Assembly Bill No. 134–Assemblymen Dini and Perkins

 

CHAPTER..........

 

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; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

   Section 1. NRS 679B.158 is hereby amended to read as follows:

   679B.158  1.  The special investigative account is hereby established

 in the state general fund for use by the commissioner. The commissioner

 shall deposit all money received pursuant to this section with the state

 treasurer for credit to the account. Money remaining in the account at the

 end of [any] a fiscal year does not lapse to the state general fund  and

 may be used by the commissioner in any subsequent fiscal year[.] for the

 purposes of this section.

   2.  The commissioner shall [authorize] :

   (a) In cooperation with the attorney general, biennially prepare and

 submit to the governor, for inclusion in the executive budget, a proposed

 budget for the program established pursuant to NRS 679B.153; and

   (b) Authorize expenditures from the special investigative account to pay

 the expenses of the program established pursuant to NRS 679B.153 and of

 any unit established in the office of the attorney general [which] that

 investigates and prosecutes insurance fraud.

   3.  [All of the] The money authorized for expenditure pursuant to

 paragraph (b) of subsection 2 must be distributed in the following

 manner:

   (a) Fifteen percent of the money authorized for expenditure must be

 paid to the commissioner to oversee and enforce the program established

 pursuant to NRS 679B.153; and

   (b) Eighty-five percent of the money authorized for expenditure must

 be paid to the attorney general to pay the expenses of the unit

 established in the office of the attorney general that investigates and

 prosecutes insurance fraud.

   4.  Except as otherwise provided in subsections 5 and 6, costs of the

 program established pursuant to NRS 679B.153 must be paid by the

 insurers authorized to transact insurance in this state. The commissioner

 shall annually determine the total cost of the program and [equally] divide

 that amount among the insurers[.] pro rata based upon the total amount

 of premiums charged to the insureds in this state by the insurer.

   5.  The annual amount so assessed on each reinsurer that has the

 authority to assume only reinsurance must not exceed $500 . [per

 authorized insurer. The commissioner may] For all other insurers subject

 to the annual assessment, the annual amount so assessed to each

 insurer:

   (a) Must not exceed $500, if the total amount of the premiums

 charged to insureds in this state by the insurer is less than $100,000;

   (b) Must not exceed $750, if the total amount of the premiums

charged to insureds in this state by the insurer is $100,000 or more, but

 less than $1,000,000;

   (c) Must not exceed $1,000, if the total amount of the premiums

 charged to insureds in this state by the insurer is $1,000,000 or more,

 but less than $10,000,000;

   (d) Must not exceed $1,500, if the total amount of the premiums

 charged to insureds in this state by the insurer is $10,000,000 or more,

 but less than $50,000,000; and

   (e) Must not exceed $2,000, if the total amount of the premiums

 charged to insureds in this state by the insurer is $50,000,000 or more.

   6.  The provisions of this section do not apply to an insurer who

 provides only workers’ compensation insurance and pays the assessment

 provided in NRS 232.680.

   7.  The commissioner shall adopt regulations [regarding] to carry out

 the provisions of this section, including, without limitation, the

 calculation and collection of the assessment.

   8.  As used in this section, “reinsurer” has the meaning ascribed to it

 in NRS 681A.370.

   Sec. 2.  NRS 695F.090 is hereby amended to read as follows:

   695F.090  Prepaid limited health service organizations are subject to

 the provisions of this chapter and to the following provisions, to the extent

 reasonably applicable:

   1.  NRS 687B.310 to 687B.420, inclusive, concerning cancellation and

 nonrenewal of policies.

   2.  NRS 687B.122 to 687B.128, inclusive, concerning readability of

 policies.

   3.  The requirements of NRS 679B.152.

   4.  The fees imposed pursuant to NRS 449.465.

   5.  NRS 686A.010 to 686A.310, inclusive, concerning trade practices

 and frauds.

   6.  The assessment imposed pursuant to [subsection 3 of] NRS

 679B.158.

   7.  Chapter 683A of NRS.

   8.  To the extent applicable, the provisions of NRS 689B.340 to

 689B.600, inclusive, and chapter 689C of NRS relating to the portability

 and availability of health insurance.

   9.  NRS 689A.035, 689A.410 and 689A.413.

   10.  NRS 680B.025 to 680B.039, inclusive, concerning premium tax,

 premium tax rate, annual report and estimated quarterly tax payments. For

 the purposes of this subsection, unless the context otherwise requires that a

 section apply only to insurers, any reference in those sections to “insurer”

 must be replaced by a reference to “prepaid limited health service

 organization.”

   11.  Chapter 692C of NRS, concerning holding companies.

   Sec. 3.  This act becomes effective on July 1, 2001.

 

²⁰~~~~~⁰¹