EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. Green numbers along left margin indicate location on the printed bill (e.g., 5-15 indicates page 5, line 15).

1-1 Section 1. Chapter 616B of NRS is hereby amended by adding thereto

1-9 he must:

2-1 (a) Arrange an informal meeting with the system to discuss and seek

2-2 correction of any conduct that would be grounds for suspension; and

2-3 (b) If the system fails to correct the conduct after the informal meeting,

2-4 give written notice to the system by certified mail or electronic

2-5 transmission that an order will be issued to suspend its authority to

2-6 provide industrial insurance within 10 days after it receives the notice

2-7 unless within that time, the system:

2-8 (1) Corrects the conduct set forth in the notice as the reason for the

2-9 suspension; or

2-10 (2) Submits a written request for a hearing to the commissioner.

2-11 3. If the system requests a hearing:

2-12 (a) The commissioner shall set a date for a hearing within 20 days

2-13 after receiving the system’s written request and shall give the system at

2-14 least 10 business days’ notice of the time and place of the hearing.

2-15 (b) A record of the hearing must be kept but it need not be transcribed

2-16 unless requested by the system. The cost of transcription must be charged

2-17 to the system.

2-18 4. Within 5 days after the hearing, the commissioner shall:

2-19 (a) Affirm or deny his decision to issue an order to suspend the

2-20 authority of the system to provide industrial insurance;

2-21 (b) Notify the system of his decision; and

2-22 (c) If the commissioner affirms his decision, issue an order to suspend

2-23 the authority of the system to provide industrial insurance.

2-24 5. If the system does not comply with the order of the commissioner

2-25 issued pursuant to subsection 4 during the period of suspension, the

2-26 commissioner shall issue another order prohibiting the system from

2-27 issuing new policies until the order has expired as specified in the order

2-28 itself. A copy of the order issued pursuant to this subsection must be sent

2-29 by certified mail or electronic transmission to the system.

2-30 Sec. 2. NRS 616B.197 is hereby amended to read as follows:

2-31 616B.197 1. The system shall comply with [:] and is subject to:

2-32 (a) Those provisions of Title 57 of NRS designated by regulations

2-33 adopted by the commissioner [;] and those provisions of Title 57 of NRS

2-34 made applicable to the system by a specific statute;

2-35 (b) Any orders issued to the system by the commissioner [.

2-36 2. Such] ;

2-37 (c) Those provisions of NRS 683A.090 to 683A.360, inclusive, that

2-38 require an insurer or an authorized insurer to perform certain duties as a

2-39 result of its relationship with an agent, broker or solicitor, including,

2-40 without limitation, NRS 683A.280 and 683A.290; and

2-41 (d) Those provisions of NRS 686A.010 to 686A.280, inclusive, and

2-42 686A.310 that regulate the trade practices of persons or insurers.

3-1 2. The regulations and orders adopted or issued pursuant to subsection

3-2 1 must comply with the provisions of chapters 616A to 617, inclusive, of

3-3 NRS, including, but not limited to, those provisions governing the

3-4 investments and operations of the system.

3-5 3. The commissioner shall not require the system to :

3-6 (a) Obtain a certificate of authority to transact industrial insurance;

3-7 (b) Appoint the commissioner and his successors in office as its

3-8 attorney to receive service of legal process issued against it in this state;

3-9 (c) Except as otherwise provided in subsection 1, make any deposits or

3-10 pay any licensing fees, continuation fees, assessments or taxes required to

3-11 be deposited through the commissioner or paid to the division of insurance

3-12 of the department of business and industry by insurers licensed pursuant to

3-13 Title 57 of NRS [.] ; or

3-14 (d) Register with the commissioner as a member of an insurance

3-15 holding company system.

3-16 4. The system shall pay the costs of any examination of the system

3-17 conducted by the commissioner, as required by NRS 679B.290, upon

3-18 presentation by the commissioner of a reasonably detailed written statement

3-19 of the expenses of the examination.

3-20 5. An agent of the system shall comply with NRS 683A.090 to

3-21 683A.360, inclusive. As used in this subsection, "agent of the system"

3-22 means any person who is associated, directly or indirectly, with the system

3-23 to solicit and enroll policyholders with the system and negotiate contracts

3-24 of industrial insurance issued by the system, and includes, without

3-25 limitation, a person who qualifies as an "agent," "broker" or "solicitor"

3-26 as those terms are defined in chapter 683A of NRS.

3-27 Sec. 3. NRS 679B.130 is hereby amended to read as follows:

3-28 679B.130 1. The commissioner may adopt reasonable regulations for

3-40 judicial or other authority to be invalid for any reason.

3-41 Sec. 4. NRS 679B.157 is hereby amended to read as follows:

3-42 679B.157 An insurer, employee or representative of an insurer, the

3-43 state industrial insurance system, an employee of the state industrial

4-1 insurance system, an official of an investigative or law enforcement

4-2 agency, employee of the division or the commissioner is not subject to a

4-3 criminal penalty or subject to civil liability for libel, slander or any similar

4-4 cause of action in tort if he, without malice, discloses information on a

4-5 fraudulent claim or suspicious fire.

4-6 Sec. 5. NRS 679B.158 is hereby amended to read as follows:

4-7 679B.158 1. The special investigative account is hereby established in

4-23 regarding the calculation and collection of the assessment.

4-24 Sec. 6. NRS 680A.140 is hereby amended to read as follows:

4-25 680A.140 1. [The] Except as otherwise provided in subsections 4

4-31 stock , [(] if a stock insurer , [)] or minimum required basic surplus , [(] if a

4-32 mutual or reciprocal insurer , [),] for the protection of the insurer’s

4-33 policyholders or of its policyholders and creditors in the United States of

4-34 America. The commissioner may adopt regulations which allow the use of

4-35 securities as a deposit without delivery of the securities to the

4-36 commissioner.

4-37 2. The commissioner shall not so authorize a title insurer unless it so

4-38 deposits and maintains such cash or securities of fair market value not less

4-39 than its minimum required capital stock as a guaranty fund for the security

4-40 and protection of the holders of, or beneficiaries under, the title insurance

4-41 contracts issued by the insurer.

4-42 3. The commissioner shall not so authorize an alien insurer unless it so

4-43 makes and thereafter continuously maintains such a deposit, representing

5-1 money in excess of all the insurer’s liabilities under insurance contracts in

5-2 force in the United States of America, of a fair market value of not less than

5-3 that required under subsection 1, as to a like foreign insurer. The deposit

5-4 must be held in trust for the protection of all the insurer’s policyholders, or

5-5 policyholders and creditors, in the United States of America.

5-6 4. In lieu of such a deposit made or maintained in this state, the

5-7 commissioner shall accept the certificate in proper form of the public officer

5-8 having general supervision of insurers in any other state to the effect that a

5-9 deposit of like quality and amount, or part thereof, by an insurer is being

5-10 maintained for like purposes in public custody or control pursuant to the

5-11 laws of that state, if the commissioner is satisfied as to the like quality and

5-12 amount of the deposit.

5-13 5. The commissioner shall not require an insurer that is not

5-14 domiciled in this state to make or maintain a deposit of cash or securities

5-15 in this state to qualify for authority to transact industrial insurance in this

5-16 state unless the commissioner determines that the insurer is not

5-17 maintaining in at least one state a deposit that is alike in quality and

5-18 amount to the deposit otherwise required pursuant to subsection 1.

5-19 6. All [such] deposits maintained in this state pursuant to this section

5-20 are subject to the applicable provisions of chapter 682B of NRS.

5-21 Sec. 7. NRS 682B.015 is hereby amended to read as follows:

5-22 682B.015 1. [In] Except as otherwise provided in subsection 5 of

5-33 (b) Is subject to the provisions of NRS 682B.030 to 682B.120, inclusive.

5-34 Sec. 8. Chapter 683A of NRS is hereby amended by adding thereto a

5-37 insurer" and "insurer" include the state industrial insurance system.

5-38 Sec. 9. Chapter 686A of NRS is hereby amended by adding thereto a

5-42 system.

6-1 Sec. 10. NRS 686A.010 is hereby amended to read as follows:

6-2 686A.010 The purpose of NRS 686A.010 to 686A.310, inclusive, and

6-9 practices and by prohibiting the trade practices so defined or determined.

6-10 Sec. 11. NRS 686A.015 is hereby amended to read as follows:

6-11 686A.015 1. Notwithstanding any other provision of law [,] and

6-27 the term "insurer" in NRS 616A.270.

6-28 Sec. 12. NRS 686A.183 is hereby amended to read as follows:

6-29 686A.183 1. After the hearing provided for in NRS 686A.160, the

6-43 known that he was in violation of NRS 686A.010 to 686A.310, inclusive.

7-1 2. Until the expiration of the time allowed for taking an appeal,

7-2 pursuant to NRS 679B.370, if no petition for review has been filed within

7-3 that time, or, if a petition for review has been filed within that time, until the

7-4 official record in the proceeding has been filed with the court, the

7-5 commissioner may, at any time, upon such notice and in such manner as he

7-6 deems proper, modify or set aside, in whole or in part, any order issued by

7-7 him under this section.

7-8 3. After the expiration of the time allowed for taking an appeal, if no

7-9 petition for review has been filed, the commissioner may at any time, after

7-10 notice and opportunity for hearing, reopen and alter, modify or set aside, in

7-11 whole or in part, any order issued by him under this section whenever in his

7-12 opinion conditions of fact or of law have so changed as to require such

7-13 action or if the public interest so requires.

7-14 Sec. 13. NRS 686A.187 is hereby amended to read as follows:

7-15 686A.187 Any person who violates a cease and desist order of the

7-23 to transact insurance.

7-24 Sec. 14. NRS 686A.260 is hereby amended to read as follows:

7-25 686A.260 The commissioner may revoke or suspend the license or the

7-38 that state.

7-39 Sec. 15. 1. This section and sections 1, 2 and 4 to 14, inclusive, of

7-40 this act become effective on July 1, 1999.

7-41 2. Section 3 of this act becomes effective at 12:01 a.m. on July 1, 1999.