division of the~~

~~department of human resources.]~~ under the state plan for Medicaid. This

subsection does not exempt a health maintenance organization from any

provision of this chapter for services provided pursuant to any other

contract.

5. The provisions of sections 12 and 13 of this act apply to a health

maintenance organization that provides health care services through

managed care to recipients of Medicaid under the state plan for

Medicaid.

Sec. 15. NRS 695C.330 is hereby amended to read as follows:

695C.330 1. The commissioner may suspend or revoke any

certificate of authority issued to a health maintenance organization pursuant

to the provisions of this chapter if he finds that any of the following

conditions exist:

(a) The health maintenance organization is operating significantly in

contravention of its basic organizational document, its health care plan or in

a manner contrary to that described in and reasonably inferred from any

other information submitted pursuant to NRS 695C.060, 695C.070 and

695C.140, unless any amendments to those submissions have been filed

with and approved by the commissioner;

(b) The health maintenance organization issues evidence of coverage or

uses a schedule of charges for health care services which do not comply

with the requirements of NRS 695C.170 to 695C.200, inclusive, or

695C.207 [;] or section 12 or 13 of this act;

services as provided for in NRS 695C.060;

(d) The state board of health certifies to the commissioner that:

(1) The health maintenance organization does not meet the

requirements of subsection 2 of NRS 695C.080; or

(2) The health maintenance organization is unable to fulfill its

obligations to furnish health care services as required under its health care

plan;

(e) The health maintenance organization is no longer financially

responsible and may reasonably be expected to be unable to meet its

obligations to enrollees or prospective enrollees;

(f) The health maintenance organization has failed to put into effect a

mechanism affording the enrollees an opportunity to participate in matters

relating to the content of programs pursuant to NRS 695C.110;
(g) The health maintenance organization has failed to put into effect the

system for complaints required by NRS 695C.260 in a manner reasonably

to dispose of valid complaints;

(h) The health maintenance organization or any person on its behalf has

advertised or merchandised its services in an untrue, misrepresentative,

misleading, deceptive or unfair manner;

(i) The continued operation of the health maintenance organization

would be hazardous to its enrollees; or

(j) The health maintenance organization has otherwise failed to comply

substantially with the provisions of this chapter.

2. A certificate of authority must be suspended or revoked only after

compliance with the requirements of NRS 695C.340.

3. If the certificate of authority of a health maintenance organization is

suspended, the health maintenance organization shall not, during the period

of that suspension, enroll any additional groups or new individual contracts,

unless those groups or persons were contracted for before the date of

suspension.

4. If the certificate of authority of a health maintenance organization is

revoked, the organization shall proceed, immediately following the

effective date of the order of revocation, to wind up its affairs and shall

conduct no further business except as may be essential to the orderly

conclusion of the affairs of the organization. It shall engage in no further

advertising or solicitation of any kind. The commissioner may by written

order permit such further operation of the organization as he may find to be

in the best interest of enrollees to the end that enrollees are afforded the

greatest practical opportunity to obtain continuing coverage for health care.

Sec. 16. NRS 287.010 is hereby amended to read as follows:

287.010 1. The governing body of any county, school district,

municipal corporation, political subdivision, public corporation or other

public agency of the State of Nevada may:

(a) Adopt and carry into effect a system of group life, accident or health

insurance, or any combination thereof, for the benefit of its officers and

employees, and the dependents of officers and employees who elect to

accept the insurance and who, where necessary, have authorized the

governing body to make deductions from their compensation for the

payment of premiums on the insurance.

(b) Purchase group policies of life, accident or health insurance, or any

combination thereof, for the benefit of such officers and employees, and the

dependents of such officers and employees, as have authorized the

purchase, from insurance companies authorized to transact the business of

such insurance in the State of Nevada, and, where necessary, deduct from

the compensation of officers and employees the premiums upon insurance

and pay the deductions upon the premiums.

-insurance reserve fund and, where necessary, deduct contributions to the

maintenance of the fund from the compensation of officers and employees
and pay the deductions into the fund. The money accumulated for this

purpose through deductions from the compensation of officers and

employees and contributions of the governing body must be maintained as

an internal service fund as defined by NRS 354.543. The money must be

deposited in a state or national bank authorized to transact business in the

State of Nevada. Any independent administrator of a fund created under

this section is subject to the licensing requirements of chapter 683A of

NRS, and must be a resident of this state. Any contract with an independent

administrator must be approved by the commissioner of insurance as to the

reasonableness of administrative charges in relation to contributions

collected and benefits provided. The provisions of NRS 689B.030 to

689B.050, inclusive, and sections 6 and 7 of this act apply to coverage

provided pursuant to this paragraph.

(d) Defray part or all of the cost of maintenance of a self-insurance fund

or of the premiums upon insurance. The money for contributions must be

budgeted for in accordance with the laws governing the county, school

district, municipal corporation, political subdivision, public corporation or

other public agency of the State of Nevada.

2. If a school district offers group insurance to its officers and

employees pursuant to this section, members of the board of trustees of the

school district must not be excluded from participating in the group

insurance. If the amount of the deductions from compensation required to

pay for the group insurance exceeds the compensation to which a trustee is

entitled, the difference must be paid by the trustee.