Assembly Bill No. 135–Assemblymen Dini and Perkins
February 14, 2001
____________
Referred to Concurrent Committees on Commerce and Labor
and Ways and Means
SUMMARY—Makes various changes to provisions governing investigation and prosecution of insurance fraud. (BDR 57‑332)
FISCAL NOTE: Effect on Local Government: No.
~
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; making various changes to the provisions governing the investigation and prosecution of insurance fraud; providing that an insurer and certain other organizations and persons shall be deemed to be victims in cases involving insurance fraud for purposes of restitution; requiring the establishment of a fraud control unit for insurance within the office of the attorney general; defining the duties of the fraud control unit; authorizing the fraud control unit to issue subpoenas to obtain documents relating to an investigation of insurance fraud; 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. Chapter 679B of NRS is hereby amended by adding thereto
1-2 the provisions set forth as sections 2 to 6, inclusive, of this act.
1-3 Sec. 2. As used in NRS 679B.153 to 679B.158, inclusive, and
1-4 sections 2 to 6, inclusive, of this act, unless the context otherwise
1-5 requires, the words and terms defined in sections 3 and 4 of this act have
1-6 the meanings ascribed to them in those sections.
1-7 Sec. 3. “Fraud control unit” means the fraud control unit for
1-8 insurance established by the attorney general pursuant to section 27 of
1-9 this act.
1-10 Sec. 4. “Insurance fraud” has the meaning ascribed to it in section
1-11 14 of this act.
1-12 Sec. 5. Nothing in section 27 of this act limits or diminishes the
1-13 exclusive jurisdiction of the commissioner otherwise granted by statute to
1-14 investigate or take administrative or civil action:
1-15 1. For any violation of this Title by any person or entity who is or has
1-16 been licensed by the commissioner pursuant to this Title;
2-1 2. Against any person or entity who is or has been engaged in the
2-2 business of insurance without a license as required by this Title,
2-3 including, without limitation, the unauthorized transaction of insurance
2-4 in violation of chapter 685B of NRS; or
2-5 3. Against any person or entity as the commissioner deems
2-6 appropriate.
2-7 Sec. 6. 1. The books, records, payroll reports and other documents
2-8 of a person that are pertinent to the investigation of insurance fraud
2-9 must be open to inspection by an investigator for the attorney general in
2-10 order to ascertain the correctness of such information and as may be
2-11 necessary for the attorney general to carry out his duties pursuant to
2-12 section 27 of this act, NRS 679B.153 to 679B.158, inclusive, and sections
2-13 2 to 6, inclusive, of this act, and NRS 686A.281 to 686A.295, inclusive,
2-14 and sections 14 to 17, inclusive, of this act.
2-15 2. If a person refuses to produce any book, record, payroll report or
2-16 other document in conjunction with an investigation conducted by the
2-17 fraud control unit, the attorney general may issue a subpoena to require
2-18 the production of that document.
2-19 3. If a person refuses to produce any document as required by the
2-20 subpoena, the attorney general may report to the district court by
2-21 petition, setting forth that:
2-22 (a) Due notice has been given of the time and place of the production
2-23 of the document;
2-24 (b) The person has been subpoenaed by the attorney general pursuant
2-25 to this section; and
2-26 (c) The person has failed or refused to produce the document required
2-27 by the subpoena,
2-28 and asking for an order of the court compelling the person to produce
2-29 the document.
2-30 4. Upon such petition, the court shall enter an order directing the
2-31 person to appear before the court at a time and place to be fixed by the
2-32 court in its order, the time to be not more than 10 days after the date of
2-33 the order, and to show cause why he has not produced the document. A
2-34 certified copy of the order must be served upon the person.
2-35 5. If it appears to the court that the subpoena was regularly issued by
2-36 the attorney general, the court shall enter an order that the person
2-37 produce the required document at the time and place fixed in the order.
2-38 Failure to obey the order constitutes contempt of court.
2-39 Sec. 7. NRS 679B.155 is hereby amended to read as follows:
2-40 679B.155 To investigate [fraudulent claims for benefits from a policy
2-41 of insurance,] violations of the provisions of this Title, or to assist the
2-42 attorney general or other local, state or federal investigative and law
2-43 enforcement agencies in investigating an act of insurance fraud, the
2-44 commissioner may:
2-45 1. Designate employees of the division as investigators to carry out the
2-46 provisions of NRS 679B.153 to 679B.158, inclusive[.] , and sections 2 to
2-47 6, inclusive, of this act.
3-1 2. Conduct investigations into such activities occurring outside this
3-2 state, if necessary. To conduct these investigations, the commissioner or
3-3 his investigators may:
3-4 (a) Travel outside this state;
3-5 (b) Cooperate with appropriate agencies or persons outside this state; or
3-6 (c) Designate those agencies to conduct investigations for the
3-7 commissioner.
3-8 3. Assist officials of investigative or law enforcement agencies of any
3-9 other state or the Federal Government who are investigating fraudulent
3-10 claims and who request assistance from the commissioner.
3-11 Sec. 8. NRS 679B.156 is hereby amended to read as follows:
3-12 679B.156 1. Every person in charge of an investigative or law
3-13 enforcement agency within this state shall [cooperate] :
3-14 (a) Cooperate with the commissioner [or] and his investigators [and
3-15 shall furnish the commissioner, upon his] , and the attorney general and
3-16 the members of the fraud control unit; and
3-17 (b) Upon request, furnish the commissioner or attorney general, as
3-18 appropriate, with any information necessary for [his] the investigation of
3-19 [fraudulent claims.] insurance fraud.
3-20 2. The commissioner and the attorney general shall:
3-21 (a) Assist any official of an investigative or a law enforcement agency
3-22 of this state, any other state or the Federal Government who requests
3-23 assistance in investigating [fraudulent claims against an insurer;] any act of
3-24 insurance fraud; and
3-25 (b) Furnish to those officials any information, not otherwise
3-26 confidential, concerning his investigation or his report on [fraudulent
3-27 claims.] insurance fraud.
3-28 Sec. 9. NRS 679B.157 is hereby amended to read as follows:
3-29 679B.157 An individual, an insurer, an employee or a representative
3-30 of an insurer, an official of an investigative or a law enforcement agency,
3-31 an employee of the division , [or] the commissioner , the attorney general
3-32 or a member of the fraud control unit or an organization established to
3-33 detect and prevent insurance fraud is not subject to a criminal penalty or
3-34 subject to civil liability for libel, slander or any similar cause of action in
3-35 tort if he, without malice, discloses information on a suspected fraudulent
3-36 claim or suspicious fire.
3-37 Sec. 10. NRS 679B.159 is hereby amended to read as follows:
3-38 679B.159 1. Every insurer, agent, solicitor, broker, administrator or
3-39 other person who has knowledge of a violation of any provision of this
3-40 code shall promptly report the facts and circumstances pertaining to the
3-41 violation to the commissioner[.] or attorney general.
3-42 2. If a person who submits information pursuant to subsection 1 so
3-43 requests, the commissioner or attorney general, as appropriate, shall keep
3-44 the person’s name and the information confidential.
3-45 Sec. 11. NRS 679B.190 is hereby amended to read as follows:
3-46 679B.190 1. [The commissioner shall carefully preserve in the
3-47 division and in permanent form all papers and records relating to the
3-48 business and transactions of the division and shall hand them over to his
3-49 successor in office.
4-1 2. Except as otherwise provided in subsections 3, 5 and 6, other
4-2 provisions of this code and NRS 616B.015, the papers and records must be
4-3 open to public inspection.
4-4 3.] Any records or information [in the possession of the division]
4-5 related to an investigation conducted by the [commissioner] attorney
4-6 general and the fraud control unit for insurance established pursuant to
4-7 section 27 of this act for prosecution of insurance fraud is confidential
4-8 unless:
4-9 (a) The [commissioner] attorney general releases, in the manner that he
4-10 deems appropriate, all or any part of the records or information for public
4-11 inspection after determining that the release of the records or information:
4-12 (1) Will not harm [his] the investigation or the person who is being
4-13 investigated; or
4-14 (2) Serves the interests of a policyholder, the shareholders of the
4-15 insurer or the public; or
4-16 (b) A court orders the release of the records or information after
4-17 determining that the production of the records or information will not
4-18 damage any investigation being conducted by the [commissioner.
4-19 4. The commissioner may destroy unneeded or obsolete records and
4-20 filings in the division in accordance with provisions and procedures
4-21 applicable in general to administrative agencies of this state.
4-22 5. The commissioner] fraud control unit.
4-23 2. The attorney general may classify as confidential certain records
4-24 and information obtained from a governmental agency or other sources
4-25 upon the express condition that they remain confidential.
4-26 [6.] 3. All information and documents in the possession of the
4-27 [division or any of its employees which] attorney general and the fraud
4-28 control unit that are related to cases or matters under investigation [by the
4-29 commissioner or his staff] are confidential for the period of the
4-30 investigation and may not be made public unless the [commissioner]
4-31 attorney general finds the existence of an imminent threat of harm to the
4-32 safety or welfare of the policyholder, shareholders or the public and
4-33 determines that the interests of the policyholder, shareholders or the public
4-34 will be served by publication thereof, in which event he may make a record
4-35 public or publish all or any part of the record in any manner he deems
4-36 appropriate.
4-37 Sec. 12. NRS 685A.077 is hereby amended to read as follows:
4-38 685A.077 1. The commissioner, the division and employees of the
4-39 division, and any nonprofit organization of surplus lines brokers formed
4-40 pursuant to NRS 685A.075 and its members, officers, committee members,
4-41 agents and employees are not liable in a civil action for any act performed
4-42 in good faith and within the scope of their duties or the exercise of their
4-43 authority pursuant to this chapter.
4-44 2. The commissioner may[, pursuant to NRS 679B.190,] classify as
4-45 confidential:
4-46 (a) Any investigation conducted by a nonprofit organization of surplus
4-47 lines brokers formed pursuant to NRS 685A.075; and
4-48 (b) Any communications between such an organization and the
4-49 commissioner and other appropriate authorities pursuant to this chapter.
5-1 3. The immunities and privileges provided by this section do not
5-2 affect:
5-3 (a) The availability of any other immunities or privileges otherwise
5-4 provided by law; or
5-5 (b) Any rights of hearing and review otherwise provided in this chapter.
5-6 Sec. 13. Chapter 686A of NRS is hereby amended by adding thereto
5-7 the provisions set forth as sections 14 to 17, inclusive, of this act.
5-8 Sec. 14. “Insurance fraud” means knowingly and willfully:
5-9 1. Presenting or causing to be presented any statement to an insurer,
5-10 a reinsurer, a producer, a broker or any agent thereof, if the person who
5-11 presents or causes the presentation of the statement knows that the
5-12 statement conceals or omits facts, or contains false or misleading
5-13 information concerning any fact material to an application for the
5-14 issuance of a policy of insurance pursuant to this Title.
5-15 2. Presenting or causing to be presented any statement as a part of,
5-16 or in support of, a claim for payment or other benefits under a policy of
5-17 insurance issued pursuant to this Title, if the person who presents or
5-18 causes the presentation of the statement knows that the statement
5-19 conceals or omits facts, or contains false or misleading information
5-20 concerning any fact material to that claim.
5-21 3. Assisting, abetting, soliciting or conspiring with another person to
5-22 present or cause to be presented any statement to an insurer, a reinsurer,
5-23 a producer, a broker or any agent thereof, if the person who assists,
5-24 abets, solicits or conspires knows that the statement conceals or omits
5-25 facts, or contains false or misleading information concerning any fact
5-26 material to an application for the issuance of a policy of insurance
5-27 pursuant to this Title or a claim for payment or other benefits under such
5-28 a policy.
5-29 4. Acting or failing to act with the intent of defrauding or deceiving
5-30 an insurer, a reinsurer, a producer, a broker or any agent thereof, to
5-31 obtain a policy of insurance pursuant to this Title or any proceeds or
5-32 other benefits under such a policy.
5-33 5. As a practitioner, an insurer or any agent thereof, acting to assist,
5-34 conspire with or urge another person to commit any act or omission
5-35 specified in this section through deceit, misrepresentation or other
5-36 fraudulent means.
5-37 6. Accepting any proceeds or other benefits under a policy of
5-38 insurance issued pursuant to this Title, if the person who accepts the
5-39 proceeds or other benefits knows that the proceeds or other benefits are
5-40 derived from any act or omission specified in this section.
5-41 7. Employing a person to procure clients, patients or other persons
5-42 who obtain services or benefits under a policy of insurance issued
5-43 pursuant to this Title for the purpose of engaging in any act or omission
5-44 specified in this section, except that such insurance fraud does not
5-45 include contact or communication by an insurer or his agent or
5-46 representative with a client, patient or other person if the contact or
5-47 communication is made for a lawful purpose, including, without
5-48 limitation, communication by an insurer with a holder of a policy of
6-1 insurance issued by the insurer or with a claimant concerning the
6-2 settlement of any claims against the policy.
6-3 8. Participating in, aiding, abetting, conspiring to commit, soliciting
6-4 another person to commit, or permitting an employee or agent to commit
6-5 any act or omission specified in this section.
6-6 Sec. 15. “Investigative or law enforcement agency” includes:
6-7 1. The state fire marshal;
6-8 2. The chief or other officer of the fire department in whose
6-9 jurisdiction a fire has occurred;
6-10 3. The district attorney of the county where any fraudulent activity
6-11 has occurred or where a fraudulent claim has been made; and
6-12 4. Any other officer of an agency in this state who has the authority
6-13 to investigate the fraudulent activity or claim.
6-14 Sec. 16. “Practitioner” means:
6-15 1. A physician, dentist, nurse, dispensing optician, optometrist,
6-16 physical therapist, podiatric physician, psychologist, chiropractor, doctor
6-17 of Oriental medicine in any form, director or technician of a medical
6-18 laboratory, pharmacist or other provider of health services who is
6-19 authorized to engage in his occupation by the laws of this state or
6-20 another state; and
6-21 2. An attorney admitted to practice law in this state or any other
6-22 state.
6-23 Sec. 17. 1. A court may, in addition to imposing the penalties set
6-24 forth in NRS 193.130, order a person who is convicted of, or who pleads
6-25 guilty or nolo contendere to, insurance fraud to pay:
6-26 (a) Court costs; and
6-27 (b) The cost of the investigation and prosecution of the insurance
6-28 fraud for which the person was convicted or to which the person pleaded
6-29 guilty or nolo contendere.
6-30 2. An insurer or other organization, or any other person, subject to
6-31 the jurisdiction of the commissioner pursuant to this Title shall be
6-32 deemed to be a victim for the purposes of restitution in a case that
6-33 involves insurance fraud or that is related to a claim of insurance fraud.
6-34 Sec. 18. NRS 686A.281 is hereby amended to read as follows:
6-35 686A.281 As used in NRS 686A.281 to 686A.295, inclusive, and
6-36 sections 14 to 17, inclusive, of this act, unless the context otherwise
6-37 requires, the [term “investigative or law enforcement agency” includes:
6-38 1. The state fire marshal;
6-39 2. The district attorney of the county where any fraudulent activity has
6-40 occurred or a fraudulent claim has been made;
6-41 3. The chief or other officer of the fire department where a fire
6-42 occurred; and
6-43 4. Any other agency in this state who has the authority to investigate
6-44 the fraudulent claims or activities.] words and terms defined in sections
6-45 14, 15 and 16 of this act have the meanings ascribed to them in those
6-46 sections.
6-47 Sec. 19. NRS 686A.283 is hereby amended to read as follows:
6-48 686A.283 1. Any person, insurer or authorized representative of an
6-49 insurer[, who believes, or has reason to believe, that a fraudulent claim for
7-1 benefits under a policy of insurance has been made,] who has a reasonable
7-2 suspicion that insurance fraud has occurred or is about to [be made,]
7-3 occur shall report any information concerning that [claim] activity to the
7-4 commissioner and attorney general on a form prescribed by the
7-5 commissioner[.] and attorney general.
7-6 2. The commissioner and attorney general shall[:] each
7-7 independently:
7-8 (a) Review each report of [a fraudulent claim;] insurance fraud; and
7-9 (b) Determine whether an investigation should be made of the facts in
7-10 the report.
7-11 3. During [his investigation,] their respective investigations, the
7-12 commissioner and attorney general shall independently determine
7-13 whether there is probable cause to believe that [there was deceit, fraud or
7-14 an intentional misrepresentation of a material fact in the claim.
7-15 4. If the commissioner determines that the provisions of NRS
7-16 686A.010 to 686A.310, inclusive, have been violated he shall report his
7-17 findings to the district attorney of the county where the violation occurred.]
7-18 insurance fraud has occurred.
7-19 4. A district attorney of any county where fraudulent activity has
7-20 occurred or is occurring or where a fraudulent claim that would
7-21 constitute insurance fraud has been made may, with the permission of
7-22 the attorney general or at the request of the attorney general, institute
7-23 proceedings in the name of the State of Nevada.
7-24 Sec. 20. NRS 686A.285 is hereby amended to read as follows:
7-25 686A.285 1. If an insurer [believes] has a reasonable suspicion that
7-26 a loss to an insured may have been caused by other than an accidental or a
7-27 natural occurrence, the insurer shall notify the commissioner or attorney
7-28 general in writing of the insurer’s reasons for [so believing.] the suspicion.
7-29 2. Any insurer making such a report shall provide the commissioner or
7-30 attorney general with any information the insurer obtained during its
7-31 investigation of the claim.
7-32 3. If the loss referred to in subsection 1 is believed to be caused by
7-33 fire, the insurer shall also so notify an investigative or law enforcement
7-34 agency.
7-35 Sec. 21. NRS 686A.287 is hereby amended to read as follows:
7-36 686A.287 1. Every insurer shall provide information [on a
7-37 fraudulent claim] concerning insurance fraud to the attorney general, the
7-38 commissioner, any investigative or law enforcement agency or any agency
7-39 of the Federal Government , if the insurer receives a request in writing for
7-40 that information.
7-41 2. The information requested from an insurer may include:
7-42 (a) Information about the policy of insurance on the property which was
7-43 demolished or destroyed, including information from the application for
7-44 insurance;
7-45 (b) Information on previous claims made by the insured;
7-46 (c) Records of the premiums paid for the policy of insurance; and
7-47 (d) Information concerning the insurer’s investigation of the claim,
7-48 including statements of any person, information submitted as proof of the
7-49 loss or any other relevant information on the claim.
8-1 Sec. 22. NRS 686A.289 is hereby amended to read as follows:
8-2 686A.289 1. Any insurer giving information to the attorney general,
8-3 the commissioner or any investigative or law enforcement agency
8-4 concerning an act or omission alleged [fraudulent claim] to be insurance
8-5 fraud is entitled to receive, upon completion of the investigation or
8-6 prosecution of the [claim,] insurance fraud, whichever occurs later, any
8-7 relevant information concerning the [claim.] fraudulent activity.
8-8 2. The attorney general, the commissioner or any investigative or law
8-9 enforcement agency receiving information from another person, agency or
8-10 insurer shall:
8-11 (a) Keep the information confidential and not release the information
8-12 except pursuant to subsection 1;
8-13 (b) Provide information concerning its investigation of the [claim]
8-14 insurance fraud to the insurer reporting the [claim] fraudulent activity
8-15 upon the completion of its investigation or a criminal prosecution,
8-16 whichever occurs later; and
8-17 (c) Provide any documents necessary or allow its employees or agents
8-18 to testify in any action by or against the insurer if the insurer or its insured
8-19 furnished the information for the investigation or a criminal prosecution.
8-20 Sec. 23. NRS 686A.291 is hereby amended to read as follows:
8-21 686A.291 [1. A person commits insurance fraud if he knowingly and
8-22 willfully:
8-23 (a) Presents or causes to be presented any statement to an insurer, a
8-24 reinsurer, a producer, a broker or any agent thereof, known by him to
8-25 contain false, incomplete or misleading information concerning any fact
8-26 material to an application for the issuance of a policy of insurance pursuant
8-27 to this Title.
8-28 (b) Presents or causes to be presented any statement as a part of, or in
8-29 support of, a claim for payment or other benefits under a policy of
8-30 insurance issued pursuant to this Title, known by him to contain false,
8-31 incomplete or misleading information concerning any fact material to that
8-32 claim.
8-33 (c) Assists, abets, solicits or conspires with another person to present or
8-34 cause to be presented any statement to an insurer, reinsurer, producer,
8-35 broker or any agent thereof, known by him to contain false, incomplete or
8-36 misleading information concerning any fact material to an application for
8-37 the issuance of a policy of insurance pursuant to this Title or a claim for
8-38 payment or other benefits under such a policy.
8-39 (d) Acts or fails to act with the intent of defrauding or deceiving an
8-40 insurer, a reinsurer, a producer, a broker or any agent thereof, in order to
8-41 obtain a policy of insurance pursuant to this Title or any proceeds or other
8-42 benefits under such a policy.
8-43 (e) As a practitioner, an insurer or any agent thereof, acts to assist,
8-44 conspire with or urge another person to violate any provision of this section
8-45 through deceit, misrepresentation or other fraudulent means.
8-46 (f) Accepts any proceeds or other benefits under a policy of insurance
8-47 issued pursuant to this Title known by him to be derived from any act or
8-48 omission which violates any provision of this section.
9-1 (g) Employs a person to procure clients, patients or other persons who
9-2 obtain services or benefits under a policy of insurance issued pursuant to
9-3 this Title for the purpose of engaging in any activity prohibited by this
9-4 section. This paragraph does not prohibit contact or communication by an
9-5 insurer or his agent or representative with a client, patient or other person if
9-6 the contact or communication is made for a lawful purpose, including,
9-7 without limitation, communication by an insurer with a holder of a policy
9-8 of insurance issued by the insurer or with a claimant concerning the
9-9 settlement of any claims against the policy.
9-10 2. A person commits insurance fraud if he knowingly and willfully
9-11 participates in, aids, abets, conspires to commit, solicits another person to
9-12 commit, or permits an employee or agent to commit an act of insurance
9-13 fraud prohibited by subsection 1.
9-14 3.] A person who commits insurance fraud is guilty of a category D
9-15 felony and shall be punished as provided in NRS 193.130.
9-16 [4. For the purposes of this section, “practitioner” means:
9-17 (a) A physician, dentist, nurse, dispensing optician, optometrist,
9-18 physical therapist, podiatric physician, psychologist, chiropractor, doctor of
9-19 Oriental medicine in any form, director or technician of a medical
9-20 laboratory, pharmacist or other provider of health services who is
9-21 authorized to engage in his occupation by the laws of this state or another
9-22 state; and
9-23 (b) An attorney admitted to practice law in this state or any other state.]
9-24 Sec. 24. NRS 686A.295 is hereby amended to read as follows:
9-25 686A.295 If a person who is licensed or registered under the laws of
9-26 the State of Nevada to engage in a business or profession is convicted of or
9-27 pleads guilty to engaging in an act of insurance fraud , [prohibited by NRS
9-28 686A.291,] the commissioner and the attorney general shall forward to
9-29 each agency by which the convicted person is licensed or registered a copy
9-30 of the conviction or plea and all supporting evidence of the act of insurance
9-31 fraud. An agency that receives information from the commissioner and
9-32 attorney general pursuant to this section shall, not later than 1 year after the
9-33 date on which it receives the information, submit a report which sets forth
9-34 the action taken by the agency against the convicted person, including, but
9-35 not limited to, the revocation or suspension of the license or any other
9-36 disciplinary action, to the director of the legislative counsel bureau for
9-37 transmittal to the legislature.
9-38 Sec. 25. NRS 686A.315 is hereby amended to read as follows:
9-39 686A.315 1. If a hospital submits to an insurer the form commonly
9-40 referred to as the “UB-82,” the form must contain or be accompanied by a
9-41 statement in substantially the following form:
9-42 Any person who misrepresents or falsifies essential information
9-43 requested on this form may, upon conviction, be subject to a fine and
9-44 imprisonment under state or federal law, or both.
9-45 2. If a person who is licensed to practice one of the health professions
9-46 regulated by Title 54 of NRS submits to an insurer the form commonly
9-47 referred to as the “HCFA-1500” for a patient who is not covered by any
10-1 governmental program which offers insurance coverage for health care, the
10-2 form must be accompanied by a statement in substantially the following
10-3 form:
10-4 Any person who knowingly files a statement of claim containing
10-5 any misrepresentation or any false, incomplete or misleading
10-6 information may be guilty of a criminal act punishable under state or
10-7 federal law, or both, and may be subject to civil penalties.
10-8 3. The failure to provide any of the statements required by this section
10-9 is not a defense in a prosecution for [a violation of] insurance fraud
10-10 pursuant to NRS 686A.291.
10-11 Sec. 26. NRS 207.360 is hereby amended to read as follows:
10-12 207.360 “Crime related to racketeering” means the commission of,
10-13 attempt to commit or conspiracy to commit any of the following crimes:
10-14 1. Murder;
10-15 2. Manslaughter;
10-16 3. Mayhem;
10-17 4. Battery which is punished as a felony;
10-18 5. Kidnapping;
10-19 6. Sexual assault;
10-20 7. Arson;
10-21 8. Robbery;
10-22 9. Taking property from another under circumstances not amounting to
10-23 robbery;
10-24 10. Extortion;
10-25 11. Statutory sexual seduction;
10-26 12. Extortionate collection of debt in violation of NRS 205.322;
10-27 13. Forgery;
10-28 14. Any violation of NRS 199.280 which is punished as a felony;
10-29 15. Burglary;
10-30 16. Grand larceny;
10-31 17. Bribery or asking for or receiving a bribe in violation of chapter
10-32 197 or 199 of NRS which is punished as a felony;
10-33 18. Battery with intent to commit a crime in violation of NRS 200.400;
10-34 19. Assault with a deadly weapon;
10-35 20. Any violation of NRS 453.232, 453.316 to 453.3395, inclusive, or
10-36 453.375 to 453.401, inclusive;
10-37 21. Receiving or transferring a stolen vehicle;
10-38 22. Any violation of NRS 202.260, 202.275 or 202.350 which is
10-39 punished as a felony;
10-40 23. Any violation of subsection 2 or 3 of NRS 463.360 or chapter 465
10-41 of NRS;
10-42 24. Receiving, possessing or withholding stolen goods valued at $250
10-43 or more;
10-44 25. Embezzlement of money or property valued at $250 or more;
10-45 26. Obtaining possession of money or property valued at $250 or
10-46 more, or obtaining a signature by means of false pretenses;
10-47 27. Perjury or subornation of perjury;
11-1 28. Offering false evidence;
11-2 29. Any violation of NRS 201.300 or 201.360;
11-3 30. Any violation of NRS 90.570, 91.230[,] or 686A.290 , or
11-4 insurance fraud pursuant to NRS 686A.291; or
11-5 31. Any violation of NRS 205.506, 205.920 or 205.930.
11-6 Sec. 27. Chapter 228 of NRS is hereby amended by adding thereto a
11-7 new section to read as follows:
11-8 1. The attorney general has primary jurisdiction to conduct criminal
11-9 investigations into and may bring a criminal prosecution for any act
11-10 alleged to be insurance fraud.
11-11 2. The attorney general shall establish within his office a fraud
11-12 control unit for insurance. The fraud control unit must consist of such
11-13 persons as are necessary to carry out the duties set forth in this section,
11-14 NRS 679B.153 to 679B.158, inclusive, and sections 2 to 6, inclusive, of
11-15 this act, and NRS 686A.281 to 686A.291, inclusive, and sections 14 to 17,
11-16 inclusive, of this act, including, without limitation, attorneys and
11-17 investigators.
11-18 3. The attorney general, acting through the fraud control unit:
11-19 (a) Is the single state agency responsible for the criminal prosecution
11-20 of insurance fraud;
11-21 (b) Shall cooperate with the commissioner of insurance, insurers, and
11-22 investigators and prosecutors of other states and the Federal Government
11-23 in coordinating state and federal criminal investigations and criminal
11-24 prosecutions involving insurance fraud;
11-25 (c) Shall protect the privacy of insurers and insured persons who are
11-26 eligible to receive benefits pursuant to the provisions of Title 57 of NRS
11-27 and shall establish procedures to prevent the misuse of information
11-28 obtained in carrying out this section; and
11-29 (d) May, upon written request, inspect the records of any insurer, the
11-30 commissioner of insurance and the division of insurance of the
11-31 department of business and industry to conduct a criminal investigation
11-32 into any act alleged to be insurance fraud.
11-33 4. To investigate any act alleged to be insurance fraud, the attorney
11-34 general and members of the fraud control unit may conduct
11-35 investigations into any activity related thereto occurring outside of this
11-36 state, if necessary. To conduct these investigations, the attorney general
11-37 and members of the fraud control unit may:
11-38 (a) Travel outside of this state;
11-39 (b) Cooperate with appropriate agencies or persons outside of this
11-40 state; and
11-41 (c) Designate those agencies or persons to conduct investigations for
11-42 the attorney general.
11-43 5. When acting pursuant to this section, the attorney general may
11-44 commence his investigation and file a criminal action without leave of
11-45 court, and he has exclusive charge of the conduct of the prosecution. The
11-46 attorney general may conduct preliminary hearings or grand juries for
11-47 the purposes of filing an information or indictment.
11-48 6. The attorney general shall report the name of each person who
11-49 has been convicted of insurance fraud to the commissioner of insurance.
12-1 7. The provisions of this section must not be construed to limit or
12-2 diminish the jurisdiction of the commissioner of insurance to regulate
12-3 persons transacting insurance in this state.
12-4 8. As used in this section, “insurance fraud” has the meaning
12-5 ascribed to it in section 14 of this act.
12-6 Sec. 28. NRS 477.030 is hereby amended to read as follows:
12-7 477.030 1. Except as otherwise provided in this section, the state fire
12-8 marshal shall enforce all laws and adopt regulations relating to:
12-9 (a) The prevention of fire.
12-10 (b) The storage and use of:
12-11 (1) Combustibles, flammables and fireworks; and
12-12 (2) Explosives in any commercial construction, but not in mining or
12-13 the control of avalanches,
12-14 under those circumstances that are not otherwise regulated by the division
12-15 of industrial relations of the department of business and industry pursuant
12-16 to NRS 618.890.
12-17 (c) The safety, access, means and adequacy of exit in case of fire from
12-18 mental and penal institutions, facilities for the care of children, foster
12-19 homes, residential facilities for groups, facilities for intermediate care,
12-20 nursing homes, hospitals, schools, all buildings, except private residences,
12-21 which are occupied for sleeping purposes, buildings used for public
12-22 assembly and all other buildings where large numbers of persons work, live
12-23 or congregate for any purpose. As used in this paragraph, “public
12-24 assembly” means a building or a portion of a building used for the
12-25 gathering together of 50 or more persons for purposes of deliberation,
12-26 education, instruction, worship, entertainment, amusement or awaiting
12-27 transportation, or the gathering together of 100 or more persons in
12-28 establishments for drinking or dining.
12-29 (d) The suppression and punishment of arson and fraudulent claims or
12-30 practices in connection with fire losses.
12-31 The regulations of the state fire marshal apply throughout the state, but,
12-32 except with respect to state-owned or state-occupied buildings, his
12-33 authority to enforce them or conduct investigations under this chapter does
12-34 not extend to a county whose population is 50,000 or more or which has
12-35 been converted into a consolidated municipality, except in those local
12-36 jurisdictions in those counties where he is requested to exercise that
12-37 authority by the chief officer of the organized fire department of that
12-38 jurisdiction.
12-39 2. The state fire marshal may set standards for equipment and
12-40 appliances pertaining to fire safety or to be used for fire protection within
12-41 this state, including the threads used on fire hose couplings and hydrant
12-42 fittings.
12-43 3. The state fire marshal shall cooperate with the state forester
12-44 firewarden in the preparation of regulations relating to standards for fire
12-45 retardant roofing materials pursuant to paragraph (e) of subsection 1 of
12-46 NRS 472.040.
12-47 4. The state fire marshal shall cooperate with the division of child and
12-48 family services of the department of human resources in establishing
12-49 reasonable minimum standards for overseeing the safety of and directing
13-1 the means and adequacy of exit in case of fire from family foster homes
13-2 and group foster homes.
13-3 5. The state fire marshal shall coordinate all activities conducted
13-4 pursuant to 15 U.S.C. §§ 2201 et seq. and receive and distribute money
13-5 allocated by the United States pursuant to that act.
13-6 6. Except as otherwise provided in subsection 10, the state fire marshal
13-7 shall:
13-8 (a) Investigate any fire which occurs in a county other than one whose
13-9 population is 50,000 or more or which has been converted into a
13-10 consolidated municipality, and from which a death results or which is of a
13-11 suspicious nature.
13-12 (b) Investigate any fire which occurs in a county whose population is
13-13 50,000 or more or which has been converted into a consolidated
13-14 municipality, and from which a death results or which is of a suspicious
13-15 nature, if requested to do so by the chief officer of the fire department in
13-16 whose jurisdiction the fire occurs.
13-17 (c) Cooperate with the commissioner of insurance , the attorney
13-18 general and the fraud control unit established pursuant to section 27 of
13-19 this act in any investigation of a fraudulent claim under an insurance policy
13-20 for any fire of a suspicious nature.
13-21 (d) Cooperate with any local fire department in the investigation of any
13-22 report received pursuant to NRS 629.045.
13-23 (e) Provide specialized training in investigating the causes of fires if
13-24 requested to do so by the chief officer of an organized fire department.
13-25 7. The state fire marshal shall put the National Fire Incident Reporting
13-26 System into effect throughout the state and publish at least annually a
13-27 summary of data collected under the system.
13-28 8. The state fire marshal shall provide assistance and materials to local
13-29 authorities, upon request, for the establishment of programs for public
13-30 education and other fire prevention activities.
13-31 9. The state fire marshal shall:
13-32 (a) Assist in checking plans and specifications for construction;
13-33 (b) Provide specialized training to local fire departments; and
13-34 (c) Assist local governments in drafting regulations and ordinances,
13-35 on request or as he deems necessary.
13-36 10. In a county other than one whose population is 50,000 or more or
13-37 which has been converted into a consolidated municipality, the state fire
13-38 marshal shall, upon request by a local government, delegate to the local
13-39 government by interlocal agreement all or a portion of his authority or
13-40 duties if the local government’s personnel and programs are, as determined
13-41 by the state fire marshal, equally qualified to perform those functions. If a
13-42 local government fails to maintain the qualified personnel and programs in
13-43 accordance with such an agreement, the state fire marshal shall revoke the
13-44 agreement.
13-45 Sec. 29. This act becomes effective upon passage and approval.
13-46 H