2003  SESSION (72nd)                                                                                                A AB453 524

Amendment No. 524

 

 

 

 

     Amend sec. 4, page 4, by deleting line 15 and inserting:

          “(2) Medical or dental malpractice [;] of:

              (I)  A practitioner licensed pursuant to chapter 630, 630A, 631, 632, 633, 634, 634A, 635, 636, 637, 637A, 637B, 639 or 640 of NRS;

              (II)  A hospital or other health care facility; or

              (III) Any related corporate entity.”.

     Amend sec. 22, page 21, line 19, by deleting “felony,” and inserting:

“felony committed on or after October 1, 2003,”.

     Amend the bill as a whole by adding new sections designated sections 38.3 and 38.7, following sec. 38, to read as follows:

     “Sec. 38.3.  NRS 685A.080 is hereby amended to read as follows:

     685A.080 1.  Upon placing a surplus lines coverage, the broker shall promptly issue and deliver to the insured evidence of the insurance consisting either of the policy as issued by the insurer, or, if such a policy is not then available, the surplus lines broker’s certificate executed by the broker or a cover note . [endorsed by the broker.] Such a certificate or [endorsed] cover note must show the description and location of the subject of the insurance, coverage, conditions and term of the insurance, the premium and rate charged and taxes collected from the insured, and the name and address of the insured and insurer and must state that the broker has verified that the insurance described has been granted or issued. If the direct risk is assumed by more than one insurer, the certificate must state the name and address and proportion of the entire direct risk assumed by each such insurer.

     2.  A broker shall not issue any such certificate or any cover note, or purport to insure or represent that insurance will be or has been granted by any unauthorized insurer, unless he has prior written authority from the insurer for the insurance, or has received information from the insurer in the regular course of business that the insurance has been granted, or an insurance policy providing the insurance actually has been issued by the insurer and delivered to the insured.

     3.  If after the issuance and delivery of any such certificate there is any change as to the identity of the insurers, or the proportion of the direct risk assumed by an insurer as stated in the broker’s original certificate, or in any other material respect as to the insurance evidenced by the certificate, the broker shall promptly issue and deliver to the insured a substitute certificate accurately showing the current status of the coverage and the insurers responsible thereunder.

     4.  If a policy issued by the insurer is not available upon placement of the insurance and the broker has issued and delivered his certificate as provided in this section, upon request therefor by the insured the broker shall as soon as reasonably possible procure from the insurer its policy evidencing the insurance and deliver the policy to the insured in replacement of the broker’s certificate theretofore issued.

     5.  Any surplus lines broker who knowingly or negligently issues a false certificate of insurance or who fails promptly to notify the insured of any material change with respect to the insurance by delivery to the insured of a substitute certificate as provided in subsection 3 is subject to the penalty provided by NRS 679A.180 or to any greater applicable penalty otherwise provided by law.

     Sec. 38.7. NRS 685A.090 is hereby amended to read as follows:

     685A.090  [Every] Each insurance contract procured and delivered as a surplus lines coverage pursuant to this chapter must [be countersigned by the broker who procured it, and must] have conspicuously stamped upon it:

 

This insurance contract is issued pursuant to the Nevada insurance laws by an insurer neither licensed by nor under the supervision of the Division of Insurance of the Department of Business and Industry of the State of Nevada. If the insurer is found insolvent, a claim under this contract is not covered by the Nevada Insurance Guaranty Association Act.”.

 

     Amend sec. 39, page 33, line 4, by deleting:

“in this state” and inserting:

“[in this state]”.

     Amend the bill as a whole by adding a new section designated sec. 39.5, following sec. 39, to read as follows:

     “Sec. 39.5. NRS 685A.180 is hereby amended to read as follows:

     685A.180  1.  On or before March 1 of each year each broker shall pay to the Commissioner a tax on surplus lines coverages written by him in unauthorized insurers during the preceding calendar year at the same rate of tax as imposed by law on the premiums of similar coverages written by authorized insurers. If a broker has paid any taxes pursuant to NRS 685A.175, he shall deduct the total paid from the tax due and pay the remainder, if any.

     2.  For the purposes of this section, the “premium” on surplus lines coverages includes:

     (a) The gross amount charged by the insurer for the insurance, less any return premium;

     (b) Any fee allowed by NRS 685A.155;

     (c) Any policy fee;

     (d) Any membership fee; [and]

     (e) Any inspection fee; and

     (f) Any other fees or assessments charged by the insurer as consideration for the insurance.

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Premium does not include any additional amount charged for state or federal tax, or for filing affidavits or reports of coverage . [, inspection fee or the communication expenses of the broker.]

     3.  If a contract for surplus lines insurance covers risks or exposures only partially in this state, the tax so payable must be computed on that portion of the premium properly allocable to the risks or exposures located in this state. The Commissioner may adopt regulations which establish standards for allocating premiums for risks located in this state in the same manner as premiums are allocated pursuant to NRS 680B.030.

     4.  The Commissioner shall promptly deposit all taxes collected by him pursuant to this section with the State Treasurer, to the credit of the State General Fund.

     5.  A broker who receives a credit for tax paid shall refund to each insured the amount of the credit attributable to the insured when the insurer pays a return premium or within 30 days, whichever is earlier.”.

     Amend sec. 43, page 34, line 35, after “insurer” by inserting:

“or a domestic reciprocal insurer”.

     Amend sec. 44, page 34, line 39, by deleting “insurer.” and inserting:

“insurer or a domestic reciprocal insurer.”.

     Amend sec. 44, page 34, line 45, after “insurer” by inserting:

“or a domestic reciprocal insurer”.

     Amend sec. 44, page 35, line 3, by deleting “insurer;” and inserting:

“insurer or a domestic reciprocal insurer;”.

     Amend sec. 45, page 35, line 10, by deleting “insurer,” and inserting:

“insurer or domestic reciprocal insurer,”.

     Amend sec. 45, page 35, line 16, by deleting “insurer.” and inserting:

“insurer or domestic reciprocal insurer.”.

     Amend sec. 45, page 35, by deleting lines 17 through 19 and inserting:

     “3.  An association must comply with the provisions of:

     (a) Chapter 692B of NRS, as applicable to mutual insurers, to qualify as a domestic mutual insurer; or

     (b) Chapter 694B of NRS, as applicable to reciprocal insurers, to qualify as a domestic reciprocal insurer.”.

     Amend sec. 46, page 35, line 22, after “insurers,” by inserting:

“if the association is qualifying as a domestic mutual insurer, or to domestic reciprocal insurers, if the association is qualifying as a domestic reciprocal insurer,”.

     Amend sec. 46, page 35, line 24, by deleting “insurer.” and inserting:

“insurer or a domestic reciprocal insurer.”.

     Amend sec. 48, page 36, line 14, by deleting “divided” and inserting “dividend”.

     Amend sec. 48, page 36, line 20, after “returned” by inserting:

“for a policy of industrial insurance”.

     Amend sec. 56, page 43, line 22, before “An” by inserting “1.”.

     Amend sec. 56, page 43, line 24, by deleting “30” and inserting “[30] 60”.

     Amend sec. 56, page 43, line 34, by deleting “1.” and inserting “(a)”.

     Amend sec. 56, page 43, line 36, by deleting “2.” and inserting “(b)”.

     Amend sec. 56, page 43, between lines 36 and 37, by inserting:

     “2.  For the purpose of subsection 1, if the policy is a policy of industrial insurance, the term “rate” means the cost of insurance based on a unit of exposure to liability before any adjustments are made for an individual employer’s losses or expenses, or a combination of both. The term does not include:

     (a) The minimum premiums charged by an insurer;

     (b) The prospective loss cost portion of the rate as filed by the Advisory Organization and approved by the Commissioner pursuant to NRS 686B.177; or

     (c) Any experience modification factor applicable to the holder of the policy.”.

     Amend the bill as a whole by deleting sec. 76 and adding:

     “Sec. 76. (Deleted by amendment.)”.

     Amend the bill as a whole by adding a new section designated sec. 80.5, following sec. 80, to read as follows:

     “Sec. 80.5. NRS 695C.055 is hereby amended to read as follows:

     695C.055  1.  The provisions of NRS 449.465, 679B.700, subsections 2, 4, 18, 19 and 32 of NRS 680B.010, NRS [680B.025] 680B.020 to 680B.060, inclusive, and chapter 695G of NRS apply to a health maintenance organization.

     2.  For the purposes of subsection 1, unless the context requires that a provision apply only to insurers, any reference in those sections to “insurer” must be replaced by “health maintenance organization.” ”.

     Amend the bill as a whole by adding a new section designated sec. 82.5, following sec. 82, to read as follows:

     “Sec. 82.5. NRS 697.270 is hereby amended to read as follows:

     697.270  A bail agent shall not [become a surety] act as an attorney-in-fact for an insurer on an undertaking unless he has registered in the office of the sheriff and with the clerk of the district court in which the agent resides, and he may register in the same manner in any other county. Any bail agent shall file a certified copy of his appointment by power of attorney from each insurer which he represents as agent with each of such officers. The bail agent shall register and file a certified copy of renewed power of attorney annually on July 1. The clerk of the district court and the sheriff shall not permit the registration of a bail agent unless the agent is licensed by the Commissioner.”.

     Amend the bill as a whole by adding a new section designated sec. 83.5, following sec. 83, to read as follows:

     “Sec. 83.5. NRS 697.300 is hereby amended to read as follows:

     697.300  1.  A bail agent shall not, in any bail transaction or in connection therewith, directly or indirectly, charge or collect money or other valuable consideration from any person except for the following purposes:

     (a) To pay the premium at the rates established by the insurer, in accordance with chapter 686B of NRS, or to pay the charges for the bail bond filed in connection with the transaction at the rates filed in accordance with the provisions of this Code. The rates must be [not less than 10 percent or more than] 15 percent of the amount of the bond or $50, whichever is greater.

     (b) To provide collateral.

     (c) To reimburse himself for actual expenses incurred in connection with the transaction. Such expenses are limited to:

          (1) Guard fees.

          (2) Notary public fees, recording fees, expenses incurred for necessary long distance telephone calls and charges for telegrams.

          (3) Travel expenses incurred more than 25 miles from the agent’s principal place of business. Such expenses:

              (I) May be billed at the rate provided for state officers and employees generally; and

              (II) May not be charged in areas where bail agents advertise a local telephone number.

          (4) Expenses incurred to verify underwriting information.

          (5) Any other actual expenditure necessary to the transaction which is not usually and customarily incurred in connection with bail transactions.

     (d) To reimburse himself, or have a right of action against the principal or any indemnitor, for actual expenses incurred in good faith, by reason of breach by the defendant of any of the terms of the written agreement under which and pursuant to which the undertaking of bail or bail bond was written. If there is no written agreement, or an incomplete writing, the surety may, at law, enforce its equitable rights against the principal and his indemnitors, in exoneration. Such reimbursement or right of action must not exceed the principal sum of the bond or undertaking, plus any reasonable expenses that may be verified by receipt in a total amount of not more than the principal sum of the bond or undertaking, incurred in good faith by the surety, its agents, licensees and employees by reason of the principal’s breach.

     2.  This section does not prevent the full and unlimited right of a bail agent to execute undertaking of bail on behalf of a nonresident agent of the surety he represents. The licensed resident bail agent is entitled to a minimum countersignature fee of $5, with a maximum countersignature fee of $100, plus expenses incurred in accordance with paragraphs (c) and (d) of subsection 1. Such countersignature fees may be charged in addition to the premium of the undertaking.”.

     Amend sec. 84, page 65, line 42, by deleting “section.” and inserting “chapter.”.

     Amend sec. 84, page 66, line 8, after “whether” by inserting:

“the bail agent or surety insurer has received notice that”.

     Amend sec. 84, page 66, by deleting lines 10 and 11 and inserting:

“obligation of a bond, it must be returned [within 30 days] immediately after receipt of the request for return of the collateral and notice of the entry of any order by an authorized official”.

     Amend sec. 84, page 66, line 26, after “whether the” by inserting:

“bail agent or surety insurer has received notice that the”.

     Amend sec. 84, page 66, line 36, by deleting “assignee” and inserting “surety insurer”.

     Amend the bill as a whole by adding a new section designated sec. 85.5, following sec. 85, to read as follows:

     “Sec. 85.5. NRS 178.512 is hereby amended to read as follows:

     178.512  The court shall not set aside a forfeiture unless:

     1.  The surety submits an application to set it aside on the ground that the defendant:

     (a) Has appeared before the court since the date of the forfeiture and has presented [a] :

          (1) A satisfactory excuse for his absence; and

          (2) Satisfactory evidence that the surety did not in any way cause or aid the absence of the defendant;

     (b) Was dead before the date of the forfeiture but the surety did not know and could not reasonably have known of his death before that date;

     (c) Was unable to appear before the court before the date of the forfeiture because of his illness or his insanity, but the surety did not know and could not reasonably have known of his illness or insanity before that date;

     (d) Was unable to appear before the court before the date of the forfeiture because he was being detained by civil or military authorities, but the surety did not know and could not reasonably have known of his detention before that date; or

     (e) Was unable to appear before the court before the date of the forfeiture because he was deported, but the surety did not know and could not reasonably have known of his deportation before that date,

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and the court, upon hearing the matter, determines that one or more of the grounds described in this subsection exist and that the surety did not in any way cause or aid the absence of the defendant; and

     2.  The court determines that justice does not require the enforcement of the forfeiture.”.

     Amend sec. 89, page 70, line 44, by deleting “[120] 30” and inserting “120”.

     Amend sec. 90, page 72, line 18, by deleting “April” and inserting “[April] May”.

     Amend sec. 90, page 72, line 19, by deleting “90” and inserting “[90] 120”.

     Amend the bill as a whole by deleting sec. 92 and adding:

     “Sec. 92. (Deleted by amendment.)”.

     Amend sec. 94, page 74, lines 21 through 23, by deleting the brackets and strike-through.

     Amend sec. 94, page 74, line 25, by deleting “[(d)] (c)” and inserting “(d)”.

     Amend the bill as a whole by deleting sec. 95 and adding:

     “Sec. 95. (Deleted by amendment.)”.

     Amend the title of the bill by deleting the thirteenth through twenty-first lines and inserting:

“are obligated to pay for a covered claim; requiring an insurer that issues a policy of insurance covering the liability of certain physicians to submit a report to the Commissioner within a certain period after closing a claim under the policy; revising the order of distribution of certain claims from the estate of an insurer on liquidation of the insurer; prohibiting a bail agent from acting as an attorney-in-fact for an insurer on an undertaking unless the bail agent registers in the office of the sheriff and with the clerk of the district court in which the bail agent resides; requiring a member of an association of self-insured public or private employers to include certain information in a notice of intent to withdraw from the association; providing penalties; and providing other matters properly relating thereto.”.