(REPRINTED WITH ADOPTED AMENDMENTS)

 

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.

                                    Effect on the State: No.

 

~

 

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

 

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 and a provision that insolvency or bankruptcy

3-5  of the employer or his estate, or discharge therein, or any default of the

3-6  employer does not relieve the insurer from liability for compensation

3-7  resulting from an injury otherwise covered under the policy issued by the

3-8  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

3-21  to the [administrator and to the other party] employer fixing the date on

3-22  which it is proposed that the cancellation [or renewal] becomes effective [.]

3-23  , which must be at least 30 days after the date on which the notice is

3-24  personally delivered or mailed to the employer, except in the case of

3-25  cancellation for failure to pay a premium when due. The notices must

3-26  comply with the provisions of NRS 687B.310 to 687B.355, inclusive, and

3-27  must be served personally on or sent by first-class mail or electronic

3-28  transmission to the [administrator and the other party.] employer. If the

3-29  employer has secured insurance with another insurer which would cause

3-30  double coverage, the cancellation must be made effective as of the

3-31  effective date of the other insurance.

3-32    4.  As between any claimant and the insurer, no defense based on any

3-33  act or omission of the insured employer, if different from the insurer, may

3-34  be raised by the insurer.

3-35    5.  For the purposes of chapters 616A to 617, inclusive, of NRS, as

3-36  between the employee and the insurer:

3-37    (a) Except as otherwise provided in NRS 616C.065, notice or

3-38  knowledge of the injury to or by the employer is notice or knowledge to or

3-39  by the insurer;

3-40    (b) Jurisdiction over the employer is jurisdiction over the insurer; and

3-41    (c) The insurer is bound by and subject to any judgments, findings of

3-42  fact, conclusions of law, awards, decrees, orders or decisions rendered

3-43  against the employer in the same manner and to the same extent as the

3-44  employer.

3-45    Sec. 4.  NRS 616B.224 is hereby amended to read as follows:

3-46    616B.224  1.  Every private or public employer who is not a self-

3-47  insured employer or a member of an association of self-insured public or

3-48  private employers shall, at intervals and on or before dates established by

3-49  his insurer, furnish the insurer with:

4-1    (a) A true and accurate payroll showing:

4-2       (1) The total amount paid to employees for services performed;

4-3       (2) The amount of tips reported to him by every employee pursuant to

4-4  26 U.S.C. § 6053(a) whose tips in cash totaled $20 or more; and

4-5       (3) A segregation of employment in accordance with the

4-6  requirements of the commissioner; and

4-7    (b) Any premium due pursuant to the terms of the policy of industrial

4-8  insurance.

4-9  The payroll reports and any premium may be furnished to the insurer on

4-10  different dates, as established by the insurer.

4-11    2.  The failure of any employer to comply with the provisions of this

4-12  section operates as a rejection of chapters 616A to 616D, inclusive, and

4-13  chapter 617 of NRS. The insurer shall , within the period specified in

4-14  subsection 2 of section 2 of this act, notify the administrator of each such

4-15  rejection [within the period specified in NRS 616B.460.] by notifying the

4-16  administrator of its cancellation or decision not to renew the policy of

4-17  that employer.

4-18    3.  The insurer shall notify any employer or his representative by first-

4-19  class mail of any failure on his part to comply with the provisions of this

4-20  section. The notice or its omission does not modify or waive the

4-21  requirements or effective rejection of chapters 616A to 616D, inclusive,

4-22  and chapter 617 of NRS as otherwise provided in those chapters.

4-23    4.  To the extent permitted by federal law, the insurer shall vigorously

4-24  pursue the collection of premiums that are due under the provisions of

4-25  chapters 616A to 616D, inclusive, and chapter 617 of NRS even if an

4-26  employer’s debts have been discharged in a bankruptcy proceeding.

4-27    Sec. 5.  NRS 616B.460 is hereby amended to read as follows:

4-28    616B.460  1.  An employer may elect to purchase industrial insurance

4-29  from a private carrier for his employees pursuant to chapters 616A to 617,

4-30  inclusive, of NRS.

4-31    2.  An employer [may] who cancels a policy of industrial insurance to

4-32  elect to purchase insurance from an insurer other than his present insurer [if

4-33  the employer has:

4-34    (a) Given at least 10 days’ notice to the administrator of the change of

4-35  insurer; and

4-36    (b) Furnished evidence satisfactory to the administrator that the

4-37  payment of compensation has otherwise been secured.

4-38    3.  Each private carrier shall notify the administrator if an employer has

4-39  changed his insurer or has allowed his insurance to lapse, within 15 days

4-40  after the insurer has notice of the change or lapse.] shall comply with the

4-41  reporting requirements of section 2 of this act.

4-42    Sec. 6.  NRS 616B.026 is hereby repealed.

4-43    Sec. 7.  The amendatory provisions of this act do not apply to offenses

4-44  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.

 

5-17  H