Assembly Bill No. 134–Assemblymen Dini and
Perkins
February 14, 2001
____________
Referred to Concurrent Committees on Commerce and Labor
and Ways and Means
SUMMARY—Makes various changes concerning assessment
imposed by commissioner of insurance upon insurers to pay for program to
investigate certain violations and fraudulent acts of insurers. (BDR 57‑331)
FISCAL NOTE: Effect on Local Government: No.
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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).
AN ACT relating to insurance; revising the calculation of the assessment that is imposed
by the commissioner of insurance upon insurers to pay for the program to
investigate certain violations and fraudulent acts of insurers; 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. NRS 679B.158
is hereby amended to read as follows:
1-2 679B.158 1. The special investigative account is hereby
established
1-3 in the state general fund
for use by the commissioner. The commissioner
1-4 shall deposit all money
received pursuant to this section with the state
1-5 treasurer for credit to the
account. Money remaining in the account at the
1-6 end of [any]
a fiscal year does
not lapse to the state general
fund and may
1-7 be used by the commissioner
in any subsequent fiscal year [.] for the
1-8 purposes of this section.
1-9 2. The commissioner shall [authorize]
:
1-10 (a) In cooperation with the
attorney general, biennially prepare and
1-11 submit to the legislature a proposed budget for the program
established
1-12 pursuant to NRS 679B.153; and
1-13 (b) Authorize expenditures from the
special investigative account to pay
1-14 the expenses of the program established pursuant to
NRS 679B.153 and of
1-15 any unit established in the
office of the attorney general [which] that
1-16 investigates and prosecutes
insurance fraud.
1-17 3. [All]
The money authorized for
expenditure pursuant to
1-18 paragraph (b) of subsection 2 must be distributed in the following
1-19 manner:
2-1 (a) Fifteen percent of the
money authorized for expenditure must be
2-2 paid to the commissioner to oversee the program established
pursuant to
2-3 NRS 679B.153; and
2-4 (b) Eighty-five percent of
the money authorized for expenditure must
2-5 be paid to the attorney general to enforce the provisions of the
program
2-6 established pursuant to NRS 679B.153.
2-7 4. Except as otherwise provided in subsections 5
and 6, all of
the
2-8 costs of the program
established pursuant to NRS 679B.153 must be paid
2-9 by the insurers authorized
to transact insurance in this state. The
2-10 commissioner shall annually
determine the total cost of the
program and
2-11 [equally] divide that amount among
the insurers [.] pro rata based upon
2-12 the total amount of premiums charged to the insureds in this state
by the
2-13 insurer.
2-14 5. The annual amount so assessed on each reinsurer that has the
2-15 authority to assume only reinsurance must not exceed $500 . [per
2-16 authorized insurer. The commissioner may] For all other insurers
subject
2-17 to the annual assessment, the annual amount so assessed to each
2-18 insurer:
2-19 (a) Must not exceed $500, if
the total amount of the premiums
2-20 charged to insureds in this state by the insurer is less than
$100,000;
2-21 (b) Must not exceed $750, if
the total amount of the premiums
2-22 charged to insureds in this state by the insurer is $100,000 or
more, but
2-23 less than $1,000,000;
2-24 (c) Must not exceed $1,000,
if the total amount of the premiums
2-25 charged to insureds in this state by the insurer is $1,000,000 or
more, but
2-26 less than $10,000,000;
2-27 (d) Must not exceed $1,500,
if the total amount of the premiums
2-28 charged to insureds in this state by the insurer is $10,000,000 or
more,
2-29 but less than $50,000,000; and
2-30 (e) Must not exceed $2,000,
if the total amount of the premiums
2-31 charged to insureds in this state by the insurer is $50,000,000 or
more.
2-32 6. The provisions of this section do not apply
to an insurer who
2-33 provides only workers’ compensation insurance and pays the
assessment
2-34 provided in NRS 232.680.
2-35 7. The commissioner shall adopt regulations [regarding]
to carry out
2-36 the provisions of this section, including, without limitation, the
2-37 calculation [and collection]
of the assessment.
2-38 8. As used in this section, “reinsurer” has the
meaning ascribed to it
2-39 in NRS 681A.370.
2-40 Sec. 2. NRS 695F.090 is hereby amended to read as follows:
2-41 695F.090 Prepaid limited
health service organizations are subject to
2-42 the provisions of this
chapter and to the following provisions, to the extent
2-43 reasonably applicable:
2-44 1. NRS 687B.310 to
687B.420, inclusive, concerning cancellation and
2-45 nonrenewal of policies.
2-46 2. NRS 687B.122 to
687B.128, inclusive, concerning readability of
2-47 policies.
2-48 3. The requirements of NRS
679B.152.
2-49 4. The fees imposed pursuant to NRS 449.465.
3-1 5. NRS 686A.010 to
686A.310, inclusive, concerning trade practices
3-2 and frauds.
3-3 6. The assessment imposed
pursuant to [subsection 3 of] NRS
3-4 679B.158.
3-5 7. Chapter 683A of NRS.
3-6 8. To the extent
applicable, the provisions of NRS 689B.340 to
3-7 689B.600, inclusive, and
chapter 689C of NRS relating to the portability
3-8 and availability of health
insurance.
3-9 9. NRS 689A.035, 689A.410
and 689A.413.
3-10 10. NRS 680B.025 to
680B.039, inclusive, concerning premium tax,
3-11 premium tax rate, annual
report and estimated quarterly tax payments. For
3-12 the purposes of this
subsection, unless the context otherwise requires that a
3-13 section apply only to
insurers, any reference in those sections to “insurer”
3-14 must be replaced by a
reference to “prepaid limited health service
3-15 organization.”
3-16 11. Chapter 692C of NRS,
concerning holding companies.
3-17 Sec. 3. This act becomes effective on July 1, 2001.
3-18 H