Senate Bill No. 38–Committee on Commerce and Labor
Prefiled January 27, 1999
(On Behalf of Legislative Committee on Workers’ Compensation)
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Referred to Committee on Commerce and Labor
SUMMARY—Makes various changes concerning duties and powers of insurers who provide industrial insurance. (BDR 53-379)
FISCAL NOTE: Effect on Local Government: Yes.
Effect on the State or on Industrial Insurance: No.
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EXPLANATION – Matter in
bolded italics is new; matter between brackets
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
1-1
Section 1. NRS 616A.485 is hereby amended to read as follows: 616A.485 1. The books, records and payrolls of an employer insured1-3
by the system must be open to inspection by the administrator, the system or1-4
its auditor or agent or by auditors of the department of taxation to1-5
determine:1-6
(a) The accuracy of the payroll;1-7
(b) The number of persons employed; and1-8
(c) Any other information necessary for the administration of chapters1-9
616A to 617, inclusive, of NRS.1-10
2. The books, records and payroll of an employer who is self-insured, a1-11
member of an association of self-insured public or private employers or2-1
insured by a private carrier must be open to inspection by the administrator2-2
or his auditor or agent in the manner prescribed in subsection 1.2-3
3. The books, records and payroll of an employer who is insured by a2-4
private carrier must be open to inspection by that private carrier or its2-5
auditor or agent in the manner prescribed in subsection 1.2-6
Sec. 2. NRS 616B.026 is hereby amended to read as follows: 616B.026 1. An insurer, other than a self-insured employer or an2-8
association of self-insured public or private employers, shall provide to each2-9
employer to whom the insurer provides industrial insurance , whether or not2-10
the employer is a member of a group that is provided with industrial2-11
insurance pursuant to NRS 616B.036, a certificate of insurance which2-12
indicates that the employer has obtained a policy of industrial insurance.2-13
2. A certificate of insurance provided by an insurer pursuant to2-14
subsection 1 must include, without limitation:2-15
(a) The name of the insurer;2-16
(b) The name of the insured;2-17
(c) The number of the policy; and2-18
(d) The period for which the policy is effective.2-19
Sec. 3. NRS 616B.036 is hereby amended to read as follows: 616B.036 1. The system and private carriers may provide industrial2-21
insurance for an organization or association of employers as a group if:2-22
(a) The members of the2-23
engaged in a common trade or business; and2-24
(b) The formation and operation of a program of industrial insurance for2-25
the organization or association will substantially assist in the handling of2-26
claims and the prevention of accidents for the employers as a group.2-27
2. Notwithstanding the provisions of subsection 1, a private carrier2-28
may provide industrial insurance for an organization or association of2-29
employers as a group whose members are not engaged in a common trade2-30
or business if:2-31
(a) The organization or association of employers is formed and2-32
maintained for purposes other than obtaining industrial insurance; and2-33
(b) The contract or other agreement pursuant to which the private2-34
carrier will provide industrial insurance for the organization or2-35
association provides that:2-36
(1) A separate policy will be issued to each member of the2-37
organization or association; and2-38
(2) The organization or association and each of its members are not2-39
liable for the cost of the administration of claims or the compensation2-40
payable pursuant to the provisions of chapters 616A to 616D, inclusive, or2-41
chapter 617 of NRS.2-42
3. The commissioner must approve each2-43
association before a policy of industrial insurance may be issued to it3-1
3-2
4. The commissioner shall adopt regulations for the qualification of3-3
3-4
employers described in subsections 1 and 2.3-5
Sec. 4. NRS 616B.460 is hereby amended to read as follows: 616B.460 1. An employer may elect to purchase industrial insurance3-7
from a private carrier for his employees pursuant to chapters 616A to 617,3-8
inclusive, of NRS.3-9
2. An employer may elect to purchase insurance from an insurer other3-10
than his present insurer if the employer has:3-11
(a) Given at least 10 days’ notice to the administrator of the change of3-12
insurer; and3-13
(b) Furnished evidence satisfactory to the administrator that the payment3-14
of compensation has otherwise been secured.3-15
3. Each private carrier and the system shall notify the administrator if3-16
an employer has changed his insurer or has allowed his insurance to lapse,3-17
within3-18
insurer has notice of the change or lapse.3-19
Sec. 5. NRS 616C.235 is hereby amended to read as follows: 616C.235 1. Except as otherwise provided in subsection 2:3-21
(a) When the insurer determines that a claim should be closed before all3-22
benefits to which the claimant may be entitled have been paid, the insurer3-23
shall send a written notice of its intention to close the claim to the claimant3-24
by first-class mail addressed to the last known address of the claimant. The3-25
notice must include a statement that if the claimant does not agree with the3-26
determination, he has a right to request a resolution of the dispute pursuant3-27
to NRS 616C.305 and 616C.315 to 616C.385, inclusive. A suitable form for3-28
requesting a resolution of the dispute must be enclosed with the notice. The3-29
closure of a claim pursuant to this subsection is not effective unless notice3-30
is given as required by this subsection.3-31
(b) If the insurer does not receive a request for the resolution of the3-32
dispute, it may close the claim.3-33
(c) Notwithstanding the provisions of NRS 233B.125, if a hearing is3-34
conducted to resolve the dispute, the decision of the hearing officer may be3-35
served by first-class mail.3-36
2. If the medical benefits required to be paid for a claim are less than3-37
$500, the claim closes automatically if the claimant does not receive3-38
additional medical treatment for the injury for at least 12 months3-39
the claim is opened. The claimant may not appeal the closing of such a3-40
claim. The insurer shall send to each claimant who receives less than3-41
$500 in medical benefits within 6 months after the claim is opened a3-42
written notice that explains the circumstances under which a claim may4-1
be closed automatically pursuant to this subsection. The written notice4-2
must be:4-3
(a) Sent by first-class mail addressed to the last known address of the4-4
claimant; and4-5
(b) A document that is separate from any other document or form that4-6
is used by the insurer.4-7
The closure of a claim pursuant to this subsection is not effective unless4-8
notice is given as required by this subsection.4-9
Sec. 6. NRS 616D.250 is hereby amended to read as follows: 616D.250 1. Any employer insured by the system who refuses to4-11
submit his books, records and payroll for inspection, as provided by NRS4-12
616A.485, to a representative of the system or the administrator, or to an4-13
auditor from the department of taxation4-14
the inspection, is subject to a penalty of $1,000 for each offense, to be4-15
collected by a civil action in the name of the system or the administrator.4-16
2. A self-insured employer, a member of an association of self-insured4-17
public or private employers or an employer insured by a private carrier who4-18
refuses to submit his books, records and payroll to the administrator or the4-19
private carrier for inspection as provided by NRS 616A.4854-20
a penalty of $1,000 for each offense, to be collected by a civil action in the4-21
name of the administrator4-22
3. The person who gives such refusal is guilty of a misdemeanor.4-23
Sec. 7. 1. This section and section 5 of this act become effective on4-24
July 1, 1999.4-25
2. Sections 1 to 4, inclusive, and 6 become effective at 12:01 a.m. on4-26
July 1, 1999.~