Assembly Bill No. 347–Assemblyman Parks

 

March 13, 2001

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Referred to Committee on Commerce and Labor

 

SUMMARY—Clarifies authority of captive insurer to provide industrial insurance and authorizes participation in Nevada insurance guaranty association. (BDR 53‑999)

 

FISCAL NOTE:            Effect on Local Government: No.

                                    Effect on the State: No.

 

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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

AN ACT relating to industrial insurance; clarifying the authority of a captive insurer to provide industrial insurance; authorizing a captive insurer to participate in the Nevada insurance guaranty association for industrial insurance; 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 616B.463 is hereby amended to read as follows:

1-2    616B.463  1.  Before a private carrier may provide industrial

1-3  insurance pursuant to chapters 616A to 617, inclusive, of NRS, the private

1-4  carrier must be [authorized] :

1-5    (a) Authorized by the commissioner pursuant to chapter 680A of NRS

1-6  and maintain such security of the kind described in NRS 680A.120 and

1-7  680A.140 as may be required[.] ; or

1-8    (b) Licensed as a captive insurer pursuant to chapter 694C of NRS.

1-9    2.  A private carrier shall not provide industrial insurance pursuant to

1-10  chapters 616A to 617, inclusive, of NRS as an unauthorized insurer

1-11  pursuant to subsection 9 of NRS 680A.070.

1-12    3.  A private carrier that is authorized by the commissioner to provide

1-13  industrial insurance pursuant to paragraph (a) of subsection 1:

1-14    (a) Constitutes an authorized insurer, as that term is defined in NRS

1-15  679A.030; and

1-16    (b) Is subject to the provisions of Title 57 of NRS that govern

1-17  authorized insurers.

1-18    Sec. 2.  NRS 694C.380 is hereby amended to read as follows:

1-19    694C.380  1.  Except as otherwise provided in subsection 2:

2-1    (a) A captive insurer shall not join or contribute financially to any risk-

2-2  sharing plan, risk pool or insurance insolvency guaranty fund in this state

2-3  [.] ; and

2-4    (b) A captive insurer or its insured, its parent or an affiliated company,

2-5  or any member organization of its association shall not receive any benefit

2-6  from such a plan, pool or fund for claims arising out of the operations of

2-7  the captive insurer.

2-8    2.  A captive insurer that provides industrial insurance pursuant to

2-9  chapters 616A to 617, inclusive, of NRS, may join and contribute

2-10  financially and participate fully in the Nevada insurance guaranty

2-11  association for the industrial insurance the captive insurer provides.

 

2-12  H