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. NRS 616A.465 is hereby amended to read as follows:

1-2 616A.465 1. Except as otherwise provided in this section, the

1-5 NRS; [and]

2-1 (b) Investigate insurers regarding compliance with statutes and the

2-2 division’s regulations [.] ;

2-3 (c) Determine whether an employee leasing company is entitled to a

2-4 certificate of registration pursuant to NRS 616B.673; and

2-5 (d) Regulate employee leasing companies pursuant to the provisions

2-6 of NRS 616B.670 to 616B.697, inclusive.

2-7 2. The commissioner is responsible for reviewing rates, investigating

2-8 the solvency of insurers, authorizing private carriers pursuant to chapter

2-9 680A of NRS and certifying:

2-10 (a) Self-insured employers pursuant to NRS 616B.300 to 616B.330,

2-11 inclusive, and 616B.336;

2-12 (b) Associations of self-insured public or private employers pursuant to

2-13 NRS 616B.350 to 616B.446, inclusive; and

2-14 (c) Third-party administrators pursuant to chapter 683A of NRS.

2-15 3. The department of administration is responsible for contested claims

2-16 relating to industrial insurance pursuant to NRS 616C.310 to 616C.385,

2-17 inclusive. The administrator is responsible for administrative appeals

2-18 pursuant to NRS 616B.215.

2-19 4. The Nevada attorney for injured workers is responsible for legal

2-20 representation of claimants pursuant to NRS 616A.435 to 616A.460,

2-21 inclusive, and 616D.120.

2-22 5. The division is responsible for the investigation of complaints. If a

2-23 complaint is filed with the division, the administrator shall cause to be

2-24 conducted an investigation which includes a review of relevant records and

2-25 interviews of affected persons. If the administrator determines that a

2-26 violation may have occurred, the administrator shall proceed in accordance

2-27 with the provisions of NRS 616D.120 and 616D.130.

2-28 Sec. 2. Chapter 616B of NRS is hereby amended by adding thereto a

2-33 616A.225, inclusive.

2-34 Sec. 3. NRS 616B.039 is hereby amended to read as follows:

2-35 616B.039 [The] To determine the total amount paid to employees for

2-39 employees by each employer for services performed during a year.]

2-40 Sec. 4. NRS 616B.086 is hereby amended to read as follows:

2-41 616B.086 1. Except as otherwise provided in subsection 3, all

2-42 premiums, contributions, penalties, bonds, securities and all other

3-1 properties received, collected or acquired by the system pursuant to the

3-2 terms of chapters 616A to 616D, inclusive, of NRS:

3-3 (a) Must be credited on the records of the system to the state insurance

3-4 fund.

3-5 (b) Constitute, for the purpose of custody thereof, the state insurance

3-6 fund, which must be held by the manager as custodian thereof for the

3-7 benefit of employees and their dependents within the provisions of chapters

3-8 616A to 616D, inclusive, of NRS. The manager is liable on his official

3-9 bond for the faithful performance of his custodial duty.

3-10 2. The commissioner or the administrator may delegate to a hearing

3-11 officer or panel his authority to take any disciplinary action pursuant to

3-12 NRS 616B.318, 616B.321, 616B.350 to 616B.446, inclusive, 616B.463,

3-13 616B.472 or 616D.120, impose and collect administrative fines pursuant to

3-14 those sections and deposit the money in the fund for workers’

3-15 compensation and safety.

3-16 3. If a hearing officer or panel is not authorized to take disciplinary

3-17 action pursuant to subsection 2 and the commissioner or the administrator

3-18 deposits the money collected from the imposition of administrative fines

3-19 with the state treasurer for credit to the state general fund, he may present a

3-20 claim to the state board of examiners for recommendation to the interim

3-21 finance committee if money is needed to pay attorney’s fees or the costs of

3-22 an investigation, or both.

3-23 Sec. 5. NRS 616B.095 is hereby amended to read as follows:

3-24 616B.095 If the provisions of NRS [616B.218, 616B.224 and

3-34 part thereof.

3-35 Sec. 6. NRS 616B.104 is hereby amended to read as follows:

3-36 616B.104 1. Notwithstanding the provisions of chapter 355 of NRS

3-43 in accordance with the provisions of chapter 355 of NRS.

4-1 Sec. 7. NRS 616B.107 is hereby amended to read as follows:

4-2 616B.107 1. No person engaged in business as a broker or dealer in

4-43 pursuant to this section.

5-1 7. The system may accept due bills from brokers upon delivery of

5-2 warrants if the certificates representing the investments are not readily

5-3 available.

5-4 Sec. 8. NRS 616B.185 is hereby amended to read as follows:

5-5 616B.185 1. Any offender confined at the state prison, while engaged

5-23 industry or work program.

5-24 Sec. 9. NRS 616B.186 is hereby amended to read as follows:

5-25 616B.186 1. Any offender confined in a county jail, city jail or other

5-43 course of their work in a work program.

6-1 4. As used in this section, "administrator of the jail or other detention

6-2 facility" means the sheriff of a county jail, chief of police of a city jail or

6-3 director of a local detention facility.

6-4 Sec. 10. NRS 616B.211 is hereby amended to read as follows:

6-5 616B.211 [In addition to the authority given the manager to determine

6-11 premium rates of those employers pursuant to the plan.

6-12 Sec. 11. NRS 616B.212 is hereby amended to read as follows:

6-13 616B.212 [In addition to the authority given the manager to determine

6-21 commissioner, determine and fix the premium rates of those employers.

6-22 Sec. 12. NRS 616B.224 is hereby amended to read as follows:

6-23 616B.224 1. Every private or public employer who is not a self-

6-42 insurer.

7-1 3.] 2. Failure of any employer to comply with the provisions of this

7-2 section [and NRS 616B.218] operates as a rejection of chapters 616A to

7-3 616D, inclusive, of NRS, effective [at the expiration of the period covered

7-4 by his estimate.] on the date established by the insurer pursuant to

7-5 subsection 1. The insurer shall notify the administrator of each such

7-6 rejection.

7-7 [4. If an audit of the accounts or actual payroll of an employer shows

7-8 that the actual premium earned exceeds the estimated premium paid in

7-9 advance, the insurer may require the payment of money sufficient to cover

7-10 the deficit, together with such amount as in his judgment constitutes an

7-11 adequate advance premium for the period covered by the estimate.

7-12 5.] 3. The insurer shall notify any employer or his representative by

7-13 first-class mail of any failure on his part to comply with the provisions of

7-14 this section. The notice or its omission does not modify or waive the

7-15 requirements or effective rejection of chapters 616A to 616D, inclusive,

7-16 and 617 of NRS as otherwise provided in those chapters.

7-17 [6.] 4. The system may impose a penalty not to exceed 10 percent of

7-18 the premiums which are due for the failure of an employer insured by the

7-19 system to submit the information and premium required in subsection 1

7-20 within the time allowed, unless the employer has applied for and been

7-21 granted an extension of that time by the manager.

7-22 [7.] 5. To the extent permitted by federal law, the insurer shall

7-23 vigorously pursue the collection of premiums that are due under the

7-24 provisions of chapters 616A to 616D, inclusive, and 617 of NRS even if an

7-25 employer’s debts have been discharged in a bankruptcy proceeding.

7-26 6. Every employer insured by the system shall pay its premiums to

7-27 the state insurance fund. All money received by the system pursuant to

7-28 this section must be deposited with the state treasurer to the credit of the

7-29 state insurance fund.

7-30 Sec. 13. NRS 616B.386 is hereby amended to read as follows:

7-31 616B.386 1. If an employer wishes to become a member of an

7-43 (a) Have a tangible net worth of at least $500,000; or

8-1 (b) Have had a reported payroll for the previous 12 months which would

8-2 have resulted in a manual premium [calculated according to the regulations

8-3 adopted pursuant to NRS 616B.206] of at least $15,000 [. Any] ,

8-4 calculated in accordance with a manual prepared pursuant to subsection

8-5 4 of NRS 686B.1765.

8-6 An employer who seeks to become a member of the association

8-7 subsequently must meet the requirement set forth in paragraph (a) or (b)

8-8 unless the commissioner adjusts the requirement for membership in the

8-9 association after conducting an annual review of the actuarial solvency of

8-10 the association pursuant to subsection 1 of NRS 616B.353.

8-11 4. [Except as otherwise provided in NRS 616B.389, a] A member of an

8-12 association may terminate his membership at any time. To terminate his

8-13 membership, a member must submit to the association’s administrator a

8-14 notice of intent to withdraw from the association at least 120 days before

8-15 the effective date of withdrawal. The association’s administrator shall,

8-16 within 10 days after receipt of the notice, notify the commissioner of the

8-17 employer’s intent to withdraw from the association.

8-18 5. The members of an association may cancel the membership of any

8-19 member of the association in accordance with the bylaws of the association.

8-20 6. The association shall:

8-21 (a) Notify the commissioner and the administrator of the termination or

8-22 cancellation of the membership of any member of the association within 10

8-23 days after the termination or cancellation; and

8-24 (b) At the expense of the member whose membership is terminated or

8-25 canceled, maintain coverage for that member for 30 days after notice is

8-26 given pursuant to paragraph (a), unless the association first receives notice

8-27 from the administrator that the member has:

8-28 (1) Become insured by the system;

8-29 (2) Been certified as a self-insured employer pursuant to NRS

8-30 616B.312;

8-31 (3) Become a member of another association of self-insured public or

8-32 private employers; or

8-33 (4) Become insured by a private carrier.

8-34 7. If a member of an association changes his name or form of

8-35 organization, the member remains liable for any obligations incurred or any

8-36 responsibilities imposed pursuant to chapters 616A to 617, inclusive, of

8-37 NRS under his former name or form of organization.

8-38 8. An association is liable for the payment of any compensation

8-39 required to be paid by a member of the association pursuant to chapters

8-40 616A to 616D, inclusive, or [chapter] 617 of NRS during his period of

8-41 membership. The insolvency or bankruptcy of a member does not relieve

8-42 the association of liability for the payment of the compensation.

9-1 Sec. 14. NRS 616B.407 is hereby amended to read as follows:

9-2 616B.407 1. Except as otherwise provided in subsection 2, the

9-16 years of the member’s individual experience.

9-17 Sec. 15. NRS 616B.463 is hereby amended to read as follows:

9-18 616B.463 1. Before a private carrier may provide industrial

9-31 authorized insurers.

9-32 Sec. 16. NRS 616B.472 is hereby amended to read as follows:

9-33 616B.472 1. The commissioner shall suspend the authorization of a

9-43 give written notice to the private carrier by certified mail or electronic

10-1 transmission that its authorization will be suspended within 10 days after it

10-2 receives the notice unless, within that time, the private carrier corrects the

10-3 conduct set forth in the notice as the reason for the withdrawal or submits a

10-4 written request for a hearing to the commissioner.

10-5 4. If the private carrier requests a hearing:

10-6 (a) The commissioner shall set a date for a hearing within 20 days after

10-7 receiving the notice of the appeal and shall give the private carrier at least

10-8 10 business days’ notice of the time and place of the hearing.

10-9 (b)] or the commissioner.

10-10 2. A hearing to determine whether the authorization of a private

10-11 carrier to provide industrial insurance will be suspended pursuant to

10-12 subsection 1 must be conducted by the commissioner pursuant to the

10-13 provisions of NRS 679B.310 to 679B.370, inclusive, the regulations

10-14 adopted pursuant thereto and the provisions of chapter 233B of NRS

10-15 concerning adjudication of contested cases. A record of the hearing must

10-16 be kept but it need not be transcribed unless requested by the private

10-17 carrier. The cost of transcription must be charged to the private carrier.

10-18 [5. Within 5 days after the hearing, the commissioner shall affirm or

10-19 deny his order suspending the authorization of the private carrier and notify

10-20 the private carrier by certified mail or electronic transmission of his

10-21 decision.

10-22 6. If the private carrier does not comply with the order of the

10-23 commissioner during the period of suspension of the authorization, the

10-24 commissioner shall file an order prohibiting the private carrier from issuing

10-25 new policies until the order has expired. A copy of the order must be sent

10-26 by certified mail or electronic transmission to the private carrier.]

10-27 Sec. 17. NRS 616B.612 is hereby amended to read as follows:

10-28 616B.612 1. Every employer within the provisions of chapters 616A

10-40 616A to 616D, inclusive, of NRS.

10-41 Sec. 18. NRS 616B.624 is hereby amended to read as follows:

10-42 616B.624 1. If a quasi-public or private corporation or a limited-

10-43 liability company is required to be insured pursuant to chapters 616A to

11-1 616D, inclusive, of NRS, an officer of the corporation or a manager of the

11-2 company who:

11-3 (a) Receives pay for services performed as an officer, manager or

11-4 employee of the corporation or company shall be deemed for the purposes

11-5 of those chapters to receive a minimum pay of $6,000 per [calendar] year

11-6 the policy of industrial insurance for the employer is effective and a

11-7 maximum pay of $36,000 per [calendar year.] year the policy of industrial

11-8 insurance is effective.

11-9 (b) Does not receive pay for services performed as an officer, manager

11-10 or employee of the corporation or company shall be deemed for the

11-11 purposes of those chapters to receive a minimum pay of $500 per month or

11-12 $6,000 per [calendar year.] year the policy of industrial insurance is

11-13 effective.

11-14 2. An officer or manager who does not receive pay for services

11-15 performed as an officer, manager or employee of the corporation or

11-16 company may elect to reject coverage by filing written notice thereof with

11-17 the corporation or company and the insurer. The rejection is effective upon

11-18 receipt of the notice by the insurer.

11-19 3. An officer or manager who has rejected coverage may rescind that

11-20 rejection by filing written notice thereof with the corporation or company

11-21 and the insurer. The rescission is effective upon receipt of the notice by the

11-22 insurer. If an officer or manager who has rejected coverage receives pay for

11-23 services performed as an officer, manager or employee of the corporation

11-24 or company, the officer or manager shall be deemed to have rescinded that

11-25 rejection.

11-26 4. A nonprofit corporation whose officers do not receive pay for

11-27 services performed as officers or employees of the corporation may elect to

11-28 reject coverage for its current officers and all future officers who do not

11-29 receive such pay by filing written notice thereof with the corporation and

11-30 the insurer. The rejection is effective upon receipt of the notice by the

11-31 insurer.

11-32 5. A nonprofit corporation which has rejected coverage for its officers

11-33 who do not receive pay for services performed as officers or employees of

11-34 the corporation may rescind that rejection by filing written notice thereof

11-35 with the corporation and the insurer. The rescission is effective upon

11-36 receipt of the notice by the insurer. If an officer of a nonprofit corporation

11-37 which has rejected coverage receives pay for services performed as an

11-38 officer or employee of the corporation, the corporation shall be deemed to

11-39 have rescinded that rejection.

11-40 Sec. 19. NRS 616B.670 is hereby amended to read as follows:

11-41 616B.670 As used in NRS 616B.670 to 616B.697, inclusive, unless the

11-42 context otherwise requires:

12-1 1. "Applicant" means a person seeking a certificate of [insurance]

12-2 registration pursuant to NRS 616B.670 to 616B.697, inclusive, to operate

12-3 an employee leasing company.

12-4 2. "Client company" means a company which leases employees, for a

12-5 fee, from an employee leasing company pursuant to a written or oral

12-6 agreement.

12-7 3. "Employee leasing company" means a company which, pursuant to a

12-8 written or oral agreement:

12-9 (a) Places any of the regular, full-time employees of a client company on

12-10 its payroll and, for a fee, leases them to the client company on a regular

12-11 basis without any limitation on the duration of their employment; or

12-12 (b) Leases to a client company:

12-13 (1) Five or more part-time or full-time employees; or

12-14 (2) Ten percent or more of the total number of employees within a

12-15 classification of risk established by the [system.] commissioner.

12-16 Sec. 20. NRS 616B.673 is hereby amended to read as follows:

12-17 616B.673 1. A person shall not operate an employee leasing

12-26 year after it is issued unless renewed before that date.

12-27 Sec. 21. NRS 616B.676 is hereby amended to read as follows:

12-28 616B.676 An applicant for the issuance or renewal of a certificate of

12-30 written application upon a form provided by the [manager.] administrator.

12-31 Sec. 22. NRS 616B.679 is hereby amended to read as follows:

12-32 616B.679 1. Each application must include:

12-42 age, social security number and title of each partner.

13-1 (2) Corporation, the name of the corporation and the name, address,

13-2 age, social security number and title of each officer of the corporation.

13-3 (g) Proof of:

13-4 (1) The payment of any taxes required by chapter 364A of NRS.

13-5 (2) The payment of any premiums for industrial insurance required by

13-6 chapters 616A to 617, inclusive, of NRS.

13-7 (3) The payment of contributions or payments in lieu of contributions

13-8 required by chapter 612 of NRS.

13-9 (4) Insurance coverage for any benefit plan from an insurer

13-10 authorized pursuant to Title 57 of NRS that is offered by the employee

13-11 leasing company to its employees.

13-12 [(5) Membership in the National Staff Leasing Association, or its

13-13 successor organization.]

13-14 (h) Any other information the [manager] administrator requires.

13-15 2. Each application must be notarized and signed under penalty of

13-16 perjury:

13-17 (a) If the applicant is a sole proprietorship, by the sole proprietor.

13-18 (b) If the applicant is a partnership, by each partner.

13-19 (c) If the applicant is a corporation, by each officer of the corporation.

13-20 3. An applicant shall submit to the [manager] administrator any

13-21 change in the information required by this section within 30 days after the

13-22 change occurs. The [manager] administrator may revoke the certificate of

13-23 [insurance] registration of an employee leasing company which fails to

13-24 comply with the provisions of [this subsection. If the manager revokes the

13-25 certificate of insurance and cancels the] NRS 616B.670 to 616B.697,

13-26 inclusive.

13-27 4. If an insurer cancels an employee leasing company’s policy, the

13-28 [manager] insurer shall immediately notify the administrator [, who shall

13-29 proceed in accordance with the provisions of NRS 616D.110.] in writing.

13-30 The notice must comply with the provisions of NRS 687B.310 to

13-31 687B.355, inclusive, and must be served personally on or sent by first-

13-32 class mail or electronic transmission to the administrator.

13-33 Sec. 23. NRS 616B.694 is hereby amended to read as follows:

13-34 616B.694 The [manager, in cooperation with the administrator of the

13-38 616B.697, inclusive.

13-39 Sec. 24. NRS 616B.697 is hereby amended to read as follows:

13-40 616B.697 An action for damages caused by the failure of an employee

13-41 leasing company to comply with the provisions of NRS 616B.670 to

14-1 616B.697, inclusive, may be brought against any person who is required to

14-2 sign the application for a certificate of [insurance] registration for the

14-3 employee leasing company.

14-4 Sec. 25. NRS 616C.220 is hereby amended to read as follows:

14-5 616C.220 1. The division shall designate one:

14-43 regarding the collection of any liability of an uninsured employer.

15-1 [6.] 7. The division shall:

15-2 (a) Determine whether the employer was insured within 30 days after

15-3 receiving notice of the claim from the employee.

15-4 (b) Assign the claim to the [system] third-party administrator or

15-5 insurer designated pursuant to subsection 1 for administration [of the

15-6 claim, payment of benefits and reimbursement of costs of administration

15-7 and benefits paid to the system. Upon determining that a claim is invalid,

15-8 the system] and payment of compensation.

15-9 Upon determining whether the claim is accepted or denied, the

15-10 designated third-party administrator or insurer shall notify the [claimant,]

15-11 injured employee, the named employer and the division [that the claim will

15-12 not be assigned for benefits from the uninsured employers’ claim fund.

15-13 7.] of its determination.

15-14 (c) Upon demonstration of the:

15-15 (1) Costs incurred by the designated third-party administrator or

15-16 insurer to administer the claim or pay compensation to the injured

15-17 employee; or

15-18 (2) Amount that the designated third-party administrator or insurer

15-19 will pay for administrative expenses or compensation to the injured

15-20 employee and that such amounts are justified by the circumstances of the

15-21 claim,

15-22 the division shall authorize payment from the uninsured employers’

15-23 claim fund.

15-24 8. Any party aggrieved by a decision regarding the administration of an

15-25 assigned claim or a decision made by the division or by the [system]

15-26 designated third-party administrator or insurer regarding any claim made

15-27 pursuant to this section may appeal that decision within 60 days after the

15-28 decision is rendered to the hearings division of the department of

15-29 administration in the manner provided by NRS 616C.305 and 616C.315 to

15-30 616C.385, inclusive.

15-31 [8.] 9. All insurers shall bear a proportionate amount of a claim made

15-32 pursuant to chapters 616A to 616D, inclusive, of NRS, and are entitled to a

15-33 proportionate amount of any collection made pursuant to this section as an

15-34 offset against future liabilities.

15-35 [9.] 10. An uninsured employer is liable for the interest on any amount

15-36 paid on his claims from the uninsured employers’ claim fund. The interest

15-37 must be calculated at a rate equal to the prime rate at the largest bank in

15-38 Nevada, as ascertained by the commissioner of financial institutions, on

15-39 January 1 or July 1, as the case may be, immediately preceding the date of

15-40 the claim, plus 3 percent, compounded monthly, from the date the claim is

15-41 paid from the fund until payment is received by the division from the

15-42 employer.

16-1 [10.] 11. Attorney’s fees recoverable by the division pursuant to this

16-2 section must be:

16-3 (a) If a private attorney is retained by the division, paid at the usual and

16-4 customary rate for that attorney.

16-5 (b) If the attorney is an employee of the division, paid at the rate

16-6 established by regulations adopted by the division.

16-7 Any money collected must be deposited to the uninsured employers’ claim

16-8 fund.

16-9 [11.] 12. In addition to any other liabilities provided for in this section,

16-10 the administrator may impose an administrative fine of not more than

16-11 $10,000 against an employer if the employer fails to provide mandatory

16-12 coverage required by the provisions of chapters 616A to 616D, inclusive,

16-13 of NRS.

16-14 Sec. 26. NRS 616D.050 is hereby amended to read as follows:

16-15 616D.050 1. Appeals officers [,] and the administrator, [the manager

16-43 issues.

17-1 (e) Dispose of procedural requests or similar matters.

17-2 (f) Generally regulate and guide the course of a pending hearing or

17-3 proceeding.

17-4 Sec. 27. NRS 616D.070 is hereby amended to read as follows:

17-5 616D.070 If any person:

17-18 therein.

17-19 Sec. 28. NRS 616D.080 is hereby amended to read as follows:

17-20 616D.080 1. Each officer who serves a subpoena is entitled to

17-33 subpoenaed or, for good cause shown, upon any other party.

17-34 Sec. 29. NRS 616D.100 is hereby amended to read as follows:

17-35 616D.100 1. A transcribed copy of the evidence and proceedings, or

17-42 correct statement of the evidence and proceedings had on the final hearing

18-1 or investigation so purporting to be taken and transcribed, may be received

18-2 in evidence with the same effect as if the stenographer had been present and

18-3 testified to the facts so certified.

18-4 2. A copy of the transcript must be furnished on demand to any party

18-5 upon the payment of the fee required for transcripts in courts of record.

18-6 Sec. 30. NRS 616D.200 is hereby amended to read as follows:

18-7 616D.200 1. If the administrator finds that an employer within the

18-33 pursuant to subsection 1.

18-34 Sec. 31. NRS 616D.210 is hereby amended to read as follows:

18-35 616D.210 1. Any person who:

18-42 conduct,

19-1 is liable in a civil action for the payment of any premium, interest and

19-2 penalties owed to the system or the private carrier and the reasonable costs

19-3 incurred by the system or private carrier to investigate and act upon such

19-4 conduct.

19-5 2. The system or private carrier shall not insure any business which

19-6 engages in the conduct described in subsection 1 unless the premium and

19-7 any interest and penalties owed to the [system or private carrier] prior

19-8 insurer have been paid [.] to that insurer.

19-9 3. As used in this section, "business" includes, but is not limited to, a

19-10 firm, sole proprietorship, voluntary association or private corporation.

19-11 Sec. 32. NRS 616D.220 is hereby amended to read as follows:

19-12 616D.220 1. If the administrator finds that any employer or any

19-36 addition to the amount charged pursuant to subsection 1.

19-37 Sec. 33. NRS 617.105 is hereby amended to read as follows:

19-38 617.105 Any real estate licensee doing business in this state and

19-41 $1,500 per month.

20-1 Sec. 34. NRS 617.207 is hereby amended to read as follows:

20-2 617.207 1. If a quasi-public or private corporation or limited-liability

20-21 insurer.

20-22 Sec. 35. NRS 617.401 is hereby amended to read as follows:

20-23 617.401 1. The division shall designate one:

20-42 proving that he provided mandatory coverage for occupational diseases for

21-1 the employee or that he was not required to maintain industrial insurance

21-2 for the employee.

21-3 [4.] 5. Any employer who has failed to provide mandatory coverage

21-4 required by the provisions of this chapter is liable for all payments made on

21-5 his behalf, including, but not limited to, any benefits, administrative costs

21-6 or attorney’s fees paid from the uninsured employers’ claim fund or

21-7 incurred by the division.

21-8 [5.] 6. The division:

21-9 (a) May recover from the employer the payments made by the division

21-10 that are described in subsection [4] 5 and any accrued interest by bringing a

21-11 civil action in district court.

21-12 (b) In any civil action brought against the employer, is not required to

21-13 prove that negligent conduct by the employer was the cause of the

21-14 occupational disease.

21-15 (c) May enter into a contract with any person to assist in the collection

21-16 of any liability of an uninsured employer.

21-17 (d) In lieu of a civil action, may enter into an agreement or settlement

21-18 regarding the collection of any liability of an uninsured employer.

21-19 [6.] 7. The division shall:

21-20 (a) Determine whether the employer was insured within 30 days after

21-21 receiving the claim from the employee.

21-22 (b) Assign the claim to the [system] third-party administrator or

21-23 insurer designated pursuant to subsection 1 for administration [of the

21-24 claim, payment of benefits and reimbursement of costs of administration

21-25 and benefits paid to the system. Upon determining that a claim is invalid,

21-26 the system] and payment of compensation.

21-27 Upon determining whether the claim is accepted or denied, the

21-28 designated third-party administrator or insurer shall notify the [claimant,]

21-29 injured employee, the named employer and the division [that the claim will

21-30 not be assigned for benefits from the uninsured employers’ claim fund.

21-31 7.] of its determination.

21-32 (c) Upon demonstration of the:

21-33 (1) Costs incurred by the designated third-party administrator or

21-34 insurer to administer the claim or pay compensation to the injured

21-35 employee; or

21-36 (2) Amount that the designated third-party administrator or insurer

21-37 will pay for administrative expenses or compensation to the injured

21-38 employee and that such amounts are justified by the circumstances of the

21-39 claim,

21-40 the division shall authorize payment from the uninsured employers’

21-41 claim fund.

21-42 8. Any party aggrieved by a decision regarding the administration of an

21-43 assigned claim or a decision made by the division or by the [system]

22-1 designated third-party administrator or insurer regarding any claim made

22-2 pursuant to this section may appeal that decision within 60 days after the

22-3 decision is rendered to the hearings division of the department of

22-4 administration in the manner provided by NRS 616C.305 and 616C.315 to

22-5 616C.385, inclusive.

22-6 [8.] 9. All insurers shall bear a proportionate amount of a claim made

22-7 pursuant to this chapter, and are entitled to a proportionate amount of any

22-8 collection made pursuant to this section as an offset against future

22-9 liabilities.

22-10 [9.] 10. An uninsured employer is liable for the interest on any amount

22-11 paid on his claims from the uninsured employers’ claim fund. The interest

22-12 must be calculated at a rate equal to the prime rate at the largest bank in

22-13 Nevada, as ascertained by the commissioner of financial institutions, on

22-14 January 1 or July 1, as the case may be, immediately preceding the date of

22-15 the claim, plus 3 percent, compounded monthly, from the date the claim is

22-16 paid from the fund until payment is received by the division from the

22-17 employer.

22-18 [10.] 11. Attorney’s fees recoverable by the division pursuant to this

22-19 section must be:

22-20 (a) If a private attorney is retained by the division, paid at the usual and

22-21 customary rate for that attorney.

22-22 (b) If the attorney is an employee of the division, paid at the rate

22-23 established by regulations adopted by the division.

22-24 Any money collected must be deposited to the uninsured employers’ claim

22-25 fund.

22-26 [11.] 12. In addition to any other liabilities provided for in this section,

22-27 the administrator may impose an administrative fine of not more than

22-28 $10,000 against an employer if the employer fails to provide mandatory

22-29 coverage required by the provisions of this chapter.

22-30 Sec. 36. NRS 209.189 is hereby amended to read as follows:

22-31 209.189 1. The fund for prison industries is hereby created as an

22-43 expend money deposited in this fund to pay [to the state industrial

23-1 insurance system] the premiums required for coverage of offenders under

23-2 the modified program of industrial insurance adopted pursuant to NRS

23-3 616B.185.

23-4 4. The interest and income earned on the money in the fund, after

23-5 deducting any applicable charges, must be credited to the fund.

23-6 5. If money owed to the department for the leasing of space, facilities

23-7 or equipment within the institutions or facilities of the department or for the

23-8 purchase of goods or services, which must be deposited into the fund for

23-9 prison industries pursuant to subsection 1, is not paid on or before the date

23-10 due, the department shall charge and collect, in addition to the money due,

23-11 interest on the money due at the rate of 1.5 percent per month or fraction

23-12 thereof from the date on which the money became due until the date of

23-13 payment.

23-14 Sec. 37. NRS 280.270 is hereby amended to read as follows:

23-15 280.270 The county auditor or comptroller of a county in which a

23-17 616B.224 on behalf of the department.

23-18 Sec. 38. NRS 680A.200 is hereby amended to read as follows:

23-19 680A.200 1. [The] Except as otherwise provided in NRS 616B.472,

23-43 this state:

24-1 (1) Has without just cause failed to pay, or delayed payment of,

24-2 claims arising under its policies, whether the claims are in favor of an

24-3 insured or in favor of a third person with respect to the liability of an

24-4 insured to the third person; or

24-5 (2) Without just cause compels insureds or claimants to accept less

24-6 than the amount due them or to employ attorneys or to bring suit against the

24-7 insurer or such an insured to secure full payment or settlement of such

24-8 claims.

24-9 (c) Refuses to be examined, or its directors, officers, employees or

24-10 representatives refuse to submit to examination relative to its affairs, or to

24-11 produce its books, papers, records, contracts, correspondence or other

24-12 documents for examination by the commissioner when required, or refuse

24-13 to perform any legal obligation relative to the examination.

24-14 (d) Except as otherwise provided in NRS 681A.110, has reinsured all its

24-15 risks in their entirety in another insurer.

24-16 (e) Has failed to pay any final judgment rendered against it in this state

24-17 upon any policy, bond, recognizance or undertaking as issued or guaranteed

24-18 by it, within 30 days after the judgment became final or within 30 days after

24-19 dismissal of an appeal before final determination, whichever date is the

24-20 later.

24-21 3. The commissioner may, without advance notice or a hearing

24-22 thereon, immediately suspend the certificate of authority of any insurer as

24-23 to which proceedings for receivership, conservatorship, rehabilitation or

24-24 other delinquency proceedings have been commenced in any state by the

24-25 public officer who supervises insurance for that state.

24-26 4. No proceeding to suspend, limit or revoke a certificate of authority

24-27 pursuant to this section may be maintained unless it is commenced by the

24-28 giving of notice to the insurer within 5 years after the occurrence of the

24-29 charged act or omission. This limitation does not apply if the commissioner

24-30 finds fraudulent or willful evasion of taxes.

24-31 Sec. 39. 1. NRS 616A.235, 616B.218, 616B.389 and 616C.535 are

24-32 hereby repealed.

24-33 2. NRS 616B.230 is hereby repealed.

24-34 Sec. 40. 1. This section and sections 2, 5 to 9, inclusive, 11, 14, 19

24-35 to 24, inclusive, 26 to 30, inclusive, 32, 33, 36, 37, 38 and subsection 1 of

24-36 section 39 of this act become effective on July 1, 1999.

24-37 2. Sections 1, 3, 4, 10, 12, 13, 15 to 18, inclusive, 25, 31, 34, 35 and

24-38 subsection 2 of section 39 of this act become effective at 12:01 a.m. on
24-39 July 1, 1999.

25-1 LEADLINES OF REPEALED SECTIONS

25-2 616A.235 "Extended claim" defined.

25-3 616B.218 Payment of premiums or deposit upon entering or

25-5 616B.230 Payment of premiums by public employers. [Effective

25-7 616B.389 Membership in association: Required period of

25-10 616C.535 System authorized to execute agreement for provision of