Assembly Bill No. 47–Committee on Commerce and
Labor
Prefiled January 26, 2001
(On Behalf of Legislative Committee on
Workers’ Compensation (NRS 218.5375))
____________
Referred to Committee on Commerce and Labor
SUMMARY—Makes various changes concerning policies
of industrial insurance. (BDR 53‑769)
FISCAL NOTE: Effect on Local Government: Yes.
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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 industrial insurance; requiring an employer to ensure that a copy of
its policy of industrial insurance is available for inspection by certain state
officials; requiring self-insured employers and associations of self-insured
public or private employers to ensure that their certificates of qualification
are available for inspection by certain state officials; revising the
provisions governing notification by employers and private carriers of
cancellations, issuances and other actions concerning policies of industrial
insurance; providing a penalty; 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 616A.495 is hereby
amended to read as follows:
1-2 616A.495 1. Each
employer shall ensure that [:
1-3 (a) A certificate of insurance provided
pursuant to NRS 616B.026;
1-4 (b) A certificate] a copy of his:
1-5 (a) Policy of industrial insurance, including
the declaration page, if
1-6 the employer is
insured by a private carrier;
1-7 (b) Certificate issued by the commissioner
pursuant to NRS 616B.312
1-8 [;] ,
if the employer is self-insured; or
1-9 (c) [A certificate issued to an association of self-insured public
or
1-10 private employers] Certificate
issued by the commissioner pursuant to
1-11 NRS 616B.359 and of a certificate or letter issued by [such an]
the
1-12 association of self-insured public or private employers verifying
that the
1-13 employer is a member in good standing of the
association, [is posted in a
2-1 conspicuous
location] if the employer is a member of an association of
2-2 self-insured
public or private employers,
2-3 is available at
all times for inspection by the administrator or his auditor
2-4 or agent or an
investigator of the attorney general at each of the
2-5 employer’s places of business, including, without
limitation, each location
2-6 at which the employer has directed one or more
employees to perform
2-7 work.
2-8 2. An employer insured by a private carrier, self-insured employer
or
2-9 employer who is a
member of an association of self-insured public or
2-10 private employers
who
violates the provisions of subsection 1 is guilty of a
2-11 misdemeanor.
2-12
Sec. 2. Chapter
616B of NRS is hereby amended by adding thereto a
2-13 new section to read as follows:
2-14 1. An employer who cancels a policy of industrial insurance issued to
2-15 him by a private
carrier shall notify the administrator in writing within
2-16 20 days after the
cancellation, specifying the date on which the
2-17 cancellation
became effective, unless the employer’s subsequent insurer
2-18 is a private
carrier who has already notified the administrator pursuant
2-19 to subsection 2
that it has issued a new policy to that employer. The
2-20 notice must be
served personally or sent by first-class mail or electronic
2-21 transmission to
the administrator. If the employer has secured insurance
2-22 with another
insurer that could cause double coverage, the date on which
2-23 cancellation of
the previous policy became effective must be the effective
2-24 date of the new
insurance.
2-25 2. A
private carrier shall notify the administrator in writing within 15
2-26 days after the
private carrier:
2-27 (a) Issues a policy of industrial insurance.
2-28 (b) Renews a policy of industrial insurance.
2-29 (c) Reinstates a policy of industrial
insurance that had been
2-30 temporarily
canceled.
2-31 (d) Cancels or does not renew a policy of
industrial insurance.
2-32 3. If
the administrator believes that a private carrier has inaccurately
2-33 reported the
information required pursuant to subsection 2 and notifies
2-34 the private
carrier of the alleged inaccuracy, the private carrier shall
2-35 within 30
calendar days after receiving the notification:
2-36 (a) Investigate the alleged inaccuracy; and
2-37 (b) Submit to the administrator accurate
information or information
2-38 proving that the
previously submitted information was accurate.
2-39 4. During
the period of investigation by the private carrier, the
2-40 administrator may
not impose any administrative fines, issue a notice of
2-41 correction or
take any other corrective action against the private carrier.
2-42 If the private
carrier is able to prove that the information originally
2-43 submitted to the
administrator or, if applicable, his designated agent, was
2-44 accurate, the
administrator may not impose any administrative fines,
2-45 issue a notice of
correction or take any other corrective action against
2-46 the private
carrier. As used in this subsection, “designated agent” means
2-47 an agent who is
authorized by the administrator to receive, compile and
2-48 forward to the
administrator the information required pursuant to
2-49 subsection 2.
3-1 Sec. 3. NRS
616B.033 is hereby amended to read as follows:
3-2 616B.033 1. Every
policy of insurance issued pursuant to chapters
3-3 616A to 617, inclusive, of NRS must contain a
provision for the
3-4 requirements of subsection [5] 4 and a provision that
insolvency or
3-5 bankruptcy of the employer or his estate, or
discharge therein, or any
3-6 default of the employer does not relieve the insurer
from liability for
3-7 compensation resulting from an injury otherwise
covered under the policy
3-8 issued by the insurer.
3-9 2. No statement in an employer’s application for
a policy of industrial
3-10 insurance voids the policy as between the insurer
and employer unless the
3-11 statement is false and would have materially
affected the acceptance of the
3-12 risk if known by the insurer, but in no case does
the invalidation of a policy
3-13 as between the insurer and employer affect the
insurer’s obligation to
3-14 provide compensation to claimants arising before the
cancellation of the
3-15 policy. If the insurer is required pursuant to this
subsection to provide
3-16 compensation under an invalid policy, the insurer is
subrogated to the
3-17 claimant’s rights against the employer.
3-18 3. [If an
insurer or employer intends to cancel or renew a policy of
3-19 insurance issued
by the insurer pursuant to chapters 616A to 617, inclusive,
3-20 of NRS, the
insurer or employer must give notice to that effect in writing to
3-21 the administrator
and to the other party fixing the date on which it is
3-22 proposed that the
cancellation or renewal becomes effective. The notices
3-23 must comply with
the provisions of NRS 687B.310 to 687B.355, inclusive,
3-24 and must be served
personally on or sent by first-class mail or electronic
3-25 transmission to
the administrator and the other party. If the employer has
3-26 secured insurance
with another insurer which would cause double
3-27 coverage, the
cancellation must be made effective as of the effective date
3-28 of the other
insurance.
3-29 4.] As between any claimant and the insurer, no defense based on any
3-30 act or omission of the insured employer, if
different from the insurer, may
3-31 be raised by the insurer.
3-32
[5.] 4. For the purposes of chapters 616A to 617,
inclusive, of NRS, as
3-33 between the employee and the insurer:
3-34 (a) Except as
otherwise provided in NRS 616C.065, notice or
3-35 knowledge of the injury to or by the employer is
notice or knowledge to or
3-36 by the insurer;
3-37 (b) Jurisdiction
over the employer is jurisdiction over the insurer; and
3-38 (c) The
insurer is bound by and subject to any judgments, findings of
3-39 fact, conclusions of law, awards, decrees, orders or
decisions rendered
3-40 against the employer in the same manner and to the
same extent as the
3-41 employer.
3-42 Sec. 4. NRS
616B.224 is hereby amended to read as follows:
3-43 616B.224 1. Every
private or public employer who is not a self-
3-44 insured employer or a member of an association of
self-insured public or
3-45 private employers shall, at intervals and on or
before dates established by
3-46 his insurer, furnish the insurer with:
3-47 (a) A true
and accurate payroll showing:
3-48 (1) The
total amount paid to employees for services performed;
4-1 (2) The
amount of tips reported to him by every employee pursuant to
4-2 26 U.S.C. § 6053(a) whose tips in cash totaled $20
or more; and
4-3 (3) A
segregation of employment in accordance with the
4-4 requirements of the commissioner; and
4-5 (b) Any
premium due pursuant to the terms of the policy of industrial
4-6 insurance.
4-7 The payroll reports and any premium may be furnished
to the insurer on
4-8 different dates, as established by the insurer.
4-9 2. The failure of any employer to comply with
the provisions of this
4-10 section operates as a rejection of chapters 616A to
616D, inclusive, and
4-11 chapter 617 of NRS. The insurer shall , within the period specified in
4-12 subsection 2 of
section 2 of this act, notify the administrator of each such
4-13 rejection [within the
period specified in NRS 616B.460.] by notifying the
4-14 administrator of
its cancellation or decision not to renew the policy of
4-15 that employer.
4-16 3. The insurer shall notify any employer or his
representative by first-
4-17 class mail of any failure on his part to comply with
the provisions of this
4-18 section. The notice or its omission does not modify
or waive the
4-19 requirements or effective rejection of chapters 616A
to 616D, inclusive,
4-20 and chapter 617 of NRS as otherwise provided in
those chapters.
4-21 4. To the extent permitted by federal law, the
insurer shall vigorously
4-22 pursue the collection of premiums that are due under
the provisions of
4-23 chapters 616A to 616D, inclusive, and chapter 617 of
NRS even if an
4-24 employer’s debts have been discharged in a
bankruptcy proceeding.
4-25 Sec. 5. NRS
616B.460 is hereby amended to read as follows:
4-26 616B.460 1. An
employer may elect to purchase industrial insurance
4-27 from a private carrier for his employees pursuant to
chapters 616A to 617,
4-28 inclusive, of NRS.
4-29 2. An employer [may]
who cancels a policy of industrial
insurance to
4-30 elect to purchase insurance from an insurer other
than his present insurer [if
4-31 the employer has:
4-32 (a) Given at least 10 days’ notice to the
administrator of the change of
4-33 insurer; and
4-34 (b) Furnished evidence satisfactory to the
administrator that the
4-35 payment of
compensation has otherwise been secured.
4-36 3. Each
private carrier shall notify the administrator if an employer has
4-37 changed his
insurer or has allowed his insurance to lapse, within 15 days
4-38 after the insurer
has notice of the change or lapse.] shall comply with the
4-39 reporting
requirements of section 2 of this act.
4-40 Sec. 6. NRS
616B.026 is hereby repealed.
4-41 Sec. 7. The
amendatory provisions of this act do not apply to offenses
4-42
committed before July 1, 2001.
5-1 Sec. 8. This
act becomes effective on July 1, 2001.
5-2 TEXT OF
REPEALED SECTION
5-3 616B.026 Certificate of industrial insurance: Issuance
by certain
5-4 insurers; contents.
5-5 1. An
insurer, other than a self-insured employer or an association of
5-6 self-insured
public or private employers, shall provide to each employer to
5-7 whom the
insurer provides industrial insurance, whether or not the
5-8 employer is
a member of a group that is provided with industrial insurance
5-9 pursuant to
NRS 616B.036, a certificate of insurance which indicates that
5-10 the employer
has obtained a policy of industrial insurance.
5-11 2. A certificate of insurance provided by an
insurer pursuant to
5-12 subsection 1
must include, without limitation:
5-13 (a) The name
of the insurer;
5-14 (b) The name
of the insured;
5-15 (c) The
number of the policy; and
5-16 (d) The
period for which the policy is effective.
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