exempt

                                                 (Reprinted with amendments adopted on April 21, 2003)

 

Senate Bill No. 319–Senator Shaffer

 

March 17, 2003

____________

 

Referred to Committee on Commerce and Labor

 

SUMMARY—Makes various changes to provisions regulating insurance. (BDR 57‑599)

 

FISCAL NOTE:    Effect on Local Government: No.

                             Effect on the State: Yes.

 

~

 

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

 

AN ACT relating to insurance; providing an exception to the counter-signature requirement for certain types of insurance; revising the membership of certain boards; providing that any refund of an assessment by the Division of Industrial Relations of the Department of Business and Industry must include payment for interest earned; providing that hearings officers and appeals officers shall designate the location of certain hearings; requiring the Commissioner of Insurance to conduct a study relating to the Investments of Insurers Model Act adopted by the National Association of Insurance Commissioners; 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 680A.310 is hereby amended to read as

1-2  follows:

1-3  680A.310  NRS 680A.300 does not apply to any of the

1-4  following:

1-5  1.  Life insurance and annuities.

1-6  2.  Health insurance.

1-7  3.  Policies covering property in transit while in the possession

1-8  or custody of any common carrier, or the rolling stock or other

1-9  property of any common carrier employed by it in the operation and

2-1  maintenance of its plant and business as a common carrier of freight

2-2  or passengers, or both.

2-3  4.  Reinsurance or retrocessions made by or for authorized

2-4  insurers.

2-5  5.  Bid bonds issued in connection with any public or private

2-6  contract.

2-7  6.  A policy issued to a risk retention group, as defined in NRS

2-8  695E.110, or to a member of a risk retention group.

2-9  7.  A policy that is not subject to taxation pursuant to

2-10  NRS 680B.025.

2-11      Sec. 2.  NRS 686C.140 is hereby amended to read as follows:

2-12      686C.140  1.  The Board of Directors of the Association

2-13  consists of not less than five nor more than nine members, serving

2-14  terms as established in the plan of operation.

2-15      2.  The members of the Board who represent insurers must be

2-16  selected by member insurers subject to the approval of the

2-17  Commissioner. If practicable, one of the members of the Board

2-18  must be an officer of a domestic insurer.

2-19      3.  Two public representatives must be appointed to the Board

2-20  by the Commissioner. A public representative may not be an officer,

2-21  director or employee of an insurer or engaged in the business of

2-22  insurance.

2-23      4.  Vacancies on the Board must be filled for the remaining

2-24  period of the term by majority vote of the members of the Board,

2-25  subject to the approval of the Commissioner, for members who

2-26  represent insurers, and by the Commissioner for public

2-27  representatives.

2-28      5.  To select the initial Board of Directors, and initially organize

2-29  the Association, the Commissioner shall give notice to all member

2-30  insurers of the time and place of the organizational meeting. In

2-31  determining voting rights at the organizational meeting, each

2-32  member insurer is entitled to one vote in person or by proxy. If the

2-33  Board of Directors is not selected within 60 days after notice of the

2-34  organizational meeting, the Commissioner may appoint the initial

2-35  members to represent insurers in addition to the public

2-36  representatives.

2-37      [2.] 6.  In approving selections or in appointing members to the

2-38  Board, the Commissioner shall consider, among other things,

2-39  whether all member insurers are fairly represented.

2-40      [3.] 7.  Members of the Board may be reimbursed from the

2-41  assets of the Association for expenses incurred by them as members

2-42  of the Board of Directors but members of the Board may not

2-43  otherwise be compensated by the Association for their services.

 

 

3-1  Sec. 3.  NRS 687A.050 is hereby amended to read as follows:

3-2  687A.050  1.  The Board of Directors of the Association shall

3-3  consist of not fewer than five nor more than nine persons. The

3-4  members of the Board shall be appointed by the Commissioner and

3-5  shall serve at his discretion. Vacancies on the Board shall be filled

3-6  in the same manner as initial appointments.

3-7  2.  A majority of the members appointed shall be the designated

3-8  representatives of member insurers. If practicable, one of the

3-9  members appointed as a designated representative of the member

3-10  insurers must be an officer of a domestic insurer. The

3-11  Commissioner shall consider among other things whether all

3-12  member insurers are fairly represented.

3-13      3.  Members of the Board may be reimbursed from the assets of

3-14  the Association for expenses incurred by them as members of the

3-15  Board of Directors.

3-16      Sec. 4.  Chapter 687B of NRS is hereby amended by adding

3-17  thereto a new section to read as follows:

3-18      Unless otherwise provided by a specific statue, if a signature is

3-19  required of any person, the person may provide as the signature of

3-20  the person:

3-21      1.  An original signature;

3-22      2.  A facsimile signature; or

3-23      3.  An electronic signature pursuant to the provisions of

3-24  chapter 719 of NRS.

3-25      Sec. 5.  NRS 687B.160 is hereby amended to read as follows:

3-26      687B.160  1.  Every insurance policy must be executed in the

3-27  name of and on behalf of the insurer by its officer, attorney in fact,

3-28  employee or representative duly authorized by the insurer.

3-29      2.  [A facsimile signature of any] Any such executing individual

3-30  may [be used] use, in lieu of an original signature[.] :

3-31      (a) A facsimile signature; or

3-32      (b) An electronic signature pursuant to the provisions of

3-33  chapter 719 of NRS.

3-34      3.  An insurance contract issued before, on or after January 1,

3-35  1972, which is otherwise valid is not rendered invalid by reason of

3-36  the apparent execution thereof on behalf of the insurer by the

3-37  imprinted facsimile signature of an individual not authorized so to

3-38  execute as of the date of the policy.

3-39      Sec. 6.  NRS 232.680 is hereby amended to read as follows:

3-40      232.680  1.  The cost of carrying out the provisions of NRS

3-41  232.550 to 232.700, inclusive, and of supporting the Division, a

3-42  full-time employee of the Legislative Counsel Bureau and the Fraud

3-43  Control Unit for Industrial Insurance established pursuant to NRS

3-44  228.420, and that portion of the cost of the Office for Consumer

3-45  Health Assistance established pursuant to NRS 223.550 that is

4-1  related to providing assistance to consumers and injured employees

4-2  concerning workers’ compensation, must be paid from assessments

4-3  payable by each insurer, including each employer who provides

4-4  accident benefits for injured employees pursuant to NRS 616C.265.

4-5  2.  The Administrator shall assess each insurer, including each

4-6  employer who provides accident benefits for injured employees

4-7  pursuant to NRS 616C.265. To establish the amount of the

4-8  assessment, the Administrator shall determine the amount of money

4-9  necessary for each of the expenses set forth in subsections 1 and 4 of

4-10  this section and subsection 3 of NRS 616A.425 and determine the

4-11  amount that is payable by the private carriers, the self-insured

4-12  employers, the associations of self-insured public or private

4-13  employers and the employers who provide accident benefits

4-14  pursuant to NRS 616C.265 for each of the programs. For the

4-15  expenses from which more than one group of insurers receives

4-16  benefit, the Administrator shall allocate a portion of the amount

4-17  necessary for that expense to be payable by each of the relevant

4-18  group of insurers, based upon the expected annual expenditures for

4-19  claims of each group of insurers. After allocating the amounts

4-20  payable among each group of insurers for all the expenses from

4-21  which each group receives benefit, the Administrator shall apply an

4-22  assessment rate to the:

4-23      (a) Private carriers that reflects the relative hazard of the

4-24  employments covered by the private carriers, results in an equitable

4-25  distribution of costs among the private carriers and is based upon

4-26  expected annual premiums to be received;

4-27      (b) Self-insured employers that results in an equitable

4-28  distribution of costs among the self-insured employers and is based

4-29  upon expected annual expenditures for claims;

4-30      (c) Associations of self-insured public or private employers that

4-31  results in an equitable distribution of costs among the associations

4-32  of self-insured public or private employers and is based upon

4-33  expected annual expenditures for claims; and

4-34      (d) Employers who provide accident benefits pursuant to NRS

4-35  616C.265 that reflect the relative hazard of the employments

4-36  covered by those employers, results in an equitable distribution of

4-37  costs among the employers and is based upon expected annual

4-38  expenditures for claims.

4-39  The Administrator shall adopt regulations that establish the formula

4-40  for the assessment and for the administration of payment, and any

4-41  penalties that the Administrator determines are necessary to carry

4-42  out the provisions of this subsection. The formula may use actual

4-43  expenditures for claims. As used in this subsection, the term “group

4-44  of insurers” includes the group of employers who provide accident

4-45  benefits for injured employees pursuant to NRS 616C.265.

5-1  3.  Federal grants may partially defray the costs of the Division.

5-2  4.  Assessments made against insurers by the Division after the

5-3  adoption of regulations must be used to defray all costs and

5-4  expenses of administering the program of workers’ compensation,

5-5  including the payment of:

5-6  (a) All salaries and other expenses in administering the Division,

5-7  including the costs of the office and staff of the Administrator.

5-8  (b) All salaries and other expenses of administering NRS

5-9  616A.435 to 616A.460, inclusive, the offices of the Hearings

5-10  Division of the Department of Administration and the programs of

5-11  self-insurance and review of premium rates by the Commissioner of

5-12  Insurance.

5-13      (c) The salary and other expenses of a full-time employee of the

5-14  Legislative Counsel Bureau whose principal duties are limited to

5-15  conducting research and reviewing and evaluating data related to

5-16  industrial insurance.

5-17      (d) All salaries and other expenses of the Fraud Control Unit for

5-18  Industrial Insurance established pursuant to NRS 228.420.

5-19      (e) Claims against uninsured employers arising from compliance

5-20  with NRS 616C.220 and 617.401.

5-21      (f) That portion of the salaries and other expenses of the Office

5-22  for Consumer Health Assistance established pursuant to NRS

5-23  223.550 that is related to providing assistance to consumers and

5-24  injured employees concerning workers’ compensation.

5-25      5.  If the Division refunds any part of an assessment, the

5-26  Division shall include in that refund any interest earned by the

5-27  Division from the refunded part of the assessment.

5-28      Sec. 7.  NRS 616A.425 is hereby amended to read as follows:

5-29      616A.425  1.  There is hereby established in the State Treasury

5-30  the Fund for Workers’ Compensation and Safety as an enterprise

5-31  fund. All money received from assessments levied on insurers and

5-32  employers by the Administrator pursuant to NRS 232.680 must be

5-33  deposited in this Fund.

5-34      2.  All assessments, penalties, bonds, securities and all other

5-35  properties received, collected or acquired by the Division for

5-36  functions supported in whole or in part from the Fund must be

5-37  delivered to the custody of the State Treasurer for deposit to the

5-38  credit of the Fund.

5-39      3.  All money and securities in the Fund must be used to defray

5-40  all costs and expenses of administering the program of workmen’s

5-41  compensation, including the payment of:

5-42      (a) All salaries and other expenses in administering the Division

5-43  of Industrial Relations, including the costs of the office and staff of

5-44  the Administrator.

6-1  (b) All salaries and other expenses of administering NRS

6-2  616A.435 to 616A.460, inclusive, the offices of the Hearings

6-3  Division of the Department of Administration and the programs of

6-4  self-insurance and review of premium rates by the Commissioner.

6-5  (c) The salary and other expenses of a full-time employee of the

6-6  Legislative Counsel Bureau whose principal duties are limited to

6-7  conducting research and reviewing and evaluating data related to

6-8  industrial insurance.

6-9  (d) All salaries and other expenses of the Fraud Control Unit for

6-10  Industrial Insurance established pursuant to NRS 228.420.

6-11      (e) Claims against uninsured employers arising from compliance

6-12  with NRS 616C.220 and 617.401.

6-13      (f) That portion of the salaries and other expenses of the Office

6-14  for Consumer Health Assistance established pursuant to NRS

6-15  223.550 that is related to providing assistance to consumers and

6-16  injured employees concerning workers’ compensation.

6-17      4.  The State Treasurer may disburse money from the Fund only

6-18  upon written order of the Controller.

6-19      5.  The State Treasurer shall invest money of the Fund in the

6-20  same manner and in the same securities in which he is authorized to

6-21  invest state general funds which are in his custody. Income realized

6-22  from the investment of the assets of the Fund must be credited to the

6-23  Fund.

6-24      6.  The Commissioner shall assign an actuary to review the

6-25  establishment of assessment rates. The rates must be filed with the

6-26  Commissioner 30 days before their effective date. Any insurer or

6-27  employer who wishes to appeal the rate so filed must do so pursuant

6-28  to NRS 679B.310.

6-29      7.  If the Division refunds any part of an assessment, the

6-30  Division shall include in that refund any interest earned by the

6-31  Division from the refunded part of the assessment.

6-32      Sec. 8.  NRS 616C.330 is hereby amended to read as follows:

6-33      616C.330  1.  The hearing officer shall:

6-34      (a) Within 5 days after receiving a request for a hearing, set the

6-35  hearing for a date and time within 30 days after his receipt of the

6-36  request [;] and at a place in Reno, Nevada, or Las Vegas, Nevada,

6-37  or any other place of convenience to the parties, as determined by

6-38  the hearing officer;

6-39      (b) Give notice by mail or by personal service to all interested

6-40  parties to the hearing at least 15 days before the date and time

6-41  scheduled; and

6-42      (c) Conduct hearings expeditiously and informally.

6-43      2.  The notice must include a statement that the injured

6-44  employee may be represented by a private attorney or seek

7-1  assistance and advice from the Nevada Attorney for Injured

7-2  Workers.

7-3  3.  If necessary to resolve a medical question concerning an

7-4  injured employee’s condition or to determine the necessity of

7-5  treatment for which authorization for payment has been denied, the

7-6  hearing officer may refer the employee to a physician or

7-7  chiropractor of his choice who has demonstrated special competence

7-8  to treat the particular medical condition of the employee. If the

7-9  medical question concerns the rating of a permanent disability, the

7-10  hearing officer may refer the employee to a rating physician or

7-11  chiropractor. The rating physician or chiropractor must be selected

7-12  in rotation from the list of qualified physicians and chiropractors

7-13  maintained by the Administrator pursuant to subsection 2 of NRS

7-14  616C.490, unless the insurer and injured employee otherwise agree

7-15  to a rating physician or chiropractor. The insurer shall pay the costs

7-16  of any medical examination requested by the hearing officer.

7-17      4.  If an injured employee has requested payment for the cost of

7-18  obtaining a second determination of his percentage of disability

7-19  pursuant to NRS 616C.100, the hearing officer shall decide whether

7-20  the determination of the higher percentage of disability made

7-21  pursuant to NRS 616C.100 is appropriate and, if so, may order the

7-22  insurer to pay to the employee an amount equal to the maximum

7-23  allowable fee established by the Administrator pursuant to NRS

7-24  616C.260 for the type of service performed, or the usual fee of that

7-25  physician or chiropractor for such service, whichever is less.

7-26      5.  The hearing officer shall order an insurer, organization for

7-27  managed care or employer who provides accident benefits for

7-28  injured employees pursuant to NRS 616C.265 to pay the charges of

7-29  a provider of health care if the conditions of NRS 616C.138 are

7-30  satisfied.

7-31      6.  The hearing officer may allow or forbid the presence of a

7-32  court reporter and the use of a tape recorder in a hearing.

7-33      7.  The hearing officer shall render his decision within 15 days

7-34  after:

7-35      (a) The hearing; or

7-36      (b) He receives a copy of the report from the medical

7-37  examination he requested.

7-38      8.  The hearing officer shall render his decision in the most

7-39  efficient format developed by the Chief of the Hearings Division of

7-40  the Department of Administration.

7-41      9.  The hearing officer shall give notice of his decision to each

7-42  party by mail. He shall include with the notice of his decision the

7-43  necessary forms for appealing from the decision.

7-44      10.  Except as otherwise provided in NRS 616C.380, the

7-45  decision of the hearing officer is not stayed if an appeal from that

8-1  decision is taken unless an application for a stay is submitted by a

8-2  party. If such an application is submitted, the decision is

8-3  automatically stayed until a determination is made on the

8-4  application. A determination on the application must be made within

8-5  30 days after the filing of the application. If, after reviewing the

8-6  application, a stay is not granted by the hearing officer or an appeals

8-7  officer, the decision must be complied with within 10 days after the

8-8  refusal to grant a stay.

8-9  Sec. 9.  NRS 616C.345 is hereby amended to read as follows:

8-10      616C.345  1.  Any party aggrieved by a decision of the

8-11  hearing officer relating to a claim for compensation may appeal

8-12  from the decision by filing a notice of appeal with an appeals officer

8-13  within 30 days after the date of the decision.

8-14      2.  If a dispute is required to be submitted to a procedure for

8-15  resolving complaints pursuant to NRS 616C.305 and:

8-16      (a) A final determination was rendered pursuant to that

8-17  procedure; or

8-18      (b) The dispute was not resolved pursuant to that procedure

8-19  within 14 days after it was submitted,

8-20  any party to the dispute may file a notice of appeal within 70 days

8-21  after the date on which the final determination was mailed to the

8-22  employee, or his dependent, or the unanswered request for

8-23  resolution was submitted. Failure to render a written determination

8-24  within 30 days after receipt of such a request shall be deemed by the

8-25  appeals officer to be a denial of the request.

8-26      3.  Except as otherwise provided in NRS 616C.380, the filing of

8-27  a notice of appeal does not automatically stay the enforcement of the

8-28  decision of a hearing officer or a determination rendered pursuant to

8-29  NRS 616C.305. The appeals officer may order a stay, when

8-30  appropriate, upon the application of a party. If such an application is

8-31  submitted, the decision is automatically stayed until a determination

8-32  is made concerning the application. A determination on the

8-33  application must be made within 30 days after the filing of the

8-34  application. If a stay is not granted by the officer after reviewing

8-35  the application, the decision must be complied with within 10 days

8-36  after the date of the refusal to grant a stay.

8-37      4.  Except as otherwise provided in [this subsection,]

8-38  subsection 5, the appeals officer shall, within 10 days after

8-39  receiving a notice of appeal pursuant to this section or a contested

8-40  claim pursuant to subsection 5 of NRS 616C.315 [, schedule] :

8-41      (a) Schedule a hearing on the merits of the appeal or contested

8-42  claim for a date and time within 90 days after his receipt of the

8-43  notice and at a place in Reno, Nevada, or Las Vegas, Nevada, or

8-44  any other place of convenience to the parties, as determined by the

8-45  appeals officer; and [give]

9-1  (b) Give notice by mail or by personal service to all parties to

9-2  the matter and their attorneys or agents at least 30 days before the

9-3  date and time scheduled.

9-4  5.  A request to schedule the hearing for a date and time which

9-5  is:

9-6  (a) Within 60 days after the receipt of the notice of appeal or

9-7  contested claim; or

9-8  (b) More than 90 days after the receipt of the notice or

9-9  claim,

9-10  may be submitted to the appeals officer only if all parties to the

9-11  appeal or contested claim agree to the request.

9-12      [5.] 6. An appeal or contested claim may be continued upon

9-13  written stipulation of all parties, or upon good cause shown.

9-14      [6.] 7. Failure to file a notice of appeal within the period

9-15  specified in subsection 1 or 2 may be excused if the party aggrieved

9-16  shows by a preponderance of the evidence that he did not receive

9-17  the notice of the determination and the forms necessary to appeal the

9-18  determination. The claimant, employer or insurer shall notify the

9-19  hearing officer of a change of address.

9-20      Sec. 10.  1.  The Commissioner of Insurance shall conduct a

9-21  study to review whether the State of Nevada should enact, in the

9-22  interest of the public:

9-23      (a) The Defined Limits Version of the Investments of Insurers

9-24  Model Act adopted by the National Association of Insurance

9-25  Commissioners;

9-26      (b) The Defined Standards Version of the Investments of

9-27  Insurers Model Act adopted by the National Association of

9-28  Insurance Commissioners; or

9-29      (c) Other legislation regulating the investments of insurers.

9-30      2.  The Commissioner shall seek to obtain all relevant

9-31  information from public and private sources as part of this study.

9-32  Any such information obtained by the Commissioner may only be

9-33  used for the purposes of conducting this study.

9-34      3.  The Commissioner shall complete this study and submit a

9-35  copy of his findings and recommendations on or before January 1,

9-36  2005, to the Director of the Legislative Counsel Bureau for

9-37  distribution to the 73rd Session of the Nevada Legislature.

 

9-38  H