Senate Bill No. 38–Committee on Commerce and Labor
Prefiled January 27, 1999
(On Behalf of Legislative Committee on Workers’ Compensation)
____________
Referred to Committee on Commerce and Labor
SUMMARY—Makes various changes concerning 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.465 is hereby amended to read as follows: 616A.465 1. Except as otherwise provided in this section, the1-3
division shall:1-4
(a) Regulate insurers pursuant to chapters 616A to 617, inclusive, of1-5
NRS;1-6
(b) Investigate insurers regarding compliance with statutes and the1-7
division’s regulations1-8
(c) Determine whether an employee leasing company is entitled to a1-9
certificate of registration pursuant to NRS 616B.673; and1-10
(d) Regulate employee leasing companies pursuant to the provisions1-11
of NRS 616B.670 to 616B.697, inclusive.2-1
2. The commissioner is responsible for reviewing rates, investigating2-2
the solvency of insurers, authorizing private carriers pursuant to chapter2-3
680A of NRS and certifying:2-4
(a) Self-insured employers pursuant to NRS 616B.300 to 616B.330,2-5
inclusive, and 616B.336;2-6
(b) Associations of self-insured public or private employers pursuant to2-7
NRS 616B.350 to 616B.446, inclusive; and2-8
(c) Third-party administrators pursuant to chapter 683A of NRS.2-9
3. The department of administration is responsible for contested claims2-10
relating to industrial insurance pursuant to NRS 616C.310 to 616C.385,2-11
inclusive. The administrator is responsible for administrative appeals2-12
pursuant to NRS 616B.215.2-13
4. The Nevada attorney for injured workers is responsible for legal2-14
representation of claimants pursuant to NRS 616A.435 to 616A.460,2-15
inclusive, and 616D.120.2-16
5. The division is responsible for the investigation of complaints. If a2-17
complaint is filed with the division, the administrator shall cause to be2-18
conducted an investigation which includes a review of relevant records and2-19
interviews of affected persons. If the administrator determines that a2-20
violation may have occurred, the administrator shall proceed in accordance2-21
with the provisions of NRS 616D.120 and 616D.130.2-22
6. As used in this section, "employee leasing company" has the2-23
meaning ascribed to it in NRS 616B.670.2-24
Sec. 2. NRS 616A.485 is hereby amended to read as follows: 616A.485 1. The books, records and payrolls of an employer insured2-26
by the system must be open to inspection by the administrator, the system or2-27
its auditor or agent or by auditors of the department of taxation to2-28
determine:2-29
(a) The accuracy of the payroll;2-30
(b) The number of persons employed; and2-31
(c) Any other information necessary for the administration of chapters2-32
616A to 617, inclusive, of NRS.2-33
2. The books, records and payroll of an employer who is self-insured, a2-34
member of an association of self-insured public or private employers or2-35
insured by a private carrier must be open to inspection by the administrator2-36
or his auditor or agent in the manner prescribed in subsection 1.2-37
3. The books, records and payroll of an employer who is insured by a2-38
private carrier must be open to inspection by that private carrier or its2-39
auditor or agent in the manner prescribed in subsection 1.2-40
Sec. 3. NRS 616B.026 is hereby amended to read as follows: 616B.026 1. An insurer, other than a self-insured employer or an2-42
association of self-insured public or private employers, shall provide to each2-43
employer to whom the insurer provides industrial insurance , whether or not3-1
the employer is a member of a group that is provided with industrial3-2
insurance pursuant to NRS 616B.036, a certificate of insurance which3-3
indicates that the employer has obtained a policy of industrial insurance.3-4
2. A certificate of insurance provided by an insurer pursuant to3-5
subsection 1 must include, without limitation:3-6
(a) The name of the insurer;3-7
(b) The name of the insured;3-8
(c) The number of the policy; and3-9
(d) The period for which the policy is effective.3-10
Sec. 4. NRS 616B.036 is hereby amended to read as follows: 616B.036 1. The system and private carriers may provide industrial3-12
insurance for an organization or association of employers as a group if:3-13
(a) The members of the3-14
engaged in a common trade or business; and3-15
(b) The formation and operation of a program of industrial insurance for3-16
the organization or association will substantially assist in the handling of3-17
claims and the prevention of accidents for the employers as a group.3-18
2. Notwithstanding the provisions of subsection 1, the system and3-19
private carriers may provide industrial insurance for an organization or3-20
association of employers as a group whose members are not engaged in a3-21
common trade or business if:3-22
(a) The organization or association of employers is formed and3-23
maintained for purposes other than obtaining industrial insurance; and3-24
(b) The contract or other agreement pursuant to which the system or3-25
the private carrier will provide industrial insurance for the organization3-26
or association provides that:3-27
(1) A separate policy will be issued to each member of the3-28
organization or association; and3-29
(2) Other than the payment of premiums by the organization or3-30
association, the organization or association and each of its members are3-31
not liable for the cost of the administration of claims or the3-32
compensation payable pursuant to the provisions of chapters 616A to3-33
616D, inclusive, or chapter 617 of NRS.3-34
3. The commissioner must approve each3-35
association before a policy of industrial insurance may be issued to it3-36
3-37
4. The commissioner shall adopt regulations for the qualification of3-38
3-39
employers described in subsections 1 and 2.3-40
Sec. 5. NRS 616B.460 is hereby amended to read as follows: 616B.460 1. An employer may elect to purchase industrial insurance3-42
from a private carrier for his employees pursuant to chapters 616A to 617,3-43
inclusive, of NRS.4-1
2. An employer may elect to purchase insurance from an insurer other4-2
than his present insurer if the employer has:4-3
(a) Given at least 10 days’ notice to the administrator of the change of4-4
insurer; and4-5
(b) Furnished evidence satisfactory to the administrator that the payment4-6
of compensation has otherwise been secured.4-7
3. Each private carrier and the system shall notify the administrator if4-8
an employer has changed his insurer or has allowed his insurance to lapse,4-9
within4-10
insurer has notice of the change or lapse.4-11
Sec. 6. NRS 616B.670 is hereby amended to read as follows: 616B.670 As used in NRS 616B.670 to 616B.697, inclusive, unless4-13
the context otherwise requires:4-14
1. "Applicant" means a person seeking a certificate of4-15
registration pursuant to NRS 616B.670 to 616B.697, inclusive, to operate4-16
an employee leasing company.4-17
2. "Client company" means a company which leases employees, for a4-18
fee, from an employee leasing company pursuant to a written or oral4-19
agreement.4-20
3. "Employee leasing company" means a company which, pursuant to a4-21
written or oral agreement:4-22
(a) Places any of the regular, full-time employees of a client company on4-23
its payroll and, for a fee, leases them to the client company on a regular4-24
basis without any limitation on the duration of their employment; or4-25
(b) Leases to a client company:4-26
(1) Five or more part-time or full-time employees; or4-27
(2) Ten percent or more of the total number of employees within a4-28
classification of risk established by the4-29
Sec. 7. NRS 616B.673 is hereby amended to read as follows: 616B.673 1. A person shall not operate an employee leasing4-31
company in this state unless he has complied with the provisions of NRS4-32
616B.670 to 616B.697, inclusive. The4-33
a certificate of4-34
with the provisions of NRS 616B.670 to 616B.697, inclusive.4-35
2. Any person who violates the provisions of subsection 1 is guilty of a4-36
misdemeanor.4-37
3. Each certificate of4-38
administrator pursuant to NRS 616B.670 to 616B.697, inclusive, expires 14-39
year after it is issued unless renewed before that date.4-40
Sec. 8. NRS 616B.676 is hereby amended to read as follows: 616B.676 An applicant for the issuance or renewal of a certificate of4-42
4-43
written application upon a form provided by the5-1
Sec. 9. NRS 616B.679 is hereby amended to read as follows: 616B.679 1. Each application must include:5-3
(a) The applicant’s name and title of his position with the employee5-4
leasing company.5-5
(b) The applicant’s age, place of birth and social security number.5-6
(c) The applicant’s address.5-7
(d) The business address of the employee leasing company.5-8
(e) The business address of the resident agent of the employee leasing5-9
company, if the applicant is not the resident agent.5-10
(f) If the applicant is a:5-11
(1) Partnership, the name of the partnership and the name, address,5-12
age, social security number and title of each partner.5-13
(2) Corporation, the name of the corporation and the name, address,5-14
age, social security number and title of each officer of the corporation.5-15
(g) Proof of:5-16
(1) The payment of any taxes required by chapter 364A of NRS.5-17
(2) The payment of any premiums for industrial insurance required by5-18
chapters 616A to 617, inclusive, of NRS.5-19
(3) The payment of contributions or payments in lieu of contributions5-20
required by chapter 612 of NRS.5-21
(4) Insurance coverage for any benefit plan from an insurer5-22
authorized pursuant to Title 57 of NRS that is offered by the employee5-23
leasing company to its employees.5-24
5-25
5-26
(h) Any other information the5-27
2. Each application must be notarized and signed under penalty of5-28
perjury:5-29
(a) If the applicant is a sole proprietorship, by the sole proprietor.5-30
(b) If the applicant is a partnership, by each partner.5-31
(c) If the applicant is a corporation, by each officer of the corporation.5-32
3. An applicant shall submit to the5-33
change in the information required by this section within 30 days after the5-34
change occurs. The5-35
5-36
comply with the provisions of5-37
5-38
inclusive.5-39
4. If an insurer cancels an employee leasing company’s policy, the5-40
5-41
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The notice must comply with the provisions of NRS 687B.310 to6-1
687B.355, inclusive, and must be served personally on or sent by first-6-2
class mail or electronic transmission to the administrator.6-3
Sec. 10. NRS 616B.694 is hereby amended to read as follows: 616B.694 The6-5
6-6
6-7
administrator may adopt regulations to carry out the provisions of NRS6-8
616B.670 to 616B.697, inclusive.6-9
Sec. 11. NRS 616B.697 is hereby amended to read as follows: 616B.697 An action for damages caused by the failure of an employee6-11
leasing company to comply with the provisions of NRS 616B.670 to6-12
616B.697, inclusive, may be brought against any person who is required to6-13
sign the application for a certificate of6-14
employee leasing company.6-15
Sec. 12. NRS 616C.235 is hereby amended to read as follows: 616C.235 1. Except as otherwise provided in subsection 2:6-17
(a) When the insurer determines that a claim should be closed before all6-18
benefits to which the claimant may be entitled have been paid, the insurer6-19
shall send a written notice of its intention to close the claim to the claimant6-20
by first-class mail addressed to the last known address of the claimant. The6-21
notice must include a statement that if the claimant does not agree with the6-22
determination, he has a right to request a resolution of the dispute pursuant6-23
to NRS 616C.305 and 616C.315 to 616C.385, inclusive. A suitable form for6-24
requesting a resolution of the dispute must be enclosed with the notice. The6-25
closure of a claim pursuant to this subsection is not effective unless notice6-26
is given as required by this subsection.6-27
(b) If the insurer does not receive a request for the resolution of the6-28
dispute, it may close the claim.6-29
(c) Notwithstanding the provisions of NRS 233B.125, if a hearing is6-30
conducted to resolve the dispute, the decision of the hearing officer may be6-31
served by first-class mail.6-32
2. If the medical benefits required to be paid for a claim are less than6-33
$500, the claim closes automatically if the claimant does not receive6-34
additional medical treatment for the injury for at least 12 months6-35
the claim is opened. The claimant may not appeal the closing of such a6-36
claim. The insurer shall send to each claimant who receives less than6-37
$500 in medical benefits within 6 months after the claim is opened a6-38
written notice that explains the circumstances under which a claim may6-39
be closed automatically pursuant to this subsection. The written notice6-40
does not create any right to appeal the contents of that notice. The written6-41
notice must be:6-42
(a) Sent by first-class mail addressed to the last known address of the6-43
claimant; and7-1
(b) A document that is separate from any other document or form that7-2
is used by the insurer.7-3
The closure of a claim pursuant to this subsection is not effective unless7-4
notice is given as required by this subsection.7-5
Sec. 13. NRS 616D.250 is hereby amended to read as follows: 616D.250 1. Any employer insured by the system who refuses to7-7
submit his books, records and payroll for inspection, as provided by NRS7-8
616A.485, to a representative of the system or the administrator, or to an7-9
auditor from the department of taxation7-10
the inspection, is subject to a penalty of $1,000 for each offense, to be7-11
collected by a civil action in the name of the system or the administrator.7-12
2. A self-insured employer, a member of an association of self-insured7-13
public or private employers or an employer insured by a private carrier who7-14
refuses to submit his books, records and payroll to the administrator or the7-15
private carrier for inspection as provided by NRS 616A.4857-16
a penalty of $1,000 for each offense, to be collected by a civil action in the7-17
name of the administrator7-18
3. The person who gives such refusal is guilty of a misdemeanor.7-19
Sec. 14. 1. This section and sections 6 to 12, inclusive, of this act7-20
become effective on July 1, 1999.7-21
2. Sections 1 to 5, inclusive, and 13 of this act become effective at7-22
12:01 a.m. on July 1, 1999.~