AB47_EN

Assembly Bill No. 47–Committee on Commerce and Labor

CHAPTER..........

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:

Section 1. NRS 616A.495 is hereby amended to read as follows:

616A.495 1. Each employer shall ensure that[:

(a) A certificate of insurance provided pursuant to NRS 616B.026;

(b) A certificate] a copy of his:

(a) Policy of industrial insurance, including the declaration page, if

the employer is insured by a private carrier;

(b) Certificate issued by the commissioner pursuant to NRS 616B.312

[;] , if the employer is self-insured; or

private employers] Certificate issued by the commissioner pursuant to

NRS 616B.359 and of a certificate or letter issued by [such an] the

association of self-insured public or private employers verifying that the

employer is a member in good standing of the association,[is posted in a

conspicuous location] if the employer is a member of an association of

self-insured public or private employers,

is available at all times for inspection by the administrator or his auditor

or agent or an investigator of the attorney general at each of the

employer’s places of business, [including, without limitation, each

location at which the employer has directed one or more employees to

perform work.] except that if such a place of business is situated in a

temporary location and is intended to remain in the temporary location

for not more than 1 year, the copy must be made available at that place

of business within 24 hours after being requested by the administrator,

auditor, agent or investigator.

2. An employer insured by a private carrier, self-insured employer or

employer who is a member of an association of self-insured public or

private employers who violates the provisions of subsection 1 is guilty of

a misdemeanor.

Sec. 2. Chapter 616B of NRS is hereby amended by adding thereto a

new section to read as follows:

1. An employer who cancels a policy of industrial insurance issued to

him by a private carrier shall notify the administrator in writing within

20 days after the cancellation, specifying the date on which the

cancellation became effective, unless the employer’s subsequent insurer

is a private carrier who has already notified the administrator pursuant

to subsection 2 that it has issued a new policy to that employer. The

notice must be served personally or sent by first-class mail or electronic

transmission to the administrator. If the employer has secured insurance

with another insurer that could cause double coverage, the date on which

cancellation of the previous policy became effective must be the effective

date of the new insurance.

2. A private carrier shall notify the administrator in writing within 15

days after the private carrier:

(a) Issues a policy of industrial insurance.

(b) Renews a policy of industrial insurance.

temporarily canceled.

(d) Cancels or does not renew a policy of industrial insurance.

3. If the administrator believes that a private carrier has inaccurately

reported the information required pursuant to subsection 2 and notifies

the private carrier of the alleged inaccuracy, the private carrier shall

within 30 calendar days after receiving the notification:

(a) Investigate the alleged inaccuracy; and

(b) Submit to the administrator accurate information or information

proving that the previously submitted information was accurate.

4. During the period of investigation by the private carrier, the

administrator may not impose any administrative fines, issue a notice of

correction or take any other corrective action against the private carrier.

If the private carrier is able to prove that the information originally

submitted to the administrator or, if applicable, his designated agent,

was accurate, the administrator may not impose any administrative

fines, issue a notice of correction or take any other corrective action

against the private carrier. As used in this subsection, “designated

agent” means an agent who is authorized by the administrator to

receive, compile and forward to the administrator the information

required pursuant to subsection 2.

Sec. 3. NRS 616B.033 is hereby amended to read as follows:

616B.033 1. Every policy of insurance issued pursuant to chapters

616A to 617, inclusive, of NRS must contain a provision for the

requirements of subsection 5 and a provision that insolvency or

bankruptcy of the employer or his estate, or discharge therein, or any

default of the employer does not relieve the insurer from liability for

compensation resulting from an injury otherwise covered under the policy

issued by the insurer.

2. No statement in an employer’s application for a policy of industrial

insurance voids the policy as between the insurer and employer unless the

statement is false and would have materially affected the acceptance of the

risk if known by the insurer, but in no case does the invalidation of a

policy as between the insurer and employer affect the insurer’s obligation

to provide compensation to claimants arising before the cancellation of the

policy. If the insurer is required pursuant to this subsection to provide

compensation under an invalid policy, the insurer is subrogated to the

claimant’s rights against the employer.

3. If an insurer [or employer] intends to cancel [or renew] a policy of

insurance issued by the insurer pursuant to chapters 616A to 617,

inclusive, of NRS, the insurer [or employer] must give notice to that effect

in writing to the [administrator and to the other party] employer fixing the

date on

which it is proposed that the cancellation [or renewal] becomes effective [.]

, which must be at least 30 days after the date on which the notice is

personally delivered or mailed to the employer, except in the case of

cancellation for failure to pay a premium when due. The notices must

comply with the provisions of NRS 687B.310 to 687B.355, inclusive, and

must be served personally on or sent by first-class mail or electronic

transmission to the [administrator and the other party.] employer. If the

employer has secured insurance with another insurer which would cause

double coverage, the cancellation must be made effective as of the

effective date of the other insurance.

4. As between any claimant and the insurer, no defense based on any

act or omission of the insured employer, if different from the insurer, may

be raised by the insurer.

5. For the purposes of chapters 616A to 617, inclusive, of NRS, as

between the employee and the insurer:

(a) Except as otherwise provided in NRS 616C.065, notice or

knowledge of the injury to or by the employer is notice or knowledge to or

by the insurer;

(b) Jurisdiction over the employer is jurisdiction over the insurer; and

fact, conclusions of law, awards, decrees, orders or decisions rendered

against the employer in the same manner and to the same extent as the

employer.

Sec. 4. NRS 616B.224 is hereby amended to read as follows:

616B.224 1. Every private or public employer who is not a self

-insured employer or a member of an association of self-insured public or

private employers shall, at intervals and on or before dates established by

his insurer, furnish the insurer with:

(a) A true and accurate payroll showing:

(1) The total amount paid to employees for services performed;

(2) The amount of tips reported to him by every employee pursuant to

26 U.S.C. § 6053(a) whose tips in cash totaled $20 or more; and

(3) A segregation of employment in accordance with the

requirements of the commissioner; and

(b) Any premium due pursuant to the terms of the policy of industrial

insurance.

The payroll reports and any premium may be furnished to the insurer on

different dates, as established by the insurer.

2. The failure of any employer to comply with the provisions of this

section operates as a rejection of chapters 616A to 616D, inclusive, and

chapter 617 of NRS. The insurer shall , within the period specified in

subsection 2 of section 2 of this act, notify the administrator of each such

rejection [within the period specified in NRS 616B.460.] by notifying the

administrator of its cancellation or decision not to renew the policy of

that employer.

3. The insurer shall notify any employer or his representative by first

-class mail of any failure on his part to comply with the provisions of this

section. The notice or its omission does not modify or waive the

requirements or effective rejection of chapters 616A to 616D, inclusive,

and chapter 617 of NRS as otherwise provided in those chapters.

4. To the extent permitted by federal law, the insurer shall vigorously

pursue the collection of premiums that are due under the provisions of

chapters 616A to 616D, inclusive, and chapter 617 of NRS even if an

employer’s debts have been discharged in a bankruptcy proceeding.

Sec. 5. NRS 616B.460 is hereby amended to read as follows:

616B.460 1. An employer may elect to purchase industrial insurance

from a private carrier for his employees pursuant to chapters 616A to 617,

inclusive, of NRS.

2. An employer [may] who cancels a policy of industrial insurance to

elect to purchase insurance from an insurer other than his present insurer

[if the employer has:

(a) Given at least 10 days’ notice to the administrator of the change of

insurer; and

(b) Furnished evidence satisfactory to the administrator that the

payment of compensation has otherwise been secured.

3. Each private carrier shall notify the administrator if an employer has

changed his insurer or has allowed his insurance to lapse, within 15 days

after the insurer has notice of the change or lapse.] shall comply with the

reporting requirements of section 2 of this act.

Sec. 6. NRS 616B.026 is hereby repealed.

Sec. 7. The amendatory provisions of this act do not apply to offenses

committed before July 1, 2001.

Sec. 8. This act becomes effective on July 1, 2001.

TEXT OF REPEALED SECTION

616B.026 Certificate of industrial insurance: Issuance by certain

insurers; contents.

1. An insurer, other than a self-insured employer or an association of

self-insured public or private employers, shall provide to each employer to

whom the insurer provides industrial insurance, whether or not the

employer is a member of a group that is provided with industrial insurance

pursuant to NRS 616B.036, a certificate of insurance which indicates that

the employer has obtained a policy of industrial insurance.

2. A certificate of insurance provided by an insurer pursuant to

subsection 1 must include, without limitation:

(a) The name of the insurer;

(b) The name of the insured;

(d) The period for which the policy is effective.

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