Assembly Bill No. 680–Committee on Commerce and Labor

CHAPTER........

Section 1. Chapter 679A of NRS is hereby amended by adding thereto

a new section to read as follows:

Sec. 2. NRS 679B.190 is hereby amended to read as follows:

679B.190 1. The commissioner shall carefully preserve in the

division and in permanent form all papers and records relating to the

business and transactions of the division and shall hand them over to his

successor in office.

provisions of this code and NRS 616B.015, the papers and records must be

open to public inspection.

3. Any records or information in the possession of the division related

(a) The commissioner releases, in the manner that he deems appropriate,

all or any part of the records or information for public inspection after

determining that the release of the records or information:

insurer or the public; or

(b) A court orders the release of the records or information after

determining that the production of the records or information will not

damage any investigation being conducted by the commissioner.

4. The commissioner may destroy unneeded or obsolete records and

filings in the division in accordance with provisions and procedures

applicable in general to administrative agencies of this state.

5. The commissioner may classify as confidential certain records and

information obtained from a governmental agency or other sources upon

the express condition that they remain confidential.

6. All information and documents in the possession of the division or

any of its employees which are related to cases or matters under

may not be made public unless the commissioner finds the existence of an

imminent threat of harm to the safety or welfare of the policyholder,

shareholders or the public and determines that the interests of the

policyholder, shareholders or the public will be served by publication

thereof, in which event he may make a record public or publish all or any

part of the record in any manner he deems appropriate.

Sec. 3. NRS 679B.440 is hereby amended to read as follows:

679B.440 1. The commissioner may require that reports submitted

pursuant to NRS 679B.430 include, without limitation, information

regarding:

(a) Liability insurance provided to:

(1) Governmental agencies and political subdivisions of this state,

reported separately for:

(I) Cities and towns;

(II) School districts; and

(III) Other political subdivisions;

(2) Public officers;

(3) Establishments where alcoholic beverages are sold;

(4) Facilities for the care of children;

(5) Labor, fraternal or religious organizations; and

(6) Officers or directors of organizations formed pursuant to Title 7

of NRS, reported separately for nonprofit entities and entities organized for

profit;

(b) Liability insurance for:

(1) Defective products;

(2) Medical malpractice;

(3) Malpractice of attorneys;

(4) Malpractice of architects and engineers; and

(5) Errors and omissions by other professionally qualified persons;

(c) Vehicle insurance, reported separately for

: (1) Private vehicles;

(2) Commercial vehicles;

(3) Liability insurance; and

2. The commissioner may require that the report include, without

limitation, information specifically pertaining to this state or to an insurer in

its entirety, in the aggregate or by type of insurance, and for a previous or

current year, regarding:

(a) Premiums directly written;

(b) Premiums directly earned;

(c) Number of policies issued;

(d) Net investment income, using appropriate estimates when necessary;

(e) Losses paid;

(f) Losses incurred;

(g) Loss reserves, including:

(1) Losses unpaid on reported claims; and

(2) Losses unpaid on incurred but not reported claims;

(h) Number of claims, including:

(1) Claims paid; and

(2) Claims that have arisen but are unpaid;

(i) Expenses for adjustment of losses, including allocated and

unallocated losses;

(j) Net underwriting gain or loss;

(k) Net operation gain or loss, including net investment income; and

(l) Any other information requested by the commissioner.

3. The commissioner may also obtain, based upon an insurer in its

entirety, information regarding:

(a) Recoverable federal income tax;

(b) Net unrealized capital gain or loss; and

(c) All other expenses not included in subsection 2.

Sec. 4. NRS 680B.010 is hereby amended to read as follows:

680B.010 The commissioner shall collect in advance and receipt for,

and persons so served must pay to the commissioner, fees and

miscellaneous charges as follows:

1. Insurer's certificate of authority:

(a) Filing initial application $2,450

(b) Issuance of certificate:

(1) For any one kind of insurance as defined in NRS

681A.010 to 681A.080, inclusive 283

(2) For two or more kinds of insurance as so defined 578

(3) For a reinsurer 2,450

(c) Each annual continuation of a certificate 2,450

(d) Reinstatement pursuant to NRS 680A.180, 50 percent of

the annual continuation fee otherwise required.

(e) Registration of additional title pursuant to NRS 680A.240 5

0 (f) Annual renewal of the registration of additional title

pursuant to NRS 680A.240 $25

2. Charter documents, other than those filed with an

application for a certificate of authority. Filing amendments to

articles of incorporation, charter, bylaws, power of attorney and

other constituent documents of the insurer, each document $10

3. Annual statement or report. For filing annual statement or

report $25

4. Service of process:

(a) Filing of power of attorney $5

(b) Acceptance of service of process 30

5. Agents' licenses, appointments and renewals:

(a) Resident agents and nonresident agents qualifying under

subsection 3 of NRS 683A.340:

(1) Application and license $78

(2) Appointment by each insurer 5

(3) Triennial renewal of each license 78

(4) Temporary license 10

(b) Other nonresident agents:

(1) Application and license 138

(2) Appointment by each insurer 25

(3) Triennial renewal of each license 138

6. Brokers' licenses and renewals:

(a) Resident brokers and nonresident brokers qualifying under

subsection 3 of NRS 683A.340:

(1) Application and license $78

(2) Triennial renewal of each license 78

(b) Other nonresident brokers:

(1) Application and license 258

(2) Triennial renewal of each license 258

(1) Application and license 78

(2) Triennial renewal of each license 78

7. Solicitors' licenses, appointments and renewals:

(a) Application and license $78

(b) Triennial renewal of each license 78

(c) Initial appointment 5

8. Managing general agents' licenses, appointments and

renewals:

(a) Resident managing general agents:

(1) Application and license $78

(2) Initial appointment, each insurer 5

(3) Triennial renewal of each license 7

8 (b) Nonresident managing general agents:

(1) Application and license $138

(2) Initial appointment, each insurer 25

(3) Triennial renewal of each license 138

9. Adjusters' licenses and renewals:

(a) Independent and public adjusters:

(1) Application and license $78

(2) Triennial renewal of each license 78

(b) Associate adjusters:

(1) Application and license 78

(2) Initial appointment 5

(3) Triennial renewal of each license 78

10. Licenses and renewals for appraisers of physical damage

to motor vehicles:

(a) Application and license $78

(b) Triennial renewal of each license 78

11. Additional title and property insurers pursuant to NRS

680A.240:

(a) Original registration $50

(b) Annual renewal 25

12. Insurance vending machines:

(a) Application and license, for each machine $78

(b) Triennial renewal of each license 78

13. Permit for solicitation for securities:

(a) Application for permit $100

(b) Extension of permit 50

14. Securities salesmen for domestic insurers:

(a) Application and license $25

(b) Annual renewal of license 15

15. Rating organizations:

(a) Application and license $500

(b) Annual renewal 500

16. Certificates and renewals for administrators licensed

pursuant to chapter 683A of NRS:

(a) Resident administrators:

(1) Application and certificate of registration $78

(2) Triennial renewal 78

(b) Nonresident administrators:

(1) Application and certificate of registration 138

(2) Triennial renewal 138

17. For copies of the insurance laws of Nevada, a fee which

is not less than the cost of producing the copies.

18. Certified copies of certificates of authority and licenses

issued pursuant to the insurance code $10

19. For copies and amendments of documents on file in the

division, a reasonable charge fixed by the commissioner,

including charges for duplicating or amending the forms and for

certifying the copies and affixing the official seal.

20. Letter of clearance for an agent or broker $10

21. Certificate of status as a licensed agent or broker $10

22. Licenses, appointments and renewals for bail agents:

(a) Application and license $78

(b) Initial appointment by each surety insurer 5

(c) Triennial renewal of each license 78

23. Licenses and renewals for bail enforcement agents:

(a) Application and license $78

(b) Triennial renewal of each license 78

24. Licenses, appointments and renewals for general bail

agents:

(a) Application and license $78

(b) Initial appointment by each insurer 5

(c) Triennial renewal of each license 78

25. Licenses and renewals for bail solicitors:

(a) Application and license $78

(b) Triennial renewal of each license 78

26. Licenses and renewals for title agents and escrow

officers:

(a) Resident title agents and escrow officers:

(1) Application and license $78

(2) Triennial renewal of each license 78

(b) Nonresident title agents and escrow officers:

(1) Application and license 138

(2) Triennial renewal of each license 138

(c) Change in name or location of business or in association 10

27. Certificate of authority and renewal for a seller of

prepaid funeral contracts $78

28. Licenses and renewals for agents for prepaid funeral

contracts:

(a) Resident agents:

(1) Application and license $78

(2) Triennial renewal of each license 78

(b) Nonresident agents:

(1) Application and license 138

(2) Triennial renewal of each license 138

29. Licenses, appointments and renewals for agents for

fraternal benefit societies:

(a) Resident agents:

(1) Application and license $78

(2) Appointment 5

(3) Triennial renewal of each license 7

8 (b) Nonresident agents:

(1) Application and license $138

(2) Triennial renewal of each license 138

30. Reinsurance intermediary broker or manager:

(a) Resident agents:

(1) Application and license $78

(2) Triennial renewal of each license 78

(b) Nonresident agents:

(1) Application and license 138

(2) Triennial renewal of each license 138

31. Agents for and sellers of prepaid burial contracts:

(a) Resident agents and sellers:

(1) Application and certificate or license $78

(2) Triennial renewal 78

(b) Nonresident agents and sellers:

(1) Application and certificate or license 138

(2) Triennial renewal 138

32. Risk retention groups:

(a) Initial registration and review of an application $2,450

(b) Each annual continuation of a certificate of registration 2,450

33. Required filing of forms:

(a) For rates and policies $25

(b) For riders and endorsements 10

Sec. 5. NRS 681B.290 is hereby amended to read as follows:

or before March 1 of each year, each domestic insurer, and each foreign

insurer domiciled in a state which does not have requirements for reporting

risk-based capital, that transacts property, casualty, life or health insurance

in this state shall prepare and submit to the commissioner, and to each

person designated by the commissioner, a report of the level of the risk-

based capital of the insurer as of the end of the immediately preceding

calendar year. The report must be in such form and contain such

information as required by the regulations adopted by the commissioner

pursuant to this section.

2. The commissioner shall adopt regulations concerning the amount of

risk-based capital required to be maintained by each insurer licensed to do

business in this state that is transacting property, casualty, life or health

insurance in this state. The regulations must be consistent with the

instructions for reporting risk-based capital adopted by the National

Association of Insurance Commissioners, as those instructions existed on

January 1, 1997. If the instructions are amended, the commissioner may

amend the regulations to maintain consistency with the instructions if he

determines that the amended instructions are appropriate for use in this

state.

Secs. 5.2-5.8. (Deleted by amendment.)

Sec. 6. Chapter 683A of NRS is hereby amended by adding thereto the

provisions set forth as sections 7 to 16, inclusive, of this act.

Sec. 17. NRS 683A.025 is hereby amended to read as follows:

683A.025 1. Except as limited by this section, "administrator" means

a person who:

including coverage or annuities provided by an employer for his

employees;

NRS 287.010;

(d) Administers a program which is funded by an employer and which

provides pensions, annuities, health benefits, death benefits or other similar

2. "Administrator" does not include:

(a) An employee authorized to act on behalf of an administrator who

holds a certificate of registration from the commissioner.

(b) An employer acting on behalf of his employees or the employees of

a subsidiary or affiliated concern.

(c) A labor union acting on behalf of its members.

insurer with respect to a policy lawfully issued and delivered in a state in

which the insurer was authorized to do business.

(e) A life or health insurance agent or broker licensed in this state, when

his activities are limited to the sale of insurance.

(f) A creditor acting on behalf of his debtors with respect to insurance

covering a debt between the creditor and debtor.

(g) A trust and its trustees, agents and employees acting for it, if the trust

was established under the provisions of 29 U.S.C. § 186.

(h) A trust which is exempt from taxation under section 501(a) of the

a custodian, his agents and employees acting under a custodial account

which meets the requirements of section 401(f) of the Internal Revenue

(i) A bank, credit union or other financial institution which is subject to

supervision by federal or state banking authorities.

(j) A company which issues credit cards, and which advances for and

collects premiums or charges from credit card holders who have authorized

it to do so, if the company does not adjust or settle claims.

(k) An attorney at law who adjusts or settles claims in the normal course

of his practice or employment, but who does not collect charges or

premiums in connection with life or health insurance coverage or with

annuities.

Sec. 18. NRS 683A.085 is hereby amended to read as follows:

obtained a certificate of registration as an administrator from the

Sec. 19. NRS 683A.0857 is hereby amended to read as follows:

commissioner a bond with an authorized surety in favor of the State of

Nevada, continuous in form and in an amount determined by the

2. The commissioner shall establish schedules for the amount of the

bond required, based on the amount of money received and distributed by

an administrator.

3. The bond must inure to the benefit of any person damaged by any

fraudulent act or conduct of the administrator and must be conditioned

upon faithful accounting and application of all money coming into the

administrator's possession in connection with his activities as an

administrator.

4. The bond remains in force until released by the commissioner or

canceled by the surety. Without prejudice to any liability previously

incurred, the surety may cancel the bond upon 90 days' advance notice to

the administrator and the commissioner. An administrator's certificate is

automatically suspended if he does not file with the commissioner a

replacement bond before the date of cancellation of the previous bond. A

replacement bond must meet all requirements of this section for the initial

bond.

Sec. 20. NRS 683A.086 is hereby amended to read as follows:

683A.086 1. No person may act as an administrator unless he has

entered into a written agreement with an insurer, and the written agreement

contains provisions to effectuate the requirements contained in NRS

section must be retained in the records of the administrator and of the

insurer for a period of 5 years after the termination of the agreement.

trust agreement and amendments must be obtained by the administrator and

termination of the policy.

functions an administrator may perform on behalf of an insurer.

Sec. 21. NRS 683A.087 is hereby amended to read as follows:

683A.087 An administrator may advertise the insurance which he

underwrites the business involved.

Sec. 22. NRS 683A.0873 is hereby amended to read as follows:

683A.0873 1. Each administrator shall maintain at his principal

office adequate books and records of all transactions between himself, the

insurer and the insured. The books and records must be maintained in

accordance with prudent standards of recordkeeping for insurance and with

regulations of the commissioner for a period of 5 years after the transaction

to which they respectively relate. After the 5-year period the administrator

may remove the books and records from the state, store their contents on

microfilm or return them to the appropriate insurer.

2. The commissioner may examine, audit and inspect books and

3. The names and addresses of insured persons and any other material

which is in the books and records of an administrator are confidential

except when used in proceedings against the administrator.

4. The insurer may inspect and examine all books and records to the

extent necessary to fulfill all contractual obligations to insured persons,

subject to restrictions in the written agreement between the insurer and

administrator.

Sec. 23. NRS 683A.0877 is hereby amended to read as follows:

683A.0877 1. All insurance charges and premiums collected by an

administrator on behalf of an insurer and return premiums received from an

insurer are held by the administrator in a fiduciary capacity.

withdrawals from the account on behalf of each insurer.

insurer with copies of the records which pertain to him upon demand of the

insurer.

between the insurer and the administrator for:

(a) Remittance to the insurer.

(b) Deposit in an account maintained in the name of the insurer.

(c) Transfer to and deposit in an account for the payment of claims.

(d) Payment to a group policyholder for remittance to the insurer

entitled to the money.

(e) Payment to the administrator of his commission, fees or charges.

(f) Remittance of return premiums to persons entitled to them.

Sec. 24. NRS 683A.088 is hereby amended to read as follows:

draft upon and as authorized by the insurer.

Sec. 25. NRS 683A.0883 is hereby amended to read as follows:

683A.0883 1. The compensation paid to an administrator for his

services may be based upon premiums or charges collected, on number of

the administrator and the insurer, except as provided in subsection 2.

2. Compensation paid to an administrator may not be based upon or

Sec. 26. NRS 683A.0887 is hereby amended to read as follows:

683A.0887 1. Each administrator shall advise each insured, by means

of a written notice approved by the insurer, of the identity of and

relationship among the insurer, administrator and insured.

2. An administrator who seeks to collect premiums or charges shall

Sec. 26.5. NRS 685A.070 is hereby amended to read as follows:

685A.070 1. A broker shall not knowingly place surplus lines

insurance with an insurer which is unsound financially or ineligible

pursuant to this section.

eligible for the acceptance of surplus lines risks pursuant to this chapter

unless it has surplus as to policyholders in an amount of not less than

$5,000,000 and, if an alien insurer, unless it has and maintains in a bank or

trust company which is a member of the United States Federal Reserve

System a trust fund established pursuant to terms reasonably adequate for

the protection of all of its policyholders in the United States in an amount

of not less than $1,500,000. Such a trust fund must not have an expiration

date which is at any time less than 5 years in the future, on a continuing

basis. In the case of:

(a) A group of insurers which includes individual unincorporated

insurers, such a trust fund must not be less than $100,000,000.

(b) A group of incorporated insurers under common administration,

such a trust fund must not be less than $100,000,000. The group of

incorporated insurers must:

(1) Operate under the supervision of the Department of Trade and

Industry of the United Kingdom;

(2) Possess aggregate policyholders surplus of $10,000,000,000,

which must consist of money in trust in an amount not less than the

assuming insurers' liabilities attributable to insurance written in the United

States; and

(3) Maintain a joint trusteed surplus of which $100,000,000 must be

held jointly for the benefit of United States ceding insurers of any member

of the group.

exchange maintains money for the protection of all policyholders, each

syndicate shall maintain minimum capital and surplus of not less than

$5,000,000 and must qualify separately to be eligible for the acceptance of

surplus lines risks pursuant to this chapter.

larger amounts.

3. No insurer is eligible to write surplus lines of insurance unless it has

established a reputation for financial integrity and satisfactory practices in

underwriting and handling claims. In addition, a foreign insurer must be

authorized in the state of its domicile to write the kinds of insurance which

it intends to write in Nevada.

4. The commissioner may from time to time compile or approve a list

of all surplus lines insurers deemed by him to be eligible currently, and may

mail a copy of the list to each broker at his office last of record with the

commissioner. To be placed on the list, a surplus lines insurer must file an

application with the commissioner. The application must be accompanied

by a nonrefundable fee of $2,450. This subsection does not require the

commissioner to determine the actual financial condition or claims

practices of any unauthorized insurer. The status of eligibility, if granted by

the commissioner, indicates only that the insurer appears to be sound

financially and to have satisfactory claims practices, and that the

commissioner has no credible evidence to the contrary. While any such list

is in effect, the broker shall restrict to the insurers so listed all surplus lines

business placed by him.

Sec. 27. NRS 685A.120 is hereby amended to read as follows:

685A.120 1. No person in this state may act as, hold himself out as,

or be a surplus lines broker with respect to subjects of insurance resident,

located or to be performed in this state or elsewhere unless he is licensed as

such by the commissioner pursuant to this chapter.

trustworthy with respect to the handling of surplus lines may be licensed as

a surplus lines broker upon:

(a) Application for a license and payment of the applicable fee for a

license and a fee of $15 for deposit in the insurance recovery account

created by NRS 679B.305;

(b) Submitting the statement required pursuant to NRS 685A.127; and

(c) Passing any examination prescribed by the commissioner on the

subject of surplus lines.

3. An application for a license must be submitted to the commissioner

on a form designated and furnished by him. The application must include

the social security number of the applicant.

4. A license issued pursuant to this chapter continues in force for 3

years unless it is suspended, revoked or otherwise terminated. The license

may be renewed upon submission of the statement required pursuant to

NRS 685A.127 and payment of the applicable fee for renewal and a fee of

$15 for deposit in the insurance recovery account created by NRS679B.305 to the commissioner on or before the last day of the month in

which the license is renewable.

5. A license which is not renewed expires at midnight on the last day

specified for its renewal. The commissioner may accept a request for

renewal received by him within 30 days after the expiration of the license if

the request is accompanied by the statement required pursuant to NRS

685A.127, a fee for renewal of 150 percent of the fee otherwise required

and a fee of $15 for deposit in the insurance recovery account created by

NRS 679B.305.

Sec. 28. NRS 685A.140 is hereby amended to read as follows:

685A.140 1. In addition to other grounds therefor, the commissioner

may suspend or revoke any surplus lines broker's license:

(a) If the broker fails to file the annual statement or to remit the tax as

required by NRS 685A.170 and 685A.180;

or to allow the commissioner to examine his records as required by this

chapter, or if he removes his records from the state; or

(c) If the broker places a surplus lines coverage in an insurer other than

as authorized under this chapter.

2. Upon suspending or revoking the broker's surplus lines license the

commissioner may also suspend or revoke all other licenses of or as to the

same individual under this code.

Sec. 29. NRS 685A.160 is hereby amended to read as follows:

and true record of each surplus lines coverage procured by him, including a

copy of each daily report, if any, a copy of each certificate of insurance

issued by him, and such of the following items as may be applicable:

property;

the entire risk;

where located or to be performed; and

commissioner.

commissioner or his representative at all times within 5 years after issuance

of the coverage to which it relates. Sec. 30. NRS 686A.130 is hereby amended to read as follows:

686A.130 1. No property, casualty, surety or title insurer or

underwritten title company or any employee or representative thereof, and

no broker, agent or solicitor may pay, allow or give, or offer to pay, allow

or give, directly or indirectly, as an inducement to insurance, or after

insurance has been effected, any rebate, discount, abatement, credit or

reduction of the premium named in a policy of insurance, or any special

favor or advantage in the dividends or other benefits to accrue thereon, or

any valuable consideration or inducement whatever, not specified or

provided for in the policy, except to the extent provided for in an

applicable filing with the commissioner.

2. No title insurer or underwritten title company may:

(a) Pay, directly or indirectly, to the insured or any person acting as

agent, representative, attorney or employee of the owner, lessee,

mortgagee, existing or prospective, of the real property or interest therein

which is the subject matter of title insurance or as to which a service is to

consideration as inducement or compensation for the placing of any order

for a title insurance policy or for performance of any escrow or other

service by the insurer or underwritten title company with respect thereto; or

(b) Issue any policy or perform any service in connection with which it

or any agent or other person has paid or contemplates paying any

commission, rebate or inducement in violation of this section.

may knowingly receive or accept, directly or indirectly, any such rebate,

discount, abatement, credit or reduction of premium, or any such special

favor or advantage or valuable consideration or inducement.

4. No such insurer may make or permit any unfair discrimination

between insured or property having like insuring or risk characteristics, in

the premium or rates charged for insurance, or in the dividends or other

benefits payable thereon, or in any other of the terms and conditions of

insurance.

5. No casualty insurer may make or permit any unfair discrimination

between persons legally qualified to provide a particular service, in the

amount of the fee or charge for that service payable as a benefit under any

policy or contract of casualty insurance.

(a) The payment of commissions or other compensation to licensed

agents, brokers or solicitors.

(b) The extension of credit to an insured for the payment of any

premium and for which credit a reasonable rate of interest is charged and

collected.

(c) Any insurer from allowing or returning to its participating

policyholders, members or subscribers, dividends, savings or unabsorbed

premium deposits.

title insurer or underwritten title company.

wet marine and transportation insurance.

Sec. 31. NRS 686C.035 is hereby amended to read as follows:

686C.035 1. This chapter does not provide coverage for:

(a) Any portion of a policy or contract not guaranteed by the insurer, or

(b) Any policy or contract of reinsurance unless assumption certificates

(c) Any portion of a policy or contract to the extent that the rate of

interest on which it is based:

contract, or averaged for the period since the policy or contract was issued

if it was issued less than 4 years before the association became obligated,

exceeds the rate of interest determined by subtracting 2 percentage points

from Moody's Corporate Bond Yield Average averaged for the same

period; and

(2) On or after the date on which the association becomes obligated

with respect to the policy or contract, exceeds the rate of interest

determined by subtracting 3 percentage points from the most recent

Moody's Corporate Bond Yield Average.

funded or uninsured, including, but not limited to, benefits payable by an

(2) A minimum-premium group insurance plan;

(3) A stop-loss group insurance plan; or

(4) A contract for administrative services only.

or contract. (f) Any policy or contract issued in this state by a member insurer at a

time when the member insurer was not authorized to issue the policy or

2. As used in this section, "Moody's Corporate Bond Yield Average"

means the monthly average for corporate bonds published by Moody's

Investors Service, Inc., or any successor average.

Sec. 32. NRS 687B.440 is hereby amended to read as follows:

687B.440 1. An insurer offering an umbrella policy to an individual

shall obtain a signed disclosure statement from the individual indicating

whether the umbrella policy includes uninsured or underinsured vehicle

coverage.

by the commissioner or in substantially the following form:

protects a person against losses in excess of the underlying amount required

to be covered by other policies.

Sec. 33. NRS 689A.505 is hereby amended to read as follows:

689A.505 "Creditable coverage" means, with respect to a person,

health benefits or coverage provided pursuant to:

1. A group health plan;

2. A health benefit plan;

known as Medicaid, other than coverage consisting solely of benefits under

6. A medical care program of the Indian Health Service or of a tribal

organization;

7. A state health benefit risk pool;

9. A public health plan as defined in 45 C.F.R. § 146.113, authorized

10. A health benefit plan under section 5(e) of the Peace Corps Act, 22

11. The children's health insurance program established pursuant to 42

Sec. 34. NRS 689A.515 is hereby amended to read as follows:

689A.515 "Eligible person" means:

1. A person

: (a) Who, as of the date on which he seeks coverage pursuant to this

chapter, has an aggregate period of creditable coverage that is 18 months or

more;

plan, governmental plan, church plan or health insurance coverage offered

in connection with any such plan;

(c) Who is not eligible for coverage under a group health plan, Part A or

any successor program, and who does not have any other health insurance

coverage;

(d) Whose most recent health insurance coverage within the period of

aggregate creditable coverage was not terminated because of a failure to

pay premiums or fraud;

(e) Who has exhausted his continuation of coverage under the

(f) Who has not had a break of more than 63 consecutive days in his

creditable coverage.

newborn child or a child placed for adoption, if the child was enrolled

timely and would have otherwise met the requirements of an eligible person

as set forth in subsection 1.

Sec. 35. NRS 689A.540 is hereby amended to read as follows:

689A.540 1. "Health benefit plan" means a policy, contract,

certificate or agreement offered by a carrier to provide for, deliver payment

for, arrange for the payment of, pay for or reimburse any of the costs of

health care services. Except as otherwise provided in this section, the term

policy that pays on a cost-incurred basis.

2. The term does not include:

(a) Coverage that is only for accident or disability income insurance, or

any combination thereof;

(b) Coverage issued as a supplement to liability insurance;

(c) Liability insurance, including general liability insurance and

automobile liability insurance;

(d) Workers' compensation or similar insurance;

(e) Coverage for medical payments under a policy of automobile

insurance;

(f) Credit insurance

(h) Other similar insurance coverage specified in federal regulations

issued pursuant to Public Law 104-191 under which benefits for medical

3. The term does not include the following benefits if the benefits are

provided under a separate policy, certificate or contract of insurance or are

otherwise not an integral part of a health benefit plan:

(a) Limited-scope dental or vision benefits;

(b) Benefits for long-term care, nursing home care, home health care or

community-based care, or any combination thereof; and

(c) Such other similar benefits as are specified in any federal regulations

4. The term does not include the following benefits if the benefits are

provided under a separate policy, certificate or contract of insurance, there

is no coordination between the provision of the benefits and any exclusion

of benefits under any group health plan maintained by the same plan

whether benefits are provided for such a claim under any group health plan

maintained by the same plan sponsor:

(a) Coverage that is only for a specified disease or illness; and

(b) Hospital indemnity or other fixed indemnity insurance.

5. The term does not include any of the following, if offered as a

separate policy, certificate or contract of insurance:

(a) Medicare supplemental health insurance as defined in section

existed on July 16, 1997;

(b) Coverage supplemental to the coverage provided pursuant to

(c) Similar supplemental coverage provided under a group health plan.

Sec. 36. NRS 689A.650 is hereby amended to read as follows:

689A.650 1. An individual carrier is not required to provide

coverage to eligible persons pursuant to NRS 689A.640:

(a) During any period in which the commissioner determines that

requiring the individual carrier to provide such coverage would place the

individual carrier in a financially impaired condition.

(b) If the individual carrier elects not to offer any new coverage to any

new coverage in accordance with this paragraph may maintain its existing

of NRS 689A.630. 2. An individual carrier that elects not to offer new coverage pursuant

to paragraph (b) of subsection 1 shall notify the commissioner forthwith of

that election and shall not thereafter write any new business to individuals

in this state for 5 years after the date of the notification.

Sec. 37. NRS 689A.660 is hereby amended to read as follows:

689A.660 An individual carrier shall not:

condition.

2. Modify a health benefit plan, with respect to an eligible person,

through riders, endorsements or otherwise, to restrict or exclude services

otherwise covered by the plan.

Sec. 38. NRS 689A.680 is hereby amended to read as follows:

689A.680 1. An individual carrier shall develop its rates for its

individual health benefit plans pursuant to NRS 689A.470 to 689A.740,

inclusive, based on rating characteristics. After any adjustments for rating

characteristics and design of benefits, the rate for any block of business for

for an individual health benefit plan offered by the individual carrier by

average rate charged to all the insureds in the block of business. In

determining whether the rate of a block of business complies with the

provisions of this subsection, any differences in rating factors between

blocks of business must be considered.

2. In determining the rating factors to establish premium rates for a

health benefit plan, an individual carrier shall not use characteristics other

than age, sex, occupation, geographic area, composition of the family of the

individual and health status.

3. If an individual carrier uses health status as a rating factor in

establishing premium rates, the highest factor associated with any

classification for health status may not exceed the lowest factor by more

than 75 percent.

4. For the purposes of this section, rating characteristics must not

include durational or tier rating, or adverse changes in health status or

claim experience after the policy is issued.

5. As used in this section, "characteristics" means demographic or

other information concerning individuals that is considered by a carrier in

the determination of premium rates for individuals.

Sec. 39. NRS 689B.027 is hereby amended to read as follows:

689B.027 1. The commissioner shall adopt regulations which require

an insurer to file with the commissioner, for his approval, a disclosure

summarizing the coverage provided by each policy of group health

insurance offered by the insurer. The disclosure must include:

(a) Any significant exception, reduction or limitation that applies to the

policy; (b) Any restrictions on payments for emergency care, including related

definitions of an emergency and medical necessity;

(c) Any provisions concerning the insurer's right to change premium

rates and the characteristics, other than claim experience, that affect

changes in premium rates;

(d) Any provisions relating to renewability;

(e) Any provisions relating to preexisting conditions; and

(f) Any other information,

that the commissioner finds necessary to provide for full and fair disclosure

of the provisions of the policy.

2. The disclosure must be written in language which is easily

the governing contractual provisions.

3. The commissioner shall not approve any proposed disclosure

submitted to him pursuant to this section which does not comply with the

requirements of this section and the applicable regulations.

approved by the commissioner pursuant to this section for each policy of

health insurance coverage for which that employer may be eligible.

Sec. 40. NRS 689B.380 is hereby amended to read as follows:

689B.380 "Creditable coverage" means health benefits or coverage

provided to a person pursuant to:

1. A group health plan;

2. A health benefit plan;

known as Medicaid, other than coverage consisting solely of benefits under

6. A medical care program of the Indian Health Service or of a tribal

organization;

7. A state health benefit risk pool;

9. A public health plan as defined in 45 C.F.R. § 146.113, authorized

10. A health benefit plan under section 5(e) of the Peace Corps Act, 22

Sec. 41. NRS 689B.410 is hereby amended to read as follows:

689B.410 1. "Health benefit plan" means a policy, contract,

certificate or agreement offered by a carrier to provide for, arrange for the

payment of, pay for or reimburse any of the costs of health care services.

incurred basis.

2. The term does not include:

(a) Coverage that is only for accident or disability income insurance, or

any combination thereof;

(b) Coverage issued as a supplement to liability insurance;

(c) Liability insurance, including general liability insurance and

automobile liability insurance;

(d) Workers' compensation or similar insurance;

(e) Coverage for medical payments under a policy of automobile

insurance;

(f) Credit insurance;

(h) Other similar insurance coverage specified in federal regulations

issued pursuant to the Health Insurance Portability and Accountability Act

of 1996, Public Law 104-191, under which benefits for medical care are

3. If the benefits are provided under a separate policy, certificate or

contract of insurance or are otherwise not an integral part of a health

benefit plan, the term does not include the following benefits:

(a) Limited-scope dental or vision benefits;

(b) Benefits for long-term care, nursing home care, home health care or

community-based care, or any combination thereof; and

(c) Such other similar benefits as are specified in any federal regulations

adopted pursuant to the Health Insurance Portability and Accountability

Act of 1996, Public Law 104-191.

4. For the purposes of NRS 689B.340 to 689B.590, inclusive, if the

benefits are provided under a separate policy, certificate or contract of

insurance, there is no coordination between the provision of the benefits

and any exclusion of benefits under any group health plan maintained by

regard to whether benefits are provided for such a claim under any group

health plan maintained by the same plan sponsor, the term does not include:

(a) Coverage that is only for a specified disease or illness; an

d (b) Hospital indemnity or other fixed indemnity insurance.

5. For the purposes of NRS 689B.340 to 689B.590, inclusive, if

offered as a separate policy, certificate or contract of insurance, the term

does not include:

(a) Medicare supplemental health insurance as defined in section

1882(g)(1) of the Social Security Act, 42 U.S.C. § 1395ss, as that section

existed on July 16, 1997;

(b) Coverage supplemental to the coverage provided pursuant to the

Civilian Health and Medical Program of Uniformed Services, CHAMPUS,

10 U.S.C. §§ 1071 et seq.; and

(c) Similar supplemental coverage provided under a group health plan.

Sec. 42. NRS 689B.460 is hereby amended to read as follows:

689B.460 "Waiting period" means the period established by a plan of

health insurance that must pass before a person who is an eligible

participant or beneficiary in a plan is covered for benefits under the terms

Sec. 43. NRS 689B.500 is hereby amended to read as follows:

689B.500 1. Except as otherwise provided in this section, a carrier

that issues a group health plan or coverage under group health insurance

shall not deny, exclude or limit a benefit for a preexisting condition for:

(a) More than 12 months after the effective date of coverage if the

employee enrolls through open enrollment or after the first day of the

(b) More than 18 months after the effective date of coverage for a late

enrollee.

A carrier may not define a preexisting condition more restrictively than that

term is defined in NRS 689B.450.

2. The period of any exclusion for a preexisting condition imposed by

a group health plan or coverage under group health insurance on a person

to be insured in accordance with the provisions of this chapter must be

reduced by the aggregate period of creditable coverage of that person, if the

creditable coverage was continuous to a date not more than 63 days before

the effective date of the coverage. The period of continuous coverage must

not include:

(a) Any waiting period for the effective date of the new coverage

applied by the employer or the carrier; or

(b) Any affiliation period not to exceed 60 days for a new enrollee and

in the group health plan.

3. A health maintenance organization authorized to transact insurance

pursuant to chapter 695C of NRS that does not restrict coverage for a

preexisting condition may require an affiliation period before coverage

becomes effective under a plan of insurance if the affiliation period applies

uniformly to all employees and without regard to any health status-relatedfactors. During the affiliation period, the carrier shall not collect any

premiums for coverage of the employee.

4. An insurer that restricts coverage for preexisting conditions shall not

impose an affiliation period.

5. A carrier shall not impose any exclusion for a preexisting condition:

(a) Relating to pregnancy.

(b) In the case of a person who, as of the last day of the 30-day period

beginning on the date of his birth, is covered under creditable coverage.

(c) In the case of a child who is adopted or placed for adoption before

attaining the age of 18 years and who, as of the last day of the 30-day

period beginning on the date of adoption or placement for adoption,

whichever is earlier, is covered under creditable coverage. The provisions

of this paragraph do not apply to coverage before the date of adoption or

placement for adoption.

(d) In the case of a condition for which medical advice, diagnosis, care

or treatment was recommended or received for the first time while the

covered person held creditable coverage, and the medical advice, diagnosis,

care or treatment was a benefit under the plan, if the creditable coverage

was continuous to a date not more than 63 days before the effective date of

the new coverage.

The provisions of paragraphs (b) and (c) do not apply to a person after the

end of the first 63-day period during all of which the person was not

covered under any creditable coverage.

6. As used in this section, "late enrollee" means an eligible employee,

or his dependent, who requests enrollment in a group health plan following

the initial period of enrollment, if that initial period of enrollment is at least

30 days, during which the person is entitled to enroll under the terms of the

health benefit plan. The term does not include an eligible employee or his

dependent if:

(a) The employee or dependent:

(1) Was covered under creditable coverage at the time of the initial

enrollment;

(2) Lost coverage under creditable coverage as a result of cessation of

contributions by his employer, termination of employment or eligibility,

reduction in the number of hours of employment, involuntary termination

of creditable coverage, or death of, or divorce or legal separation from, a

covered spouse; and

(3) Requests enrollment not later than 30 days after the date on which

his creditable coverage was terminated or on which the change in

conditions that gave rise to the termination of the coverage occurred.

(b) The employee enrolls during the open enrollment period, as

provided in the contract or as otherwise specifically provided by specific

statute.

(c) The employer of the employee offers multiple health benefit plans

and the employee elected a different plan during an open enrollment period. (d) A court has ordered coverage to be provided to the spouse or a

minor or dependent child of an employee under a health benefit plan of the

employee and a request for enrollment is made within 30 days after the

issuance of the court order.

(e) The employee changes status from not being an eligible employee to

being an eligible employee and requests enrollment, subject to any waiting

period, within 30 days after the change in status.

(f) The person has continued coverage in accordance with the

Sec. 44. NRS 689B.590 is hereby amended to read as follows:

689B.590 1. Not later than 180 days after the date on which the basic

and standard health benefit plans are approved pursuant to NRS 689C.770

as part of the plan of operation of the program of reinsurance, each carrier

required to offer to a person a converted policy pursuant to NRS 689B.120

shall only offer as a converted policy a choice of the basic and standard

health benefit plans.

2. A person with a converted policy issued before the effective date of

the requirement set forth in subsection 1 may, at each annual renewal of the

converted policy elect a basic or standard health benefit plan as a substitute

converted policy, except that the carrier may, if the person has not made an

election within 3 years after first becoming eligible to do so, require the

basic or standard health benefit plan as a substitute converted policy, he

may not elect another converted policy.

3. The premium for a converted policy may not exceed the small group

index rate, as defined in paragraph (b) of subsection 3 of NRS 689C.230,

index rate used by a carrier that does not write insurance to small

employers in this state must be the average small group index rate, as

determined by the commissioner, of the five largest carriers that provide

coverage to small employers pursuant to this chapter for their basic and

standard health benefit plans. The commissioner shall annually determine

the average small group index rate, as measured by the premium volume of

the plans, of those five largest carriers.

4. The rates for new and renewal converted policies for persons with

the same converted policies whose case characteristics are similar must be

the same.

5. Any losses suffered by a carrier on its converted policies issued

pursuant to this section must be spread across the entire book of the health

benefit coverage of the carrier issued or delivered for issuance to small

employers and large group employers in this state.

6. The commissioner shall adopt such regulations as are necessary to

carry out the provisions of this section.

Sec. 45. Chapter 689C of NRS is hereby amended by adding thereto

Sec. 48. NRS 689C.053 is hereby amended to read as follows:

689C.053 "Creditable coverage" means health benefits or coverage

provided to a person pursuant to:

1. A group health plan;

2. A health benefit plan;

known as Medicaid, other than coverage consisting solely of benefits under

6. A medical care program of the Indian Health Service or of a tribal

organization;

7. A state health benefit risk pool;

9. A public health plan as defined in federal regulations authorized by

10. A health benefit plan under section 5(e) of the Peace Corps Act, 22

11. The children's health insurance program established pursuant to 42

Sec. 49. NRS 689C.075 is hereby amended to read as follows:

689C.075 1. "Health benefit plan" means a policy or certificate for

hospital or medical expenses, a contract for dental, hospital or medicalservices, or a health care plan of a health maintenance organization

available for use, offered or sold to a small employer. Except as otherwise

provided in this section, the term includes short-term and catastrophic

health insurance policies, and a policy that pays on a cost-incurred basis.

2. The term does not include:

(a) Coverage that is only for accident or disability income insurance, or

any combination thereof;

(b) Coverage issued as a supplement to liability insurance;

(c) Liability insurance, including general liability insurance and

automobile liability insurance;

(d) Workers' compensation or similar insurance;

(e) Coverage for medical payments under a policy of automobile

insurance;

(f) Credit insurance;

are secondary or incidental to other insurance benefits.

3. If the benefits are provided under a separate policy, certificate or

contract of insurance or are otherwise not an integral part of a health

benefit plan, the term does not include the following benefits:

(a) Limited-scope dental or vision benefits;

(b) Benefits for long-term care, nursing home care, home health care or

community-based care, or any combination thereof; and

(c) Such other similar benefits as are specified in any federal regulations

4. If the benefits are provided under a separate policy, certificate or

contract of insurance, there is no coordination between the provision of the

benefits and any exclusion of benefits under any group health plan

claim without regard to whether benefits are provided for such a claim

under any group health plan maintained by the same plan sponsor, the term

does not include:

(a) Coverage that is only for a specified disease or illness; and

(b) Hospital indemnity or other fixed indemnity insurance.

5. If offered as a separate policy, certificate or contract of insurance,

the term does not include:

(a) Medicare supplemental health insurance as defined in section

existed on July 16, 1997; (b) Coverage supplemental to the coverage provided pursuant to

(c) Similar supplemental coverage provided under a group health plan.

Sec. 50. NRS 689C.095 is hereby amended to read as follows:

employees, organizations which are affiliated or which are eligible to file a

combined tax return for the purposes of taxation constitute one employer.

2. For the purposes of this section, organizations are "affiliated" if one

directly, or indirectly, through one or more intermediaries, controls or is

controlled by, or is under common control with, the other, as determined

pursuant to the provisions of NRS 692C.050.

Sec. 51. NRS 689C.106 is hereby amended to read as follows:

689C.106 "Waiting period" means the period established by a plan of

health insurance that must pass before a person who is an eligible

participant or beneficiary in a plan is covered for benefits under the terms

Sec. 52. NRS 689C.210 is hereby amended to read as follows:

689C.210 1. Except as otherwise provided in subsection 3, a carrier

shall not increase the premium rate charged to a small employer for a new

rating period by a percentage greater than the sum of:

(a) The percentage of change in the premium rate for new business for

the policy under which the small employer is covered, measured from the

first day of the previous rating period to the first day of the new rating

period;

(b) An adjustment, not to exceed 15 percent annually, adjusted pro rata

for rating periods of less than 1 year, on account of the claim experience,

health status, or duration of coverage of the employees or dependents of the

small employer as determined from the carrier's rate manual for the class of

business; and (c) Any adjustment on account of change in coverage or change in the

characteristics of the small employer as determined from the carrier's rate

manual for the class of business.

2. If the carrier no longer issues new policies for that class of business,

the carrier shall use the percentage of change in the premium rate for new

business for the class of business which is most similar to the closed class

of business and for which the carrier is issuing new policies.

3. In the case of health benefit plans delivered or issued for delivery

employees, a premium rate for a rating period may exceed the ranges set

period of 3 years following that date. In that case, the percentage of

increase in the premium rate charged to a small employer for a new rating

period may not exceed the sum of:

(a) The percentage of change in the premium rate for new business

measured from the first day of the previous rating period to the first day of

the new rating period. In the case of a health benefit plan into which the

carrier is no longer enrolling new small employers, the carrier shall use the

percentage of change in the base premium rate if that change does not

exceed, on a percentage basis, the change in the premium rate for new

business for the most similar health benefit plan into which the carrier is

actively enrolling new small employers.

(b) Any adjustment on account of change in coverage or change in the

characteristics of the small employer as determined from the carrier's rate

manual for the class of business.

Sec. 53. NRS 689C.270 is hereby amended to read as follows:

689C.270 1. The commissioner shall adopt regulations which require

a carrier to file with the commissioner, for his approval, a disclosure

offered by the carrier to a small employer. The disclosure must include:

(a) Any significant exception, reduction or limitation that applies to the

policy;

(b) Any restrictions on payments for emergency care, including, without

limitation, related definitions of an emergency and medical necessity;

(c) The provision of the health benefit plan concerning the carrier's right

to change premium rates and the characteristics, other than claim

experience, that affect changes in premium rates;

(d) The provisions relating to renewability of policies and contracts;

(e) The provisions relating to any preexisting condition; and

(f) Any other information that the commissioner finds necessary to

provide for full and fair disclosure of the provisions of a policy or contract

of insurance issued pursuant to this chapter.

2. The disclosure must be written in language which is easily

understood and must include a statement that the disclosure is a summary

of the policy only, and that the policy itself should be read to determine the

governing contractual provisions.

3. The commissioner shall not approve any proposed disclosure

submitted to him pursuant to this section which does not comply with the

requirements of this section and the applicable regulations.

disclosure approved by the commissioner pursuant to this section for

policies of health insurance for which that employer may be eligible.

Sec. 54. (Deleted by amendment.)

Sec. 55. NRS 689C.610 is hereby amended to read as follows:

terms defined in NRS 689C.620 to 689C.730, inclusive, have the meanings

ascribed to them in those sections.

Sec. 56. NRS 689C.870 is hereby amended to read as follows:

689C.870 1. If, in each of 2 consecutive years, the board determines

that the amount of the assessment needed exceeds 5 percent of the total

premiums earned in the previous calendar year from health benefit plans

delivered or issued for delivery to small employers by reinsuring carriers,

the program of reinsurance is eligible for additional funding pursuant to this

section.

2. If, in each of 2 consecutive years, the board determines that the

amount of the assessment needed exceeds 5 percent of the total premiums

earned in the previous calendar year from health benefit plans delivered or

issued for delivery to individuals by individual reinsuring carriers, the

program of reinsurance is eligible for additional funding pursuant to this

section.

formula pursuant to which additional assessments may be made on all

carriers that offer a health benefit plan or provide stop-loss coverage for a

plan or a plan established pursuant to the Labor-Management Relations

Act, 1947, as amended. The total additional assessments on all such

carriers combined may not exceed one-half of 1 percent of the total

premiums earned from all health benefit plans and stop-loss coverage

issued in this state in the previous calendar year.

Sec. 57. NRS 690B.042 is hereby amended to read as follows:

690B.042 1. Except as otherwise provided in subsection 2, any party

against whom a claim is asserted for compensation or damages for personal

injury under a policy of motor vehicle insurance covering a private

passenger car may require any attorney representing the claimant to provide

to the party and his insurer or attorney, not more than once every 90 days,

to subsection 1, the claimant or any attorney representing the claimant may

who issued the policy specified in subsection 1 shall, upon request,

immediately disclose to the insured or the claimant all pertinent facts or

provisions of the policy relating to any coverage at issue.

Sec. 58. NRS 692A.105 is hereby amended to read as follows:

692A.105 1. The commissioner may refuse to license any title agent

or escrow officer or may suspend or revoke any license or impose a fine of

not more than $500 for each violation by entering an order to that effect,

with his findings in respect thereto, if upon a hearing, it is determined that

the applicant or licensee:

(a) In the case of a title agent, is insolvent or in such a financial

condition that he cannot continue in business with safety to his customers;

(b) Has violated any provision of this chapter or any regulation adopted

pursuant thereto or has aided and abetted another to do so;

(c) Has committed fraud in connection with any transaction governed by

this chapter;

(d) Has intentionally or knowingly made any misrepresentation or false

statement to, or concealed any essential or material fact known to him from,

any principal or designated agent of the principal in the course of the

escrow business;

(e) Has intentionally or knowingly made or caused to be made to the

commissioner any false representation of a material fact or has suppressed

or withheld from him any information which the applicant or licensee

possesses;

(f) Has failed without reasonable cause to furnish to the parties of an

escrow their respective statements of the settlement within a reasonable

time after the close of escrow;

(g) Has failed without reasonable cause to deliver, within a reasonable

time after the close of escrow, to the respective parties of an escrow

transaction any money, documents or other properties held in escrow in

violation of the provisions of the escrow instructions;

(h) Has refused to permit an examination by the commissioner of his

books and affairs or has refused or failed, within a reasonable time, to

furnish any information or make any report that may be required by the

commissioner pursuant to the provisions of this chapter;

(i) Has been convicted of a felony or any misdemeanor of which an

essential element is fraud;

(j) In the case of a title agent, has failed to maintain complete and

accurate records of all transactions within the last 7 years;

(l) Has failed, before the close of escrow, to obtain written instructions

concerning any essential or material fact or intentionally failed to follow

the written instructions which have been agreed upon by the parties and

accepted by the holder of the escrow;

(m) Has failed to disclose in writing that he is acting in the dual capacity

(n) In the case of an escrow officer, has been convicted of, or entered a

2. It is sufficient cause for the imposition of a fine or the refusal,

suspension or revocation of the license of a partnership, corporation or any

other association if any member of the partnership or any officer or director

of the corporation or association has been guilty of any act or omission

directly arising from the business activities of a title agent which would be

cause for such action had the applicant or licensee been a natural person.

3. The commissioner may suspend or revoke the license of a title agent,

or impose a fine, if the commissioner finds that the title agent:

(a) Failed to maintain adequate supervision of an escrow officer title

agent he has appointed or employed.

(b) Instructed an escrow officer to commit an act which would be cause

for the revocation of the escrow officer's license and the escrow officer

committed the act. An escrow officer is not subject to disciplinary action

for committing such an act under instruction by the title agent.

4. The commissioner may refuse to issue a license to any person who,

within 10 years before the date of applying for a current license, has had

suspended or revoked a license issued pursuant to this chapter or a

comparable license issued by any other state, district or territory of the

United States or any foreign country.

Sec. 59. Chapter 695C of NRS is hereby amended by adding thereto a

new section to read as follows:

Sec. 60. NRS 695C.350 is hereby amended to read as follows:

695C.350 1. The commissioner may, in lieu of suspension or

revocation of a certificate of authority under NRS 695C.330, levy an

2. Any person who violates the provisions of this chapter is guilty of a

misdemeanor.

3. If the commissioner or the state board of health for any reason have

cause to believe that any violation of this chapter has occurred or is

threatened, the commissioner or the state board of health may give notice to

the health maintenance organization and to the representatives, or other

arrange a conference with the alleged violators or their authorized

violation.

formal procedural requirements, and may be conducted in such manner as

the commissioner or the state board of health may deem appropriate under

the circumstances.

5. The commissioner may issue an order directing a health maintenance

organization or a representative of a health maintenance organization to

cease and desist from engaging in any act or practice in violation of the

provisions of this chapter.

respondent may request a hearing on the question of whether acts or

as provided therein.

7. In the case of any violation of the provisions of this chapter, if the

commissioner elects not to issue a cease and desist order, or in the event of

noncompliance with a cease and desist order issued pursuant to subsection

5, the commissioner may institute a proceeding to obtain injunctive relief,

or seek other appropriate relief in the district court of the judicial district of

the county in which the violator resides.

Secs. 61 and 62. (Deleted by amendment.

) Sec. 63. NRS 697.090 is hereby amended to read as follows:

697.090 1. A person in this state shall not act in the capacity of a bail

agent, bail enforcement agent or bail solicitor, or perform any of the

functions, duties or powers prescribed for a bail agent, bail enforcement

agent or bail solicitor under the provisions of this chapter, unless that

2. A person, whether or not located in this state, shall not act as or hold

himself out to be a general agent unless qualified and licensed as such

under the provisions of this chapter.

3. For the protection of the people of this state, the commissioner shall

not issue or renew, or permit to exist, any license except in compliance with

this chapter. The commissioner shall not issue or renew, or permit to exist,

a license for any person found to be untrustworthy or incompetent, or who

has not established to the satisfaction of the commissioner that he is

qualified therefor in accordance with this chapter.

Sec. 63.5. NRS 697.100 is hereby amended to read as follows:

697.100 1. Except as otherwise provided in this section, no license

may be issued:

(a) Except in compliance with this chapter.

(b) To a bail agent, bail enforcement agent or bail solicitor, unless he is

a natural person.

2. A corporation may be licensed as a bail agent or bail enforcement

licensed agents.

3. This section does not prohibit two or more licensed bail agents from

entering into a partnership for the conduct of their bail business. No person

may be a member of such a partnership unless he is licensed pursuant to

this chapter in the same capacity as all other members of the partnership. A

limited partnership or a natural person may not have any proprietary

interest, directly or indirectly, in a partnership or the conduct of business

thereunder except licensed bail agents as provided in this chapter.

Sec. 64. NRS 697.184 is hereby amended to read as follows:

697.184 1. An application for a license as a general agent must be

accompanied by:

(a) Proof of the completion of a 6-hour course of instruction in bail

bonds that is:

(1) Offered by a state or national organization of bail agents or

another organization that administers training programs for general agents;

and

(2) Approved by the commissioner

. (b) A written appointment by an authorized insurer as general agent,

subject to the issuance of the license.

(c) A letter from a local law enforcement agency in the applicant's

county of residence which indicates that the applicant:

(1) Has not been convicted of a felony in this state or of any offense

committed in another state which would be a felony if committed in this

state; and

(2) Has not been convicted of an offense involving moral turpitude or

the unlawful use, sale or possession of a controlled substance.

2. If the applicant for a license as a general agent is a firm or

corporation, the application must include the names of the members,

officers and directors and designate each natural person who is to exercise

the authority granted by the license. Each person so designated must furnish

information about himself as though the application were for an individual

license.

Sec. 65. NRS 697.190 is hereby amended to read as follows:

with the application, and thereafter maintain in force while so licensed, a

bond in favor of the people of the State of Nevada executed by an

authorized surety insurer. The bond may be continuous in form with total

aggregate liability limited to payment as follows:

(a) Bail agent $25,000

(b) Bail solicitor 10,000

2. The bond must be conditioned upon full accounting and payment to

the person entitled thereto of money, property or other matters coming into

the licensee's possession through bail bond transactions under the license.

3. The bond must remain in force until released by the commissioner,

or canceled by the surety. Without prejudice to any liability previously

incurred under the bond, the surety may cancel the bond upon 30 days'

advance written notice to the licensee and the commissioner.

Sec. 65.3. NRS 277.055 is hereby amended to read as follows:

277.055 1. As used in this section:

(a) "Medical facility" has the meaning ascribed to it in NRS 449.0151.

(b) "Nonprofit medical facility" means a nonprofit medical facility in

this or another state.

(c) "Public agency" has the meaning ascribed to it in NRS 277.100, and

includes any municipal corporation.

2. Any two or more public agencies or nonprofit medical facilities may

enter into a cooperative agreement for the purchase of insurance or the

establishment of a self-insurance reserve or fund for coverage under a plan

of: (a) Casualty insurance, as that term is defined in NRS 681A.020;

(b) Marine and transportation insurance, as that term is defined in NRS

681A.050;

(c) Property insurance, as that term is defined in NRS 681A.060;

(d) Surety insurance, as that term is defined in NRS 681A.070;

(e) Health insurance, as that term is defined in NRS 681A.030; or

(f) Insurance for any combination of these kinds.

3. Every such agreement must:

(a) Be ratified by formal resolution or ordinance of the governing body

or board of trustees of each agency or nonprofit medical facility included;

(b) Be included in the minutes of each governing body or board of

trustees, or attached in full to the minutes as an exhibit;

approval in the manner provided by NRS 277.150; and

(d) If a public agency is a party to the agreement, comply with the

provisions of NRS 277.080 to 277.180, inclusive.

4. Each participating agency or nonprofit medical facility shall provide

for any expense to be incurred under any such agreement.

Sec. 65.5. NRS 287.025 is hereby amended to read as follows:

287.025 The governing body of any county, school district, municipal

corporation, political subdivision, public corporation or other public

agency of the State of Nevada may, in addition to the other powers granted

in NRS 287.010 and 287.020:

1. Negotiate and contract with any other such agency or with the

committee on benefits for the state's group insurance plan to secure group

insurance for its officers and employees and their dependents by

participation in any group insurance plan established or to be established or

2. To secure group health or life insurance for its officers and

employees and their dependents, participate as a member of a nonprofit

cooperative association or nonprofit corporation that has been established

in this state to secure such insurance for its members from an insurer

licensed pursuant to the provisions of Title 57 of NRS.

3. In addition to the provisions of subsection 2, participate as a

member of a nonprofit cooperative association or nonprofit corporation that

has been established in this state to:

(a) Facilitate contractual arrangements for the provision of medical

services to its members' officers and employees and their dependents and

for related administrative services. (b) Procure health-related information and disseminate that information

to its members' officers and employees and their dependents.

Sec. 65.7. NRS 287.0434 is hereby amended to read as follows:

287.0434 The committee on benefits may:

1. Use its assets to pay the expenses of health care for its members and

covered dependents, to pay its employees' salaries and to pay

administrative and other expenses.

2. Enter into contracts relating to the administration of a plan of

insurance, including contracts with licensed administrators and qualified

3. Enter into contracts with physicians, surgeons, hospitals, health

maintenance organizations and rehabilitative facilities for medical, surgical

and rehabilitative care and the evaluation, treatment and nursing care of

members and covered dependents.

4. Enter into contracts for the services of other experts and specialists

as required by a plan of insurance.

5. Charge and collect from an insurer, health maintenance

organization, organization for dental care or nonprofit medical service

corporation, a fee for the actual expenses incurred by the committee, the

state or a participating public employer in administering a plan of insurance

offered by that insurer, organization or corporation.

616B.500 1. An insurer may enter into a contract to have his plan of

insurance administered by a third-party administrator.

2. An insurer shall not enter into a contract with any person for the

administration of any part of the plan of insurance unless that person

system may, as a part of a contract entered into with an organization for

managed care pursuant to NRS 616B.515, require the organization to act as

its third-party administrator.

Sec. 67. NRS 616B.503 is hereby amended to read as follows:

616B.503 1. A person shall not act as a third-party administrator for

an insurer without a certificate issued by the commissioner pursuant to

2. A person who acts as a third-party administrator pursuant to chapters

616A to 616D, inclusive, or chapter 617 of NRS shall: (a) Administer from one or more offices located in this state all of the

claims arising under each plan of insurance that he administers and

maintain in those offices all of the records concerning those claims;

(b) Administer each plan of insurance directly, without subcontracting

with another third-party administrator; and

(c) Upon the termination of his contract with an insurer, transfer

forthwith to a certified third-party administrator chosen by the insurer all of

the records in his possession concerning claims arising under the plan of

insurance.

3. The commissioner may, under exceptional circumstances, waive the

requirements of subsection 2.

Sec. 68. Section 38 of Senate Bill No. 37 of this session is hereby

amended to read as follows:

Sec. 69. NRS 683A.0867, 686C.060 and 686C.085 are hereby

repealed.

Sec. 70. Sections 20, 23 and 67 of this act become effective at 12:01

a.m. on October 1, 1999.

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