Exempt

                                                   (Reprinted with amendments adopted on June 2, 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; restricting the use by an insurer of information included in the consumer credit report of an applicant or policyholder as a basis for making certain determinations and taking certain actions regarding policies of insurance, and providing for related procedures, duties, restrictions and exceptions; 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 hearing 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; requiring the Commissioner to prepare and submit to the Governor and the Legislature a report concerning certain matters relating to the use of credit information in making decisions related to insurance; 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. (Deleted by amendment.)

2-1  Sec. 1.5.  Chapter 686A of NRS is hereby amended by adding

2-2  thereto the provisions set forth as sections 2 to 15, inclusive, of this

2-3  act.

2-4  Sec. 2.  As used in sections 2 to 15, inclusive, of this act,

2-5  unless the context otherwise requires, the words and terms defined

2-6  in sections 3 to 8, inclusive, of this act have the meanings ascribed

2-7  to them in those sections.

2-8  Sec. 3.  “Adverse action” means a denial or cancellation of,

2-9  an increase in any charge for, or a reduction or other adverse or

2-10  unfavorable change in the terms of coverage or amount of, any

2-11  insurance, existing or applied for, in connection with any policy.

2-12      Sec. 4.  “Affiliate” means any company that controls, is

2-13  controlled by, or is under common control with another company.

2-14      Sec. 5.  “Consumer credit report” means any written, oral or

2-15  other communication of information by a consumer reporting

2-16  agency bearing on the credit worthiness, credit standing or credit

2-17  capacity of an applicant or policyholder, and which is used or

2-18  expected to be used or collected in whole or in part for the purpose

2-19  of serving as a factor to determine:

2-20      1.  Whether to issue, cancel or renew a policy; or

2-21      2.  The amount of the premium for a policy.

2-22      Sec. 6.  “Consumer reporting agency” means any person

2-23  which, for monetary fees, dues, or on a cooperative nonprofit

2-24  basis, regularly engages in whole or in part in the practice of

2-25  assembling or evaluating consumer credit information or other

2-26  information on consumers for the purpose of furnishing consumer

2-27  credit reports to third parties.

2-28      Sec. 7.  “Credit information” means any information that is

2-29  related to credit and derived from a consumer credit report, found

2-30  on a consumer credit report or provided on an application for a

2-31  policy. The term does not include information that is not related to

2-32  credit, regardless of whether it is contained in a consumer credit

2-33  report or in an application for a policy, or is used to calculate an

2-34  insurance score.

2-35      Sec. 8.  “Insurance score” means a number or rating that is

2-36  derived from an algorithm, computer application, model or other

2-37  process that is based in whole or in part on credit information for

2-38  the purposes of predicting the future losses or exposure with

2-39  regard to an applicant or policyholder.

2-40      Sec. 9.  The provisions of sections 2 to 15, inclusive, of this

2-41  act do not apply to a contract of surety insurance issued pursuant

2-42  to chapter 691B of NRS or any commercial or business policy.

2-43      Sec. 10.  An insurer that uses information from a consumer

2-44  credit report shall not:

3-1  1.  Use an insurance score that is calculated using income,

3-2  gender, address, zip code, ethnic group, religion, marital status or

3-3  nationality of the consumer as a factor, or would otherwise lead to

3-4  unfair or invidious discrimination.

3-5  2.  Deny, cancel or fail to renew a policy on the basis of credit

3-6  information unless the insurer also considers other applicable

3-7  underwriting factors that are independent of credit information

3-8  and not expressly prohibited by this section.

3-9  3.  Base renewal rates for a policy upon credit information

3-10  unless the insurer also considers other applicable factors

3-11  independent of credit information.

3-12      4.  Take an adverse action against an applicant or

3-13  policyholder based on the applicant or policyholder not having a

3-14  credit card account unless the insurer also considers other

3-15  applicable factors independent of credit information.

3-16      5.  Consider an absence of credit information or an inability

3-17  to calculate an insurance score in underwriting or rating a policy

3-18  unless the insurer does any one of the following:

3-19      (a) Treats the applicant or policyholder as otherwise approved

3-20  by the Commissioner, after the insurer presents to the

3-21  Commissioner information indicating that such an absence or

3-22  inability relates to the risk for the insurer.

3-23      (b) Treats the applicant or policyholder as if the applicant or

3-24  policyholder had neutral credit information, as defined by the

3-25  insurer.

3-26      (c) Excludes the use of credit information as a factor, and uses

3-27  only underwriting criteria other than credit information.

3-28      6.  Take an adverse action against an applicant or

3-29  policyholder based on credit information, unless an insurer

3-30  obtains and uses a consumer credit report issued or an insurance

3-31  score calculated within 90 days from the date the policy is first

3-32  written or renewal is issued.

3-33      7.  Except as otherwise provided in this subsection, use credit

3-34  information regarding a policyholder without obtaining an

3-35  updated consumer credit report regarding the policyholder and

3-36  recalculating the insurance score at least once every 36 months.

3-37  At the time of the annual renewal of a policyholder’s policy, the

3-38  insurer shall, upon the request of the policyholder or the

3-39  policyholder’s agent, reunderwrite and rerate the policy based

3-40  upon a current consumer credit report or insurance score. An

3-41  insurer need not, at the request of a policyholder or the

3-42  policyholder’s agent, recalculate the insurance score of or obtain

3-43  an updated consumer credit report of the policyholder more

3-44  frequently than once in any 12-month period. An insurer may, at

3-45  its discretion, obtain an updated consumer credit report regarding

4-1  a policyholder more frequently than once every 36 months, if to do

4-2  so is consistent with the underwriting guidelines of the insurer. An

4-3  insurer does not need to obtain an updated consumer credit report

4-4  for a policyholder if any one of the following applies:

4-5  (a) The insurer is treating the policyholder as otherwise

4-6  approved by the Commissioner.

4-7  (b) The policyholder is in the most favorably-priced tier of the

4-8  insurer and all affiliates of the insurer. With respect to such a

4-9  policyholder, the insurer may elect to obtain an updated consumer

4-10  credit report if to do so is consistent with the underwriting

4-11  guidelines of the insurer.

4-12      (c) Credit information was not used for underwriting or rating

4-13  the policyholder when the policy was initially written. The fact that

4-14  credit information was not used initially does not preclude an

4-15  insurer from using such information subsequently when

4-16  underwriting or rating such a policyholder upon renewal, if to do

4-17  so is consistent with the underwriting guidelines of the insurer.

4-18      (d) The insurer reevaluates the policyholder at least once every

4-19  36 months based upon underwriting or rating factors other than

4-20  credit information.

4-21      8.  Use the following as a negative factor in any insurance

4-22  scoring methodology or in reviewing credit information for the

4-23  purpose of underwriting or rating a policy:

4-24      (a) Credit inquiries not initiated by the applicant or

4-25  policyholder, or inquiries requested by the applicant or

4-26  policyholder for his or her own credit information.

4-27      (b) Inquiries relating to insurance coverage, if so identified on

4-28  the consumer credit report.

4-29      (c) Collection accounts relating to medical treatment, if so

4-30  identified on the consumer credit report.

4-31      (d) Multiple lender inquiries, if identified on the consumer

4-32  credit report as being related to home loans or mortgages and

4-33  made within 30 days of one another, unless only one inquiry is

4-34  considered.

4-35      (e) Multiple lender inquiries, if identified on the consumer

4-36  credit report as being related to a loan for an automobile and

4-37  made within 30 days of one another, unless only one inquiry is

4-38  considered.

4-39      Sec. 11.  If it is determined pursuant to the dispute resolution

4-40  process set forth in section 611(a) of the federal Fair Credit

4-41  Reporting Act, 15 U.S.C. § 1681i(a), that the credit information of

4-42  a policyholder was incorrect or incomplete and if the insurer

4-43  receives notice of such determination from either the consumer

4-44  reporting agency or from the policyholder, the insurer shall

4-45  reunderwrite and rerate the policyholder within 30 days of

5-1  receiving the notice. After reunderwriting or rerating the insured,

5-2  the insurer shall make any adjustments necessary, consistent with

5-3  its underwriting and rating guidelines. If an insurer determines

5-4  that the policyholder has overpaid a premium, the insurer shall

5-5  refund to the policyholder the amount of overpayment calculated

5-6  back to the shorter of either the last 12 months of coverage or the

5-7  actual period of the policy.

5-8  Sec. 12. 1.  If an insurer uses credit information in

5-9  underwriting or rating an applicant, the insurer or its agent shall

5-10  disclose, either on the application for the policy or at the time the

5-11  application is taken, that the insurer may obtain credit

5-12  information in connection with the application. The disclosure

5-13  must be written or provided to an applicant in the same medium as

5-14  the application. The insurer need not provide the disclosure

5-15  required pursuant to this section to a policyholder upon renewal of

5-16  a policy if the policyholder was previously provided the disclosure

5-17  in connection with the policy.

5-18      2.  An insurer may comply with the requirements of this

5-19  section by providing the following statement:

 

5-20  In connection with this application for insurance, we may

5-21  review your credit report or obtain or use a credit-based

5-22  insurance score based on the information contained in that

5-23  credit report. We may use a third party in connection with

5-24  the development of your insurance score.

5-25      Sec. 13. If an insurer takes an adverse action based upon

5-26  credit information, the insurer shall:

5-27      1.  Provide notice to the applicant or policyholder that an

5-28  adverse action has been taken, in accordance with the

5-29  requirements of section 615(a) of the federal Fair Credit

5-30  Reporting Act, 15 U.S.C. § 1681m(a).

5-31      2.  Provide notice to the applicant or policyholder explaining

5-32  the reasons for the adverse action. The reasons must be provided

5-33  in sufficiently clear and specific language so that a person can

5-34  identify the basis for the insurer’s decision to take the adverse

5-35  action. The notice must include a description of not more than

5-36  four factors that were the primary influences of the adverse

5-37  action. The use of generalized terms such as “poor credit history,”

5-38  “poor credit rating” or “poor insurance score” does not meet the

5-39  requirements of this subsection. Standardized explanations

5-40  provided by consumer reporting agencies are deemed to comply

5-41  with this section.

5-42      Sec. 14.  1.  An insurer shall indemnify, defend and hold

5-43  harmless an agent of the insurer from and against all liability, fees

5-44  and costs arising out of or relating to the actions, errors or

6-1  omissions of the agent with regard to obtaining or using credit

6-2  information or insurance scores for the insurer, if the agent

6-3  follows the instructions of or procedures established by the insurer

6-4  and complies with any applicable law or regulation.

6-5  2.  This section does not provide, expand, limit or prohibit any

6-6  cause of action an applicant or policyholder may have against an

6-7  agent of an insurer.

6-8  Sec. 15. 1.  A consumer reporting agency shall not provide

6-9  or sell data or lists that include any information that in whole or

6-10  in part was submitted in conjunction with:

6-11      (a) An inquiry by or for an insurer about the credit

6-12  information of an applicant or policyholder; or

6-13      (b) A request for a credit report or insurance score.

6-14      2.  The information described in subsection 1 includes,

6-15  without limitation:

6-16      (a) The expiration date of a policy or any other information

6-17  that may identify time periods during which a policy of an

6-18  applicant or policyholder may expire; and

6-19      (b) The terms and conditions of the coverage provided by a

6-20  policy of an applicant or policyholder.

6-21      3.  The restriction set forth in subsection 1 does not apply to

6-22  data or lists the consumer reporting agency supplies to the insurer,

6-23  or an agent or affiliate of the insurer, from whom the information

6-24  was received.

6-25      4.  The provisions of this section do not restrict any insurer

6-26  from being able to obtain a report regarding a motor vehicle or a

6-27  report of a history of claims.

6-28      Sec. 16.  NRS 686C.140 is hereby amended to read as follows:

6-29      686C.140  1.  The Board of Directors of the Association

6-30  consists of not less than five nor more than nine members, serving

6-31  terms as established in the plan of operation.

6-32      2.  The members of the Board who represent insurers must be

6-33  selected by member insurers subject to the approval of the

6-34  Commissioner. If practicable, one of the members of the Board

6-35  must be an officer of a domestic insurer.

6-36      3.  Two public representatives must be appointed to the Board

6-37  by the Commissioner. A public representative may not be an officer,

6-38  director or employee of an insurer or engaged in the business of

6-39  insurance.

6-40      4.  Vacancies on the Board must be filled for the remaining

6-41  period of the term by majority vote of the members of the Board,

6-42  subject to the approval of the Commissioner, for members who

6-43  represent insurers, and by the Commissioner for public

6-44  representatives.

7-1  5.  To select the initial Board of Directors, and initially organize

7-2  the Association, the Commissioner shall give notice to all member

7-3  insurers of the time and place of the organizational meeting. In

7-4  determining voting rights at the organizational meeting, each

7-5  member insurer is entitled to one vote in person or by proxy. If the

7-6  Board of Directors is not selected within 60 days after notice of the

7-7  organizational meeting, the Commissioner may appoint the initial

7-8  members to represent insurers in addition to the public

7-9  representatives.

7-10      [2.] 6.  In approving selections or in appointing members to the

7-11  Board, the Commissioner shall consider, among other things,

7-12  whether all member insurers are fairly represented.

7-13      [3.] 7.  Members of the Board may be reimbursed from the

7-14  assets of the Association for expenses incurred by them as members

7-15  of the Board of Directors but members of the Board may not

7-16  otherwise be compensated by the Association for their services.

7-17      Sec. 17.  NRS 687A.050 is hereby amended to read as follows:

7-18      687A.050  1.  The Board of Directors of the Association shall

7-19  consist of not fewer than five nor more than nine persons. The

7-20  members of the Board shall be appointed by the Commissioner and

7-21  shall serve at his discretion. Vacancies on the Board shall be filled

7-22  in the same manner as initial appointments.

7-23      2.  A majority of the members appointed shall be the designated

7-24  representatives of member insurers. If practicable, one of the

7-25  members appointed as a designated representative of the member

7-26  insurers must be an officer of a domestic insurer. The

7-27  Commissioner shall consider among other things whether all

7-28  member insurers are fairly represented.

7-29      3.  Members of the Board may be reimbursed from the assets of

7-30  the Association for expenses incurred by them as members of the

7-31  Board of Directors.

7-32      Sec. 18.  Chapter 687B of NRS is hereby amended by adding

7-33  thereto a new section to read as follows:

7-34      Unless otherwise provided by a specific statue, if a signature is

7-35  required of any person, the person may provide as the signature of

7-36  the person:

7-37      1.  An original signature;

7-38      2.  A facsimile signature; or

7-39      3.  An electronic signature pursuant to the provisions of

7-40  chapter 719 of NRS.

7-41      Sec. 19.  NRS 687B.160 is hereby amended to read as follows:

7-42      687B.160  1.  Every insurance policy must be executed in the

7-43  name of and on behalf of the insurer by its officer, attorney in fact,

7-44  employee or representative duly authorized by the insurer.

8-1  2.  [A facsimile signature of any] Any such executing individual

8-2  may [be used] use, in lieu of an original signature[.] :

8-3  (a) A facsimile signature; or

8-4  (b) An electronic signature pursuant to the provisions of

8-5  chapter 719 of NRS.

8-6  3.  An insurance contract issued before, on or after January 1,

8-7  1972, which is otherwise valid is not rendered invalid by reason of

8-8  the apparent execution thereof on behalf of the insurer by the

8-9  imprinted facsimile signature of an individual not authorized so to

8-10  execute as of the date of the policy.

8-11      Sec. 20.  NRS 232.680 is hereby amended to read as follows:

8-12      232.680  1.  The cost of carrying out the provisions of NRS

8-13  232.550 to 232.700, inclusive, and of supporting the Division, a

8-14  full-time employee of the Legislative Counsel Bureau and the Fraud

8-15  Control Unit for Industrial Insurance established pursuant to NRS

8-16  228.420, and that portion of the cost of the Office for Consumer

8-17  Health Assistance established pursuant to NRS 223.550 that is

8-18  related to providing assistance to consumers and injured employees

8-19  concerning workers’ compensation, must be paid from assessments

8-20  payable by each insurer, including each employer who provides

8-21  accident benefits for injured employees pursuant to NRS 616C.265.

8-22      2.  The Administrator shall assess each insurer, including each

8-23  employer who provides accident benefits for injured employees

8-24  pursuant to NRS 616C.265. To establish the amount of the

8-25  assessment, the Administrator shall determine the amount of money

8-26  necessary for each of the expenses set forth in subsections 1 and 4 of

8-27  this section and subsection 3 of NRS 616A.425 and determine the

8-28  amount that is payable by the private carriers, the self-insured

8-29  employers, the associations of self-insured public or private

8-30  employers and the employers who provide accident benefits

8-31  pursuant to NRS 616C.265 for each of the programs. For the

8-32  expenses from which more than one group of insurers receives

8-33  benefit, the Administrator shall allocate a portion of the amount

8-34  necessary for that expense to be payable by each of the relevant

8-35  group of insurers, based upon the expected annual expenditures for

8-36  claims of each group of insurers. After allocating the amounts

8-37  payable among each group of insurers for all the expenses from

8-38  which each group receives benefit, the Administrator shall apply an

8-39  assessment rate to the:

8-40      (a) Private carriers that reflects the relative hazard of the

8-41  employments covered by the private carriers, results in an equitable

8-42  distribution of costs among the private carriers and is based upon

8-43  expected annual premiums to be received;

9-1  (b) Self-insured employers that results in an equitable

9-2  distribution of costs among the self-insured employers and is based

9-3  upon expected annual expenditures for claims;

9-4  (c) Associations of self-insured public or private employers that

9-5  results in an equitable distribution of costs among the associations

9-6  of self-insured public or private employers and is based upon

9-7  expected annual expenditures for claims; and

9-8  (d) Employers who provide accident benefits pursuant to NRS

9-9  616C.265 that reflect the relative hazard of the employments

9-10  covered by those employers, results in an equitable distribution of

9-11  costs among the employers and is based upon expected annual

9-12  expenditures for claims.

9-13  The Administrator shall adopt regulations that establish the formula

9-14  for the assessment and for the administration of payment, and any

9-15  penalties that the Administrator determines are necessary to carry

9-16  out the provisions of this subsection. The formula may use actual

9-17  expenditures for claims. As used in this subsection, the term “group

9-18  of insurers” includes the group of employers who provide accident

9-19  benefits for injured employees pursuant to NRS 616C.265.

9-20      3.  Federal grants may partially defray the costs of the Division.

9-21      4.  Assessments made against insurers by the Division after the

9-22  adoption of regulations must be used to defray all costs and

9-23  expenses of administering the program of workers’ compensation,

9-24  including the payment of:

9-25      (a) All salaries and other expenses in administering the Division,

9-26  including the costs of the office and staff of the Administrator.

9-27      (b) All salaries and other expenses of administering NRS

9-28  616A.435 to 616A.460, inclusive, the offices of the Hearings

9-29  Division of the Department of Administration and the programs of

9-30  self-insurance and review of premium rates by the Commissioner of

9-31  Insurance.

9-32      (c) The salary and other expenses of a full-time employee of the

9-33  Legislative Counsel Bureau whose principal duties are limited to

9-34  conducting research and reviewing and evaluating data related to

9-35  industrial insurance.

9-36      (d) All salaries and other expenses of the Fraud Control Unit for

9-37  Industrial Insurance established pursuant to NRS 228.420.

9-38      (e) Claims against uninsured employers arising from compliance

9-39  with NRS 616C.220 and 617.401.

9-40      (f) That portion of the salaries and other expenses of the Office

9-41  for Consumer Health Assistance established pursuant to NRS

9-42  223.550 that is related to providing assistance to consumers and

9-43  injured employees concerning workers’ compensation.

10-1      5.  If the Division refunds any part of an assessment, the

10-2  Division shall include in that refund any interest earned by the

10-3  Division from the refunded part of the assessment.

10-4      Sec. 21.  NRS 616A.425 is hereby amended to read as follows:

10-5      616A.425  1.  There is hereby established in the State Treasury

10-6  the Fund for Workers’ Compensation and Safety as an enterprise

10-7  fund. All money received from assessments levied on insurers and

10-8  employers by the Administrator pursuant to NRS 232.680 must be

10-9  deposited in this Fund.

10-10     2.  All assessments, penalties, bonds, securities and all other

10-11  properties received, collected or acquired by the Division for

10-12  functions supported in whole or in part from the Fund must be

10-13  delivered to the custody of the State Treasurer for deposit to the

10-14  credit of the Fund.

10-15     3.  All money and securities in the Fund must be used to defray

10-16  all costs and expenses of administering the program of workmen’s

10-17  compensation, including the payment of:

10-18     (a) All salaries and other expenses in administering the Division

10-19  of Industrial Relations, including the costs of the office and staff of

10-20  the Administrator.

10-21     (b) All salaries and other expenses of administering NRS

10-22  616A.435 to 616A.460, inclusive, the offices of the Hearings

10-23  Division of the Department of Administration and the programs of

10-24  self-insurance and review of premium rates by the Commissioner.

10-25     (c) The salary and other expenses of a full-time employee of the

10-26  Legislative Counsel Bureau whose principal duties are limited to

10-27  conducting research and reviewing and evaluating data related to

10-28  industrial insurance.

10-29     (d) All salaries and other expenses of the Fraud Control Unit for

10-30  Industrial Insurance established pursuant to NRS 228.420.

10-31     (e) Claims against uninsured employers arising from compliance

10-32  with NRS 616C.220 and 617.401.

10-33     (f) That portion of the salaries and other expenses of the Office

10-34  for Consumer Health Assistance established pursuant to NRS

10-35  223.550 that is related to providing assistance to consumers and

10-36  injured employees concerning workers’ compensation.

10-37     4.  The State Treasurer may disburse money from the Fund only

10-38  upon written order of the Controller.

10-39     5.  The State Treasurer shall invest money of the Fund in the

10-40  same manner and in the same securities in which he is authorized to

10-41  invest state general funds which are in his custody. Income realized

10-42  from the investment of the assets of the Fund must be credited to the

10-43  Fund.

10-44     6.  The Commissioner shall assign an actuary to review the

10-45  establishment of assessment rates. The rates must be filed with the

11-1  Commissioner 30 days before their effective date. Any insurer or

11-2  employer who wishes to appeal the rate so filed must do so pursuant

11-3  to NRS 679B.310.

11-4      7.  If the Division refunds any part of an assessment, the

11-5  Division shall include in that refund any interest earned by the

11-6  Division from the refunded part of the assessment.

11-7      Sec. 22.  NRS 616C.330 is hereby amended to read as follows:

11-8      616C.330  1.  The hearing officer shall:

11-9      (a) Within 5 days after receiving a request for a hearing, set the

11-10  hearing for a date and time within 30 days after his receipt of the

11-11  request [.] at a place in Carson City, Nevada, or Las Vegas,

11-12  Nevada, or upon agreement of one or more of the parties to pay all

11-13  additional costs directly related to an alternative location, at any

11-14  other place of convenience to the parties, at the discretion of the

11-15  hearing officer;

11-16     (b) Give notice by mail or by personal service to all interested

11-17  parties to the hearing at least 15 days before the date and time

11-18  scheduled; and

11-19     (c) Conduct hearings expeditiously and informally.

11-20     2.  The notice must include a statement that the injured

11-21  employee may be represented by a private attorney or seek

11-22  assistance and advice from the Nevada Attorney for Injured

11-23  Workers.

11-24     3.  If necessary to resolve a medical question concerning an

11-25  injured employee’s condition or to determine the necessity of

11-26  treatment for which authorization for payment has been denied, the

11-27  hearing officer may refer the employee to a physician or

11-28  chiropractor of his choice who has demonstrated special competence

11-29  to treat the particular medical condition of the employee. If the

11-30  medical question concerns the rating of a permanent disability, the

11-31  hearing officer may refer the employee to a rating physician or

11-32  chiropractor. The rating physician or chiropractor must be selected

11-33  in rotation from the list of qualified physicians and chiropractors

11-34  maintained by the Administrator pursuant to subsection 2 of NRS

11-35  616C.490, unless the insurer and injured employee otherwise agree

11-36  to a rating physician or chiropractor. The insurer shall pay the costs

11-37  of any medical examination requested by the hearing officer.

11-38     4.  If an injured employee has requested payment for the cost of

11-39  obtaining a second determination of his percentage of disability

11-40  pursuant to NRS 616C.100, the hearing officer shall decide whether

11-41  the determination of the higher percentage of disability made

11-42  pursuant to NRS 616C.100 is appropriate and, if so, may order the

11-43  insurer to pay to the employee an amount equal to the maximum

11-44  allowable fee established by the Administrator pursuant to NRS

12-1  616C.260 for the type of service performed, or the usual fee of that

12-2  physician or chiropractor for such service, whichever is less.

12-3      5.  The hearing officer shall order an insurer, organization for

12-4  managed care or employer who provides accident benefits for

12-5  injured employees pursuant to NRS 616C.265 to pay the charges of

12-6  a provider of health care if the conditions of NRS 616C.138 are

12-7  satisfied.

12-8      6.  The hearing officer may allow or forbid the presence of a

12-9  court reporter and the use of a tape recorder in a hearing.

12-10     7.  The hearing officer shall render his decision within 15 days

12-11  after:

12-12     (a) The hearing; or

12-13     (b) He receives a copy of the report from the medical

12-14  examination he requested.

12-15     8.  The hearing officer shall render his decision in the most

12-16  efficient format developed by the Chief of the Hearings Division of

12-17  the Department of Administration.

12-18     9.  The hearing officer shall give notice of his decision to each

12-19  party by mail. He shall include with the notice of his decision the

12-20  necessary forms for appealing from the decision.

12-21     10.  Except as otherwise provided in NRS 616C.380, the

12-22  decision of the hearing officer is not stayed if an appeal from that

12-23  decision is taken unless an application for a stay is submitted by a

12-24  party. If such an application is submitted, the decision is

12-25  automatically stayed until a determination is made on the

12-26  application. A determination on the application must be made within

12-27  30 days after the filing of the application. If, after reviewing the

12-28  application, a stay is not granted by the hearing officer or an appeals

12-29  officer, the decision must be complied with within 10 days after the

12-30  refusal to grant a stay.

12-31     Sec. 23.  NRS 616C.345 is hereby amended to read as follows:

12-32     616C.345  1.  Any party aggrieved by a decision of the

12-33  hearing officer relating to a claim for compensation may appeal

12-34  from the decision by filing a notice of appeal with an appeals officer

12-35  within 30 days after the date of the decision.

12-36     2.  If a dispute is required to be submitted to a procedure for

12-37  resolving complaints pursuant to NRS 616C.305 and:

12-38     (a) A final determination was rendered pursuant to that

12-39  procedure; or

12-40     (b) The dispute was not resolved pursuant to that procedure

12-41  within 14 days after it was submitted,

12-42  any party to the dispute may file a notice of appeal within 70 days

12-43  after the date on which the final determination was mailed to the

12-44  employee, or his dependent, or the unanswered request for

12-45  resolution was submitted. Failure to render a written determination

13-1  within 30 days after receipt of such a request shall be deemed by the

13-2  appeals officer to be a denial of the request.

13-3      3.  Except as otherwise provided in NRS 616C.380, the filing of

13-4  a notice of appeal does not automatically stay the enforcement of the

13-5  decision of a hearing officer or a determination rendered pursuant to

13-6  NRS 616C.305. The appeals officer may order a stay, when

13-7  appropriate, upon the application of a party. If such an application is

13-8  submitted, the decision is automatically stayed until a determination

13-9  is made concerning the application. A determination on the

13-10  application must be made within 30 days after the filing of the

13-11  application. If a stay is not granted by the officer after reviewing

13-12  the application, the decision must be complied with within 10 days

13-13  after the date of the refusal to grant a stay.

13-14     4.  Except as otherwise provided in [this subsection,]

13-15  subsection 5, the appeals officer shall, within 10 days after

13-16  receiving a notice of appeal pursuant to this section or a contested

13-17  claim pursuant to subsection 5 of NRS 616C.315 [, schedule] :

13-18     (a) Schedule a hearing on the merits of the appeal or contested

13-19  claim for a date and time within 90 days after his receipt of the

13-20  notice at a place in Carson City, Nevada, or Las Vegas, Nevada, or

13-21  upon agreement of one or more of the parties to pay all additional

13-22  costs directly related to an alternative location, at any other place

13-23  of convenience to the parties, at the discretion of the appeals

13-24  officer; and [give]

13-25     (b) Give notice by mail or by personal service to all parties to

13-26  the matter and their attorneys or agents at least 30 days before the

13-27  date and time scheduled.

13-28     5.  A request to schedule the hearing for a date and time which

13-29  is:

13-30     (a) Within 60 days after the receipt of the notice of appeal or

13-31  contested claim; or

13-32     (b) More than 90 days after the receipt of the notice or

13-33  claim,

13-34  may be submitted to the appeals officer only if all parties to the

13-35  appeal or contested claim agree to the request.

13-36     [5.] 6. An appeal or contested claim may be continued upon

13-37  written stipulation of all parties, or upon good cause shown.

13-38     [6.] 7. Failure to file a notice of appeal within the period

13-39  specified in subsection 1 or 2 may be excused if the party aggrieved

13-40  shows by a preponderance of the evidence that he did not receive

13-41  the notice of the determination and the forms necessary to appeal the

13-42  determination. The claimant, employer or insurer shall notify the

13-43  hearing officer of a change of address.

14-1      Sec. 24.  1.  The Commissioner of Insurance shall conduct a

14-2  study to review whether the State of Nevada should enact, in the

14-3  interest of the public:

14-4      (a) The Defined Limits Version of the Investments of Insurers

14-5  Model Act adopted by the National Association of Insurance

14-6  Commissioners;

14-7      (b) The Defined Standards Version of the Investments of

14-8  Insurers Model Act adopted by the National Association of

14-9  Insurance Commissioners; or

14-10     (c) Other legislation regulating the investments of insurers.

14-11     2.  The Commissioner shall seek to obtain all relevant

14-12  information from public and private sources as part of this study.

14-13  Any such information obtained by the Commissioner may only be

14-14  used for the purposes of conducting this study.

14-15     3.  The Commissioner shall complete this study and submit a

14-16  copy of his findings and recommendations on or before January 1,

14-17  2005, to the Director of the Legislative Counsel Bureau for

14-18  distribution to the 73rd Session of the Nevada Legislature.

14-19     Sec. 25.  1.  On or before December 31, 2004, the

14-20  Commissioner of Insurance shall prepare a report and submit the

14-21  report to the Governor and the Legislature. The report must address:

14-22     (a) The operation of sections 2 to 15, inclusive, of this act;

14-23     (b) The efficacy, necessity and desirability of using credit

14-24  information in making decisions related to insurance;

14-25     (c) The impacts upon the residents of Nevada of the continued

14-26  use of credit information in making decisions related to insurance;

14-27  and

14-28     (d) Any additional consumer protections identified by the

14-29  Commissioner for the consideration of the Legislature.

14-30     2.  As used in this section, “credit information” has the meaning

14-31  ascribed to it in section 7 of this act.

14-32     Sec. 26.  1.  This section and sections 1 and 16 to 25,

14-33  inclusive, of this act become effective on October 1, 2003.

14-34     2.  Sections 1.5 to 15, inclusive, of this act become effective on

14-35  July 1, 2004.

 

14-36  H