USA Statutes : nevada
Title : Title 53 - LABOR AND INDUSTRIAL RELATIONS
Chapter : CHAPTER 616B - INDUSTRIAL INSURANCE: INSURERS; LIABILITY FOR PROVISION OF COVERAGE
1. The Administrator shall cause to be conducted at least every 5
years an audit of all insurers who provide benefits to injured employees
pursuant to chapters 616A to 616D , inclusive, or chapter 617 of NRS. The Administrator shall cause to be
conducted each year on a random basis additional partial audits of any
insurer who has a history of violations of the provisions of chapters
616A to 616D ,
inclusive, or chapter 617 of NRS, or the
regulations adopted pursuant thereto, as determined by the Administrator.
2. The Administrator shall require the use of standard auditing
procedures and shall establish a manual to describe the standard auditing
procedures. The manual must include:
(a) Specific audit objectives;
(b) Standards for documentation;
(c) Policies for supervisory review;
(d) Policies for the training of auditors;
(e) The format for the audit report; and
(f) Procedures for the presentation, distribution and retention of
the audit report.
3. The Commissioner and the Administrator shall establish a
procedure for sharing information between the Division of Insurance of
the Department of Business and Industry and the Division concerning the
qualifications of employers as self-insured employers pursuant to NRS
616B.300 or as an association of
self-insured public or private employers pursuant to NRS 616B.353 .
4. On or before March 1 of each year, the Administrator shall make
a report of each audit to the Legislature, if it is in session, or to the
Interim Finance Committee if the Legislature is not in session.
(Added to NRS by 1991, 2394; A 1993, 700, 1857; 1995, 531; 2003,
1670 )
Each
insurer shall cooperate with the Commissioner in the performance of his
duties pursuant to chapters 616A to 616D
, inclusive, or chapter 617 of NRS. Each private carrier shall provide the
Commissioner with any information, statistics or data in its records
which pertain to any employer who is making an application to become
self-insured or who is self-insured, or who is becoming or who is a
member of an association of self-insured public or private employers.
(Added to NRS by 1979, 1039; A 1981, 1460; 1993, 707; 1995, 2014;
1999, 211 , 1767 )—(Substituted in revision for NRS
616B.194)
1. An insurer shall provide to the Administrator upon written
request only information in its possession which is necessary for the
enforcement of any provision of this chapter or chapter 616A , 616C , 616D or 617 of NRS, or any
regulation or standard adopted pursuant thereto, within 30 days after the
date of the request. The written request must:
(a) Specifically indicate what information is being requested; and
(b) The statute, regulation or standard adopted pursuant thereto
for which the information is needed.
2. Upon the receipt of a written request from an insurer, the
Administrator may extend the time within which information must be
provided if good cause for granting the extension is shown.
(Added to NRS by 1991, 2394)—(Substituted in revision for NRS
616.191)
1. All insurers shall report to the Administrator, annually or at
intervals which the Administrator requires, all accidental injuries,
occupational diseases, dispositions of claims and payments made pursuant
to chapters 616A to 617 , inclusive, of NRS or regulations adopted by the
Division pursuant thereto.
2. Each self-insured employer and association of self-insured
public or private employers shall report its reserves to the
Administrator in the manner prescribed in subsection 1.
(Added to NRS by 1979, 1038; A 1981, 1469; 1993, 712, 1862; 1995,
531, 2022)—(Substituted in revision for NRS 616.337)
1. Except as otherwise provided in this section and in NRS
616B.015 , 616B.021 and 616C.205 , information obtained from any insurer,
employer or employee is confidential and may not be disclosed or be open
to public inspection in any manner which would reveal the person’s
identity.
2. Any claimant or his legal representative is entitled to
information from the records of the insurer, to the extent necessary for
the proper presentation of a claim in any proceeding under chapters 616A
to 616D ,
inclusive, or chapter 617 of NRS.
3. The Division and Administrator are entitled to information from
the records of the insurer which is necessary for the performance of
their duties. The Administrator may, by regulation, prescribe the manner
in which otherwise confidential information may be made available to:
(a) Any agency of this or any other state charged with the
administration or enforcement of laws relating to industrial insurance,
unemployment compensation, public assistance or labor law and industrial
relations;
(b) Any state or local agency for the enforcement of child support;
(c) The Internal Revenue Service of the Department of the Treasury;
(d) The Department of Taxation; and
(e) The State Contractors’ Board in the performance of its duties
to enforce the provisions of chapter 624 of
NRS.
Ê Information obtained in connection with the administration of a program
of industrial insurance may be made available to persons or agencies for
purposes appropriate to the operation of a program of industrial
insurance.
4. Upon written request made by a public officer of a local
government, an insurer shall furnish from its records the name, address
and place of employment of any person listed in its records. The request
must set forth the social security number of the person about whom the
request is made and contain a statement signed by proper authority of the
local government certifying that the request is made to allow the proper
authority to enforce a law to recover a debt or obligation owed to the
local government. The information obtained by the local government is
confidential and may not be used or disclosed for any purpose other than
the collection of a debt or obligation owed to the local government. The
insurer may charge a reasonable fee for the cost of providing the
requested information.
5. To further a current criminal investigation, the chief
executive officer of any law enforcement agency of this State may submit
to the Administrator a written request for the name, address and place of
employment of any person listed in the records of an insurer. The request
must set forth the social security number of the person about whom the
request is made and contain a statement signed by the chief executive
officer certifying that the request is made to further a criminal
investigation currently being conducted by the agency. Upon receipt of a
request, the Administrator shall instruct the insurer to furnish the
information requested. Upon receipt of such an instruction, the insurer
shall furnish the information requested. The insurer may charge a
reasonable fee to cover any related administrative expenses.
6. Upon request by the Department of Taxation, the Administrator
shall provide:
(a) Lists containing the names and addresses of employers; and
(b) Other information concerning employers collected and maintained
by the Administrator or the Division to carry out the purposes of
chapters 616A to 616D , inclusive, or chapter 617 of NRS,
Ê to the Department for its use in verifying returns for the taxes
imposed pursuant to chapters 363A and 363B
of NRS. The Administrator may charge a
reasonable fee to cover any related administrative expenses.
7. Any person who, in violation of this section, discloses
information obtained from files of claimants or policyholders or obtains
a list of claimants or policyholders under chapters 616A to 616D , inclusive,
or chapter 617 of NRS and uses or permits the
use of the list for any political purposes, is guilty of a gross
misdemeanor.
8. All letters, reports or communications of any kind, oral or
written, from the insurer, or any of its agents, representatives or
employees are privileged and must not be the subject matter or basis for
any lawsuit if the letter, report or communication is written, sent,
delivered or prepared pursuant to the requirements of chapters 616A
to 616D ,
inclusive, or chapter 617 of NRS.
9. The provisions of this section do not prohibit the
Administrator or the Division from disclosing any nonproprietary
information relating to an uninsured employer or proof of industrial
insurance.
(Added to NRS by 1989, 1189; A 1991, 2465; 1993, 701, 1858; 1995,
579, 1583, 2131; 1997, 527, 1425; 1999, 208 , 756 , 757 ; 2003, 2303 ; 2003, 20th Special Session, 216 )
1. Except as otherwise provided in subsection 2, the records and
files of the Division concerning self-insured employers and associations
of self-insured public or private employers are confidential and may be
revealed in whole or in part only in the course of the administration of
the provisions of chapters 616A to 616D
, inclusive, or chapter 617 of NRS relating to those employers or upon the
lawful order of a court of competent jurisdiction.
2. The records and files specified in subsection 1 are not
confidential in the following cases:
(a) Testimony by an officer or agent of the Division and the
production of records and files on behalf of the Division in any action
or proceeding conducted pursuant to the provisions of chapters 616A
to 616D ,
inclusive, or chapter 617 of NRS if that
testimony or the records and files, or the facts shown thereby, are
involved in the action or proceeding.
(b) Delivery to a self-insured employer or an association of
self-insured public or private employers of a copy of any document filed
by the employer with the Division pursuant to the provisions of chapters
616A to 616D ,
inclusive, or chapter 617 of NRS.
(c) Publication of statistics if classified so as to prevent:
(1) Identification of a particular employer or document; or
(2) Disclosure of the financial or business condition of a
particular employer or insurer.
(d) Disclosure in confidence, without further distribution or
disclosure to any other person, to:
(1) The Governor or his agent in the exercise of the
Governor’s general supervisory powers;
(2) Any person authorized to audit the accounts of the
Division in pursuance of an audit;
(3) The Attorney General or other legal representative of
the State in connection with an action or proceeding conducted pursuant
to the provisions of chapters 616A to 616D
, inclusive, or chapter 617 of NRS;
(4) Any agency of this or any other state charged with the
administration or enforcement of the laws relating to workers’
compensation or unemployment compensation; or
(5) Any federal, state or local law enforcement agency.
(e) Disclosure in confidence by a person who receives information
pursuant to paragraph (d) to a person in furtherance of the
administration or enforcement of the laws relating to workers’
compensation or unemployment compensation.
3. As used in this section:
(a) “Division” means the Division of Insurance of the Department of
Business and Industry.
(b) “Records and files” means:
(1) All credit reports, references, investigative records,
financial information and data pertaining to the net worth of a
self-insured employer or association of self-insured public or private
employers; and
(2) All information and data required by the Division to be
furnished to it pursuant to chapters 616A
to 616D , inclusive, or chapter 617 of NRS or which may be otherwise obtained relative
to the finances, earnings, revenue, trade secrets or the financial
condition of any self-insured employer or association of self-insured
public or private employers.
(Added to NRS by 1995, 2123; A 1999, 209 )
1. The Administrator shall establish a method of indexing claims
for compensation that will make information concerning the claimants of
an insurer available to other insurers and the Fraud Control Unit for
Industrial Insurance established pursuant to NRS 228.420 .
2. Every insurer shall provide the following information if
required by the Administrator for establishing and maintaining the index
of claims:
(a) The first name, last name, middle initial, if any, date of
birth and social security number of the injured employee;
(b) The name and tax identification number of the employer of the
injured employee;
(c) If the employer of the injured employee is a member of an
association of self-insured public or private employers, the name and tax
identification number of that association;
(d) The name and tax identification number of the insurer, unless
the employer of the injured employee is self-insured and this requirement
would duplicate the information required pursuant to paragraph (b);
(e) The date upon which the employer’s policy of industrial
insurance that covers the claim became effective and the date upon which
it will expire or must be renewed;
(f) The number assigned to the claim by the insurer;
(g) The date of the injury or of the sustaining of the occupational
disease;
(h) The part of the body that was injured or the occupational
disease that was sustained by the injured employee;
(i) The percentage of disability as determined by the rating
physician or chiropractor;
(j) Which part of the body was permanently impaired, if any;
(k) What type of accident or occupational disease that is the
subject of the claim;
(l) The date, if any, that the claim was closed; and
(m) If the claim has been closed, whether the closure was pursuant
to the provisions of:
(1) Subsection 2 of NRS 616C.235 ; or
(2) Subsection 1 of NRS 616C.235 ,
Ê and what type of compensation was provided for the claim.
3. The Administrator shall require information provided pursuant
to subsection 2 to be submitted:
(a) In a format that is consistent with nationally recognized
standards for the reporting of data regarding industrial insurance; and
(b) Electronically or in another medium approved by the
Administrator.
4. The Administrator shall ensure that the requirement for an
insurer to provide information pursuant to subsection 2 is administered
in a fair and equal manner so that an insurer is not required to provide
more or a different type of information than another insurer similarly
situated.
5. The provisions of this section do not prevent the Administrator
from:
(a) Conducting audits pursuant to the provisions of NRS 616B.003
and collecting information from such
audits;
(b) Receiving and collecting information from the reports that
insurers must submit to the Administrator pursuant to the provisions of
NRS 616B.009 ;
(c) Investigating alleged violations of the provisions of chapters
616A to 617 ,
inclusive, of NRS; or
(d) Enforcing the provisions of chapters 616A to 617 , inclusive, of
NRS.
6. If an employee files a claim with an insurer, the insurer is
entitled to receive from the Administrator a list of the prior claims of
the employee. If the insurer desires to inspect the files related to the
prior claims, he must obtain the written consent of the employee.
7. Any information obtained from the index of claims may be
admitted into evidence in any hearing before an appeals officer, a
hearing officer or the Administrator.
8. The Division may assess and collect a reasonable fee for its
services provided pursuant to this section. The fee must be payable
monthly or at such other intervals as determined by the Administrator.
9. If the Administrator determines that an insurer has
intentionally failed to provide the information required by subsection 2,
the Administrator shall impose an administrative fine of $1,000 for the
initial violation, and a fine of $2,000 for a second or subsequent
violation.
10. As used in this section, “tax identification number” means the
number assigned by the Internal Revenue Service of the United States
Department of the Treasury for identification.
(Added to NRS by 1991, 352; A 1993, 702, 1859; 1995, 531, 539;
1997, 3216; 1999, 1038 ; 2001, 115 , 123 )
1. An insurer shall provide access to the files of claims in its
offices.
2. The physical records in a file concerning a claim filed in this
State may be kept at an office located outside this State if all records
in the file are accessible at offices located in this State on computer
in a microphotographic, electronic or other similar format that produces
an accurate reproduction of the original. If a claim filed in this State
is open, the records in the file must be reproduced and available for
inspection during regular business hours within 24 hours after requested
by the employee or his designated agent, the employer or his designated
agent, or the Administrator or his designated agent. If a claim filed in
this State is closed, the records in the file must be reproduced and
available for inspection during regular business hours within 14 days
after requested by such persons.
3. Upon request, the insurer shall make copies or other
reproductions of anything in the file and may charge a reasonable fee for
this service. Copies or other reproductions of materials in the file
which are requested by the Administrator or his designated agent, or the
Nevada Attorney for Injured Workers or his designated agent must be
provided free of charge.
4. The Administrator may adopt regulations concerning the:
(a) Maintenance of records in a file on claims that are open or
closed; and
(b) Preservation, examination and use of records which have been
stored on computer or in a microphotographic, electronic or similar
format by an insurer.
5. This section does not require an insurer to allow inspection or
reproduction of material regarding which a legal privilege against
disclosure has been conferred.
(Added to NRS by 1979, 1041; A 1981, 712, 1458; 1985, 863; 1989,
331; 1991, 831; 1995, 2012, 2132; 1997, 579; 2001, 960 )
1. Upon written approval of the Administrator, the insurer may
destroy accumulated and noncurrent detail records such as payroll
reports, checks, claims, and other records of similar importance for the
period July 1, 1913, to January 1, 1947, if:
(a) Claims from January 1, 1940, and after are first
microphotographed; and
(b) A brief inventory of the destroyed records is retained.
2. The insurer may dispose of or destroy any record which has been
microphotographed or filmed if the procedure required by NRS 239.051
has been followed.
3. The principal records, such as the general and regular journals
and the general ledgers, must be retained intact until audited and then
must be microfilmed for retention until their destruction pursuant to NRS
239.051 .
[1:222:1953] + [2:222:1953] + [3:222:1953]—(NRS A 1981, 712, 1458;
1989, 1190)—(Substituted in revision for NRS 616.195)
1. Every insurer shall:
(a) Provide an office in this State operated by the insurer or its
third-party administrator in which:
(1) A complete file of each claim is accessible, in
accordance with the provisions of NRS 616B.021 ;
(2) Persons authorized to act for the insurer and, if
necessary, licensed pursuant to chapter 683A of NRS, may receive information related to a claim
and provide the services to an employer and his employees required by
chapters 616A to 617 , inclusive, of NRS; and
(3) An employee or his employer, upon request, is provided
with information related to a claim filed by the employee or a copy or
other reproduction of the information from the file for that claim, in
accordance with the provisions of NRS 616B.021 .
(b) Provide statewide toll-free telephone service to the office
maintained pursuant to paragraph (a) or accept collect calls from injured
employees.
2. Each private carrier shall provide:
(a) Adequate services to its insured employers in controlling
losses; and
(b) Adequate information on the prevention of industrial accidents
and occupational diseases.
(Added to NRS by 1995, 2000; A 1999, 1764 ; 2001, 960 )
1. Any offender confined at the state prison, while engaged in
work in a prison industry or work program, whether the program is
operated by an institution of the Department of Corrections, by contract
with a public entity or by a private employer, is entitled to coverage
under the modified program of industrial insurance established by
regulations adopted by the Division if the Director of the Department of
Corrections complies with the provisions of the regulations, and coverage
is approved by a private carrier.
2. An offender is limited to the rights and remedies established
by the provisions of the modified program of industrial insurance
established by regulations adopted by the Division. The offender is not
entitled to any rights and remedies established by the provisions of
chapters 616A to 617 , inclusive, of NRS.
3. The Division shall, in cooperation with the Department of
Corrections and the Risk Management Division of the Department of
Administration, adopt regulations setting forth a modified program of
industrial insurance to provide offenders with industrial insurance
against personal injuries arising out of and in the course of their work
in a prison industry or work program.
(Added to NRS by 1989, 733; A 1995, 1872; 1999, 1717 , 1767 ; 2001 Special Session, 246 )
1. Any offender confined in a county jail, city jail or other
local detention facility, while engaged in work in a work program
directed by the Administrator of the jail or other detention facility,
whether the work program is operated by contract with a public entity or
by a private employer, may receive coverage under the modified program of
industrial insurance established by regulations adopted by the Division
if the Administrator of the jail or other detention facility complies
with the provisions of the regulations and coverage is approved by a
private carrier.
2. An offender is limited to the rights and remedies established
by the provisions of the modified program of industrial insurance
established by regulations adopted by the Division. The offender is not
entitled to any rights and remedies established by the provisions of
chapters 616A to 617 , inclusive, of NRS.
3. The Division, in cooperation with the various administrators of
jails and other detention facilities, shall adopt regulations setting
forth a modified program of industrial insurance to provide offenders
with industrial insurance against personal injuries arising out of and in
the course of their work in a work program.
4. As used in this section, “administrator of the jail or other
detention facility” means the sheriff of a county jail, chief of police
of a city jail or director of a local detention facility.
(Added to NRS by 1997, 3347; A 1999, 1717 )—(Substituted in revision for NRS
616B.186)
1. Every policy of insurance issued by a private carrier:
(a) Must be in writing;
(b) Must contain the insuring agreements and exclusions;
(c) Is subject to chapters 616A to
617 , inclusive, of NRS and regulations
adopted pursuant to those chapters; and
(d) If it contains a provision inconsistent with this chapter or
chapter 616A , 616C , 616D or 617 of NRS, shall be deemed to be reformed to conform
with that chapter.
2. The Commissioner shall, by regulation, prescribe the basic
policy to be used by private carriers.
(Added to NRS by 1995, 2001; A 1999, 1764 )
1. Except as otherwise provided in subsection 2, an insurer shall
not issue a policy of industrial insurance to an employer that does not
cover each employee of that employer who satisfies the definition of
employee set forth in NRS 616A.105 to
616A.225 , inclusive.
2. If the employer is a contractor or subcontractor who is engaged
in the construction of a project that is covered by a consolidated
insurance program established pursuant to NRS 616B.710 to 616B.737 , inclusive, an insurer may issue a policy of
industrial insurance to that employer which does not cover an employee
who:
(a) Is assigned to participate in the construction of the project
that is covered by the consolidated insurance program; and
(b) Works exclusively at the site of the construction project that
is covered by the consolidated insurance program.
(Added to NRS by 1999, 1715 ; A 2001, 2448 )
1. A private carrier may provide industrial insurance, as a part
of a homeowner’s policy of insurance, to a person who employs a domestic
worker for the term of that worker’s employment. Upon providing such
coverage, the private carrier may, with the approval of the Commissioner,
determine and fix the premium rates to be paid for the industrial
insurance so provided.
2. A domestic worker for whom industrial insurance is provided
pursuant to subsection 1:
(a) Shall be deemed to be an employee while performing work for his
employer at a wage:
(1) Equal to his average monthly wage as determined pursuant
to the regulations adopted by the Administrator pursuant to NRS 616C.420
if he is employed more than 20 hours
per week; or
(2) Of $150 per month if he is employed not more than 20
hours per week; and
(b) Is entitled to the benefits of chapters 616A to 616D , inclusive,
of NRS.
3. As used in this section:
(a) “Domestic worker” is a person who is engaged exclusively in
household or domestic service performed inside or outside of a person’s
residence. The term includes, without limitation, a cook, housekeeper,
maid, companion, babysitter, chauffeur or gardener.
(b) “Homeowner’s policy of insurance” means a policy of property or
casualty insurance that provides coverage for the loss of or damage to a
home or against liability for the death or injury of a person or damage
to property.
(Added to NRS by 1999, 1371 )
1. Every policy of insurance issued pursuant to chapters 616A
to 617 ,
inclusive, of NRS must contain a provision for the requirements of
subsection 5 and a provision that insolvency or bankruptcy of the
employer or his estate, or discharge therein, or any default of the
employer does not relieve the insurer from liability for compensation
resulting from an injury otherwise covered under the policy issued by the
insurer.
2. No statement in an employer’s application for a policy of
industrial insurance voids the policy as between the insurer and employer
unless the statement is false and would have materially affected the
acceptance of the risk if known by the insurer, but in no case does the
invalidation of a policy as between the insurer and employer affect the
insurer’s obligation to provide compensation to claimants arising before
the cancellation of the policy. If the insurer is required pursuant to
this subsection to provide compensation under an invalid policy, the
insurer is subrogated to the claimant’s rights against the employer.
3. If an insurer intends to cancel a policy of insurance issued by
the insurer pursuant to chapters 616A to
617 , inclusive, of NRS, the insurer must give
notice to that effect in writing to the employer fixing the date on which
it is proposed that the cancellation becomes effective, which must be at
least 30 days after the date on which the notice is personally delivered
or mailed to the employer, except in the case of cancellation for failure
to pay a premium when due. The notices must comply with the provisions of
NRS 687B.310 to 687B.355 , inclusive, and must be served personally on
or sent by first-class mail or electronic transmission to the employer.
If the employer has secured insurance with another insurer which would
cause double coverage, the cancellation must be made effective as of the
effective date of the other insurance.
4. As between any claimant and the insurer, no defense based on
any act or omission of the insured employer, if different from the
insurer, may be raised by the insurer.
5. For the purposes of chapters 616A
to 617 , inclusive, of NRS, as between the
employee and the insurer:
(a) Except as otherwise provided in NRS 616C.065 , notice or knowledge of the injury to or by
the employer is notice or knowledge to or by the insurer;
(b) Jurisdiction over the employer is jurisdiction over the
insurer; and
(c) The insurer is bound by and subject to any judgments, findings
of fact, conclusions of law, awards, decrees, orders or decisions
rendered against the employer in the same manner and to the same extent
as the employer.
(Added to NRS by 1995, 2001; A 1997, 1427; 1999, 444 ; 2001, 802 )
1. A private carrier may provide industrial insurance for an
organization or association of employers as a group if:
(a) The members of the organization or association are engaged in a
common trade or business; and
(b) The formation and operation of a program of industrial
insurance for the organization or association will substantially assist
in the handling of claims and the prevention of accidents for the
employers as a group.
2. Notwithstanding the provisions of subsection 1, a private
carrier may provide industrial insurance for an organization or
association of employers as a group whose members are not engaged in a
common trade or business if:
(a) The organization or association of employers is formed and
maintained for purposes other than obtaining industrial insurance; and
(b) The contract or other agreement pursuant to which the private
carrier will provide industrial insurance for the organization or
association provides that:
(1) A separate policy will be issued to each member of the
organization or association; and
(2) Other than the payment of premiums by the organization
or association, the organization or association and each of its members
are not liable for the cost of the administration of claims or the
compensation payable pursuant to the provisions of chapters 616A to 616D , inclusive,
or chapter 617 of NRS.
3. The Commissioner must approve each organization or association
before a policy of industrial insurance may be issued to it as a group
pursuant to subsection 1 or 2.
4. The Commissioner shall adopt regulations for the qualification
of organizations or associations of employers described in subsections 1
and 2.
(Added to NRS by 1995, 2004; A 1999, 1764 , 2414 ; 2001, 115 )
1. If an insurer establishes a panel of providers of health care
for the purpose of offering health care services pursuant to chapters
616A to 617 ,
inclusive, of NRS, the insurer shall not charge a provider of health care:
(a) A fee to include the name of the provider on the panel of
providers of health care; or
(b) Any other fee related to establishing a provider of health care
as a provider for the insurer.
2. If an insurer violates the provisions of subsection 1, the
insurer shall pay to the provider of health care an amount that is equal
to twice the fee charged to the provider of health care.
3. A court shall award costs and reasonable attorney’s fees to the
prevailing party in an action brought pursuant to this section.
(Added to NRS by 2003, 3373 )
STATE INSURANCE FUND
1. There is hereby established in the State Treasury the State
Insurance Fund. The Commissioner shall administer the Fund.
2. The money in the Fund may be invested by the State Treasurer in
accordance with the provisions of NRS 355.140 , 355.150 and
355.160 .
3. Any money delivered to the Commissioner pursuant to NRS
616B.042 and 696B.360 must be deposited in the Fund and be held in
trust by the Commissioner as custodian thereof for the purpose of
providing compensation for industrial accidents and occupational diseases
and for administrative expenses incidental thereto.
(Added to NRS by 1999, 1763 )—(Substituted in revision for NRS
616B.0862)
1. The chief executive officer of any successor organization to
the State Industrial Insurance System shall continue to hold in trust any
money paid to the System for the purpose of providing compensation for
industrial accidents and occupational diseases and administrative
expenses incidental thereto. The successor organization shall use that
money only for the purpose for which it was paid.
2. If any successor organization to the State Industrial Insurance
System ceases to provide industrial insurance in this State, all money
held in trust pursuant to subsection 1 must be delivered to the
Commissioner on a date that ensures that all benefits will be paid to
qualified claimants under policies of industrial insurance previously
issued by the State Industrial Insurance System or the successor
organization. The Commissioner shall deposit the money delivered to him
pursuant to this subsection in the State Insurance Fund.
(Added to NRS by 1999, 1762 )—(Substituted in revision for NRS
616B.0865)
1. Any successor organization to the State Industrial Insurance
System may take as credit as an asset or as a deduction from liability on
account of reinsurance for reinsurance ceded to an assuming alien insurer
with security based on discounted reserves for losses that were
maintained by the System for accounting periods beginning before July 1,
1995, at a rate not to exceed 6 percent.
2. As used in this section, “alien insurer” has the meaning
ascribed to it in NRS 679A.090 .
(Added to NRS by 1999, 1763 )—(Substituted in revision for NRS
616B.0867)
If chapters 616A to 616D , inclusive,
of NRS shall hereafter be repealed, all moneys which are in the State
Insurance Fund at the time of the repeal shall be subject to such
disposition as may be provided by the Legislature, and in default of such
legislative provisions distribution thereof shall be in accordance with
the justice of the matter, due regard being had to obligations of
compensation incurred and existing.
[98:168:1947; 1943 NCL § 2680.98]—(NRS A 1973, 604)—(Substituted in
revision for NRS 616B.101)
PAYMENT AND COLLECTION OF PREMIUMS
1. Except as otherwise provided in subsection 2:
(a) A principal contractor or an owner of property acting as a
principal contractor aggrieved by a letter issued pursuant to NRS
616B.645 ; or
(b) An employer aggrieved by a determination made pursuant to NRS
616C.585 ,
Ê may appeal from the letter or determination by filing a notice of
appeal with the Administrator within 30 days after the date of the letter
or determination.
2. An employer shall not seek to remove costs that have been
charged to his account by appealing to the Administrator any issue that
relates to a claim for compensation if the issue was raised or could have
been raised before a hearing officer or an appeals officer pursuant to
NRS 616C.315 or 616C.345 .
3. The decision of the Administrator is the final and binding
administrative determination of an appeal filed pursuant to this section,
and the whole record consists of all evidence taken at the hearing before
the Administrator and any findings based thereon.
(Added to NRS by 1983, 355; A 1987, 450; 1993, 719; 1995, 2024;
1997, 1431; 1999, 444 )
To determine the total amount
paid to employees for services performed, the maximum amount paid to any
one employee during a policy year shall be deemed to be $36,000.
(Added to NRS by 1995, 2002, A 1999, 1715 ; 2001, 2449 )
1. Every private or public employer who is not a self-insured
employer or a member of an association of self-insured public or private
employers shall, at intervals and on or before dates established by his
insurer, furnish the insurer with:
(a) A true and accurate payroll showing:
(1) The total amount paid to employees for services
performed;
(2) The amount of tips reported to him by every employee
pursuant to 26 U.S.C. § 6053(a) whose tips in cash totaled $20 or more;
and
(3) A segregation of employment in accordance with the
requirements of the Commissioner; and
(b) Any premium due pursuant to the terms of the policy of
industrial insurance.
Ê The payroll reports and any premium may be furnished to the insurer on
different dates, as established by the insurer.
2. The failure of any employer to comply with the provisions of
this section operates as a rejection of chapters 616A to 616D , inclusive,
and chapter 617 of NRS. The insurer shall,
within the period specified in subsection 2 of NRS 616B.461 , notify the Administrator of each such
rejection by notifying the Administrator of its cancellation or decision
not to renew the policy of that employer.
3. The insurer shall notify any employer or his representative by
first-class mail of any failure on his part to comply with the provisions
of this section. The notice or its omission does not modify or waive the
requirements or effective rejection of chapters 616A to 616D , inclusive,
and chapter 617 of NRS as otherwise provided
in those chapters.
4. To the extent permitted by federal law, the insurer shall
vigorously pursue the collection of premiums that are due under the
provisions of chapters 616A to 616D , inclusive, and chapter 617 of NRS even if an employer’s debts have been
discharged in a bankruptcy proceeding.
[Part 77:168:1947; A 1951, 51, 485; 1953, 8]—(NRS A 1957, 34; 1969,
95, 762; 1975, 620; 1979, 1048; 1981, 713, 1474; 1983, 357; 1985, 1444;
1987, 922; 1991, 2410, 2441; 1993, 42, 43, 45, 720, 721, 802, 2457; 1995,
2025, 2141, 2168; 1997, 595, 596, 602, 1431; 1999, 212 , 444 , 1718 , 1736 , 1767 ; 2001, 802 )
1. Except as otherwise provided in subsection 2, an employer shall:
(a) Make a copy of each report that an employee files with the
employer pursuant to 26 U.S.C. § 6053(a) to report the amount of his tips
to the United States Internal Revenue Service; and
(b) Submit the copy to his private carrier upon request and retain
another copy for his records or, if the employer is self-insured or a
member of an association of self-insured public or private employers,
retain the copy for his records.
2. An employer who maintains his records concerning payroll by a
computerized program or process that can produce a report on all
employees which indicates:
(a) The amount of tips reported by each employee pursuant to 26
U.S.C. § 6053(a); or
(b) The amount of tips allocated to each employee pursuant to a
formula applied by the employer, whether by agreement of the employees or
by imposition of the employer,
Ê may satisfy the requirements of subsection 1 by submitting a copy of
the report to his private carrier and maintaining another copy of the
report for his records.
3. An employer who is not self-insured or a member of an
association of self-insured public or private employers shall pay the
private carrier the premiums for the reported tips at the same rate as he
pays on regular wages.
4. The private carrier, self-insured employer or association of
self-insured public or private employers shall calculate compensation for
an employee on the basis of wages paid by the employer plus the amount of
tips reported by the employee pursuant to 26 U.S.C. § 6053(a). Reports
made after the date of injury may not be used for the calculation of
compensation.
5. An employer shall notify his employees of the requirement to
report income from tips to calculate his federal income tax and to
include the income in the computation of benefits pursuant to chapters
616A to 616D ,
inclusive, and chapter 617 of NRS.
6. The Administrator shall adopt such regulations as are necessary
to carry out the provisions of this section.
(Added to NRS by 1985, 1443; A 1987, 598; 1991, 2411; 1993, 722,
1865; 1995, 531, 2026; 1999, 213 , 1768 ; 2001, 2449 )
Every state office, department, board, commission,
bureau, agency or institution, operating by authority of law, and each
county, city, school district and other political subdivision of this
State shall budget for industrial insurance in the same manner as for
other expenses and, if insured by a private carrier, shall pay premiums
as required by its contract.
(Added to NRS by 1999, 1764 )
SELF-INSURED EMPLOYERS
1. An employer may qualify as a self-insured employer by
establishing to the satisfaction of the Commissioner that the employer
has sufficient administrative and financial resources to make certain the
prompt payment of all compensation under chapters 616A to 616D , inclusive,
or chapter 617 of NRS.
2. A self-insured employer must, in addition to establishing
financial ability to pay, deposit with the Commissioner a bond executed
by the employer as principal, and by a corporation qualified under the
laws of this State as surety, payable to the State of Nevada, and
conditioned upon the payment of compensation for injuries and
occupational diseases to employees. The bond must be in an amount
reasonably sufficient to ensure payment of compensation, but in no event
may it be less than 105 percent of the employer’s expected annual
incurred cost of claims, or less than $100,000. In arriving at an amount
for the expected annual cost of claims, due consideration must be given
to the past and prospective experience of the employer with losses and
expenses within this State, to the hazard of catastrophic loss, to other
contingencies, and to trends within the State. In arriving at the amount
of the deposit required, the Commissioner may consider the nature of the
employer’s business, the financial ability of the employer to pay
compensation and his probable continuity of operation.
3. In lieu of a bond the employer may deposit with the
Commissioner a like amount of lawful money of the United States or any
other form of security authorized by NRS 100.065 . If security is provided in the form of a
savings certificate, certificate of deposit or investment certificate,
the certificate must state that the amount is unavailable for withdrawal
except upon order of the Commissioner.
4. The required deposit may be increased or decreased by the
Commissioner in accordance with chapter 681B of NRS and his regulations for loss reserves in
casualty insurance. If the Commissioner requires an employer to increase
his deposit, the Commissioner may specify the form of the additional
security. The employer shall comply with such a requirement within 60
days after receiving notice from the Commissioner.
5. The Commissioner shall require the self-insured employer to
submit evidence of excess insurance to provide protection against a
catastrophic loss. The excess insurance must be written by an insurer
authorized to do business in this State. The Commissioner shall consider
the excess insurance coverage as a basis for a reduction in the deposit
required of an employer.
6. The Account for Self-Insured Employers is hereby created in the
State Agency Fund for Bonds. All money received by the Commissioner
pursuant to this section must be deposited with the State Treasurer to
the credit of the Account for Self-Insured Employers. All claims against
this Account must be paid as other claims against the State are paid.
(Added to NRS by 1979, 1035; A 1981, 269, 1465; 1985, 582, 933;
1989, 1078; 1991, 1799; 1993, 2403)—(Substituted in revision for NRS
616.291)
For the purposes of NRS
616B.306 , 616B.309 and 616B.318 , an employer is insolvent if his assets are
less than his liabilities.
(Added to NRS by 1985, 582)—(Substituted in revision for NRS
616.2915)
1. If a self-insured employer becomes insolvent, institutes any
voluntary proceeding under the Bankruptcy Act or is named in any
involuntary proceeding thereunder, makes a general or special assignment
for the benefit of creditors or fails to pay compensation under chapters
616A to 616D ,
inclusive, or chapter 617 of NRS after an
order for payment of any claim becomes final, the Commissioner may, after
giving at least 10 days’ notice to the employer and any insurer or
guarantor, use money or interest on securities, sell securities or
institute legal proceedings on surety bonds deposited or filed with the
Commissioner to the extent necessary to make those payments. Until the
Commissioner gives a 10-day notice pursuant to this subsection, the
employer is entitled to all interest and dividends on bonds or securities
on deposit and to exercise all voting rights, stock options and other
similar incidents of ownership thereof.
2. A company providing a surety bond under NRS 616B.300 may terminate liability on its surety bond
by giving the Commissioner and the employer 90 days’ written notice. The
termination does not limit liability which was incurred under the surety
bond before the termination. If the employer fails to requalify as a
self-insured employer on or before the termination date, the employer’s
certification is withdrawn when the termination becomes effective.
(Added to NRS by 1979, 1036; A 1985, 583, 934)—(Substituted in
revision for NRS 616.292)
1. The Commissioner may assess all self-insured employers to
provide for claims against any insolvent self-insured employer.
2. All money received from such assessments must be deposited with
the State Treasurer to the credit of the Account for Insolvent
Self-Insured Employers, which is hereby created in the Fund for Workers’
Compensation and Safety. Money in the Account must be used solely to
carry out the provisions of this section. All claims against the Account
must be paid as other claims against the State are paid. The State
Treasurer shall invest money in the account in the same manner and in the
same securities in which he may invest money of the State General Fund.
Income realized from the investment of the assets in the Account must be
credited to the Account.
(Added to NRS by 1985, 933; A 1991, 1800)—(Substituted in revision
for NRS 616.2925)
1. Upon determining that an employer is qualified as a
self-insured employer, the Commissioner shall issue a certificate to that
effect to the employer and the Administrator. No certificate may be
issued to any employer who, within the 2 years immediately preceding his
application, has had his certification as a self-insured employer
involuntarily withdrawn by the Commissioner.
2. A certificate issued pursuant to this section must include,
without limitation:
(a) The name of the self-insured employer;
(b) An identification number assigned to the self-insured employer
by the Commissioner; and
(c) The date on which the certificate was issued.
3. Except as otherwise provided in NRS 616B.315 and 616B.318 , certificates issued pursuant to this
section remain in effect until withdrawn by the Commissioner or cancelled
by the employer. Coverage for employers qualifying under NRS 616B.615
becomes effective on the date of
certification or the date specified in the certificate.
(Added to NRS by 1979, 1037; A 1981, 1466; 1985, 583; 1993, 2404;
1995, 1640; 1997, 3217)
A self-insured employer shall notify the Commissioner
not less than 60 days before any change in ownership or control of the
employer. The certification of the self-insured employer terminates
automatically on the date of the change unless the Commissioner extends
the certification. Except as otherwise provided in NRS 616B.015 , the Commissioner, upon request, may declare
as confidential any documents which are submitted in support of a request
for such an extension.
(Added to NRS by 1985, 582; A 1995, 2137)—(Substituted in revision
for NRS 616.2935)
1. The Commissioner shall impose an administrative fine, not to
exceed $1,000 for each violation, and:
(a) Shall withdraw the certification of a self-insured employer if:
(1) The deposit required pursuant to NRS 616B.300 is not sufficient and the employer fails to
increase the deposit after he has been ordered to do so by the
Commissioner;
(2) The self-insured employer fails to provide evidence of
excess insurance pursuant to NRS 616B.300 within 45 days after he has been so ordered;
or
(3) Except as otherwise provided in subsection 4, the
employer becomes insolvent, institutes any voluntary proceeding under the
Bankruptcy Act or is named in any involuntary proceeding thereunder.
(b) May withdraw the certification of a self-insured employer if:
(1) The employer intentionally fails to comply with
regulations of the Commissioner regarding reports or other requirements
necessary to carry out the purposes of chapters 616A to 616D , inclusive,
and chapter 617 of NRS;
(2) The employer violates the provisions of subsection 2 of
NRS 616B.500 or any regulation
adopted by the Commissioner or the Administrator concerning the
administration of the employer’s plan of self-insurance; or
(3) The employer makes a general or special assignment for
the benefit of creditors or fails to pay compensation after an order for
payment of any claim becomes final.
2. Any employer whose certification as a self-insured employer is
withdrawn must, on the effective date of the withdrawal, qualify as an
employer pursuant to NRS 616B.650 .
3. The Commissioner may, upon the written request of an employer
whose certification as a self-insured employer is withdrawn pursuant to
subparagraph (3) of paragraph (a) of subsection 1, reinstate the
employer’s certificate for a reasonable period to allow the employer
sufficient time to provide industrial insurance for his employees.
4. The Commissioner may authorize an employer to retain his
certification as a self-insured employer during the pendency of a
proceeding specified in subparagraph (3) of paragraph (a) of subsection 1
if the employer establishes to the satisfaction of the Commissioner that
the employer is able to pay all claims for compensation during the
pendency of the proceeding.
(Added to NRS by 1979, 1037; A 1981, 1466; 1985, 583; 1991, 2403;
1993, 2404; 1995, 2018; 1999, 216 ; 2003, 3339 )
The Commissioner shall impose an
administrative fine, not to exceed $5,000, if an employer whose
certification as a self-insured employer has terminated fails to pay
compensation pursuant chapters 616A to 616D
, inclusive, or chapter 617 of NRS after an order for payment of any claim
becomes final.
(Added to NRS by 1985, 582; A 1991, 2404)—(Substituted in revision
for NRS 616.2945)
A person who is employed by or contracts with a self-insured
employer to administer the plan of self-insurance is an agent of the
self-insured employer, and if he violates any provision of this chapter
or chapter 616A , 616C , 616D or 617 of NRS, the self-insured employer is liable for any
penalty assessed because of that violation.
(Added to NRS by 1985, 1011; A 1999, 216 )
1. Except as otherwise provided in NRS 616D.120 , before any action may be taken pursuant to
subsection 2, the Commissioner of Insurance shall arrange an informal
meeting with the self-insured employer to discuss and seek correction of
any conduct which would be grounds for withdrawal of the self-insured
employer’s certificate of self-insurance.
2. Except as otherwise provided in NRS 616D.120 , before the withdrawal of the certification
of any self-insured employer, the Commissioner of Insurance shall give
written notice to that employer by certified mail that his certification
will be withdrawn 10 days after receipt of the notice unless, within that
time, the employer corrects the conduct set forth in the notice as the
reason for the withdrawal or submits a written request for a hearing to
the Commissioner of Insurance. Before requesting a hearing the employer
must make the deposit required by NRS 616B.300 .
3. If the employer requests a hearing:
(a) The Commissioner of Insurance shall set a date for a hearing
within 20 days after receiving the appeal request, and shall give the
employer at least 10 business days’ notice of the time and place of the
hearing.
(b) A record of the hearing must be kept but it need not be
transcribed unless requested by the employer with the cost of
transcription to be charged to the employer.
(c) Within 5 business days after the hearing, the Commissioner of
Insurance shall either affirm or disaffirm the withdrawal and give the
employer written notice thereof by certified mail. If withdrawal of
certification is affirmed, the withdrawal becomes effective 10 business
days after the employer receives notice of the affirmance unless within
that period of time the employer corrects the conduct which was ground
for the withdrawal or petitions for judicial review of the affirmance.
4. If the withdrawal of certification is affirmed following
judicial review, the withdrawal becomes effective 5 days after entry of
the final decree of affirmance.
(Added to NRS by 1979, 1037; A 1995, 1640)—(Substituted in revision
for NRS 616.296)
Any self-insured employer who is aggrieved by a decision
of the Commissioner of Insurance may appeal in the manner set forth in
NRS 679B.310 , except that any such
appeal must be filed within the time set forth in NRS 616B.327 .
(Added to NRS by 1979, 1039)—(Substituted in revision for NRS
616.298)
1. If for any reason the status of an employer as a self-insured
employer is terminated, the security deposited under NRS 616B.300 must remain on deposit for a period of at
least 36 months in such amount as necessary to secure the outstanding and
contingent liability arising from accidental injuries or occupational
diseases secured by such security, or to assure the payment of claims for
aggravation, payment of claims under NRS 616C.390 and payment of claims under NRS 616C.392
based on such accidental injuries or
occupational diseases.
2. At the expiration of the 36-month period, or such other period
as the Commissioner deems proper, the Commissioner may accept, in lieu of
any security so deposited, a policy of paid-up insurance in a form
approved by the Commissioner.
(Added to NRS by 1979, 1038; A 2005, 1489 )
1. Each self-insured employer shall furnish audited financial
statements, certified by an auditor licensed to do business in this
State, to the Commissioner annually within 120 days after the expiration
of the self-insured employer’s fiscal year.
2. The Commissioner may examine the records and interview the
employees of each self-insured employer as often as he deems advisable to
determine the adequacy of the deposit which the employer has made with
the Commissioner, the sufficiency of reserves and the reporting, handling
and processing of injuries or claims. The Commissioner shall examine the
records for that purpose at least once every 3 years. The self-insured
employer shall reimburse the Commissioner for the cost of the examination.
(Added to NRS by 1979, 1039; A 2003, 3339 )
ASSOCIATIONS OF SELF-INSURED EMPLOYERS
1. A group of five or more employers may not act as an association
of self-insured public employers unless the group:
(a) Is composed of employers engaged in the same or similar
classifications of employment; and
(b) Has been issued a certificate to act as such an association by
the Commissioner.
2. A group of five or more employers may not act as an association
of self-insured private employers unless each member of the group:
(a) Is a member or associate member of a bona fide trade
association, as determined by the Commissioner, which:
(1) Is incorporated in this State; and
(2) Has been in existence for at least 5 years; and
(b) Has been issued a certificate to act as such an association by
the Commissioner.
3. An association of public or private employers that wishes to be
issued a certificate must file with the Commissioner an application for
certification.
4. The application must include:
(a) The name of the association.
(b) The address of:
(1) The principal office of the association.
(2) The location where the books and records of the
association will be maintained.
(c) The date the association was organized.
(d) The name and address of each member of the association.
(e) The names of the initial members of the board of trustees and
the name of the initial association’s administrator.
(f) Such other information as the Commissioner may require.
5. The application must be accompanied by:
(a) A nonrefundable filing fee of $1,000.
(b) Proof of compliance with NRS 616B.353 .
(c) Proof that the association or its third-party administrator is
licensed or otherwise authorized to conduct business in this State
pursuant to title 57 of NRS.
(d) A copy of the agreements entered into with the association’s
administrator and a third-party administrator.
(e) A copy of the bylaws of the association.
(f) A copy of an agreement jointly and severally binding the
association and each member of the association to secure the payment of
all compensation due pursuant to chapters 616A to 617 , inclusive, of
NRS.
(g) A pro forma financial statement prepared by an independent
certified public accountant in accordance with generally accepted
accounting principles that shows the financial ability of the association
to pay all compensation due pursuant to chapters 616A to 617 , inclusive, of
NRS.
(h) A reviewed financial statement prepared by an independent
certified public accountant for each proposed member of the association
or evidence of the ability of the association or its proposed members to
provide a solvency bond pursuant to subsection 3 of NRS 616B.353 .
(i) Proof that each member of the association will make the initial
payment to the association required pursuant to NRS 616B.416 on a date specified by the Commissioner. The
payment shall be deemed to be a part of the assessment required to be
paid by each member for the first year of self-insurance if certification
is issued to the association.
6. Any financial information relating to a member of an
association received by the Commissioner pursuant to the provisions of
this section is confidential and must not be disclosed.
7. For the purposes of this section, “associate member of a bona
fide trade association” means a supplier whose business, as determined by
the Commissioner:
(a) Is limited to a specific industry; and
(b) Primarily involves providing a product or service that is
directly used or consumed by substantially all of the members of the
trade association or bears a direct relationship to the business of the
members of the association.
(Added to NRS by 1993, 669; A 1995, 1978)—(Substituted in revision
for NRS 616.3791)
1. An association of self-insured public or private employers
shall:
(a) Execute an indemnity agreement jointly and severally binding
the association and each member of the association to secure the payment
of all compensation due pursuant to chapters 616A to 617 , inclusive, of
NRS. The indemnity agreement must be in a form prescribed by the
Commissioner. An association may add provisions to the indemnity
agreement if they are first approved by the Commissioner.
(b) Except as otherwise provided in this subsection, maintain a
policy of specific and aggregate excess insurance in a form and amount
required by the Commissioner. The excess insurance must be written by an
insurer approved by the Commissioner. To determine the amount of excess
insurance required, the Commissioner shall consider:
(1) The number of members in the association;
(2) If the association is an association of self-insured
public employers, the types of governmental services provided by the
members of the association;
(3) If the association is an association of self-insured
private employers, the classifications of employment of the members of
the association;
(4) The number of years the association has been in
existence; and
(5) Such other information as the Commissioner deems
necessary.
Ê Nothing in this paragraph prohibits an association from purchasing
secondary excess insurance in addition to the excess insurance required
by this paragraph.
(c) Collect an annual assessment from each member of the
association in an aggregate amount of at least $250,000 or in an
aggregate amount which the Commissioner determines is satisfactory based
on an annual review conducted by him of the actuarial solvency of the
association.
(d) Except as otherwise provided in paragraph (e), deposit as
security with the Commissioner a bond executed by the association as
principal, and by a licensed surety, payable to the State of Nevada, and
conditioned upon the payment of compensation for injuries and
occupational diseases to their employees. The bond must be in an amount
determined by the Commissioner to be reasonably sufficient to ensure
payment of such compensation, but in no event may it be less than
$100,000.
(e) In lieu of a bond, deposit with the Commissioner a like amount
of lawful money of the United States or any other form of security
authorized by NRS 100.065 . If security
is provided in the form of a savings certificate, certificate of deposit
or investment certificate, the certificate must state that the amount is
unavailable for withdrawal except upon order of the Commissioner.
2. Except as otherwise provided in subsection 3, in addition to
complying with the requirements of subsection 1, an association of
self-insured private employers shall maintain a combined tangible net
worth of all members in the association of at least $2,500,000.
3. In lieu of complying with the requirements of subsection 2, the
association’s administrator shall ensure that a solvency bond, in a form
prescribed by the Commissioner and in an aggregate amount of at least
$2,500,000, is deposited with the Commissioner by the association or
members of the association on behalf of the association.
4. The association’s administrator shall deposit with the
Commissioner a bond executed by the association’s administrator as
principal, and by a licensed surety, payable to the State of Nevada, and
conditioned upon the faithful performance of his duties. The bond must be
in an amount determined by the Commissioner.
5. Any third-party administrator providing claims services for the
association shall deposit with the Commissioner a bond executed by the
third-party administrator as principal, and by a licensed surety, payable
to the State of Nevada, and conditioned upon the faithful performance of
its duties. The bond must be in an amount determined by the Commissioner.
6. The Commissioner may increase or decrease the amount of any
bond or money required to be deposited by this section in accordance with
chapter 681B of NRS and his regulations for
loss reserves in casualty insurance. If the Commissioner requires an
association, association’s administrator or third-party administrator to
increase its deposit, the Commissioner may specify the form of the
additional security. The association, association’s administrator or
third-party administrator shall comply with such a requirement within 60
days after receiving notice from the Commissioner.
7. The Account for Associations of Self-Insured Public and Private
Employers is hereby created in the State Agency Fund for Bonds. All money
received by the Commissioner pursuant to this section must be deposited
with the State Treasurer to the credit of the Account. All claims against
this Account must be paid as other claims against the State are paid.
(Added to NRS by 1993, 670; A 1995, 1979)—(Substituted in revision
for NRS 616.37915)
A
surety or bonding company shall not furnish a bond or any other form of
security required by the provisions of chapters 616A to 616D , inclusive,
or chapter 617 of NRS for an association of
self-insured public or private employers or a member of such an
association unless the surety or bonding company holds a certificate of
authority issued by the Commissioner.
(Added to NRS by 1995, 1977)
1. The Commissioner shall grant or deny an application for
certification as an association of self-insured public or private
employers within 60 days after receiving the application. If the
application is materially incomplete or does not comply with the
applicable provisions of the law, the Commissioner shall notify the
applicant of the additional information or changes required. Under such
circumstances, if the Commissioner is unable to act upon the application
within this 60-day period, he may extend the period for granting or
denying the application, but for not longer than an additional 90 days.
2. Upon determining that an association is qualified as an
association of self-insured public or private employers, the Commissioner
shall issue a certificate to that effect to the association and the
association’s administrator. No certificate may be issued to an
association that, within the 2 years immediately preceding its
application, has had its certification as an association of self-insured
public or private employers involuntarily withdrawn by the Commissioner.
3. A certificate issued pursuant to this section must include,
without limitation:
(a) The name of the association;
(b) The name of each employer who the Commissioner determines is a
member of the association at the time of the issuance of the certificate;
(c) An identification number assigned to the association by the
Commissioner; and
(d) The date on which the certificate was issued.
4. A certificate issued pursuant to this section remains in effect
until withdrawn by the Commissioner or cancelled at the request of the
association. Coverage for an association granted a certificate becomes
effective on the date of certification or the date specified in the
certificate.
5. The Commissioner shall not grant a request to cancel a
certificate unless the association has insured or reinsured all incurred
obligations with an insurer authorized to do business in this State
pursuant to an agreement filed with and approved by the Commissioner. The
agreement must include coverage for actual claims and claims incurred but
not reported, and the expenses associated with those claims.
(Added to NRS by 1993, 671; A 1995, 1641, 1981; 1997, 3218; 2003,
3340 )
1. An association certified as an association of self-insured
public or private employers directly assumes the responsibility for
providing compensation due the employees of the members of the
association and their beneficiaries under chapters 616A to 617 , inclusive, of
NRS.
2. An association is not required to pay the premiums required of
other employers pursuant to chapters 616A
to 617 , inclusive, of NRS but is relieved
from other liability for personal injury to the same extent as are other
employers.
3. The claims of employees and their beneficiaries resulting from
injuries while in the employment of a member of an association must be
handled in the manner provided by chapters 616A to 616D , inclusive,
of NRS, and the association is subject to the regulations of the Division
with respect thereto.
4. The security deposited pursuant to NRS 616B.353 does not relieve an association from
responsibility for the administration of claims and payment of
compensation under chapters 616A to 617
, inclusive, of NRS.
(Added to NRS by 1993, 672; A 1995, 649; 1999, 216 )
1. An association of self-insured public or private employers must
be operated by a board of trustees consisting of at least five members
whom the members of the association elect for terms set forth in the
bylaws of the association. If the association is an association of
self-insured:
(a) Public employers, the members of the board of trustees must be
officers or employees of the public employers who are members of the
association.
(b) Private employers, at least two-thirds of the members of the
board of trustees must be employees, officers or directors of the members
of the association. No association’s administrator or third-party
administrator employed by the association, or any owner, officer,
employee or other person affiliated with the association’s administrator
or third-party administrator, may serve as a member of the board of
trustees. Each member of the board of trustees must be a resident of this
State or an officer of a corporation authorized to do business in this
State.
2. The board of trustees of an association shall:
(a) Ensure the prompt payment of any compensation due pursuant to
chapters 616A to 616D , inclusive, or chapter 617 of NRS.
(b) Take such actions as are necessary to protect the assets of the
association.
(c) Employ full-time an association’s administrator to carry out
the policies of the board of trustees and perform such duties as the
board delegates to him. An association’s administrator shall not perform
any of the duties assigned to a third-party administrator.
(d) Employ a third-party administrator to carry out the duties set
forth in NRS 616B.503 .
(e) Employ an independent certified public accountant to prepare
the statement of financial condition required by NRS 616B.404 .
(f) Maintain minutes of its meetings and make the minutes available
for inspection by the Commissioner.
3. The board of trustees of an association shall not:
(a) Extend credit to any member of the association for the payment
of that member’s annual assessment, except pursuant to a payment plan
approved by the Commissioner.
(b) Borrow any money from the association or in the name of the
association, except in the ordinary course of its business, without the
prior approval of the Commissioner.
(Added to NRS by 1993, 672; A 1995, 1981)—(Substituted in revision
for NRS 616.37925)
1. The board of trustees of an association of self-insured public
or private employers is responsible for the money collected and disbursed
by the association.
2. The board of trustees shall:
(a) Establish a claims account in a financial institution in this
State which is approved by the Commissioner and which is federally
insured or insured by a private insurer approved pursuant to NRS 678.755
. Except as otherwise provided in
subsection 3, at least 75 percent of the annual assessment collected by
the association from its members must be deposited in this account to pay:
(1) Claims;
(2) Expenses related to those claims;
(3) The costs associated with the association’s policy of
excess insurance; and
(4) Assessments, payments and penalties related to the
Subsequent Injury Account and the Uninsured Employers’ Claim Account.
(b) Establish an administrative account in a financial institution
in this State which is approved by the Commissioner and which is
federally insured or insured by a private insurer approved pursuant to
NRS 678.755 . The amount of the annual
assessment collected by the association that is not deposited in its
claims account must be deposited in this account to pay the
administrative expenses of the association.
3. The Commissioner may authorize an association to deposit less
than 75 percent of its annual assessment in its claims account if the
association presents evidence to the satisfaction of the Commissioner
that:
(a) More than 25 percent of the association’s annual assessment is
needed to maintain its programs for loss control and occupational safety;
and
(b) The association’s policy of excess insurance attaches at less
than 75 percent.
4. The board of trustees may invest the money of the association
not needed to pay the obligations of the association pursuant to chapter
682A of NRS.
5. The Commissioner shall review the accounts of an association
established pursuant to this section at such times as he deems necessary
to ensure compliance with the provisions of this section.
(Added to NRS by 1993, 673; A 1999, 1527 ; 2001, 2756 )
1. An association’s administrator employed by an association of
self-insured public or private employers, or an employee, officer or
director of an association’s administrator, may not be an employee,
officer or director of a third-party administrator employed by the
association or have a direct or indirect financial interest in the
third-party administrator of the association.
2. The third-party administrator of an association of self-insured
public or private employers, or an employee, officer or director of the
third-party administrator, may not be an employee, officer or director of
an association’s administrator employed by the association or have a
direct or indirect financial interest in that association’s administrator.
3. Any contract entered into by an association of self-insured
public or private employers and a third-party administrator must include
a provision which states that, unless the Commissioner otherwise
provides, the third-party administrator shall administer any claim or
other obligation of the association to its conclusion during the period
of the contract.
(Added to NRS by 1993, 673; A 1995, 1982)—(Substituted in revision
for NRS 616.3793)
1. Except as otherwise provided in this section, a person shall
not advertise or offer for sale in this State any policies or memberships
or solicit or receive any money, subscriptions, applications, premiums,
assessments, memberships or any other fee or charge in connection with a
proposed association of self-insured public or private employers unless
he has obtained a solicitor’s permit from the Commissioner.
2. To obtain a solicitor’s permit, a person must file a written
application with the Commissioner. The application must include:
(a) The name, type and purposes of the association formed or
proposed to be formed or financed;
(b) On forms furnished by the Commissioner, for each person
associated or to be associated as director, promoter, manager, member of
the board or in another similar capacity in the association, or in the
formation of the proposed association or in the proposed financing:
(1) His name, residential address and qualifications;
(2) His business, professional or employment experience for
the preceding 10 years; and
(3) A complete set of his fingerprints which the
Commissioner may forward to the Central Repository for Nevada Records of
Criminal History for submission to the Federal Bureau of Investigation
for its report;
(c) A full disclosure of the terms of all pertinent understandings
and agreements existing or proposed among any persons or entities so
associated or to be associated, and a copy of each such agreement;
(d) A copy of the articles of incorporation and bylaws of a
solicitor, if incorporated;
(e) The plan according to which solicitations are to be made and a
reasonably detailed estimate of all administrative and sales expenses to
be incurred;
(f) A copy of any certificate proposed to be offered, and a copy of
any proposed application therefor;
(g) A copy of any prospectus, offering circular, advertising or
sales literature or materials proposed to be used;
(h) Proof of an escrow account and agreement for the deposit of all
funds collected during the formation of the association; and
(i) Such additional pertinent information as the Commissioner may
reasonably require.
3. The application must be accompanied by a fee of $500 for the
filing of the application and for the issuance of the permit, if granted.
A solicitor must submit this fee each year thereafter if he continues to
recruit new members for an association.
4. A person who violates subsection 1 is guilty of a category D
felony and shall be punished as provided in NRS 193.130 .
5. The provisions of this section do not apply to:
(a) A bona fide trade association that has been in existence for at
least 5 years and solicits members of its trade association; or
(b) A person who is employed by:
(1) Current members of an association; or
(2) Employers that are considering membership in an
association,
Ê whose primary duties do not include solicitation of potential members
of the association.
(Added to NRS by 1995, 1975; A 1997, 576, 1190; 1999, 431 ; 2003, 2859 )
1. After the filing of an application for a solicitor’s permit,
the Commissioner shall promptly cause an investigation to be made of:
(a) The identity, character, reputation, experience, financial
standing and motives of the persons proposing to organize, promote or
finance the association of self-insured public or private employers;
(b) The character, financial responsibility, management experience
and business qualifications of the officers, directors and managers of
the existing or proposed association; and
(c) Any other aspects of the solicitor, association or proposed
financing as the Commissioner deems advisable.
2. The Commissioner shall expeditiously examine an application for
a solicitor’s permit and complete the investigation required pursuant to
subsection 1. Except as otherwise provided in subsection 3, if the
Commissioner finds after performing an examination and investigation that:
(a) The application is complete and the applicable fee has been
paid;
(b) The documents filed with the application are proper in form; and
(c) The proposed financing is reasonable and adequate in amount for
the purposes intended and the applicant is otherwise entitled to the
permit,
Ê he shall issue a permit and assign a permit number to the applicant.
3. If the Commissioner does not so find, or finds that:
(a) The applicant is not competent, trustworthy, financially
responsible or of good personal and business reputation;
(b) Any of the persons associated or to be associated with the
association are not of good reputation as to business affairs or
financial responsibility; or
(c) There is material variance, adverse to the applicant, as
between the information furnished by the applicant in connection with the
application and that determined by the Commissioner on investigation,
Ê he shall give notice to the applicant that a permit will not be
granted, stating the particulars of the grounds for the denial. The
Commissioner shall not refund the fee for the filing of the application.
(Added to NRS by 1995, 1976)
1. The Commissioner may suspend or revoke a solicitor’s permit if
he reasonably believes that:
(a) A violation of this chapter or chapter 616A , 616C , 616D or 617 of NRS or title
57 of NRS or the terms of the permit or any proper order of the
Commissioner has occurred; or
(b) A material misrepresentation in the offering or sale of
securities, policies or memberships pursuant to the permit has occurred.
2. If the Commissioner suspends or revokes a permit pursuant to
subsection 1, he shall expeditiously conduct a hearing, giving the holder
of the permit a reasonable opportunity to appear and be heard.
(Added to NRS by 1995, 1977)
1. Any advertising or written material that solicits employers to
join an association of self-insured public or private employers must
contain the permit number of the solicitor.
2. A solicitor shall provide to the Commissioner upon request a
copy of any document relating to a solicitation which was prepared after
the solicitor filed his application for a permit.
(Added to NRS by 1995, 1977)
1. If an employer wishes to become a member of an association of
self-insured public or private employers, the employer must:
(a) Submit an application for membership to the board of trustees
or third-party administrator of the association; and
(b) Enter into an indemnity agreement as required by NRS 616B.353
.
2. The membership of the applicant becomes effective when each
member of the association approves the application or on a later date
specified by the association. The application for membership and the
action taken on the application must be maintained as permanent records
of the board of trustees.
3. Each member who is a member of an association during the 12
months immediately following the formation of the association must:
(a) Have a tangible net worth of at least $500,000; or
(b) Have had a reported payroll for the previous 12 months which
would have resulted in a manual premium of at least $15,000, calculated
in accordance with a manual prepared pursuant to subsection 4 of NRS
686B.1765 .
4. An employer who seeks to become a member of the association
after the 12 months immediately following the formation of the
association must meet the requirement set forth in paragraph (a) or (b)
of subsection 3 unless the Commissioner adjusts the requirement for
membership in the association after conducting an annual review of the
actuarial solvency of the association pursuant to subsection 1 of NRS
616B.353 .
5. An association of self-insured private employers may apply to
the Commissioner for authority to determine the amount of tangible net
worth and manual premium that an employer must have to become a member of
the association. The Commissioner shall approve the application if the
association:
(a) Has been certified to act as an association for at least the 3
consecutive years immediately preceding the date on which the association
filed the application with the Commissioner;
(b) Has a combined tangible net worth of all members in the
association of at least $5,000,000;
(c) Has at least 15 members; and
(d) Has not been required to meet informally with the Commissioner
pursuant to subsection 1 of NRS 616B.431 during the 18-month period immediately
preceding the date on which the association filed the application with
the Commissioner or, if the association has been required to attend such
a meeting during that period, has not had its certificate withdrawn
before the date on which the association filed the application.
6. An association of self-insured private employers may apply to
the Commissioner for authority to determine the documentation
demonstrating solvency that an employer must provide to become a member
of the association. The Commissioner shall approve the application if the
association:
(a) Has been certified to act as an association for at least the 3
consecutive years immediately preceding the date on which the association
filed the application with the Commissioner;
(b) Has a combined tangible net worth of all members in the
association of at least $5,000,000; and
(c) Has at least 15 members.
7. The Commissioner may withdraw his approval of an application
submitted pursuant to subsection 5 or 6 if he determines the association
has ceased to comply with any of the requirements set forth in subsection
5 or 6, as applicable.
8. A member of an association may terminate his membership at any
time. To terminate his membership, a member must submit to the
association’s administrator a notice of intent to withdraw from the
association at least 120 days before the effective date of withdrawal.
The notice of intent to withdraw must include a statement indicating that
the member has:
(a) Been certified as a self-insured employer pursuant to NRS
616B.312 ;
(b) Become a member of another association of self-insured public
or private employers; or
(c) Become insured by a private carrier.
9. The members of an association may cancel the membership of any
member of the association in accordance with the bylaws of the
association.
10. The association shall:
(a) Within 30 days after the addition of an employer to the
membership of the association, notify the Commissioner of the addition
and:
(1) If the association has not received authority from the
Commissioner pursuant to subsection 5 or 6, as applicable, provide to the
Commissioner all information and assurances for the new member that were
required from each of the original members of the association upon its
organization; or
(2) If the association has received authority from the
Commissioner pursuant to subsection 5 or 6, as applicable, provide to the
Commissioner evidence that is satisfactory to the Commissioner that the
new member is a member or associate member of the bona fide trade
association as required pursuant to paragraph (a) of subsection 2 of NRS
616B.350 , a copy of the indemnity
agreement that jointly and severally binds the new member, the other
members of the association and the association that is required to be
executed pursuant to paragraph (a) of subsection 1 of NRS 616B.353 and any other information the Commissioner
may reasonably require to determine whether the amount of security
deposited with the Commissioner pursuant to paragraph (d) or (e) of
subsection 1 of NRS 616B.353 is
sufficient, but such information must not exceed the information required
to be provided to the Commissioner pursuant to subparagraph (1);
(b) Notify the Commissioner and the Administrator of the
termination or cancellation of the membership of any member of the
association within 10 days after the termination or cancellation; and
(c) At the expense of the member whose membership is terminated or
cancelled, maintain coverage for that member for 30 days after notice is
given pursuant to paragraph (b), unless the association first receives
notice from the Administrator that the member has:
(1) Been certified as a self-insured employer pursuant to
NRS 616B.312 ;
(2) Become a member of another association of self-insured
public or private employers; or
(3) Become insured by a private carrier.
11. If a member of an association changes his name or form of
organization, the member remains liable for any obligations incurred or
any responsibilities imposed pursuant to chapters 616A to 617 , inclusive, of
NRS under his former name or form of organization.
12. An association is liable for the payment of any compensation
required to be paid by a member of the association pursuant to chapters
616A to 616D ,
inclusive, or chapter 617 of NRS during his
period of membership. The insolvency or bankruptcy of a member does not
relieve the association of liability for the payment of the compensation.
(Added to NRS by 1993, 674; A 1995, 1983, 2023; 1997, 579; 1999,
811 , 813 , 1719 , 1769 ; 2003, 3340 )
1. An association of self-insured public or private employers
shall notify the Commissioner of any change in the information submitted
in its application for certification or in the manner of its compliance
with NRS 616B.353 not later than 30
days after the change.
2. For the purposes of this section, the addition of an employer
to the membership of an association of self-insured private employers is
not a change in the information that the association submitted in its
application for certification.
(Added to NRS by 1993, 674; A 1999, 816 )
1. The Commissioner may examine the books, records, accounts and
assets of an association of self-insured public or private employers as
he deems necessary to carry out the provisions of NRS 616B.350 to 616B.446 , inclusive.
2. The expense of any examination conducted pursuant to this
section must be paid by the association.
(Added to NRS by 1993, 675)—(Substituted in revision for NRS
616.3794)
An association of self-insured public
or private employers shall be deemed to have appointed the Commissioner
as its resident agent to receive any initial legal process authorized by
law to be served upon the association for as long as the association is
obligated to pay any compensation under chapters 616A to 616D , inclusive,
or chapter 617 of NRS.
(Added to NRS by 1993, 675)—(Substituted in revision for NRS
616.37945)
1. An association of self-insured public employers may merge with
another association of self-insured public employers if:
(a) The resulting association assumes in full all obligations of
the merging associations; and
(b) The merger is approved by the Commissioner.
2. An association of self-insured private employers may merge with
another association of self-insured private employers if:
(a) The members of the merging associations are engaged in the same
or similar trade;
(b) The resulting association assumes in full all obligations of
the merging associations; and
(c) The merger is approved by the Commissioner.
3. The Commissioner shall conduct a hearing on the proposed merger
if any member of the merging associations so requests. The Commissioner
may on his own motion conduct such a hearing.
(Added to NRS by 1993, 675; A 1995, 1984)—(Substituted in revision
for NRS 616.37947)
1. An association of self-insured public or private employers
shall file with the Commissioner an audited statement of financial
condition prepared by an independent certified public accountant. The
statement must be filed on or before May 1 of each year or within 120
days after the conclusion of the association’s fiscal year and must
contain information for the previous fiscal year.
2. The statement required by subsection 1 must be in a form
prescribed by the Commissioner and include, without limitation:
(a) A statement of the reserves for:
(1) Actual claims and expenses;
(2) Claims incurred but not reported, and the expenses
associated with those claims;
(3) Assessments that are due, but not paid; and
(4) Unpaid debts, which must be shown as liabilities.
(b) An actuarial opinion regarding reserves that is prepared by a
member of the American Academy of Actuaries or another specialist in loss
reserves identified in the annual statement adopted by the National
Association of Insurance Commissioners. The actuarial opinion must
include a statement of:
(1) Actual claims and the expenses associated with those
claims; and
(2) Claims incurred but not reported, and the expenses
associated with those claims.
3. The Commissioner may adopt a uniform financial reporting system
for associations of self-insured public and private employers to ensure
the accurate and complete reporting of financial information.
4. The Commissioner may require the filing of such other reports
as he deems necessary to carry out the provisions of this section,
including, without limitation:
(a) Audits of the payrolls of the members of an association of
self-insured public or private employers;
(b) Reports of losses; and
(c) Quarterly financial statements.
(Added to NRS by 1993, 675; A 2003, 3343 )
1. Except as otherwise provided in subsection 2, the annual
assessment required to be paid by each member of an association of
self-insured public or private employers must be:
(a) Calculated by a rate service organization that is licensed
pursuant to chapter 686B of NRS; and
(b) Based on the premium rate for the standard industrial
classification of that member, adjusted by the member’s individual
experience.
Ê If approved by the Commissioner, payments of assessments may be reduced
by an amount based on the association’s level of expenses and loss
experience.
2. If approved by the Commissioner, an association may calculate
the annual assessment required to be paid by each member of the
association. An assessment calculated by the association must be based on
at least 5 years of the member’s individual experience.
(Added to NRS by 1993, 676; A 1999, 1722 )
1. The Commissioner shall cause to be conducted at least annually
an audit of each association of self-insured public or private employers
in order to verify:
(a) The standard industrial classification of each member of the
association;
(b) The individual experience of each member of the association;
(c) The payroll of each member of the association; and
(d) The assessment required to be paid by each member of the
association.
2. The audit required by this section must be conducted by an
auditor approved by the Commissioner.
3. A report of the audit must be filed with the Commissioner in a
form required by the Commissioner.
4. The association or any member of the association may request a
hearing before the Commissioner to object to any standard industrial
classification assigned to a member of the association as a result of the
audit. If the Commissioner determines that the assessment required to be
paid by any member of the association is:
(a) Insufficient because of the standard industrial classification
assigned to him, the Commissioner shall order the association to collect
from that member any amount required to recover the deficiency.
(b) Excessive because of the standard industrial classification
assigned to him, the Commissioner shall order the association to pay to
the member the excess amount collected.
5. The expenses of any audit conducted pursuant to this section
must be paid by the association.
(Added to NRS by 1993, 676)—(Substituted in revision for NRS
616.37957)
1. If the assets of an association of self-insured public or
private employers exceed the amount necessary for the association to:
(a) Pay its obligations and administrative expenses;
(b) Carry reasonable reserves; and
(c) Provide for contingencies,
Ê the board of trustees of the association may, after obtaining the
approval of the Commissioner, declare and distribute dividends to the
members of the association.
2. Any dividend declared pursuant to subsection 1 must be
distributed not less than 12 months after the end of the fund year.
3. A dividend may be paid only to those members who are members of
the association for the entire fund year. The payment of a dividend must
not be conditioned upon the member continuing his membership in the
association after the fund year.
4. An association shall give to each prospective member of the
association a written description of its plan for distributing dividends
when he applies for membership in the association.
(Added to NRS by 1993, 676; A 2003, 3343 )
1. Each association of self-insured public or private employers
shall adopt a plan for the payment of annual assessments by the members
of the association which must be approved by the Commissioner.
2. The plan must include a requirement for:
(a) An initial payment, in advance, of a portion of the annual
assessment due from each member of the association. If the association is
an association of self-insured public employers, the initial payment must
be in an amount approved by the Commissioner. If the association is an
association of self-insured private employers, the initial payment must
be in an amount equal to at least 25 percent of the member’s annual
assessment.
(b) Payment of the balance of the annual assessment due in
quarterly or monthly installments.
(Added to NRS by 1993, 677)—(Substituted in revision for NRS
616.37965)
Each association of self-insured
public or private employers shall maintain:
1. Actuarially appropriate loss reserves. Such reserves must
include reserves for:
(a) Actual claims and the expenses associated with those claims; and
(b) Claims incurred but not reported, and the expenses associated
with those claims.
2. Reserves for uncollected debts based on the experience of the
association or other associations.
(Added to NRS by 1993, 677; A 2003, 3344 )
1. If the assets of an association of self-insured public or
private employers are insufficient to make certain the prompt payment of
all compensation under chapters 616A to 617
, inclusive, of NRS and to maintain the
reserves required by NRS 616B.419 ,
the association shall immediately notify the Commissioner of the
deficiency and:
(a) Transfer any surplus acquired from a previous fund year to the
current fund year to make up the deficiency;
(b) Transfer money from its administrative account to its claims
account;
(c) Collect an additional assessment from its members in an amount
required to make up the deficiency; or
(d) Take any other action to make up the deficiency which is
approved by the Commissioner.
2. If the association wishes to transfer any surplus from one fund
year to another, the association must first notify the Commissioner of
the transfer.
3. The Commissioner shall order the association to make up any
deficiency pursuant to subsection 1 if the association fails to do so
within 30 days after notifying the Commissioner of the deficiency. The
association shall be deemed insolvent if it fails to:
(a) Collect an additional assessment from its members within 30
days after being ordered to do so by the Commissioner; or
(b) Make up the deficiency in any other manner within 60 days after
being ordered to do so by the Commissioner.
(Added to NRS by 1993, 677; A 2003, 3344 )
1. The Commissioner may issue an order requiring an association of
self-insured public or private employers or a member of the association
to cease and desist from engaging in any act or practice found to be in
violation of any provision of NRS 616B.350 to 616B.446 , inclusive, or any regulation adopted
pursuant thereto.
2. If the Commissioner determines that an association or a member
of the association has violated an order to cease and desist, the
Commissioner may impose an administrative fine of not more than $10,000
for each violation of the order, not to exceed an aggregate amount of
$100,000, or withdraw the certificate of the association, or both.
(Added to NRS by 1993, 678)—(Substituted in revision for NRS
616.37975)
1. The Commissioner may impose an administrative fine for each
violation of any provision of NRS 616B.350 to 616B.446 , inclusive, or any regulation adopted
pursuant thereto. Except as otherwise provided in those sections, the
amount of the fine may not exceed $1,000 for each violation or an
aggregate amount of $10,000.
2. The Commissioner may withdraw the certificate of an association
of self-insured public or private employers if:
(a) The association’s certificate was obtained by fraud;
(b) The application for certification contained a material
misrepresentation;
(c) The association is found to be insolvent;
(d) The association fails to have five or more members;
(e) The association fails to pay the costs of any examination or
any penalty, fee or assessment required by the provisions of chapters
616A to 616D ,
inclusive, or chapter 617 of NRS;
(f) The association fails to comply with any of the provisions of
this chapter or chapter 616A , 616C , 616D or 617 of NRS, or any regulation adopted pursuant thereto;
(g) The association fails to comply with any order of the
Commissioner within the time prescribed by the provisions of chapters
616A to 616D ,
inclusive, or chapter 617 of NRS or in the
order of the Commissioner; or
(h) The association or its third-party administrator
misappropriates, converts, illegally withholds or refuses to pay any
money to which a person is entitled and that was entrusted to the
association in its fiduciary capacity.
3. If the Commissioner withdraws the certification of an
association of self-insured public or private employers, each employer
who is a member of the association remains liable for his obligations
incurred before and after the order of withdrawal.
4. Any employer who is a member of an association whose
certification is withdrawn shall, on the effective date of the
withdrawal, qualify as an employer pursuant to NRS 616B.650 .
(Added to NRS by 1993, 678; A 1999, 217 )
1. Except as otherwise provided in NRS 616D.120 , before any action may be taken pursuant to
subsection 2, the Commissioner shall arrange an informal meeting with an
association of self-insured public or private employers to discuss and
seek correction of any conduct which would be grounds for withdrawal of
the certificate of the association.
2. Except as otherwise provided in subsection 3 and NRS 616D.120
, before the withdrawal of the
certificate of any association of self-insured public or private
employers, the Commissioner shall give written notice to the association
by certified mail that its certificate will be withdrawn 10 days after
receipt of the notice unless, within that time, the association corrects
the conduct set forth in the notice as the reason for the withdrawal or
submits a written request for a hearing to the Commissioner.
3. The Commissioner may grant additional time, not to exceed an
additional 120 days, before the withdrawal of the certificate of an
association if:
(a) The grounds for withdrawal of the certificate of the
association are based on paragraph (d) of subsection 2 of NRS 616B.428
; and
(b) The association is financially sound and capable of fulfilling
its commitments.
4. If the association requests a hearing:
(a) The Commissioner shall set a date for a hearing within 20 days
after receiving the request and give the association at least 10 business
days’ notice of the time and place of the hearing.
(b) A record of the hearing must be kept, but it need not be
transcribed unless requested by the association with the cost of
transcription to be charged to the association.
(c) Within 5 business days after the hearing, the Commissioner
shall either affirm or disaffirm the withdrawal and give the association
written notice thereof by certified mail. If withdrawal of certification
is affirmed, the withdrawal becomes effective 10 business days after the
association receives notice of the affirmance unless within that period
the association corrects the conduct which was grounds for the withdrawal
or petitions for judicial review of the affirmance.
5. If the withdrawal of certification is affirmed following
judicial review, the withdrawal becomes effective 5 days after entry of
the final decree of affirmance.
(Added to NRS by 1993, 679; A 1995, 1642, 1984; 1997, 576)
1. If for any reason the status of an association of self-insured
public or private employers as an association of self-insured employers
is terminated, the security deposited under NRS 616B.353 must remain on deposit for at least 36
months in such an amount as is necessary to secure the outstanding and
contingent liability arising from accidental injuries or occupational
diseases secured by the security, or to assure the payment of claims for
aggravation, payment of claims under NRS 616C.390 and payment of claims under NRS 616C.392
based on such accidental injuries or
occupational diseases.
2. At the expiration of the 36-month period, or such other period
as the Commissioner deems proper, the Commissioner may accept, in lieu of
any security so deposited, a policy of paid-up insurance in a form
approved by the Commissioner.
(Added to NRS by 1993, 679; A 2005, 1490 )
Any
association of self-insured public or private employers that is aggrieved
by a decision of the Commissioner may petition for judicial review in the
manner provided by chapter 233B of NRS.
(Added to NRS by 1993, 679)—(Substituted in revision for NRS
616.37987)
1. For the purposes of NRS 616B.350 to 616B.446 , inclusive, an association of self-insured
public or private employers is insolvent if it is unable to pay its
outstanding obligations as they mature in the regular course of its
business.
2. If an association of self-insured public or private employers
becomes insolvent, institutes any voluntary proceeding pursuant to the
Bankruptcy Act or is named in any voluntary proceeding thereunder, makes
a general or special assignment for the benefit of creditors or fails to
pay compensation pursuant to chapters 616A
to 616D , inclusive, or chapter 617 of NRS after an order for the payment of any claim
becomes final, the commissioner may, after giving at least 10 days’
notice to the association and any insurer or guarantor, use money or
interest on securities, sell securities or institute legal proceedings on
surety bonds deposited with the Commissioner to the extent necessary to
make those payments.
3. A licensed surety providing a surety bond pursuant to NRS
616B.353 may terminate liability on
its surety bond by giving the Commissioner and the association,
association’s administrator or third-party administrator 90 days’ written
notice. The termination does not limit liability that was incurred under
the surety bond before the termination. If the association fails to
requalify as an association of self-insured public or private employers
on or before the termination date, the association’s certificate is
withdrawn when the termination becomes effective.
(Added to NRS by 1993, 679; A 1995, 1985)—(Substituted in revision
for NRS 616.3799)
1. The Commissioner may assess all associations of self-insured
public or private employers to provide for claims against any insolvent
association.
2. All money received from such assessments must be deposited with
the State Treasurer to the credit of the Account for Insolvent
Associations of Self-Insured Public or Private Employers, which is hereby
created in the Fund for Workers’ Compensation and Safety. Money in the
Account must be used solely to carry out the provisions of this section.
All claims against the Account must be paid as other claims against the
State are paid. The State Treasurer shall invest money in the Account in
the same manner and in the same securities in which he may invest money
in the State General Fund. Income realized from the investment of the
money in the Account must be credited to the Account.
(Added to NRS by 1993, 680)—(Substituted in revision for NRS
616.37995)
The Commissioner may adopt such
regulations as are necessary to carry out the provisions of NRS 616B.350
to 616B.446 , inclusive.
(Added to NRS by 1993, 680)—(Substituted in revision for NRS
616.37997)
PRIVATE CARRIERS
1. An employer may elect to purchase industrial insurance from a
private carrier for his employees pursuant to chapters 616A to 617 , inclusive, of
NRS.
2. An employer who cancels a policy of industrial insurance to
elect to purchase insurance from an insurer other than his present
insurer shall comply with the reporting requirements of NRS 616B.461
.
(Added to NRS by 1995, 2000; A 1999, 1771 , 2414 ; 2001, 115 , 803 )
1. An employer who cancels a policy of industrial insurance issued
to him by a private carrier shall notify the Administrator in writing
within 20 days after the cancellation, specifying the date on which the
cancellation became effective, unless the employer’s subsequent insurer
is a private carrier who has already notified the Administrator pursuant
to subsection 2 that it has issued a new policy to that employer. The
notice must be served personally or sent by first-class mail or
electronic transmission to the Administrator. If the employer has secured
insurance with another insurer that could cause double coverage, the date
on which cancellation of the previous policy became effective must be the
effective date of the new insurance.
2. A private carrier shall notify the Administrator in writing
within 15 days after the private carrier:
(a) Issues a policy of industrial insurance.
(b) Renews a policy of industrial insurance.
(c) Reinstates a policy of industrial insurance that had been
temporarily cancelled.
(d) Cancels or does not renew a policy of industrial insurance.
3. If the Administrator believes that a private carrier has
inaccurately reported the information required pursuant to subsection 2
and notifies the private carrier of the alleged inaccuracy, the private
carrier shall within 30 calendar days after receiving the notification:
(a) Investigate the alleged inaccuracy; and
(b) Submit to the Administrator accurate information or information
proving that the previously submitted information was accurate.
4. During the period of investigation by the private carrier, the
Administrator may not impose any administrative fines, issue a notice of
correction or take any other corrective action against the private
carrier. If the private carrier is able to prove that the information
originally submitted to the Administrator or, if applicable, his
designated agent, was accurate, the Administrator may not impose any
administrative fines, issue a notice of correction or take any other
corrective action against the private carrier. As used in this
subsection, “designated agent” means an agent who is authorized by the
Administrator to receive, compile and forward to the Administrator the
information required pursuant to subsection 2.
(Added to NRS by 2001, 801 )
1. Before a private carrier may provide industrial insurance
pursuant to chapters 616A to 617 , inclusive, of NRS, the private carrier must be
authorized by the commissioner pursuant to chapter 680A of NRS and maintain such security of the kind
described in NRS 680A.120 and
680A.140 as may be required.
2. A private carrier shall not provide industrial insurance
pursuant to chapters 616A to 617 , inclusive, of NRS as an unauthorized insurer
pursuant to subsection 9 of NRS 680A.070 .
3. A private carrier that is authorized by the Commissioner to
provide industrial insurance pursuant to subsection 1:
(a) Constitutes an authorized insurer, as that term is defined in
NRS 679A.030 ; and
(b) Is subject to the provisions of title 57 of NRS that govern
authorized insurers.
(Added to NRS by 1995, 2001; A 1997, 286; 1999, 400 , 1722 )
If a private carrier
withdraws from providing industrial insurance in this State or its
authorization to do so is withdrawn, it remains responsible for all
compensation for injuries sustained during the period of coverage stated
in its policies.
(Added to NRS by 1995, 2002)
1. The Commissioner shall suspend the authorization of a private
carrier to provide industrial insurance for 1 year if, after a hearing
thereon, the Commissioner finds that the private carrier has
intentionally or repeatedly failed to comply with the provisions of
chapters 616A to 616D , inclusive, or chapter 617 of NRS or the regulations of the Division or the
Commissioner.
2. A hearing to determine whether the authorization of a private
carrier to provide industrial insurance will be suspended pursuant to
subsection 1 must be conducted by the Commissioner pursuant to the
provisions of NRS 679B.310 to
679B.370 , inclusive, the regulations
adopted pursuant thereto and the provisions of chapter 233B of NRS concerning adjudication of contested cases.
A record of the hearing must be kept but it need not be transcribed
unless requested by the private carrier. The cost of transcription must
be charged to the private carrier.
(Added to NRS by 1995, 2003; A 1997, 1432; 1999, 444 , 1722 )
The claims of
employees and their dependents resulting from injuries while in the
employment of employers insured by a private carrier must be handled in
the manner provided by chapters 616A to
616D , inclusive, of NRS, and the employer
and the private carrier are subject to the regulations of the Division
with respect thereto.
(Added to NRS by 1995, 2001)
THIRD-PARTY ADMINISTRATORS
1. An insurer may enter into a contract to have his plan of
insurance administered by a third-party administrator.
2. An insurer shall not enter into a contract with any person for
the administration of any part of the plan of insurance unless that
person maintains an office in this State and has a certificate issued by
the Commissioner pursuant to NRS 683A.08524 .
(Added to NRS by 1991, 2393; A 1993, 710; 1999, 1771 , 2821 , 2822 )
1. A person shall not act as a third-party administrator for an
insurer without a certificate issued by the Commissioner pursuant to NRS
683A.08524 .
2. A person who acts as a third-party administrator pursuant to
chapters 616A to 616D , inclusive, or chapter 617 of NRS shall:
(a) Administer from one or more offices located in this State all
of the claims arising under each plan of insurance that he administers
and maintain in those offices all of the records concerning those claims;
(b) Administer each plan of insurance directly, without
subcontracting with another third-party administrator; and
(c) Upon the termination of his contract with an insurer, transfer
forthwith to a certified third-party administrator chosen by the insurer
all of the records in his possession concerning claims arising under the
plan of insurance.
3. The Commissioner may, under exceptional circumstances, waive
the requirements of subsection 2.
(Added to NRS by 1991, 2392; A 1993, 711; 1999, 217 , 2821 )
The Commissioner shall impose an
administrative fine, not to exceed $1,000 for each violation, and may
withdraw the certification of any third-party administrator who:
1. Fails to comply with regulations of the Commissioner regarding
reports or other requirements necessary to carry out the purposes of
chapters 616A to 616D , inclusive, or chapter 617 of NRS; or
2. Violates any provision of NRS 616B.503 or any regulation adopted by the
Commissioner or the Administrator concerning the administration of the
plan of insurance.
(Added to NRS by 1991, 2393; A 1993, 711; 1999, 218 )
The Commissioner may adopt any
regulations that are necessary to carry out the provisions of NRS
616B.500 , 616B.503 and 616B.506 .
(Added to NRS by 1991, 2393)—(Substituted in revision for NRS
616.304)
ORGANIZATIONS FOR MANAGED CARE
1. A self-insured employer, an association of self-insured public
or private employers or a private carrier may:
(a) Except as otherwise provided in NRS 616B.5273 , enter into a contract or contracts with
one or more organizations for managed care to provide comprehensive
medical and health care services to employees for injuries and diseases
that are compensable pursuant to chapters 616A to 617 , inclusive, of
NRS.
(b) Enter into a contract or contracts with providers of health
care, including, without limitation, physicians who provide primary care,
specialists, pharmacies, physical therapists, radiologists, nurses,
diagnostic facilities, laboratories, hospitals and facilities that
provide treatment to outpatients, to provide medical and health care
services to employees for injuries and diseases that are compensable
pursuant to chapters 616A to 617 , inclusive, of NRS.
(c) Require employees to obtain medical and health care services
for their industrial injuries from those organizations and persons with
whom the self-insured employer, association or private carrier has
contracted pursuant to paragraphs (a) and (b), or as the self-insured
employer, association or private carrier otherwise prescribes.
(d) Except as otherwise provided in subsection 3 of NRS 616C.090
, require employees to obtain the
approval of the self-insured employer, association or private carrier
before obtaining medical and health care services for their industrial
injuries from a provider of health care who has not been previously
approved by the self-insured employer, association or private carrier.
2. An organization for managed care with whom a self-insured
employer, association of self-insured public or private employers or a
private carrier has contracted pursuant to this section shall comply with
the provisions of NRS 616B.528 ,
616B.5285 and 616B.529 .
(Added to NRS by 1993, 690; A 1993, 798; 1995, 2019; 1999, 1771
, 2213 ; 2001, 115 , 1891 ; 2003, 1670 )
1. A self-insured employer, an association of self-insured public
or private employers or a private carrier shall not enter into a contract
with an organization for managed care unless the organization’s proposed
plan for providing medical and health care services:
(a) Will provide all medical and health care services that may be
required for industrial injuries and occupational diseases that are
compensable under chapters 616A to 617
, inclusive, of NRS in a manner that ensures
the availability and accessibility of adequate treatment to injured
employees;
(b) Provides to injured employees an adequate choice of providers
of health care who have contracted with the organization to participate
in the proposed plan; and
(c) Provides appropriate financial incentives to reduce costs of
medical and health care services without affecting the quality of any
care provided to an injured employee.
2. The Division may adopt regulations to ensure the adequacy of an
insurer’s panel of providers of health care established pursuant to
subsection 1.
(Added to NRS by 2003, 1669 )
An
organization for managed care shall not restrict or interfere with any
communication between a provider of health care and an injured employee
regarding any information that the provider of health care determines is
relevant to the health care of the injured employee.
(Added to NRS by 1999, 2212 )
An organization for managed care shall not terminate a contract
with, demote, refuse to contract with or refuse to compensate a provider
of health care solely because the provider, in good faith:
1. Advocates in private or in public on behalf of an injured
employee;
2. Assists an injured employee in seeking reconsideration of a
determination by the organization for managed care to deny coverage for a
medical or health care service; or
3. Reports a violation of law to an appropriate authority.
(Added to NRS by 1999, 2212 )
1. An organization for managed care shall not offer or pay any
type of material inducement, bonus or other financial incentive to a
provider of health care to deny, reduce, withhold, limit or delay
specific medically necessary medical or health care services to an
injured employee.
2. The provisions of this section do not prohibit an arrangement
for payment between an organization for managed care and a provider of
health care that uses financial incentives, if the arrangement is
designed to provide an incentive to the provider of health care to use
medical and health care services effectively and consistently in the best
interest of the treatment of the injured employee.
(Added to NRS by 1999, 2213 )
SUBSEQUENT INJURY ACCOUNTS
Self-Insured Employers
As used in NRS 616B.545 to 616B.560 , inclusive, unless the context otherwise
requires, “Board” means the Board for the Administration of the
Subsequent Injury Account for Self-Insured Employers created pursuant to
NRS 616B.548 .
(Added to NRS by 1995, 2124; A 2001, 2757 )
1. There is hereby created the Board for the Administration of the
Subsequent Injury Account for Self-Insured Employers, consisting of five
members who are self-insured employers. The members must be appointed by
the Governor.
2. The members of the Board shall elect a Chairman and Vice
Chairman from among the members appointed. After the initial election of
a Chairman and Vice Chairman, each of those officers shall hold office
for a term of 2 years commencing on July 1 of each odd-numbered year. If
a vacancy occurs in the chairmanship or vice chairmanship, the members of
the Board shall elect a replacement for the remainder of the unexpired
term.
3. Vacancies on the Board must be filled in the same manner as
original appointments.
4. The members of the Board serve without compensation.
5. A legal counsel that has been appointed by or has contracted
with the Division pursuant to NRS 232.660 shall serve as legal counsel of the board.
(Added to NRS by 1995, 2124; A 2001, 2757 )
1. The members of the Board may meet throughout each year at the
times and places specified by a call of the Chairman or a majority of the
Board. The Board may prescribe rules and regulations for its own
management and government. Three members of the Board constitute a
quorum, and a quorum may exercise all the power and authority conferred
on the Board. If a member of the Board submits a claim against the
Subsequent Injury Account for Self-Insured Employers, that member shall
not vote on or otherwise participate in the decision of the Board
concerning that claim.
2. The Board shall administer the Subsequent Injury Account for
Self-Insured Employers in accordance with the provisions of NRS 616B.554
, 616B.557 and 616B.560 .
(Added to NRS by 1995, 2125; A 2001, 2758 )
1. There is hereby created in the Fund for Workers’ Compensation
and Safety in the State Treasury the Subsequent Injury Account for
Self-Insured Employers, which may be used only to make payments in
accordance with the provisions of NRS 616B.557 and 616B.560 . The Board shall administer the Account
based upon recommendations made by the Administrator pursuant to
subsection 8.
2. All assessments, penalties, bonds, securities and all other
properties received, collected or acquired by the Board for the
Subsequent Injury Account for Self-Insured Employers must be delivered to
the custody of the State Treasurer.
3. All money and securities in the Account must be held by the
State Treasurer as custodian thereof to be used solely for workers’
compensation for employees of self-insured employers.
4. The State Treasurer may disburse money from the Account only
upon written order of the Board.
5. The State Treasurer shall invest money of the Account in the
same manner and in the same securities in which he is authorized to
invest State General Funds which are in his custody. Income realized from
the investment of the assets of the Account must be credited to the Fund.
6. The Board shall adopt regulations for the establishment and
administration of assessment rates, payments and penalties. Assessment
rates must result in an equitable distribution of costs among the
self-insured employers and must be based upon expected annual
expenditures for claims for payments from the Subsequent Injury Account
for Self-Insured Employers.
7. The Commissioner shall assign an actuary to review the
establishment of assessment rates. The rates must be filed with the
Commissioner 30 days before their effective date. Any self-insured
employer who wishes to appeal the rate so filed must do so pursuant to
NRS 679B.310 .
8. The Administrator shall:
(a) Evaluate any claim submitted to the Board for payment or
reimbursement from the Subsequent Injury Account for Self-Insured
Employers and recommend to the Board any appropriate action to be taken
concerning the claim; and
(b) Submit to the Board any other recommendations relating to the
Account.
(Added to NRS by 1981, 1454; A 1987, 452; 1991, 207; 1993, 725,
1867; 1995, 531, 539, 2143, 2169, 2170; 1997, 127, 593; 1999, 1772 ; 2001, 2449 , 2758 )
Except as
otherwise provided in NRS 616B.560 :
1. If an employee of a self-insured employer has a permanent
physical impairment from any cause or origin and incurs a subsequent
disability by injury arising out of and in the course of his employment
which entitles him to compensation for disability that is substantially
greater by reason of the combined effects of the preexisting impairment
and the subsequent injury than that which would have resulted from the
subsequent injury alone, the compensation due must be charged to the
Subsequent Injury Account for Self-Insured Employers in accordance with
regulations adopted by the Board.
2. If the subsequent injury of such an employee results in his
death and it is determined that the death would not have occurred except
for the preexisting permanent physical impairment, the compensation due
must be charged to the Subsequent Injury Account for Self-Insured
Employers in accordance with regulations adopted by the Board.
3. As used in this section, “permanent physical impairment” means
any permanent condition, whether congenital or caused by injury or
disease, of such seriousness as to constitute a hindrance or obstacle to
obtaining employment or to obtaining reemployment if the employee is
unemployed. For the purposes of this section, a condition is not a
“permanent physical impairment” unless it would support a rating of
permanent impairment of 6 percent or more of the whole man if evaluated
according to the American Medical Association’s Guides to the Evaluation
of Permanent Impairment as adopted and supplemented by the Division
pursuant to NRS 616C.110 .
4. To qualify under this section for reimbursement from the
Subsequent Injury Account for Self-Insured Employers, the self-insured
employer must establish by written records that the self-insured employer
had knowledge of the “permanent physical impairment” at the time the
employee was hired or that the employee was retained in employment after
the self-insured employer acquired such knowledge.
5. A self-insured employer shall notify the Board of any possible
claim against the Subsequent Injury Account for Self-Insured Employers as
soon as practicable, but not later than 100 weeks after the injury or
death.
6. The Board shall adopt regulations establishing procedures for
submitting claims against the Subsequent Injury Account for Self-Insured
Employers. The Board shall notify the self-insured employer of his
decision on such a claim within 90 days after the claim is received.
7. An appeal of any decision made concerning a claim against the
Subsequent Injury Account for Self-Insured Employers must be submitted
directly to the district court.
(Added to NRS by 1973, 693; A 1979, 1050; 1981, 1477; 1985, 373;
1987, 453, 944; 1991, 362, 492, 502, 2414; 1993, 572, 620, 726, 727,
1868; 1995, 531, 541, 2144, 2169, 2170; 1997, 593; 2001, 2759 )
1. A self-insured employer who pays compensation due to an
employee who has a permanent physical impairment from any cause or origin
and incurs a subsequent disability by injury arising out of and in the
course of his employment which entitles him to compensation for
disability that is substantially greater by reason of the combined
effects of the preexisting impairment and the subsequent injury than that
which would have resulted from the subsequent injury alone is entitled to
be reimbursed from the Subsequent Injury Account for Self-Insured
Employers if:
(a) The employee knowingly made a false representation as to his
physical condition at the time he was hired by the self-insured employer;
(b) The self-insured employer relied upon the false representation
and this reliance formed a substantial basis of the employment; and
(c) A causal connection existed between the false representation
and the subsequent disability.
Ê If the subsequent injury of the employee results in his death and it is
determined that the death would not have occurred except for the
preexisting permanent physical impairment, any compensation paid is
entitled to be reimbursed from the Subsequent Injury Account for
Self-Insured Employers.
2. A self-insured employer shall notify the Board of any possible
claim against the Subsequent Injury Account for Self-Insured Employers
pursuant to this section no later than 60 days after the date of the
subsequent injury or the date the self-insured employer learns of the
employee’s false representation, whichever is later.
(Added to NRS by 1987, 452; A 1993, 572, 728; 1995, 2145; 1997,
593; 2001, 2759 )
Associations of Self-Insured Public or Private Employers
As used in NRS 616B.563 to 616B.581 , inclusive, unless the context otherwise
requires, “Board” means the Board for the Administration of the
Subsequent Injury Account for Associations of Self-Insured Public or
Private Employers created pursuant to NRS 616B.569 .
(Added to NRS by 1995, 2125; A 2001, 2760 )
1. There is hereby created the Board for the Administration of the
Subsequent Injury Account for Associations of Self-Insured Public or
Private Employers, consisting of five members who are members of an
association of self-insured public or private employers. The members of
the Board must be appointed by the Governor.
2. The members of the Board shall elect a Chairman and Vice
Chairman from among the members appointed. After the initial election of
a Chairman and Vice Chairman, each of those officers shall hold office
for a term of 2 years commencing on July 1 of each odd-numbered year. If
a vacancy occurs in the chairmanship or vice chairmanship, the members of
the Board shall elect a replacement for the remainder of the unexpired
term.
3. Vacancies on the Board must be filled in the same manner as
original appointments.
4. The members of the Board serve without compensation.
5. A legal counsel that has been appointed by or has contracted
with the Division pursuant to NRS 232.660 shall serve as legal counsel of the Board.
(Added to NRS by 1995, 2125; A 2001, 2760 )
1. The members of the Board may meet throughout each year at the
times and places specified by a call of the Chairman or a majority of the
Board. The Board may prescribe rules and regulations for its own
management and government. Three members of the Board constitute a
quorum, and a quorum may exercise all the power and authority conferred
on the Board. If a member of the Board submits a claim against the
Subsequent Injury Account for Associations of Self-Insured Public or
Private Employers, that member shall not vote on or otherwise participate
in the decision of the Board concerning that claim.
2. The Board shall administer the Subsequent Injury Account for
Associations of Self-Insured Public or Private Employers in accordance
with the provisions of NRS 616B.575 ,
616B.578 and 616B.581 .
(Added to NRS by 1995, 2125; A 1997, 593; 2001, 2760 )
1. There is hereby created in the Fund for Workers’ Compensation
and Safety in the State Treasury the Subsequent Injury Account for
Associations of Self-Insured Public or Private Employers, which may be
used only to make payments in accordance with the provisions of NRS
616B.578 and 616B.581 . The Board shall administer the Account
based upon recommendations made by the Administrator pursuant to
subsection 8.
2. All assessments, penalties, bonds, securities and all other
properties received, collected or acquired by the Board for the
Subsequent Injury Account for Associations of Self-Insured Public or
Private Employers must be delivered to the custody of the State Treasurer.
3. All money and securities in the Account must be held by the
State Treasurer as custodian thereof to be used solely for workers’
compensation for employees of members of Associations of Self-Insured
Public or Private Employers.
4. The State Treasurer may disburse money from the Account only
upon written order of the Board.
5. The State Treasurer shall invest money of the Account in the
same manner and in the same securities in which he is authorized to
invest State General Funds which are in his custody. Income realized from
the investment of the assets of the Account must be credited to the
Account.
6. The Board shall adopt regulations for the establishment and
administration of assessment rates, payments and penalties. Assessment
rates must result in an equitable distribution of costs among the
associations of self-insured public or private employers and must be
based upon expected annual expenditures for claims for payments from the
Subsequent Injury Account for Associations of Self-Insured Public or
Private Employers.
7. The Commissioner shall assign an actuary to review the
establishment of assessment rates. The rates must be filed with the
Commissioner 30 days before their effective date. Any association of
self-insured public or private employers that wishes to appeal the rate
so filed must do so pursuant to NRS 679B.310 .
8. The Administrator shall:
(a) Evaluate any claim submitted to the Board for payment or
reimbursement from the Subsequent Injury Account for Associations of
Self-Insured Public or Private Employers and recommend to the Board any
appropriate action to be taken concerning the claim; and
(b) Submit to the Board any other recommendations relating to the
Account.
(Added to NRS by 1995, 2126; A 1997, 128; 1999, 1773 ; 2001, 2450 , 2761 )
Except as otherwise provided
in NRS 616B.581 :
1. If an employee of a member of an association of self-insured
public or private employers has a permanent physical impairment from any
cause or origin and incurs a subsequent disability by injury arising out
of and in the course of his employment which entitles him to compensation
for disability that is substantially greater by reason of the combined
effects of the preexisting impairment and the subsequent injury than that
which would have resulted from the subsequent injury alone, the
compensation due must be charged to the Subsequent Injury Account for
Associations of Self-Insured Public or Private Employers in accordance
with regulations adopted by the Board.
2. If the subsequent injury of such an employee results in his
death and it is determined that the death would not have occurred except
for the preexisting permanent physical impairment, the compensation due
must be charged to the Subsequent Injury Account for Associations of
Self-Insured Public or Private Employers in accordance with regulations
adopted by the Board.
3. As used in this section, “permanent physical impairment” means
any permanent condition, whether congenital or caused by injury or
disease, of such seriousness as to constitute a hindrance or obstacle to
obtaining employment or to obtaining reemployment if the employee is
unemployed. For the purposes of this section, a condition is not a
“permanent physical impairment” unless it would support a rating of
permanent impairment of 6 percent or more of the whole man if evaluated
according to the American Medical Association’s Guides to the Evaluation
of Permanent Impairment as adopted and supplemented by the Division
pursuant to NRS 616C.110 .
4. To qualify under this section for reimbursement from the
Subsequent Injury Account for Associations of Self-Insured Public or
Private Employers, the association of self-insured public or private
employers must establish by written records that the employer had
knowledge of the “permanent physical impairment” at the time the employee
was hired or that the employee was retained in employment after the
employer acquired such knowledge.
5. An association of self-insured public or private employers
shall notify the Board of any possible claim against the Subsequent
Injury Account for Associations of Self-Insured Public or Private
Employers as soon as practicable, but not later than 100 weeks after the
injury or death.
6. The Board shall adopt regulations establishing procedures for
submitting claims against the Subsequent Injury Account for Associations
of Self-Insured Public or Private Employers. The Board shall notify the
Association of Self-Insured Public or Private Employers of its decision
on such a claim within 90 days after the claim is received.
7. An appeal of any decision made concerning a claim against the
Subsequent Injury Account for Associations of Self-Insured Public or
Private Employers must be submitted directly to the district court.
(Added to NRS by 1995, 2126; A 2001, 2761 )
1. An association of self-insured public or private employers that
pays compensation due to an employee who has a permanent physical
impairment from any cause or origin and incurs a subsequent disability by
injury arising out of and in the course of his employment which entitles
him to compensation for disability that is substantially greater by
reason of the combined effects of the preexisting impairment and the
subsequent injury than that which would have resulted from the subsequent
injury alone is entitled to be reimbursed from the Subsequent Injury
Account for Associations of Self-Insured Public or Private Employers if:
(a) The employee knowingly made a false representation as to his
physical condition at the time he was hired by the member of the
Association of Self-Insured Public or Private Employers;
(b) The employer relied upon the false representation and this
reliance formed a substantial basis of the employment; and
(c) A causal connection existed between the false representation
and the subsequent disability.
Ê If the subsequent injury of the employee results in his death and it is
determined that the death would not have occurred except for the
preexisting permanent physical impairment, any compensation paid is
entitled to be reimbursed from the Subsequent Injury Account for
Associations of Self-Insured Public or Private Employers.
2. An association of self-insured public or private employers
shall notify the Board of any possible claim against the Subsequent
Injury Account for Associations of Self-Insured Public or Private
Employers pursuant to this section no later than 60 days after the date
of the subsequent injury or the date the employer learns of the
employee’s false representation, whichever is later.
(Added to NRS by 1995, 2127; A 2001, 2762 )
Private Carriers
1. There is hereby created in the Fund for Workers’ Compensation
and Safety in the State Treasury the Subsequent Injury Account for
Private Carriers, which may be used only to make payments in accordance
with the provisions of NRS 616B.587
and 616B.590 . The Administrator shall
administer the Account.
2. All assessments, penalties, bonds, securities and all other
properties received, collected or acquired by the Administrator for the
Subsequent Injury Account for Private Carriers must be delivered to the
custody of the State Treasurer.
3. All money and securities in the Account must be held by the
State Treasurer as custodian thereof to be used solely for workers’
compensation for employees whose employers are insured by private
carriers.
4. The State Treasurer may disburse money from the Account only
upon written order of the State Controller.
5. The State Treasurer shall invest money of the Account in the
same manner and in the same securities in which he is authorized to
invest State General Funds which are in his custody. Income realized from
the investment of the assets of the Account must be credited to the
Account.
6. The Administrator shall adopt regulations for the establishment
and administration of assessment rates, payments and penalties.
Assessment rates must reflect the relative hazard of the employments
covered by private carriers, must result in an equitable distribution of
costs among the private carriers and must be based upon expected annual
premiums to be received.
7. The Commissioner shall assign an actuary to review the
establishment of assessment rates. The rates must be filed with the
Commissioner 30 days before their effective date. Any private carrier who
wishes to appeal the rate so filed must do so pursuant to NRS 679B.310
.
(Added to NRS by 1995, 2124; A 1997, 593, 596; 1999, 399 , 1773 ; 2001, 2451 , 2763 )
Except as otherwise provided in NRS 616B.590 :
1. If an employee of an employer who is insured by a private
carrier has a permanent physical impairment from any cause or origin and
incurs a subsequent disability by injury arising out of and in the course
of his employment which entitles him to compensation for disability that
is substantially greater by reason of the combined effects of the
preexisting impairment and the subsequent injury than that which would
have resulted from the subsequent injury alone, the compensation due must
be charged to the Subsequent Injury Account for Private Carriers in
accordance with regulations adopted by the Administrator.
2. If the subsequent injury of such an employee results in his
death and it is determined that the death would not have occurred except
for the preexisting permanent physical impairment, the compensation due
must be charged to the Subsequent Injury Account for Private Carriers in
accordance with regulations adopted by the Administrator.
3. As used in this section, “permanent physical impairment” means
any permanent condition, whether congenital or caused by injury or
disease, of such seriousness as to constitute a hindrance or obstacle to
obtaining employment or to obtaining reemployment if the employee is
unemployed. For the purposes of this section, a condition is not a
“permanent physical impairment” unless it would support a rating of
permanent impairment of 6 percent or more of the whole man if evaluated
according to the American Medical Association’s Guides to the Evaluation
of Permanent Impairment as adopted and supplemented by the Division
pursuant to NRS 616C.110 .
4. To qualify under this section for reimbursement from the
Subsequent Injury Account for Private Carriers, the private carrier must
establish by written records that the employer had knowledge of the
“permanent physical impairment” at the time the employee was hired or
that the employee was retained in employment after the employer acquired
such knowledge.
5. A private carrier shall notify the Administrator of any
possible claim against the Subsequent Injury Account for Private Carriers
as soon as practicable, but not later than 100 weeks after the injury or
death.
6. The Administrator shall adopt regulations establishing
procedures for submitting claims against the Subsequent Injury Account
for Private Carriers. The Administrator shall notify the private carrier
of his decision on such a claim within 90 days after the claim is
received.
7. An appeal of any decision made concerning a claim against the
Subsequent Injury Account for Private Carriers must be submitted directly
to the appeals officer. The appeals officer shall hear such an appeal
within 45 days after the appeal is submitted to him.
(Added to NRS by 1995, 2124; A 1997, 593, 596; 2001, 2763 )
1. A private carrier who pays compensation due to an employee who
has a permanent physical impairment from any cause or origin and incurs a
subsequent disability by injury arising out of and in the course of his
employment which entitles him to compensation for disability that is
substantially greater by reason of the combined effects of the
preexisting impairment and the subsequent injury than that which would
have resulted from the subsequent injury alone is entitled to be
reimbursed from the Subsequent Injury Account for Private Carriers if:
(a) The employee knowingly made a false representation as to his
physical condition at the time he was hired by the employer insured by a
private carrier;
(b) The employer relied upon the false representation and this
reliance formed a substantial basis of the employment; and
(c) A causal connection existed between the false representation
and the subsequent disability.
Ê If the subsequent injury of the employee results in his death and it is
determined that the death would not have occurred except for the
preexisting permanent physical impairment, any compensation paid is
entitled to be reimbursed from the Subsequent Injury Account for Private
Carriers.
2. A private carrier shall notify the Administrator of any
possible claim against the Subsequent Injury Account for Private Carriers
pursuant to this section no later than 60 days after the date of the
subsequent injury or the date the employer learns of the employee’s false
representation, whichever is later.
(Added to NRS by 1995, 2124; A 1997, 593, 596; 2001, 2764 )
LIABILITY FOR PROVISION OF COVERAGE
Applicability
1. Except as limited in subsection 3, any employee who has been
hired outside of this State and his employer are exempted from the
provisions of chapters 616A to 616D , inclusive, and chapter 617 of NRS while the employee is temporarily within this
State doing work for his employer if his employer has furnished
industrial insurance pursuant to the Nevada Industrial Insurance Act or
similar laws of a state other than Nevada so as to cover the employee’s
employment while in this State if:
(a) The extraterritorial provisions of chapters 616A to 616D , inclusive,
and chapter 617 of NRS are recognized in the
other state; and
(b) Employers and employees who are covered in this State are
likewise exempted from the application of the Nevada Industrial Insurance
Act or similar laws of the other state.
Ê The benefits provided in the Nevada Industrial Insurance Act or similar
laws of the other state are the exclusive remedy against the employer for
any injury, whether resulting in death or not, received by the employee
while working for the employer in this State.
2. A certificate from the Administrator or similar officer of
another state certifying that the employer of the other state is insured
therein and has provided extraterritorial coverage insuring his employees
while working within this State is prima facie evidence that the employer
carried the industrial insurance.
3. The exemption provided for in this section does not apply to
the employees of a contractor, as defined in NRS 624.020 , operating within the scope of his license.
4. An employer is not required to maintain coverage for industrial
insurance in this State for an employee who has been hired or is
regularly employed in this State, but who is performing work exclusively
in another state, if the other state requires the employer to provide
coverage for the employee in the other state. If the employee receives
personal injury by accident arising out of and in the course of his
employment, any claim for compensation must be filed in the state in
which the accident occurred, and such compensation is the exclusive
remedy of the employee or his dependents. This subsection does not
prevent an employer from maintaining coverage for the employee pursuant
to the provisions of chapters 616A to 616D
, inclusive, and chapter 617 of NRS.
[Part 74:168:1947; A 1955, 187]—(NRS A 1981, 1464; 1989, 578, 682;
1993, 325; 1995, 2015; 1999, 218 )
1. A person is not an employer for the purposes of chapters 616A
to 616D ,
inclusive, of NRS if:
(a) He enters into a contract with another person or business which
is an independent enterprise; and
(b) He is not in the same trade, business, profession or occupation
as the independent enterprise.
2. As used in this section, “independent enterprise” means a
person who holds himself out as being engaged in a separate business and:
(a) Holds a business or occupational license in his own name; or
(b) Owns, rents or leases property used in furtherance of his
business.
3. The provisions of this section do not apply to:
(a) A principal contractor who is licensed pursuant to chapter 624
of NRS.
(b) A real estate broker who has a broker-salesman or salesman
associated with him pursuant to NRS 645.520 .
4. The Administrator may adopt such regulations as are necessary
to carry out the provisions of this section.
(Added to NRS by 1991, 2392; A 1995, 2136)—(Substituted in revision
for NRS 616.262)
Any person licensed pursuant to the provisions of
chapter 645 of NRS who engages an independent
contractor to maintain or repair property on behalf of an individual
property owner or an association of property owners is not a statutory
employer for the purposes of chapters 616A
to 616D , inclusive, of NRS.
(Added to NRS by 1987, 450)—(Substituted in revision for NRS
616.263)
1. Except as otherwise provided in subsection 2:
(a) A contract of employment, insurance, relief benefit, indemnity,
or any other device, does not modify, change or waive any liability
created by chapters 616A to 616D , inclusive, of NRS.
(b) A contract of employment, insurance, relief benefit, indemnity,
or any other device, having for its purpose the waiver or modification of
the terms or liability created by chapters 616A to 616D , inclusive,
of NRS is void.
2. Nothing in this section prevents an owner or lessor of real
property from requiring an employer who is leasing the real property from
agreeing to insure the owner or lessor of the property against any
liability for repair or maintenance of the premises.
[25:168:1947; 1943 NCL § 2680.25]—(NRS A 1989, 1245)—(Substituted
in revision for NRS 616.265)
1. Every employer within the provisions of chapters 616A to 616D , inclusive,
or 617 of NRS, and those employers who accept
the terms of those chapters and are governed by their provisions, shall
provide and secure compensation according to the terms, conditions and
provisions of those chapters for any personal injuries by accident
sustained by an employee arising out of and in the course of the
employment.
2. A contractor or subcontractor shall be deemed to have provided
and secured compensation for his employees as required pursuant to
subsection 1 to the extent that those employees are covered by a
consolidated insurance program.
3. Travel for which an employee receives wages shall, for the
purposes of chapters 616A to 616D , inclusive, of NRS, be deemed in the course of
employment.
4. In such cases the employer or any insurer of the employer is
relieved from other liability for recovery of damages or other
compensation for those personal injuries unless otherwise provided by the
terms of chapters 616A to 616D , inclusive, of NRS.
[26:168:1947; 1943 NCL § 2680.26]—(NRS A 1971, 2058; 1995, 2016;
1999, 1723 , 3146 )
1. An employer who is certified as a self-insured employer
directly assumes the responsibility for providing compensation due his
employees and their beneficiaries under chapters 616A to 617 , inclusive, of
NRS.
2. A self-insured employer is not required to pay the premiums
required of other employers pursuant to chapters 616A to 617 , inclusive, of
NRS but is relieved from other liability for personal injury to the same
extent as are other employers.
3. The claims of employees and their beneficiaries resulting from
injuries while in the employment of self-insured employers must be
handled in the manner provided by chapters 616A to 616D , inclusive,
of NRS, and the self-insured employer is subject to the regulations of
the Division with respect thereto.
4. The security deposited pursuant to NRS 616B.300 does not relieve that employer from
responsibility for the administration of claims and payment of
compensation under chapters 616A to 616D
, inclusive, of NRS.
(Added to NRS by 1979, 1035; A 1981, 1465; 1993, 1862)—(Substituted
in revision for NRS 616.272)
Except as otherwise provided in subsection 4 of NRS
616B.627 , when the State or a county,
city, school district, metropolitan police department, or other political
subdivision, or a contractor under such a governmental entity is the
employer, the provisions of chapters 616A
to 616D , inclusive, of NRS for the payment
of compensation and the amount thereof for any injury sustained by an
employee are conclusive, compulsory and obligatory upon both employer and
employee without regard to the number of persons in the service of any
such employer.
[28:168:1947; 1943 NCL § 2680.28]—(NRS A 1973, 926; 1985, 665;
1993, 710; 1995, 2016; 2001, 608 )
1. In case of injury, coverage by industrial insurance must be
provided for trainees while enrolled in a rehabilitation facility
operated by the Rehabilitation Division of the Department of Employment,
Training and Rehabilitation, related to evaluation, treatment, training,
surgical apparatuses or medications.
2. The Director of the Department of Employment, Training and
Rehabilitation shall make payments to the insurer on all trainees
enrolled in a rehabilitation facility operated by the Rehabilitation
Division of the Department of Employment, Training and Rehabilitation in
this State at the rate approved by the Commissioner and based on a wage
of $200 per month per trainee.
3. Payments must be made from the Account for Rehabilitation
Facilities of the Rehabilitation Division of the Department of
Employment, Training and Rehabilitation.
(Added to NRS by 1965, 91; A 1967, 833; 1973, 1406; 1981, 1465;
1987, 425; 1993, 1862; 1995, 2016)—(Substituted in revision for NRS
616.277)
1. If a quasi-public or private corporation or a limited-liability
company is required to be insured pursuant to chapters 616A to 616D , inclusive,
of NRS, an officer of the corporation or a manager of the company who:
(a) Receives pay for services performed as an officer, manager or
employee of the corporation or company shall be deemed for the purposes
of those chapters to receive a minimum pay of $6,000 per policy year and
a maximum pay of $36,000 per policy year.
(b) Does not receive pay for services performed as an officer,
manager or employee of the corporation or company shall be deemed for the
purposes of those chapters to receive a minimum pay of $500 per month or
$6,000 per policy year.
2. An officer or manager who does not receive pay for services
performed as an officer, manager or employee of the corporation or
company may elect to reject coverage for himself by filing written notice
thereof with the corporation or company and the insurer. The rejection is
effective upon receipt of the notice by the insurer.
3. An officer or manager of such a corporation or company who:
(a) Owns the corporation or company; and
(b) Receives pay for the services performed,
Ê may elect to reject coverage for himself by filing written notice
thereof with the insurer. The rejection is effective upon receipt of the
notice by the insurer.
4. An officer or manager who has rejected coverage may rescind
that rejection by filing written notice thereof with the corporation or
company and the insurer. The rescission is effective upon receipt of the
notice by the insurer. Except as otherwise provided in subsection 3, if
an officer or manager who has rejected coverage receives pay for services
performed as an officer, manager or employee of the corporation or
company, the officer or manager shall be deemed to have rescinded that
rejection.
5. A nonprofit corporation whose officers do not receive pay for
services performed as officers or employees of the corporation may elect
to reject coverage for its current officers and all future officers who
do not receive such pay by filing written notice thereof with the
corporation and the insurer. The rejection is effective upon receipt of
the notice by the insurer.
6. A nonprofit corporation which has rejected coverage for its
officers who do not receive pay for services performed as officers or
employees of the corporation may rescind that rejection by filing written
notice thereof with the corporation and the insurer. The rescission is
effective upon receipt of the notice by the insurer. If an officer of a
nonprofit corporation which has rejected coverage receives pay for
services performed as an officer or employee of the corporation, the
corporation shall be deemed to have rescinded that rejection.
(Added to NRS by 1987, 597; A 1991, 803; 1993, 41; 1995, 2016,
2136, 2167; 1997, 579, 1499, 1500; 1999, 454 , 1723 ; 2001, 608 , 2451 ; 2003, 1585 )
1. Except as otherwise provided in this section, before any
person, firm or corporation commences work under any contract with the
State or any political subdivision thereof, or a metropolitan police
department, the contractor shall furnish to the state agency, political
subdivision or metropolitan police department having charge of the
letting of the contract a certificate of the insurer certifying that the
contractor has complied with the provisions of chapters 616A to 616D , inclusive,
of NRS. A state agency, political subdivision or metropolitan police
department may furnish coverage for industrial insurance for a contractor
as specified in the contract.
2. In lieu of furnishing a certificate of an insurer pursuant to
the provisions of subsection 1, a sole proprietor who does not use the
services of his employees, if any, in the performance of a contract with
the State or any political subdivision thereof, or a metropolitan police
department, may submit to a state agency, political subdivision or
metropolitan police department specified in subsection 1 an affidavit
indicating that the sole proprietor:
(a) In accordance with the provisions of NRS 616B.659 , has not elected to be included within the
terms, conditions and provisions of chapters 616A to 616D , inclusive,
of NRS; and
(b) Is otherwise in compliance with those terms, conditions and
provisions.
3. If a sole proprietor submits an affidavit specified in
subsection 2 to a state agency, political subdivision or metropolitan
police department specified in subsection 1, the state agency, political
subdivision or metropolitan police department shall not require the sole
proprietor to obtain industrial insurance for himself during any period
in which he performs work under the contract for which he submitted the
affidavit.
4. A state agency, political subdivision or metropolitan police
department that lets a contract to a sole proprietor in accordance with
this section:
(a) Must not, for any purpose, be considered to be the employer of
the sole proprietor or his employees, if any; and
(b) Is not liable as a principal contractor to the sole proprietor
or his employees, if any, for any compensation or other damages as a
result of an industrial injury or occupational disease incurred in the
performance of the contract.
[29:168:1947; 1943 NCL § 2680.29]—(NRS A 1973, 927; 1981, 1465;
1985, 665; 1993, 549; 2001, 609 )
1. The Administrator shall, not later than 10 days after receiving
notice from the advisory organization that a contractor’s coverage has
lapsed, notify the State Contractors’ Board of that fact.
2. The Commissioner shall notify the Administrator and the State
Contractors’ Board within 10 days after a contractor’s certificate of
qualification as a self-insured employer is cancelled or withdrawn or he
is no longer a member of an association of self-insured public or private
employers.
(Added to NRS by 1983, 541; A 1993, 710; 1995, 2017; 1997, 1434;
2005, 1490 )
Where an employer has in his service any employee under a
contract of hire, except as otherwise expressly provided in chapters 616A
to 616D ,
inclusive, of NRS, the terms, conditions and provisions of those chapters
are conclusive, compulsory and obligatory upon both employer and employee.
[30:168:1947; A 1949, 659; 1951, 485]—(NRS A 1973, 599; 1975, 1018;
1995, 2017)—(Substituted in revision for NRS 616.285)
1. If any employer within the provisions of NRS 616B.633 fails to provide and secure compensation
under chapters 616A to 616D , inclusive, of NRS, any injured employee or his
dependents may bring an action at law against the employer for damages as
if those chapters did not apply.
2. The injured employee or his dependents may in such an action
attach the property of the employer at any time upon or after the
institution of the action, in an amount fixed by the court, to secure the
payment of any judgment which is ultimately obtained. The provisions of
chapters 31 and 71 of NRS govern the issuance of, and proceedings upon,
the attachment.
3. In such an action, the employer does not escape liability for
personal injury or accident sustained by the employee, when the injury
sustained arises out of and in the course of the employment, because:
(a) The employee assumed the risks:
(1) Inherent or incidental to, or arising out of his
employment;
(2) Arising from the failure of the employer to provide and
maintain a reasonably safe place to work; or
(3) Arising from the failure of the employer to furnish
reasonably safe tools, motor vehicles or appliances.
(b) The employer exercised reasonable care in selecting reasonably
competent employees in the business.
(c) The injury was caused by the negligence of a coemployee.
(d) The employee was negligent, unless it appears that such
negligence was willful and with intent to cause injury or the injured
party was intoxicated.
Ê In such cases it is presumed that the injury to the employee was the
result of the negligence of the employer and that such negligence was the
proximate cause of the injury, and the burden of proof rests upon the
employer to rebut the presumption of negligence.
[31:168:1947; 1943 NCL § 2680.31]—(NRS A 1960, 154; 1975, 1020;
1991, 2408)—(Substituted in revision for NRS 616.375)
1. A principal contractor is not liable for the payment of
compensation for any industrial injury to any independent contractor or
any employee of an independent contractor if:
(a) The contract between the principal contractor and the
independent contractor is in writing and the contract provides that the
independent contractor agrees to maintain coverage for industrial
insurance pursuant to chapters 616A to 616D
, inclusive, of NRS;
(b) Proof of such coverage is provided to the principal contractor;
(c) The principal contractor is not engaged in any construction
project; and
(d) The independent contractor is not in the same trade, business,
profession or occupation as the principal contractor.
2. The Administrator may adopt such regulations as are necessary
to carry out the provisions of this section.
(Added to NRS by 1991, 2392)—(Substituted in revision for NRS
616.286)
An owner of property who is not
acting as a principal contractor may not be held liable for any payment,
in excess of any remaining money retained by him to assure payments under
chapters 616A to 616D , inclusive, of NRS, of costs relating to
industrial insurance required to be paid by his principal contractor or
any subcontractor, should the principal contractor or subcontractor
default or otherwise be unable to pay for the required insurance.
(Added to NRS by 1987, 449)—(Substituted in revision for NRS
616.287)
1. To determine his obligation to pay premiums for industrial
insurance on behalf of his subcontractors and independent contractors and
their employees, a principal contractor or owner of property acting as a
principal contractor may request the appropriate insurer to:
(a) Provide him with a statement certifying whether:
(1) Each of the subcontractors and independent contractors
working in his project is insured; and
(2) Each sole proprietor who is a subcontractor or
independent contractor has elected coverage for himself pursuant to
chapters 616A to 617 , inclusive, of NRS.
(b) During the course of the project, notify him whenever any of
the subcontractors or independent contractors fail to pay premiums or
otherwise maintain industrial insurance.
2. Upon completion of the project, the principal contractor or
owner may request the insurer to certify that each subcontractor or
independent contractor who was previously reported by the insurer as
having coverage for industrial insurance has maintained it by paying all
premiums due throughout the entire course of the project. The insurer
shall, within 60 days after receiving such a request, issue:
(a) A final certificate which states that each such subcontractor
and independent contractor has paid in full all premiums due for the
project and that the principal contractor or owner is relieved of all
liability for payment of any additional premiums related to the
particular project; or
(b) A letter denying the issuance of a final certificate related to
the project. Such a letter may be issued if a subcontractor or
independent contractor:
(1) Is delinquent in the payment of premiums due on the
project;
(2) Has left the State;
(3) Is uncooperative in a required audit of his records;
(4) Is principally located out of State and an audit is
required;
(5) Is delinquent in his submission of his records relating
to his payroll;
(6) Has closed his account with the insurer and premiums are
due;
(7) Has failed to submit required information to the insurer;
(8) Is protesting the results of a required audit;
(9) Elected not to insure himself; or
(10) Has committed any other action which, in the opinion of
the insurer, may result in his failure to pay all premiums due.
3. If the insurer does not issue a final certificate or letter
denying the issuance of the certificate within 60 days after receiving a
request therefor, a final certificate shall be deemed to have been issued.
(Added to NRS by 1987, 449; A 1995, 2017)—(Substituted in revision
for NRS 616.288)
Election of Coverage
1. Where the employer, as provided in chapters 616A to 616D , inclusive,
of NRS, has given notice of an election to accept the terms of those
chapters, and the employee has not given notice of an election to reject
the terms of those chapters, the employer shall provide and secure, and
the employee shall accept, compensation in the manner provided in those
chapters for all personal injuries sustained arising out of and in the
course of the employment.
2. Every employer electing to be governed by the provisions of
chapters 616A to 616D , inclusive, of NRS, before becoming entitled to
receive the benefits of those chapters, must comply with all conditions
and provisions of those chapters during the period of his election.
3. Failure on the part of any employer to provide industrial
insurance as required by the provisions of chapters 616A to 616D , inclusive,
of NRS operates as a rejection of the terms of those chapters. If an
employer rejects those chapters, or any of their terms, the employer
shall post a notice of rejection of the terms of those chapters upon his
premises in a conspicuous place. The employer at all times shall maintain
the notice or notices so provided for the information of his employees.
[Part 36:168:1947; 1943 NCL § 2680.36]—(NRS A 1979, 1045; 1993,
711; 1995, 2019)—(Substituted in revision for NRS 616.305)
1. A lessee engaged in either mining or operating a reduction
plant whose employer is within the provisions of chapters 616A to 616D , inclusive,
of NRS, must be reported by the employer separately from persons employed
at a daily wage, and the report must describe briefly:
(a) The agreement under which the work is to be performed;
(b) The aggregate number of shifts worked during the preceding
month; and
(c) The total amount earned by lessees, computed on the average
daily wages of workmen engaged in like work in the same locality.
Ê Otherwise the payroll reports and premium payments on earnings of
lessees described in this section are governed by the requirements of
chapters 616A to 616D , inclusive, of NRS regarding employees engaged at
a regular wage.
2. If such a lessee files with the Administrator and the insurer
an acceptance of the provisions of chapters 616A to 616D , inclusive,
of NRS and, if applicable, pays the premiums in advance upon the
estimated earnings of himself and any workmen he may employ, the lessor
is relieved of this obligation.
[16:168:1947; 1943 NCL § 2680.16]—(NRS A 1967, 1369; 1975, 619,
1019; 1977, 236; 1981, 1467; 1987, 598; 1995, 2020)—(Substituted in
revision for NRS 616.310)
1. An employer in this State having in his employment any employee
excluded from the benefits of chapters 616A
to 616D , inclusive, of NRS pursuant to NRS
616A.110 may elect to cover such
employees under the provisions of those chapters in the manner provided
in this section.
2. The election on the part of the employer must be made by filing
with the Administrator and the insurer a written statement that he
accepts the provisions of chapters 616A to
616D , inclusive, of NRS which, when filed,
operates to subject him to the provisions of those chapters until the
employer files with the Administrator and the insurer a notice in writing
that he withdraws his election.
3. An employee in the service of any such employer shall be deemed
to have accepted, and is subject to, the provisions of chapters 616A
to 616D ,
inclusive, of NRS if, at the time of the accident for which compensation
is claimed:
(a) The employer charged with liability is subject to the
provisions of those chapters, whether or not the employee has actual
notice thereof; and
(b) The employee has not given to his employer and to the
Administrator and the insurer notice in writing that he elects to reject
the provisions of those chapters.
4. An employee who has rejected the provisions of chapters 616A
to 616D ,
inclusive, of NRS may at any time thereafter elect to waive the rejection
by giving notice in writing to his employer and to the Administrator and
the insurer which becomes effective when filed with the Administrator and
the insurer.
[Part 37:168:1947; 1943 NCL § 2680.37]—(NRS A 1957, 209; 1975,
1019; 1981, 1467; 1987, 655; 1993, 711; 1995, 2020)—(Substituted in
revision for NRS 616.315)
1. A sole proprietor may elect to be included within the terms,
conditions and provisions of chapters 616A
to 616D , inclusive, of NRS to secure for
himself compensation equivalent to that to which an employee is entitled
for any accidental injury sustained by the sole proprietor which arises
out of and in the course of his self-employment by filing a written
notice of election with the Administrator and a private carrier.
2. A private carrier may require a sole proprietor who elects to
accept the terms, conditions and provisions of chapters 616A to 616D , inclusive,
of NRS to submit to a physical examination before his coverage commences.
If a private carrier requires such a physical examination, the private
carrier shall prescribe the scope of the examination and shall consider
it for rating purposes. The cost of the physical examination must be paid
by the sole proprietor.
3. A sole proprietor who elects to submit to the provisions of
chapters 616A to 616D , inclusive, of NRS shall pay to the private
carrier premiums in such manner and amounts as may be prescribed by the
regulations of the Commissioner.
4. If a sole proprietor fails to pay all premiums required by the
regulations of the Commissioner, the failure operates as a rejection of
chapters 616A to 616D , inclusive, of NRS.
5. A sole proprietor who elects to be included pursuant to the
provisions of chapters 616A to 616D , inclusive, of NRS remains subject to all terms,
conditions and provisions of those chapters and all regulations of the
Commissioner until he files written notice with the Administrator and the
private carrier that he withdraws his election.
6. For the purposes of chapters 616A
to 616D , inclusive, of NRS, a sole
proprietor shall be deemed to be receiving a wage of $300 per month
unless, at least 90 days before any injury for which he requests
coverage, he files written notice with the Administrator and the private
carrier that he elects to pay an additional amount of premiums for
additional coverage. If the private carrier receives the additional
premiums it requires for such additional coverage, the sole proprietor
shall be deemed to be receiving a wage of $1,800 per month.
(Added to NRS by 1975, 1017; A 1981, 712, 1468; 1991, 1688; 1995,
2021; 1999, 1774 ; 2001, 2452 )
An employer having come under chapters 616A to 616D , inclusive,
or chapter 617 of NRS who thereafter elects
to reject the terms, conditions and provisions of those chapters is not
relieved from the payment of premiums to the insurer before the time his
notice of rejection becomes effective if any are due. The premiums may be
recovered in an action at law.
[76:168:1947; 1943 NCL § 2680.76]—(NRS A 1979, 1045; 1981, 1468;
1995, 2021; 1999, 219 )
Employee Leasing Companies
As used in NRS 616B.670 to 616B.697 , inclusive, unless the context otherwise
requires:
1. “Applicant” means a person seeking a certificate of
registration pursuant to NRS 616B.670
to 616B.697 , inclusive, to operate an
employee leasing company.
2. “Client company” means a company which leases employees, for a
fee, from an employee leasing company pursuant to a written or oral
agreement.
3. “Employee leasing company” means a company which, pursuant to a
written or oral agreement:
(a) Places any of the regular, full-time employees of a client
company on its payroll and, for a fee, leases them to the client company
on a regular basis without any limitation on the duration of their
employment; or
(b) Leases to a client company:
(1) Five or more part-time or full-time employees; or
(2) Ten percent or more of the total number of employees
within a classification of risk established by the Commissioner.
(Added to NRS by 1993, 2419; A 1995, 2135; 1999, 1724 )
1. A person shall not operate an employee leasing company in this
State unless he has complied with the provisions of NRS 616B.670 to 616B.697 , inclusive. The Administrator shall issue a
certificate of registration to each applicant who complies with the
provisions of NRS 616B.670 to
616B.697 , inclusive.
2. Any person who violates the provisions of subsection 1 is
guilty of a misdemeanor.
3. Each certificate of registration issued by the Administrator
pursuant to NRS 616B.670 to 616B.697
, inclusive, expires 1 year after it
is issued unless renewed before that date.
(Added to NRS by 1993, 2419; A 1999, 1724 )
An applicant for
the issuance or renewal of a certificate of registration must submit to
the Administrator a written application upon a form provided by the
Administrator.
(Added to NRS by 1993, 2419; A 1999, 1725 )
1. Each application must include:
(a) The applicant’s name and title of his position with the
employee leasing company.
(b) The applicant’s age, place of birth and social security number.
(c) The applicant’s address.
(d) The business address of the employee leasing company.
(e) The business address of the resident agent of the employee
leasing company, if the applicant is not the resident agent.
(f) If the applicant is a:
(1) Partnership, the name of the partnership and the name,
address, age, social security number and title of each partner.
(2) Corporation, the name of the corporation and the name,
address, age, social security number and title of each officer of the
corporation.
(g) Proof of:
(1) Compliance with the provisions of NRS 360.780 .
(2) The payment of any premiums for industrial insurance
required by chapters 616A to 617 , inclusive, of NRS.
(3) The payment of contributions or payments in lieu of
contributions required by chapter 612 of NRS.
(4) Insurance coverage for any benefit plan from an insurer
authorized pursuant to title 57 of NRS that is offered by the employee
leasing company to its employees.
(h) Any other information the Administrator requires.
2. Each application must be notarized and signed under penalty of
perjury:
(a) If the applicant is a sole proprietorship, by the sole
proprietor.
(b) If the applicant is a partnership, by each partner.
(c) If the applicant is a corporation, by each officer of the
corporation.
3. An applicant shall submit to the Administrator any change in
the information required by this section within 30 days after the change
occurs. The Administrator may revoke the certificate of registration of
an employee leasing company which fails to comply with the provisions of
NRS 616B.670 to 616B.697 , inclusive.
4. If an insurer cancels an employee leasing company’s policy, the
insurer shall immediately notify the Administrator in writing. The notice
must comply with the provisions of NRS 687B.310 to 687B.355 , inclusive, and must be served personally on
or sent by first-class mail or electronic transmission to the
Administrator.
(Added to NRS by 1993, 2419; A 1999, 1725 ; 2003, 20th Special Session, 217 )
Each employee leasing company operating
in this State shall maintain an office or similar site in this State for
retaining, reviewing and auditing its payroll records and written
agreements with client companies.
(Added to NRS by 1995, 2124)
If a person operates an employee leasing company and a
temporary employment service in this State, the person shall maintain
separate payroll records for the company and the service. The records
must be maintained in this State. A separate policy of workers’
compensation insurance must be maintained for the employee leasing
company.
(Added to NRS by 1995, 2124)
The employment relationship with workers provided
by an employee leasing company to a client company must be established by
written agreement between the employee leasing company and the client
company. The employee leasing company shall give written notice of the
employment relationship to each leased employee assigned to perform
services for the client company.
(Added to NRS by 1993, 2420)—(Substituted in revision for NRS
616.2544)
1. For the purposes of chapters 612
and 616A to 617 , inclusive, of NRS, an employee leasing company
which complies with the provisions of NRS 616B.670 to 616B.697 , inclusive, shall be deemed to be the
employer of the employees it leases to a client company.
2. An employee leasing company shall be deemed to be the employer
of its leased employees for the purposes of sponsoring and maintaining
any benefit plans.
3. An employee leasing company shall not offer its employees any
self-funded insurance program. An employee leasing company shall not act
as a self-insured employer or be a member of an association of
self-insured public or private employers pursuant to chapters 616A to 616D , inclusive,
or chapter 617 of NRS or pursuant to title 57
of NRS.
4. If an employee leasing company fails to:
(a) Pay any contributions, premiums, forfeits or interest due; or
(b) Submit any reports or other information required,
Ê pursuant to this chapter or chapter 612 ,
616A , 616C ,
616D or 617 of
NRS, the client company is jointly and severally liable for the
contributions, premiums, forfeits or interest attributable to the wages
of the employees leased to it by the employee leasing company.
(Added to NRS by 1993, 2420; A 1995, 2014, 2135; 1997, 579; 2003,
20th Special Session, 218 )
The Administrator may adopt regulations
to carry out the provisions of NRS 616B.670 to 616B.697 , inclusive.
(Added to NRS by 1993, 2421; A 1995, 649; 1999, 1726 )
An
action for damages caused by the failure of an employee leasing company
to comply with the provisions of NRS 616B.670 to 616B.697 , inclusive, may be brought against any
person who is required to sign the application for a certificate of
registration for the employee leasing company.
(Added to NRS by 1993, 2421; A 1999, 1726 )
Consolidated Insurance Programs
1. A private company, public entity or utility may:
(a) Establish and administer a consolidated insurance program to
provide industrial insurance coverage for employees of contractors and
subcontractors who are engaged in a construction project of which the
private company, public entity or utility is the owner or principal
contractor, if the estimated total cost of the construction project is
equal to or greater than the threshold amount established by the
Commissioner pursuant to subsection 3; and
(b) As a condition precedent to the award of a contract to perform
work on the construction project, require that contractors and
subcontractors who will be engaged in the construction of the project
participate in the consolidated insurance program.
2. If a private company, public entity or utility:
(a) Establishes and administers a consolidated insurance program;
and
(b) Pursuant to the contract for the construction of the project,
owes a periodic payment to a contractor or subcontractor whose employees
are covered under the consolidated insurance program,
Ê the private company, public entity or utility shall not withhold such a
periodic payment on the basis that the contractor or subcontractor has
not signed an employer’s report of industrial injury or occupational
disease as required pursuant to NRS 616C.045 .
3. The Commissioner shall establish the threshold amount that the
estimated total cost of a construction project must be equal to or
greater than before a consolidated insurance program may be established
and administered for that project pursuant to this section. The base
amount for the threshold must initially be $150,000,000 and thereafter
must be an amount equal to $150,000,000 as adjusted by the Commissioner
on June 30 of each year to reflect the present value of that amount with
respect to the construction cost index.
4. As used in this section:
(a) “Construction cost index” means the construction cost index
published by the Engineering News-Record as a measure of inflation.
(b) “Estimated total cost” means the estimated cost to complete all
parts of a construction project, including, without limitation, the cost
of:
(1) Designing the project;
(2) Acquiring the real property on which the project will be
constructed;
(3) Connecting the project to utilities;
(4) Excavating and carrying out underground improvements for
the project; and
(5) Acquiring equipment and furnishings for the project.
Ê The term does not include the cost of any fees or charges associated
with acquiring the money necessary to complete the project.
(Added to NRS by 1999, 3141 )
1. A private carrier who is authorized to transact industrial
insurance in this State may contract with a private company, public
entity or utility to provide industrial insurance coverage for a
consolidated insurance program.
2. A private company, public entity or utility that enters into a
contract with a private carrier for the provision of industrial insurance
coverage for a consolidated insurance program shall file a copy of the
contract with the Commissioner at least 60 days before the date on which
the construction project is scheduled to begin.
3. The Commissioner shall, within 60 days after receiving a copy
of a contract pursuant to subsection 2, review and approve or disapprove
the contract. If the Commissioner does not disapprove the contract within
60 days after receiving it, the contract shall be deemed approved.
(Added to NRS by 1999, 3142 )
A consolidated insurance program may cover more than one
construction project.
(Added to NRS by 1999, 3142 )
A contract for the provision of industrial insurance that is
authorized pursuant to NRS 616B.712
must include, without limitation:
1. Provisions that require compliance with each of the
requirements relating to safety and the administration of claims for
industrial insurance at the site of the construction project that are set
forth in NRS 616B.725 and 616B.727
;
2. The names and qualifications of the persons appointed to
oversee issues of safety and the administration of claims for industrial
insurance at the site of the construction project pursuant to NRS
616B.725 and 616B.727 ;
3. The terms and conditions pursuant to which the contract
provides industrial insurance coverage. The terms and conditions must
include, without limitation:
(a) A definition of the site of the construction project that:
(1) Delineates clearly the area within which coverage is
provided; and
(2) Is reasonably contiguous to the actual physical site of
the construction project; and
(b) A description of the scope and details of the construction
project and the duration of industrial insurance coverage that is
provided for the project;
4. A list in which the owner, principal contractor, construction
manager, contractors and subcontractors of the construction project are
set forth as named insureds; and
5. A provision setting forth the penalties to which the owner,
principal contractor, construction manager, contractors and
subcontractors of the construction project may be subject if such persons
or entities fail to comply with the provisions relating to safety and the
administration of claims for industrial insurance that are required
pursuant to NRS 616B.725 and 616B.727
.
(Added to NRS by 1999, 3145 )
A
private carrier who contracts to provide industrial insurance coverage
for a consolidated insurance program pursuant to NRS 616B.712 is liable to pay each claim for industrial
insurance that is covered by the program, regardless of whether:
1. The claim is filed after the completion of the construction
project; or
2. Any party to the contract is not transacting business within
this State at the time the claim is filed.
(Added to NRS by 1999, 3145 )
1. A consolidated insurance program that a private company, public
entity or utility is authorized to establish and administer pursuant to
NRS 616B.710 must, in the manner set
forth in this section, provide for the safety of an employee of a
contractor or subcontractor who is engaged in the construction project
when such an employee works at the site of the construction project.
2. The owner or principal contractor of the construction project
shall develop and carry out a safety program that includes, without
limitation:
(a) The establishment of minimum standards of safety to be observed
during construction of the project;
(b) The holding of regular meetings to address and discuss issues
related to safety;
(c) Training of contractors and subcontractors regarding issues and
procedures related to safety;
(d) Regular inspections of the site of the construction project to
identify potential safety hazards and ensure that minimum standards of
safety are being observed;
(e) The notification of contractors and subcontractors of special
hazards that exist at the site of the construction project, including
advice on ways in which the contractors and subcontractors can avoid
those hazards; and
(f) The prompt investigation of any injuries that take place at the
site of the construction project which result in death or serious bodily
injury.
3. The owner or principal contractor of the construction project
shall hire or contract with two persons to serve as the primary and
alternate coordinators for safety for the construction project. The
primary and alternate coordinators for safety must:
(a) Possess credentials in the field of safety that the
Administrator determines to be adequate to prepare a person to act as a
coordinator for safety for a construction project, including, without
limitation, credentials issued by the:
(1) Board of Certified Safety Professionals; or
(2) Insurance Institute of America; or
(b) Have at least 3 years of experience in overseeing matters of
occupational safety and health in the field of construction that the
Administrator determines to be adequate to prepare a person to act as a
coordinator for safety for a construction project.
4. The primary and alternate coordinators for safety for the
construction project:
(a) Must not serve as coordinators for safety for another
construction project that is covered by a different consolidated
insurance program;
(b) Shall oversee and enforce the safety program established
pursuant to subsection 2, including, without limitation, resolving
problems related to the operation of the safety program; and
(c) Shall ensure that the contractors, employers and subcontractors
who are engaged in the construction of the project coordinate their
efforts regarding issues of occupational safety and health to create and
maintain a safe and healthful workplace.
5. The alternate coordinator for safety shall report to the
primary coordinator for safety regarding activities that take place at
the site of the construction project when the primary coordinator is
absent.
6. The owner or principal contractor of the construction project
shall ensure that the primary or alternate coordinator for safety for the
construction project is physically present at the site of the
construction project whenever activity related to construction is taking
place at the site.
(Added to NRS by 1999, 3142 )
1. A consolidated insurance program that a private company, public
entity or utility is authorized to establish and administer pursuant to
NRS 616B.710 must, in the manner set
forth in this section, provide for the administration of claims for
industrial insurance for an employee of a contractor or subcontractor who
is engaged in the construction project when such an employee works at the
site of the construction project.
2. The owner or principal contractor of the construction project
shall hire or contract with a person to serve as the administrator of
claims for industrial insurance for the construction project. Such a
person must not serve as an administrator of claims for industrial
insurance for another construction project that is covered by a different
consolidated insurance program.
3. The administrator of claims for industrial insurance for the
construction project who is hired or with whom the owner or principal
contractor contracts pursuant to subsection 2 shall:
(a) Assist an employee who is covered under the consolidated
insurance program or, in the event of the employee’s death, one of his
dependents, in filing a written notice of injury or death as required
pursuant to NRS 616C.015 or a written
notice of an occupational disease as required pursuant to NRS 617.342
;
(b) Sign and file on behalf of a contractor or subcontractor whose
employees are covered under the consolidated insurance program an
employer’s report of industrial injury or occupational disease as
required pursuant to NRS 616C.045 or
617.354 ;
(c) Ensure that an employee who is covered under the consolidated
insurance program and who has been injured or who has incurred an
occupational disease while working on the construction project is
directed to a medical facility that will provide treatment to the
employee under the program;
(d) Handle all issues, to the extent reasonably practicable,
relating to claims for industrial insurance at the site of the
construction project; and
(e) Hire or contract such assistant administrators as may be
necessary to carry out his responsibilities pursuant to this section.
4. The owner or principal contractor of the construction project
shall ensure that the administrator of claims for industrial insurance
for the construction project or an assistant administrator is physically
present at the site of the construction project whenever activity related
to construction is taking place at the site.
(Added to NRS by 1999, 3143 )
1. A consolidated insurance program must not provide industrial
insurance coverage, a comprehensive program of safety or for the
administration of claims for industrial insurance for an employee of a
contractor or subcontractor who is engaged in the construction of the
project that is covered by the consolidated insurance program at any time
that such an employee does not work at the site of the construction
project.
2. A contractor or subcontractor who is engaged in the
construction of a project that is covered by a consolidated insurance
program shall maintain separate industrial insurance coverage for its
employees who:
(a) Are not assigned to participate in the construction of the
project; or
(b) Are assigned to participate in the construction of the project
but who do not work exclusively at the site of the project.
3. The owner or principal contractor of a construction project
shall reimburse a contractor or subcontractor who bids successfully on
the construction project for the cost of providing separate industrial
insurance coverage for an employee if:
(a) The contractor or subcontractor set the amount of his bid in a
reasonable, good faith belief that the employee would work exclusively at
the site of the construction project and would therefore be fully covered
by the consolidated insurance program; and
(b) Because of changed circumstances not reasonably foreseeable at
the time the bid was submitted, the employee worked in whole or in part
at a location other than the site of the construction project, requiring
the contractor or subcontractor to obtain separate industrial insurance
coverage for that employee.
(Added to NRS by 1999, 3144 ; A 2001, 2453 )
If an
owner or principal contractor establishes and administers a consolidated
insurance program pursuant to NRS 616B.710 , each employee who is covered under the
consolidated insurance program shall be deemed to be an employee of the
owner or principal contractor for the purpose of determining the loss
experience of the owner or principal contractor.
(Added to NRS by 1999, 3144 )
With respect to a
construction project for which the owner intends to establish and
administer an owner-controlled insurance program or the principal
contractor intends to establish and administer a contractor-controlled
insurance program, the owner or principal contractor, as appropriate,
shall:
1. In the notice or advertisement for bids for the construction of
the project, state:
(a) That the employees of contractors and subcontractors who are
engaged in the construction of the project will be covered under a
consolidated insurance program when such employees work at the site of
the project; and
(b) Whether such a program will be an owner-controlled insurance
program or a contractor-controlled insurance program; and
2. Hold a pre-bid conference at which it provides to potential
contractors and subcontractors, without limitation, the following
information:
(a) A general explanation of the manner in which a consolidated
insurance program operates;
(b) An overview of the provisions of NRS 616B.710 to 616B.737 , inclusive;
(c) A general description of the safety procedures that will be
required as part of the consolidated insurance program; and
(d) The procedures pursuant to which claims for industrial
insurance will be administered.
(Added to NRS by 1999, 3144 )
The Commissioner may adopt such
regulations as the Commissioner determines are necessary to carry out the
provisions of NRS 616B.710 to
616B.737 , inclusive, to the extent
that the authority granted pursuant to this section does not duplicate
authority granted to the Administrator.
(Added to NRS by 1999, 3146 )
APPEALS PANEL FOR INDUSTRIAL INSURANCE
1. The Appeals Panel for Industrial Insurance is hereby created.
The Appeals Panel consists of seven members who are appointed by the
Governor, in consultation with the Commissioner. From the appropriate
list of persons, if any, provided by the advisory organization pursuant
to subsection 2, the Governor, in consultation with the Commissioner,
shall appoint:
(a) An employee of the Division of Insurance of the Department of
Business and Industry;
(b) An agent who is:
(1) Licensed pursuant to chapter 683A of NRS and qualified pursuant to regulations
adopted by the Commissioner to take an application for, procure or place
on behalf of others, industrial insurance; and
(2) A member of a nationally recognized association for the
profession of insurance agents;
(c) Two representatives of the general public:
(1) One of which must be employed by, or the proprietor of,
a business which is a member of:
(I) A local chamber of commerce; or
(II) Another organization representing the general
business interests of a group of businesses located in this State.
(2) Neither of which may be an independent contractor to, or
an employee or representative of, an insurance company, insurance broker,
insurance agent or insurance solicitor, a law firm, actuary or a
representative of a trade association that represents or supports the
interests specific to the trade of any such persons.
(3) Both of which must be knowledgeable in the field and
business of industrial insurance in this State;
(d) Two representatives of private carriers; and
(e) A representative of the advisory organization who administers
appeals panels for grievances of employers in other states.
2. On or before June 1 of a year in which the Governor is to
appoint a member to the Appeals Panel, the advisory organization shall
compile lists of nominees for appointment pursuant to subsection 1 and
provide such lists to the Governor and the Commissioner. The advisory
organization shall compile three lists, each containing the names of at
least five persons who, in the opinion of the advisory organization,
would be appropriate members of the Appeals Panel as:
(a) The agent appointed pursuant to paragraph (b) of subsection 1;
(b) The two representatives of the general public appointed
pursuant to paragraph (c) of subsection 1; and
(c) The two representatives of private carriers appointed pursuant
to paragraph (d) of subsection 1.
3. Within 30 days after such appointments have been made, the
Governor shall notify the advisory organization of the names of each new
member.
4. After the initial terms, members shall serve terms of 2 years,
except when appointed to fill unexpired terms.
5. A vacancy in the membership of the Appeals Panel must be filled
by the Governor, in consultation with the Commissioner, in accordance
with the provisions of subsections 1 and 2 for the remainder of the
unexpired term. The newly appointed member must have the same
qualifications as the vacating member, as specified in paragraph (a),
(b), (c), (d) or (e) of subsection 1, as appropriate.
(Added to NRS by 1999, 3376 ; A 2001, 2256 )
1. At its first meeting of each year, the Appeals Panel shall
elect a Chairman from among its members.
2. The Chairman shall hold office for 1 year.
3. If a vacancy occurs in the chairmanship, the members of the
Panel shall elect a Chairman from among its members for the remainder of
the unexpired term of the Chairman.
4. Unless the members agree unanimously to a different date, the
first meeting of each year must be as soon as practicable after July 1.
(Added to NRS by 1999, 3378 ; A 2001, 2256 )
1. The Chairman of the Appeals Panel shall:
(a) Schedule the time and place of the meetings and hearings of the
Appeals Panel;
(b) Establish the agenda for each meeting and hearing of the
Appeals Panel; and
(c) Ensure that the meetings of the Appeals Panel are conducted in
an efficient manner.
2. The Chairman of the Appeals Panel may appoint from the
membership of the Appeals Panel a secretary to whom he may delegate his
administrative functions.
(Added to NRS by 1999, 3378 ; A 2001, 2256 )
1. The Appeals Panel shall meet at the times and places specified
by a call of the Chairman.
2. Four members of the Appeals Panel constitute a quorum to
transact all business, and a majority of those present must concur on any
decision.
(Added to NRS by 1999, 3378 ; A 2001, 2256 )
1. Each member of the Appeals Panel is entitled to receive, for
his attendance at the meetings of the Appeals Panel, the per diem
allowance and travel expenses provided for state officers and employees
generally.
2. Expenses of the members of the Appeals Panel must be paid from
assessments payable by each insurer pursuant to the formula filed with
and approved by the Commissioner pursuant to NRS 686B.17645 .
3. As used in this section, “insurer” has the meaning ascribed to
it in NRS 686B.1759 .
(Added to NRS by 1999, 3378 ; A 2001, 2256 )
1. An employer, other than a self-insured employer, who determines
that circumstances specific to his case require a review of the:
(a) Establishment of the employer’s modification of premium based
on experience;
(b) Classification of risk assigned for the employer’s business; or
(c) Application of the supplementary rate information to the
employer,
Ê may file a written grievance with the Appeals Panel.
2. The insurer of that employer and the advisory organization may
participate in a hearing on the grievance by appearing and providing
testimony or other evidence. If an insurer or the advisory organization
participates in the hearing, the insurer or the advisory organization is
a party to the hearing and may appeal, pursuant to the provisions of NRS
616B.787 , the decision made by the
Appeals Panel.
3. As used in this section “supplementary rate information” has
the meaning ascribed to it in NRS 686B.020 .
(Added to NRS by 1999, 3378 ; A 2001, 2256 )
1. The Appeals Panel shall hear a grievance of an employer filed
pursuant to NRS 616B.772 .
2. The Appeals Panel shall not hear:
(a) Complaints concerning the effect of the classifications of
risks or rules that are applied by all insurers to all similarly
classified businesses within this State.
(b) Grievances concerning contested cases for compensation pursuant
to the provisions of chapters 616A to 616D
, inclusive, or chapter 617 of NRS.
(Added to NRS by 1999, 3379 ; A 2001, 2256 )
1. Within 30 days after receipt of a written grievance from an
employer pursuant to NRS 616B.772 and
not less than 10 days before the hearing on such grievance, the Appeals
Panel shall provide written notice to the employer, his insurer and the
advisory organization of the date and place of the hearing.
2. A decision on a grievance must be issued pursuant to NRS
616B.785 within 30 days after the
hearing.
(Added to NRS by 1999, 3379 ; A 2001, 2256 )
A hearing held
pursuant to NRS 616B.775 must be open
to the public, unless the Appeals Panel will be considering proprietary
information of the employer or the insurer. As used in this section, the
term “proprietary information” means any information which, if disclosed
to the general public, may result in a competitive disadvantage to an
insurer or employer, including, without limitation:
1. Rules, criteria and standards for underwriting policies that
are applied by an insurer.
2. Plans or other documents concerning the marketing or strategic
planning of an insurer or employer.
3. Data, studies and reports concerning the development of new
products or services.
4. Data that identify the share of the market of an insurer within
each class of risk.
(Added to NRS by 1999, 3379 ; A 2001, 2256 )
1. If a member of the Appeals Panel determines that he has a
personal interest or a conflict of interest, directly or indirectly, with
a party to a hearing or the subject matter of the hearing, the Chairman
of the Appeals Panel shall appoint a substitute member for that hearing
who has the same qualifications, as specified in paragraph (a), (b), (c),
(d) or (e) of subsection 1 of NRS 616B.760 as the member who has the conflict of
interest. If the Chairman is the member with the conflict of interest,
another member of the Appeals Panel shall appoint the substitute.
2. A conflict of interest may be waived if, after full written
disclosure of the facts raising such a conflict, all parties to the
appeal agree in writing to the hearing of the appeal by the member. Such
waiver must be filed with the Chairman of the Appeals Panel before the
hearing. If the Chairman is the member with the conflict of interest, the
waiver must be filed with the Commissioner.
3. The member of the Appeals Panel who represents the advisory
organization shall be deemed not to have a conflict of interest with
respect to the advisory organization if it is a party to a hearing.
(Added to NRS by 1999, 3379 ; A 2001, 2256 )
1. Within 30 days after each hearing, the Chairman or a member of
the Appeals Panel designated by the Chairman shall prepare and deliver
personally or by mail to each party to the hearing and to the
Commissioner a written memorandum stating:
(a) The reasons for the decision of the Appeals Panel concerning
those parties; and
(b) The rights of any party to the hearing to appeal pursuant to
NRS 616B.787 and a brief description
of the procedure for making such an appeal.
Ê The votes of each member of the Appeals Panel must not be recorded on
this memorandum.
2. Each month, copies of all decisions made by the Appeals Panel
during the prior month must be delivered personally or by mail to the
advisory organization.
(Added to NRS by 1999, 3380 ; A 2001, 2256 )
1. A party to the hearing who wishes to appeal a decision of the
Appeals Panel must do so pursuant to the provisions of NRS 679B.310
. Such a hearing must be conducted by
the Commissioner pursuant to the provisions of NRS 679B.310 to 679B.370 , inclusive, and the regulations adopted
pursuant thereto.
2. The Commissioner shall not hold a hearing on the request of an
employer concerning the establishment of the employer’s modification of
premium based on experience, the classification of risk assigned for the
employer’s business, or application of the insurer’s supplementary rate
information to the employer unless the employer has:
(a) Filed a written grievance with the Appeals Panel pursuant to
NRS 616B.772 ; and
(b) Received a written decision from the Appeals Panel.
(Added to NRS by 1999, 3380 ; A 2001, 2256 )
The Commissioner may adopt regulations
to carry out the provisions of NRS 616B.760 to 616B.790 , inclusive.
(Added to NRS by 1999, 3380 ; A 2001, 2256 )
MISCELLANEOUS PROVISIONS
An insurer may establish a plan to review small
employers who are insured by the insurer to encourage such employers to
maintain their loss experience at the lowest possible level.
(Added to NRS by 1997, 1425; A 1997, 1456)
