Senate Bill No. 133–Committee on Commerce and Labor
(On Behalf of Legislative Committee on
Workers’ Compensation)
February 5, 1999
____________
Referred to Committee on Commerce and Labor
SUMMARY—Establishes provisions governing consolidated insurance programs. (BDR 53-384)
FISCAL NOTE: Effect on Local Government: No.
Effect on the State or on Industrial Insurance: No.
~
EXPLANATION – Matter in
bolded italics is new; matter between bracketsauthorizing the state indurstrial insurance system or certain private carriers to provide industrial insurance coverage for a consolidated insurance program; requiring that a consolidated insurance program must provide for the safety and administration of claims of employees of contractors and subcontractors who are engaged in a construction project; setting forth the provisions that must be included within a contract to provide industrial insurance coverage for a consolidated insurance program; allocating responsibility for the payment of claims for industrial insurance that are covered by a consolidated insurance program; and providing other matters properly relating thereto.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
1-1
Section 1. Chapter 616A of NRS is hereby amended by adding thereto1-2
the provisions set forth as sections 2, 3 and 4 of this act.1-3
Sec. 2. "Consolidated insurance program" means a program of1-4
insurance that provides, for a specified period:1-5
1. Industrial insurance coverage;1-6
2. A comprehensive program of safety; and1-7
3. For the administration of claims for industrial insurance,2-1
for each employee of a contractor or subcontractor who is engaged in a2-2
construction project when such an employee works at the site of the2-3
construction project.2-4
Sec. 3. "Contractor-controlled insurance program" means a2-5
consolidated insurance program that is established and administered by2-6
the principal contractor of the construction project.2-7
Sec. 4. "Owner-controlled insurance program" means a2-8
consolidated insurance program that is established and administered by2-9
the owner of the construction project.2-10
Sec. 5. NRS 616A.020 is hereby amended to read as follows: 616A.020 1. The rights and remedies provided in chapters 616A to2-12
616D, inclusive, of NRS for an employee on account of an injury by2-13
accident sustained arising out of and in the course of the employment shall2-14
be exclusive, except as otherwise provided in those chapters, of all other2-15
rights and remedies of the employee, his personal or legal representatives,2-16
dependents or next of kin, at common law or otherwise, on account of such2-17
injury.2-18
2. The terms, conditions and provisions of chapters 616A to 616D,2-19
inclusive, of NRS for the payment of compensation and the amount thereof2-20
for injuries sustained or death resulting from such injuries shall be2-21
conclusive, compulsory and obligatory upon both employers and2-22
employees coming within the provisions of those chapters.2-23
3. The exclusive remedy provided by this section to a principal2-24
contractor extends, with respect to any injury by accident sustained by an2-25
employee of any contractor in the performance of the contract, to every2-26
architect, land surveyor or engineer who performs services for:2-27
(a) The contractor;2-28
(b) The owner of the property; or2-29
(c) Any such beneficially interested persons.2-30
4. The exclusive remedy provided by this section applies to the owner2-31
of a construction project who provides industrial insurance coverage for2-32
the project by establishing and administering a consolidated insurance2-33
program pursuant to section 8 of this act to the extent that the program2-34
covers the employees of the contractors and subcontractors who are2-35
engaged in the construction of the project.2-36
5. If an employee receives any compensation or accident benefits under2-37
chapters 616A to 616D, inclusive, of NRS, the acceptance of such2-38
compensation or benefits shall be in lieu of any other compensation, award2-39
or recovery against his employer under the laws of any other state or2-40
jurisdiction and such employee is barred from commencing any action or2-41
proceeding for the enforcement or collection of any benefits or award under2-42
the laws of any other state or jurisdiction.3-1
Sec. 6. NRS 616A.025 is hereby amended to read as follows: 616A.025 As used in chapters 616A to 616D, inclusive, of NRS,3-3
unless the context otherwise requires, the words and terms defined in NRS3-4
616A.030 to 616A.360, inclusive, and sections 2, 3 and 4 of this act, have3-5
the meanings ascribed to them in those sections.3-6
Sec. 6.5. NRS 616A.230 is hereby amended to read as follows: 616A.230 "Employer" means:3-8
1. The state, and each county, city, school district, and all public and3-9
quasi-public corporations therein without regard to the number of persons3-10
employed.3-11
2. Every person, firm, voluntary association, and private corporation,3-12
including any public service corporation, which has in service any person3-13
under a contract of hire.3-14
3. The legal representative of any deceased employer.3-15
4. The Nevada rural housing authority.3-16
5. An owner or principal contractor who establishes and administers3-17
a consolidated insurance program pursuant to section 8 of this act, with3-18
respect to the employees covered under that consolidated insurance3-19
program.3-20
Sec. 7. Chapter 616B of NRS is hereby amended by adding thereto the3-21
provisions set forth as sections 8 to 21, inclusive, of this act.3-22
Sec. 8. 1. A private company, public entity or utility may:3-23
(a) Establish and administer a consolidated insurance program to3-24
provide industrial insurance coverage for employees of contractors and3-25
subcontractors who are engaged in a construction project of which the3-26
private company, public entity or utility is the owner or principal3-27
contractor, if the estimated total cost of the construction project is equal3-28
to or greater than the threshold amount established by the commissioner3-29
pursuant to subsection 3; and3-30
(b) As a condition precedent to the award of a contract to perform3-31
work on the construction project, require that contractors and3-32
subcontractors who will be engaged in the construction of the project3-33
participate in the consolidated insurance program.3-34
2. If a private company, public entity or utility:3-35
(a) Establishes and administers a consolidated insurance program;3-36
and3-37
(b) Pursuant to the contract for the construction of the project, owes a3-38
periodic payment to a contractor or subcontractor whose employees are3-39
covered under the consolidated insurance program,3-40
the private company, public entity or utility shall not withhold such a3-41
periodic payment on the basis that the contractor or subcontractor has3-42
not signed an employer’s report of industrial injury or occupational3-43
disease as required pursuant to NRS 616C.045.4-1
3. The commissioner shall establish the threshold amount that the4-2
estimated total cost of a construction project must be equal to or greater4-3
than before a consolidated insurance program may be established and4-4
administered for that project pursuant to this section. The base amount4-5
for the threshold must initially be $150,000,000 and thereafter must be4-6
an amount equal to $150,000,000 as adjusted by the commissioner on4-7
June 30 of each year to reflect the present value of that amount with4-8
respect to the construction cost index.4-9
4. As used in this section:4-10
(a) "Construction cost index" means the construction cost index4-11
published by the Engineering News-Record as a measure of inflation.4-12
(b) "Estimated total cost" means the estimated cost to complete all4-13
parts of a construction project, including, without limitation, the cost of:4-14
(1) Designing the project;4-15
(2) Acquiring the real property on which the project will be4-16
constructed;4-17
(3) Connecting the project to utilities;4-18
(4) Excavating and carrying out underground improvements for the4-19
project; and4-20
(5) Acquiring equipment and furnishings for the project.4-21
The term does not include the cost of any fees or charges associated with4-22
acquiring the money necessary to complete the project.4-23
Sec. 9. (Deleted by amendment.)4-24
Sec. 10. A consolidated insurance program must not cover more4-25
than one construction project.4-26
Sec. 11. A consolidated insurance program may cover more than4-27
one construction project.4-28
Sec. 12. 1. The system or a private carrier who is authorized to4-29
transact industrial insurance in this state may contract with a private4-30
company, public entity or utility to provide industrial insurance coverage4-31
for a consolidated insurance program.4-32
2. A private company, public entity or utility that enters into a4-33
contract with the system or a private carrier for the provision of4-34
industrial insurance coverage for a consolidated insurance program4-35
shall file a copy of the contract with the commissioner at least 60 days4-36
before the date on which the construction project is scheduled to begin.4-37
3. The commissioner shall, within 60 days after receiving a copy of a4-38
contract pursuant to subsection 2, review and approve or disapprove the4-39
contract. If the commissioner does not disapprove the contract within 604-40
days after receiving it, the contract shall be deemed approved.4-41
Sec. 13. 1. A consolidated insurance program that a private4-42
company, public entity or utility is authorized to establish and administer4-43
pursuant to section 8 of this act must, in the manner set forth in this5-1
section, provide for the safety of an employee of a contractor or5-2
subcontractor who is engaged in the construction project when such an5-3
employee works at the site of the construction project.5-4
2. The owner or principal contractor of the construction project shall5-5
develop and carry out a safety program that includes, without limitation:5-6
(a) The establishment of minimum standards of safety to be observed5-7
during construction of the project;5-8
(b) The holding of regular meetings to address and discuss issues5-9
related to safety;5-10
(c) Training of contractors and subcontractors regarding issues and5-11
procedures related to safety;5-12
(d) Regular inspections of the site of the construction project to5-13
identify potential safety hazards and ensure that minimum standards of5-14
safety are being observed;5-15
(e) The notification of contractors and subcontractors of special5-16
hazards that exist at the site of the construction project, including advice5-17
on ways in which the contractors and subcontractors can avoid those5-18
hazards; and5-19
(f) The prompt investigation of any injuries that take place at the site5-20
of the construction project which result in death or serious bodily injury.5-21
3. The owner or principal contractor of the construction project shall5-22
hire or contract with two persons to serve as the primary and alternate5-23
coordinators for safety for the construction project. The primary and5-24
alternate coordinators for safety must:5-25
(a) Possess credentials in the field of safety that the administrator5-26
determines to be adequate to prepare a person to act as a coordinator for5-27
safety for a construction project, including, without limitation,5-28
credentials issued by the:5-29
(1) Board of Certified Safety Professionals; or5-30
(2) Insurance Institute of America; or5-31
(b) Have at least 3 years of experience in overseeing matters of5-32
occupational safety and health in the field of construction that the5-33
administrator determines to be adequate to prepare a person to act as a5-34
coordinator for safety for a construction project.5-35
4. The primary and alternate coordinators for safety for the5-36
construction project:5-37
(a) Must not serve as coordinators for safety for another construction5-38
project that is covered by a different consolidated insurance program;5-39
(b) Shall oversee and enforce the safety program established pursuant5-40
to subsection 2, including, without limitation, resolving problems related5-41
to the operation of the safety program; and5-42
(c) Shall ensure that the contractors, employers and subcontractors5-43
who are engaged in the construction of the project coordinate their6-1
efforts regarding issues of occupational safety and health to create and6-2
maintain a safe and healthful workplace.6-3
5. The alternate coordinator for safety shall report to the primary6-4
coordinator for safety regarding activities that take place at the site of the6-5
construction project when the primary coordinator is absent.6-6
6. The owner or principal contractor of the construction project shall6-7
ensure that the primary or alternate coordinator for safety for the6-8
construction project is physically present at the site of the construction6-9
project whenever activity related to construction is taking place at the6-10
site.6-11
Sec. 14. A consolidated insurance program that a private company,6-12
public entity or utility is authorized to establish and administer pursuant6-13
to section 8 of this act must, in the manner set forth in this section,6-14
provide for the administration of claims for industrial insurance for an6-15
employee of a contractor or subcontractor who is engaged in the6-16
construction project when such an employee works at the site of the6-17
construction project.6-18
2. The owner or principal contractor of the construction project shall6-19
hire or contract with a person to serve as the administrator of claims for6-20
industrial insurance for the construction project. Such a person must not6-21
serve as an administrator of claims for industrial insurance for another6-22
construction project that is covered by a different consolidated insurance6-23
program.6-24
3. The administrator of claims for industrial insurance for the6-25
construction project who is hired or with whom the owner or principal6-26
contractor contracts pursuant to subsection 2 shall:6-27
(a) Assist an employee who is covered under the consolidated6-28
insurance program or, in the event of the employee’s death, one of his6-29
dependents, in filing a written notice of injury or death as required6-30
pursuant to NRS 616C.015 or a written notice of an occupational disease6-31
as required pursuant to NRS 617.342;6-32
(b) Sign and file on behalf of a contractor or subcontractor whose6-33
employees are covered under the consolidated insurance program an6-34
employer’s report of industrial injury or occupational disease as required6-35
pursuant to NRS 616C.045 or 617.354;6-36
(c) Ensure that an employee who is covered under the consolidated6-37
insurance program and who has been injured or who has incurred an6-38
occupational disease while working on the construction project is6-39
directed to a medical facility that will provide treatment to the employee6-40
under the program;6-41
(d) Handle all issues, to the extent reasonably practicable, relating to6-42
claims for industrial insurance at the site of the construction project; and7-1
(e) Hire or contract such assistant administrators as may be necessary7-2
to carry out his responsibilities pursuant to this section.7-3
4. The owner or principal contractor of the construction project shall7-4
ensure that the administrator of claims for industrial insurance for the7-5
construction project or an assistant administrator is physically present at7-6
the site of the construction project whenever activity related to7-7
construction is taking place at the site.7-8
Sec. 15. (Deleted by amendment.)7-9
Sec. 16. 1. A consolidated insurance program must not provide7-10
industrial insurance coverage, a comprehensive program of safety or for7-11
the administration of claims for industrial insurance for an employee of7-12
a contractor or subcontractor who is engaged in the construction of the7-13
project that is covered by the consolidated insurance program at any time7-14
that such an employee does not work at the site of the construction7-15
project.7-16
2. A contractor or subcontractor who is engaged in the construction7-17
of a project that is covered by a consolidated insurance program shall7-18
maintain separate industrial insurance coverage for its employees who:7-19
(a) Are not assigned to participate in the construction of the project;7-20
or7-21
(b) Are assigned to participate in the construction of the project but7-22
who do not work at the site of the project.7-23
3. The owner or principal contractor of a construction project shall7-24
reimburse a contractor or subcontractor who bids successfully on the7-25
construction project for the cost of providing separate industrial7-26
insurance coverage for an employee if:7-27
(a) The contractor or subcontractor set the amount of his bid in a7-28
reasonable, good faith belief that the employee would work at the site of7-29
the construction project and would therefore be covered by the7-30
consolidated insurance program; and7-31
(b) Because of changed circumstances not reasonably foreseeable at7-32
the time the bid was submitted, the employee worked in whole or in part7-33
at a location other than the site of the construction project, requiring the7-34
contractor or subcontractor to obtain separate industrial insurance7-35
coverage for that employee.7-36
Sec. 17. If an owner or principal contractor establishes and7-37
administers a consolidated insurance program pursuant to section 8 of7-38
this act, each employee who is covered under the consolidated insurance7-39
program shall be deemed to be an employee of the owner or principal7-40
contractor for the purpose of determining the loss experience of the7-41
owner or principal contractor.8-1
Sec. 18. With respect to a construction project for which the owner8-2
intends to establish and administer an owner-controlled insurance8-3
program or the principal contractor intends to establish and administer a8-4
contractor-controlled insurance program, the owner or principal8-5
contractor, as appropriate, shall:8-6
1. In the notice or advertisement for bids for the construction of the8-7
project, state:8-8
(a) That the employees of contractors and subcontractors who are8-9
engaged in the construction of the project will be covered under a8-10
consolidated insurance program when such employees work at the site of8-11
the project; and8-12
(b) Whether such a program will be an owner-controlled insurance8-13
program or a contractor-controlled insurance program; and8-14
2. Hold a pre-bid conference at which it provides to potential8-15
contractors and subcontractors, without limitation, the following8-16
information:8-17
(a) A general explanation of the manner in which a consolidated8-18
insurance program operates;8-19
(b) An overview of the provisions of sections 8 to 21, inclusive, of this8-20
act;8-21
(c) A general description of the safety procedures that will be required8-22
as part of the consolidated insurance program; and8-23
(d) The procedures pursuant to which claims for industrial insurance8-24
will be administered.8-25
Sec. 19. The system or a private carrier who contracts to provide8-26
industrial insurance coverage for a consolidated insurance program8-27
pursuant to section 12 of this act is liable to pay each claim for industrial8-28
insurance that is covered by the program, regardless of whether:8-29
1. The claim is filed after the completion of the construction project;8-30
or8-31
2. Any party to the contract is not transacting business within this8-32
state at the time the claim is filed.8-33
Sec. 20. A contract for the provision of industrial insurance that is8-34
authorized pursuant to section 12 of this act must include, without8-35
limitation:8-36
1. Provisions that require compliance with each of the requirements8-37
relating to safety and the administration of claims for industrial8-38
insurance at the site of the construction project that are set forth in8-39
sections 13 and 14 of this act;8-40
2. The names and qualifications of the persons appointed to oversee8-41
issues of safety and the administration of claims for industrial insurance8-42
at the site of the construction project pursuant to sections 13 and 14 of8-43
this act;9-1
3. The terms and conditions pursuant to which the contract provides9-2
industrial insurance coverage. The terms and conditions must include,9-3
without limitation:9-4
(a) A definition of the site of the construction project that:9-5
(1) Delineates clearly the area within which coverage is provided;9-6
and9-7
(2) Is reasonably contiguous to the actual physical site of the9-8
construction project; and9-9
(b) A description of the scope and details of the construction project9-10
and the duration of industrial insurance coverage that is provided for the9-11
project;9-12
4. A list in which the owner, principal contractor, construction9-13
manager, contractors and subcontractors of the construction project are9-14
set forth as named insureds; and9-15
5. A provision setting forth the penalties to which the owner,9-16
principal contractor, construction manager, contractors and9-17
subcontractors of the construction project may be subject if such persons9-18
or entities fail to comply with the provisions relating to safety and the9-19
administration of claims for industrial insurance that are required9-20
pursuant to sections 13 and 14 of this act.9-21
Sec. 21. The commissioner may adopt such regulations as the9-22
commissioner determines are necessary to carry out the provisions of9-23
sections 8 to 21, inclusive, of this act, to the extent that the authority9-24
granted pursuant to this section does not duplicate authority granted to9-25
the administrator.9-26
Sec. 22. NRS 616B.612 is hereby amended to read as follows: 616B.612 1. Every employer within the provisions of chapters 616A9-28
to 616D, inclusive, or 617 of NRS, and those employers who accept the9-29
terms of those chapters and are governed by their provisions, shall provide9-30
and secure compensation according to the terms, conditions and provisions9-31
of those chapters for any personal injuries by accident sustained by an9-32
employee arising out of and in the course of the employment.9-33
2. A contractor or subcontractor shall be deemed to have provided9-34
and secured compensation for his employees as required pursuant to9-35
subsection 1 to the extent that those employees are covered by a9-36
consolidated insurance program.9-37
3. Travel for which an employee receives wages shall, for the purposes9-38
of chapters 616A to 616D, inclusive, of NRS, be deemed in the course of9-39
employment.9-40
9-41
relieved from other liability for recovery of damages or other compensation9-42
for those personal injuries unless otherwise provided by the terms of9-43
chapters 616A to 616D, inclusive, of NRS.10-1
Sec. 23. NRS 616C.045 is hereby amended to read as follows: 616C.045 1.10-3
this act, within 6 working days after the receipt of a claim for10-4
compensation from a physician or chiropractor, an employer shall complete10-5
and file with his insurer or third-party administrator an employer’s report of10-6
industrial injury or occupational disease.10-7
2. The report must:10-8
(a) Be on a form prescribed by the administrator;10-9
(b) Be signed by the employer or his designee;10-10
(c) Contain specific answers to all questions required by the regulations10-11
of the administrator; and10-12
(d) Be accompanied by a statement of the wages of the employee if the10-13
claim for compensation received from the treating physician or chiropractor10-14
indicates that the injured employee is expected to be off work for 5 days or10-15
more.10-16
3. An employer who files the report required by subsection 1 by10-17
electronic transmission shall, upon request, mail to the insurer or third-10-18
party administrator the form that contains the original signature of the10-19
employer or his designee. The form must be mailed within 7 days after10-20
receiving such a request.10-21
4. The administrator shall impose an administrative fine of not more10-22
than $1,000 on an employer for each violation of this section.10-23
Sec. 24. NRS 617.354 is hereby amended to read as follows: 617.354 1.10-25
this act, within 6 working days after the receipt of a claim for10-26
compensation from a physician or chiropractor, an employer shall complete10-27
and file with his insurer or third-party administrator an employer’s report of10-28
industrial injury or occupational disease.10-29
2. The report must:10-30
(a) Be on a form prescribed by the administrator;10-31
(b) Be signed by the employer or his designee;10-32
(c) Contain specific answers to all questions required by the regulations10-33
of the department; and10-34
(d) Be accompanied by a statement of the wages of the employee if the10-35
claim for compensation received from the treating physician or chiropractor10-36
indicates that the employee is expected to be off work for 5 days or more.10-37
3. An employer who files the report required by subsection 1 by10-38
electronic transmission shall, upon request, mail to the insurer or third-10-39
party administrator the form that contains the original signature of the10-40
employer or his designee. The form must be mailed within 7 days after10-41
receiving such a request.10-42
4. The administrator shall impose an administrative fine of not more10-43
than $1,000 against an employer for each violation of this section.11-1
Sec. 25. NRS 686A.200 is hereby amended to read as follows: 686A.200 1.11-3
act, no person shall require, directly or indirectly, or through any trustee,11-4
director, officer, agent or employee or affiliate, as a condition, agreement11-5
or understanding to selling or furnishing any other person any loan, or11-6
extension thereof, credit, sale, goods, property, contract, lease or service,11-7
that such other person shall place, continue (other than as to life insurance)11-8
or renew any policy of insurance of any kind through any particular agent,11-9
broker or insurer. No agent, broker or insurer shall knowingly participate in11-10
any such prohibited plan or transaction. No person shall fix a price charged11-11
for such thing or service, or discount from or rebate upon price, on the11-12
condition, agreement or understanding that any insurance is to be obtained11-13
through a particular agent, broker or insurer.11-14
2. Subsection 1 does not prevent:11-15
(a) The exercise by any such person upon a reasonable basis of any right11-16
to approve or disapprove of the insurer and representative to underwrite the11-17
insurance. Such basis shall relate only to the adequacy and terms of the11-18
coverage with respect to the interest of the vendor, lender, lessor or11-19
provider of service to be insured thereunder, the financial standards to be11-20
met by the insurer, and the ability of the insurer or representative to service11-21
the policy.11-22
(b) The exercise by the vendor, lender, lessor or provider of service of11-23
the right to furnish or renew the insurance, and to charge the account of the11-24
other person with the costs thereof, if such other person fails to deliver such11-25
insurance to the lender, vendor, lessor or provider of service, where11-26
otherwise called for and in order, at least 15 days prior to expiration of the11-27
existing policy.11-28
Sec. 26. NRS 686A.220 is hereby amended to read as follows: 686A.220 1.11-30
act, no officer or employee of this state, or of any public agency, public11-31
authority or public corporation (except a public corporation or public11-32
authority created pursuant to agreement or compact with another state), and11-33
no person acting or purporting to act on behalf of such officer or employee,11-34
or public agency or public authority or public corporation, shall, with11-35
respect to any public building or construction contract which is about to be11-36
or which has been competitively bid, require the bidder to make application11-37
or furnish financial data to, or to obtain or procure any of the surety bonds11-38
or contracts of insurance specified in connection with such contracts or by11-39
any law from, a particular insurer or agent or broker.11-40
2.11-41
officer or employee or any person acting or purporting to act on behalf of11-42
such officer or employee shall negotiate, make application for, obtain or11-43
procure any of such surety bonds or contracts of insurance (except12-1
contracts of insurance for builder’s risk or owner’s protective liability)12-2
which can be obtained or procured by the bidder, contractor or12-3
subcontractor.12-4
3. This section does not, however, prevent the exercise by such officer12-5
or employee on behalf of the state or such public agency, public authority12-6
or public corporation of its right to approve the form, sufficiency or manner12-7
of execution of the surety bonds or contracts of insurance furnished by the12-8
insurer selected by the bidder to underwrite such bonds or contracts of12-9
insurance.12-10
4. Any provisions in any invitation for bids or in any of the contract12-11
documents in conflict with this section are declared to be contrary to the12-12
public policy of this state.12-13
5. A violation of this section is subject to the penalties provided by12-14
NRS 679A.180 (general penalty).12-15
Sec. 26.5. Sections 68.8 and 140 of Senate Bill No. 37 of this session12-16
are hereby amended to read as follows:12-17
Sec. 68.8. NRS 616D.120 is hereby amended to read as12-18
follows: 616D.120 1. Except as otherwise provided in this section, if12-20
the administrator determines that an insurer, organization for12-21
managed care, health care provider, third-party administrator or12-22
employer has:12-23
(a) Through fraud, coercion, duress or undue influence:12-24
(1) Induced a claimant to fail to report an accidental injury or12-25
occupational disease;12-26
(2) Persuaded a claimant to settle for an amount which is less12-27
than reasonable;12-28
(3) Persuaded a claimant to settle for an amount which is less12-29
than reasonable while a hearing or an appeal is pending; or12-30
(4) Persuaded a claimant to accept less than the compensation12-31
found to be due him by a hearing officer, appeals officer, court of12-32
competent jurisdiction, written settlement agreement, written12-33
stipulation or the division when carrying out its duties pursuant to12-34
chapters 616A to 617, inclusive, of NRS;12-35
(b) Refused to pay or unreasonably delayed payment to a12-36
claimant of compensation found to be due him by a hearing officer,12-37
appeals officer, court of competent jurisdiction, written settlement12-38
agreement, written stipulation or the division when carrying out its12-39
duties pursuant to chapters 616A to 616D, inclusive, or chapter 61712-40
of NRS, if the refusal or delay occurs:12-41
(1) Later than 10 days after the date of the settlement12-42
agreement or stipulation;13-1
(2) Later than 30 days after the date of the decision of a court,13-2
hearing officer, appeals officer or division, unless a stay has been13-3
granted; or13-4
(3) Later than 10 days after a stay of the decision of a court,13-5
hearing officer, appeals officer or division has been lifted;13-6
(c) Refused to process a claim for compensation pursuant to13-7
chapters 616A to 616D, inclusive, or chapter 617 of NRS;13-8
(d) Made it necessary for a claimant to initiate proceedings13-9
pursuant to chapters 616A to 616D, inclusive, or chapter 617 of13-10
NRS for compensation found to be due him by a hearing officer,13-11
appeals officer, court of competent jurisdiction, written settlement13-12
agreement, written stipulation or the division when carrying out its13-13
duties pursuant to chapters 616A to 616D, inclusive, or chapter 61713-14
of NRS;13-15
(e) Failed to comply with the division’s regulations covering the13-16
payment of an assessment relating to the funding of costs of13-17
administration of chapters 616A to 617, inclusive, of NRS;13-18
(f) Failed to provide or unreasonably delayed payment to an13-19
injured employee or reimbursement to an insurer pursuant to NRS13-20
616C.165; or13-21
(g) Intentionally failed to comply with any provision of, or13-22
regulation adopted pursuant to, this chapter or chapter 616A, 616B,13-23
616C or 617 of NRS,13-24
the administrator shall impose an administrative fine of $1,000 for13-25
each initial violation, or a fine of $10,000 for a second or13-26
subsequent violation.13-27
2. Except as otherwise provided in chapters 616A to 616D,13-28
inclusive, or chapter 617 of NRS, if the administrator determines13-29
that an insurer, organization for managed care, health care provider,13-30
third-party administrator or employer has failed to comply with any13-31
provision of this chapter or chapter 616A, 616B, 616C or 617 of13-32
NRS, or any regulation adopted pursuant thereto, the administrator13-33
may take any of the following actions:13-34
(a) Issue a notice of correction for:13-35
(1) A minor violation, as defined by regulations adopted by13-36
the division; or13-37
(2) A violation involving the payment of compensation in an13-38
amount which is greater than that required by any provision of this13-39
chapter or chapter 616A, 616B, 616C or 617 of NRS, or any13-40
regulation adopted pursuant thereto.13-41
The notice of correction must set forth with particularity the13-42
violation committed and the manner in which the violation may be13-43
corrected.14-1
do not authorize the administrator to modify or negate in any14-2
manner a determination or any portion of a determination made by a14-3
hearing officer, appeals officer or court of competent jurisdiction or14-4
a provision contained in a written settlement agreement or written14-5
stipulation.14-6
(b) Impose an administrative fine for:14-7
(1) A second or subsequent violation for which a notice of14-8
correction has been issued pursuant to paragraph (a); or14-9
(2) Any other violation of this chapter or chapter 616A, 616B,14-10
616C or 617 of NRS, or any regulation adopted pursuant thereto,14-11
for which a notice of correction may not be issued pursuant to14-12
paragraph (a).14-13
The fine imposed may not be greater than $250 for an initial14-14
violation, or more than $1,000 for any second or subsequent14-15
violation.14-16
(c) Order a plan of corrective action to be submitted to the14-17
administrator within 30 days after the date of the order.14-18
3. If the administrator determines that a violation of any of the14-19
provisions of paragraphs (a) to (d), inclusive, of subsection 1 has14-20
occurred, the administrator shall order the insurer, organization for14-21
managed care, health care provider, third-party administrator or14-22
employer to pay to the claimant a benefit penalty in an amount14-23
14-24
14-25
that is not less than $5,000 and not greater than $25,000. To14-26
determine the amount of the benefit penalty, the administrator14-27
shall consider the degree of physical harm suffered by the injured14-28
employee or his dependents as a result of the violation of14-29
paragraph (a), (b), (c) or (d) of subsection 1, the amount of14-30
compensation found to be due the claimant and the number of14-31
fines and benefit penalties previously imposed against the insurer,14-32
organization for managed care, health care provider, third-party14-33
administrator or employer pursuant to this section. If this is the14-34
third violation within 5 years for which a benefit penalty has been14-35
imposed against the insurer, organization for managed care,14-36
health care provider, third-party administrator or employer, the14-37
administrator shall also consider the degree of economic harm14-38
suffered by the injured employee or his dependents as a result of14-39
the violation of paragraph (a), (b), (c) or (d) of subsection 1.14-40
Except as otherwise provided in this section, the benefit penalty is14-41
for the benefit of the claimant and must be paid directly to him14-42
within 10 days after the date of the administrator’s determination. If14-43
the claimant is the injured employee and he dies before the15-1
benefit penalty is paid to him, the benefit penalty must be paid to15-2
his estate. Proof of the payment of the benefit penalty must be15-3
submitted to the administrator within 10 days after the date of his15-4
determination unless an appeal is filed pursuant to NRS 616D.140.15-5
Any compensation to which the claimant may otherwise be entitled15-6
pursuant to chapters 616A to 616D, inclusive, or chapter 617 of15-7
NRS must not be reduced by the amount of any benefit penalty15-8
received pursuant to this subsection.15-9
4. In addition to any fine or benefit penalty imposed pursuant to15-10
this section, the administrator may assess against an insurer who15-11
violates any regulation concerning the reporting of claims15-12
expenditures used to calculate an assessment an administrative15-13
penalty of up to twice the amount of any underpaid assessment.15-14
5. If:15-15
(a) The administrator determines that a person has violated any15-16
of the provisions of NRS 616D.200, 616D.220, 616D.240,15-17
616D.300, 616D.310 or 616D.350 to 616D.440, inclusive; and15-18
(b) The fraud control unit for industrial insurance established15-19
pursuant to NRS 228.420 notifies the administrator that the unit will15-20
not prosecute the person for that violation,15-21
the administrator shall impose an administrative fine of not more15-22
than $10,000.15-23
6. Two or more fines of $1,000 or more imposed in 1 year for15-24
acts enumerated in subsection 1 must be considered by the15-25
commissioner as evidence for the withdrawal of:15-26
(a) A certificate to act as a self-insured employer.15-27
(b) A certificate to act as an association of self-insured public or15-28
private employers.15-29
(c) A certificate of registration as a third-party administrator.15-30
7. The commissioner may, without complying with the15-31
provisions of NRS 616B.327 or 616B.431, withdraw the15-32
certification of a self-insured employer, association of self-insured15-33
public or private employers or third-party administrator if, after a15-34
hearing, it is shown that the self-insured employer, association of15-35
self-insured public or private employers or third-party administrator15-36
violated any provision of subsection 1.15-37
Sec. 140. 1. This section, section 27, subsection 1 of section15-38
127, and sections 128 and 129 of this act become effective upon15-39
passage and approval.15-40
2. Subsection 1 of section 132 of this act becomes effective on15-41
June 1, 1999.16-1
3. Sections 2, 3, 12.5, 86.1, 86.2, 86.6 to 86.9, inclusive, 96.5,16-2
116, 122, 126.3, 127.5 , 130 and 135 of this act become effective16-3
on July 1, 1999.16-4
16-5
1999, only if Assembly Bill No. 660 of this session is enacted by16-6
the legislature.16-7
16-8
effective at 12:01 a.m. on July 1, 1999.16-9
16-10
16-11
issues a proclamation pursuant to subsection 1 of section 129 of this16-12
act.16-13
16-14
the date the governor issues a proclamation pursuant to subsection 116-15
of section 129 of this act, only if the governor issues the16-16
proclamation before October 1, 1999.16-17
16-18
(a) At 12:01 a.m. on October 1, 1999, only if the governor issues16-20
October 1, 1999; or16-21
(b) On the date the governor issues a proclamation pursuant to16-22
subsection 1 of section 129 of this act, only if the governor issues16-23
the proclamation after October 1, 1999.16-24
16-25
inclusive, 68.2 to 68.8, inclusive, 80.5 and 139.2 of this act become16-26
effective on January 1, 2000.16-27
16-28
22, 23, 28, 30 to 34, inclusive, 36 to 49, inclusive, 50, 51, 52, 53,16-29
54 to 57, inclusive, 58 to 62, inclusive, 64 to 68, inclusive, 69 to 80,16-30
inclusive, 81 to 86, inclusive, 87, 88, 90 to 95, inclusive, 97 to 115,16-31
inclusive, 118 to 121, inclusive, 123 to 126, inclusive, subsection 216-32
of section 127,16-33
136 to 139, inclusive, and 141 of this act become effective on16-34
January 1, 2000, only if, on that date, the manager of the state16-35
industrial insurance system transfers the assets of the state industrial16-36
insurance system to a domestic mutual insurance company pursuant16-37
to section 129 of this act.16-38
16-39
on January 1, 2000, only if, on that date, the manager of the state16-40
industrial insurance system transfers the assets of the state industrial16-41
insurance system to a domestic mutual insurance company pursuant16-42
to section 129 of this act.17-1
17-2
limitation on January 1, 2000, if the manager of the state industrial17-3
insurance system transfers the assets of the state industrial insurance17-4
system to a domestic mutual insurance company pursuant to section17-5
129 of this act.17-6
17-7
2003.17-8
17-9
1, 2013.17-10
Sec. 27. 1. This section and section 26.5 of this act become effective17-11
upon passage and approval.17-12
2. Sections 1 to 10, inclusive, and 12 to 26, inclusive, of this act17-13
become effective on October 1, 1999.17-14
3. Section 10 of this act expires by limitation on September 30, 2001.17-15
4. Section 11 of this act becomes effective on October 1, 2001.~