[Rev. 11/21/2013 12:37:00 PM--2013]

CHAPTER 616B - INDUSTRIAL INSURANCE: INSURERS; LIABILITY FOR PROVISION OF COVERAGE

GENERAL PROVISIONS

NRS 616B.003        Periodic audit of insurers; required standard auditing procedures; information to be shared by Division of Insurance; report to Legislature.

NRS 616B.005        Insurers to cooperate with Commissioner; duty of private carriers to provide certain information to Commissioner.

NRS 616B.006        Insurer required to provide information necessary for enforcement of statutes, regulations or standards; Administrator required to make written request for information.

NRS 616B.009        Reports required to be made by insurers.

NRS 616B.012        Confidentiality and disclosure of information; penalty for disclosure or use of information; privileged communications.

NRS 616B.015        Confidentiality of certain records and files of Division of Insurance concerning self-insured employers and associations of self-insured public or private employers; exceptions.

NRS 616B.018        Index of claims: Establishment; contents; format; use; fee; administrative fine for failure by insurer to provide information.

NRS 616B.021        Files of claims: Accessibility; maintenance; inspection; reproduction.

NRS 616B.024        Destruction of records.

NRS 616B.027        Insurer to provide office in State and statewide toll-free telephone service; private carrier to provide adequate services and information to control losses and prevent accidents and occupational diseases.

NRS 616B.028        Modified program of industrial insurance for offenders in prison industry or work program.

NRS 616B.029        Modified program of industrial insurance for offenders engaged in work program directed by Administrator of county or city jail or other local detention facility.

NRS 616B.030        Policy of insurance: Required provisions in policies of private carriers; regulations of Commissioner concerning basic policy used by private carriers.

NRS 616B.031        Policy of insurance: Coverage of all employees of employer; coverage of employees under consolidated insurance program.

NRS 616B.032        Policy of insurance: Coverage for domestic worker as part of homeowner’s policy of insurance.

NRS 616B.033        Default of employer does not relieve insurer from liability; effect of statements contained in application for policy; notification of employer of cancellation of policy; defense based on act or omission of insured employer may not be raised by insurer against claimant; insurer placed in position of employer under certain circumstances.

NRS 616B.036        Conditions for providing industrial insurance for organization or association of employers; approval of group or organization; adoption of regulations.

NRS 616B.038        Prohibition against charging fee for inclusion on panel of providers of health care; penalty.

STATE INSURANCE FUND

NRS 616B.040        Creation; source; investments.

NRS 616B.042        Money to provide compensation held in trust; conditions when trust money to be deposited in Fund.

NRS 616B.044        Authority of successor organization to take credit for reinsurance.

NRS 616B.046        Disposition of money in Fund on repeal of statutes relating to workers’ compensation.

PAYMENT AND COLLECTION OF PREMIUMS

NRS 616B.215        Appeal by principal contractor from denial of final certificate of coverage for project; appeal by employer from determination regarding vocational rehabilitation of injured employee.

NRS 616B.222        Determination of total amount paid to employees for services performed during policy year.

NRS 616B.224        Periodic report of payroll and reported tips; periodic payment of premiums; effect of failure to submit information or premiums; collection of premiums by insurer.

NRS 616B.227        Submission and retention of reports concerning tips received by employees; payment of premiums for tips; calculation of compensation; notification of employees to report tips.

NRS 616B.228        Budgeting for premiums and payment of premiums by public employers.

SELF-INSURED EMPLOYERS

NRS 616B.300        Qualification as self-insured employer: Establishment of financial ability to pay; deposit or security; evidence of excess insurance; Account for Self-Insured Employers.

NRS 616B.303        Standard for insolvency.

NRS 616B.306        Commissioner may sell securities or institute proceedings on surety bonds of self-insured employer to pay claims.

NRS 616B.309        Assessment of self-insured employers to provide for claims against insolvent employers; Account for Insolvent Self-Insured Employers.

NRS 616B.312        Certificate of qualification as self-insured employer: Issuance by Commissioner; contents; effective date; period certificate is in effect.

NRS 616B.315        Notification of change in ownership or control of self-insured employer; automatic termination of certification unless extension granted.

NRS 616B.318        Grounds for withdrawal of certification of self-insured employer; exception; administrative fine.

NRS 616B.321        Imposition of fine if self-insured employer fails to pay compensation as ordered.

NRS 616B.324        Self-insured employer liable for violation by employer’s agent.

NRS 616B.327        Withdrawal of certification of self-insured employer: Informal meeting; notice of withdrawal; hearing; effective date of withdrawal.

NRS 616B.330        Self-insured employer may appeal decision of Commissioner.

NRS 616B.333        Disposition of security after termination of status as self-insured employer.

NRS 616B.336        Self-insured employers to furnish annual financial statements to Commissioner; Commissioner may examine records and interview employees.

ASSOCIATIONS OF SELF-INSURED EMPLOYERS

NRS 616B.350        Qualification as association of self-insured public or private employers; application for certification; fee; confidentiality of financial information submitted for certification.

NRS 616B.353        Indemnity agreement; policy of excess insurance; assessment; bond or similar security; minimum combined tangible net worth; combined net cash flows; bond required of association’s administrator or third-party administrator; Account for Associations of Self-Insured Public and Private Employers.

NRS 616B.356        Certificate of authority required before surety or bonding company may furnish bond or other security for association.

NRS 616B.359        Certificate of qualification as an association of self-insured employers: Time for consideration of application; issuance by Commissioner; contents; effective date; period certificate is in effect; cancellation by association.

NRS 616B.362        Effect of certification; responsibility of association to provide compensation and administer claims.

NRS 616B.365        Board of trustees: Members; duties; prohibited acts.

NRS 616B.368        Board of trustees: Fiscal responsibilities; establishment of accounts; review of accounts by Commissioner.

NRS 616B.371        Association’s administrator prohibited from financial interest in third-party administrator; third-party administrator prohibited from financial interest in association’s administrator; contractual requirement.

NRS 616B.374        Solicitor’s permit: Advertising or offering for sale membership in proposed association of self-insured public or private employers without permit prohibited; application for permit; fee; penalty; exceptions.

NRS 616B.377        Solicitor’s permit: Commissioner to conduct investigation after filing of application for permit; required issuance of permit; Commissioner to give notice to applicant if application denied; fee nonrefundable.

NRS 616B.380        Solicitor’s permit: Power of Commissioner to suspend or revoke permit; hearing required.

NRS 616B.383        Advertisements or written materials to join association of self-insured public or private employers; solicitor to provide to Commissioner upon request copy of document relating to solicitation.

NRS 616B.386        Membership in association: Application; eligibility; authority of association to determine eligibility; termination by member; cancellation by association; information to be provided to Commissioner; provision of compensation after membership has ceased.

NRS 616B.388        Provision of member information upon request.

NRS 616B.392        Notification of Commissioner required if change in information submitted for certification.

NRS 616B.395        Examination of books, records, accounts and assets of association by Commissioner; payment of related expenses.

NRS 616B.398        Commissioner is agent of association for receipt of initial legal process.

NRS 616B.401        Merger of associations.

NRS 616B.404        Statement of financial condition: Filing dates; contents; form; additional reports.

NRS 616B.407        Calculation of annual assessment paid by each member of association.

NRS 616B.410        Annual audits; objection to assignment of standard industrial classification.

NRS 616B.413        Payment of dividends to members of association.

NRS 616B.416        Plan for payment of annual assessments by members of association.

NRS 616B.419        Required reserves.

NRS 616B.422        Insufficient assets to pay compensation due and maintain reserves.

NRS 616B.425        Order by Commissioner to cease and desist; penalty for violation of order.

NRS 616B.428        Administrative fines for violations; authority of Commissioner to withdraw certification; effect of withdrawal.

NRS 616B.431        Withdrawal of certificate of association: Informal meeting; notice of withdrawal; hearing; effective date of withdrawal.

NRS 616B.434        Retention by Commissioner of security deposit in event of termination of association.

NRS 616B.437        Judicial review of Commissioner’s decision.

NRS 616B.440        Insolvency; termination of liability on surety bond; effect of termination of surety bond.

NRS 616B.443        Assessment of all associations to provide for claims against insolvent association; Account for Insolvent Associations of Self-Insured Public or Private Employers.

NRS 616B.446        Regulations.

PRIVATE CARRIERS

NRS 616B.460        Election by employer to purchase industrial insurance from private carrier; cancellation of policy by employer to purchase insurance from another insurer.

NRS 616B.461        Notification of Administrator regarding issuance, renewal, cancellation or reinstatement of policy; investigation of information reported by private carrier.

NRS 616B.463        Authorization and security required before industrial insurance may be provided by private carrier; private carrier subject to Nevada Insurance Code.

NRS 616B.466        Responsibility of private carrier after withdrawal of authorization to provide industrial insurance.

NRS 616B.472        Suspension of authorization of private carrier to provide industrial insurance: Grounds; hearing.

NRS 616B.475        Requirements for handling claims; employer and private carrier subject to regulations of Division.

THIRD-PARTY ADMINISTRATORS

NRS 616B.500        Administration of plan of insurance authorized; conditions.

NRS 616B.503        Certification by Commissioner required; duties of third-party administrator.

NRS 616B.506        Imposition of administrative fine for violations; withdrawal of certification.

NRS 616B.509        Regulations.

ORGANIZATIONS FOR MANAGED CARE

NRS 616B.527        Authority of self-insured employers, associations of self-insured employers and private carriers; compliance with certain provisions.

NRS 616B.5273      Adequacy of medical and health care services, choice of providers of health care and cost controls; regulations.

NRS 616B.528        Restriction of or interference with communication between provider of health care and injured employee prohibited.

NRS 616B.5285      Contracts with providers of health care; prohibited acts.

NRS 616B.529        Inducements to deny, reduce or delay medically necessary services prohibited.

SUBSEQUENT INJURY ACCOUNTS

Self-Insured Employers

NRS 616B.545        “Board” defined.

NRS 616B.548        Board for Administration of Subsequent Injury Account for Self-Insured Employers: Creation; membership; officers; vacancies; members serve without compensation; legal counsel.

NRS 616B.551        Board for Administration of Subsequent Injury Account for Self-Insured Employers: Meetings; regulations; quorum; administration of Account.

NRS 616B.554        Creation and administration of Subsequent Injury Account for Self-Insured Employers; assessment rates, payments and penalties.

NRS 616B.557        Payment of cost of additional compensation resulting from subsequent injury of employee of self-insured employer.

NRS 616B.560        Reimbursement of self-insured employer for cost of additional compensation resulting from subsequent injury.

 

Associations of Self-Insured Public or Private Employers

NRS 616B.563        “Board” defined.

NRS 616B.569        Board for Administration of Subsequent Injury Account for Associations of Self-Insured Public or Private Employers: Creation; membership; officers; vacancies; members serve without compensation; legal counsel.

NRS 616B.572        Board for Administration of Subsequent Injury Account for Associations of Self-Insured Public or Private Employers: Meetings; regulations; quorum; administration of Account.

NRS 616B.575        Creation and administration of Subsequent Injury Account for Associations of Self-Insured Public or Private Employers; assessment rates, payments and penalties.

NRS 616B.578        Payment of cost of additional compensation resulting from subsequent injury of employee of member of association of self-insured public or private employers.

NRS 616B.581        Reimbursement of Association of Self-Insured Public or Private Employers for cost of additional compensation resulting from subsequent injury.

 

Private Carriers

NRS 616B.584        Creation and administration of Subsequent Injury Account for Private Carriers; assessment rates, payments and penalties.

NRS 616B.587        Payment of cost of additional compensation resulting from subsequent injury of employee of employer insured by private carrier.

NRS 616B.590        Reimbursement of private carrier for cost of additional compensation resulting from subsequent injury.

LIABILITY FOR PROVISION OF COVERAGE

Applicability

NRS 616B.600        Exemption of employer and employee temporarily within State; exception; effect of employee working in another state where coverage required.

NRS 616B.603        Independent enterprises.

NRS 616B.606        Real estate brokers and salespersons not employers under certain circumstances.

NRS 616B.609        Devices modifying liability void; exception.

NRS 616B.612        Employers to provide compensation; effect of participation in consolidated insurance program; relief from certain liability.

NRS 616B.615        Self-insured employers to provide compensation; relief from premiums and liability; administration of claims.

NRS 616B.618        Applicability to State, political subdivisions and their contractors.

NRS 616B.621        Applicability to trainees of Rehabilitation Division of Department of Employment, Training and Rehabilitation.

NRS 616B.624        Applicability to officers of quasi-public, private and nonprofit corporations and managers of limited-liability companies; rejection of coverage by certain officers and managers.

NRS 616B.627        Contractor with State or political subdivision: Submission of certificate of compliance; coverage pursuant to contract; sole proprietor who does not use employees.

NRS 616B.630        Notification of State Contractors’ Board and Administrator if contractor no longer provides industrial insurance.

NRS 616B.633        Applicability to all employers who employ at least one employee.

NRS 616B.636        Actions at law by employees.

NRS 616B.639        Limitation of liability of principal contractor for industrial injury to independent contractor or employee of independent contractor.

NRS 616B.642        Limitation on liability of owner of property who is not acting as principal contractor.

NRS 616B.645        Determination of obligation of principal contractor or owner of property: Preliminary statement of coverage; issuance or denial of final certificate of coverage.

 

Election of Coverage

NRS 616B.650        Election by employer; effect of failure to provide industrial insurance.

NRS 616B.653        Reporting of agreements with lessees engaged in mining or operating reduction plant; exception.

NRS 616B.656        Election by employer of excluded persons.

NRS 616B.659        Election by sole proprietor; physical examination; payment of premiums; effect of failure to pay premiums; withdrawal of election.

NRS 616B.662        Rejection of coverage by employer; relief from payment of premiums.

 

Employee Leasing Companies

NRS 616B.670        Definitions.

NRS 616B.673        Certificate of registration required; expiration; penalty.

NRS 616B.676        Written application for issuance or renewal of certificate of registration must be on approved form.

NRS 616B.679        Contents of application; fee; Administrator to be notified of certain changes in information about applicant; power of Administrator to revoke certificate of registration; financial statements.

NRS 616B.682        Employee leasing company to maintain office or similar site in State; maintenance, inspection and copying of records.

NRS 616B.685        Separate payroll records required upon operation of employee leasing company and temporary employment service; prohibition on maintaining policy of workers’ compensation insurance for both employee leasing company and temporary employment service.

NRS 616B.688        Written agreement regarding employment relationship with leased employees.

NRS 616B.691        Responsibilities of employee leasing company; limitations; joint and several liability of client company.

NRS 616B.692        Provision of coverage for workers’ compensation by employee leasing company; required reports and disclosures; regulations.

NRS 616B.693        Assurance organizations: Authority of Administrator; regulations; independence and approval required.

NRS 616B.694        Regulations.

NRS 616B.697        Action for damages for statutory violation.

 

Consolidated Insurance Programs

NRS 616B.710        Establishment and administration of program: Prerequisites; mandatory participation; payments to contractors or subcontractors; Commissioner to establish threshold cost for project eligible for program.

NRS 616B.712        Industrial insurance for program; contract to provide insurance to be filed and reviewed by Commissioner.

NRS 616B.717        Coverage of more than one construction project authorized.

NRS 616B.720        Contents of contract to provide insurance for program.

NRS 616B.722        Liability of insurer for payment of compensation.

NRS 616B.725        Safety requirements: Contents of safety program; qualifications and duties of safety coordinators; duties of owner or principal contractor.

NRS 616B.727        Administration of claims: Duties of administrator of claims; duties of owner or principal contractor.

NRS 616B.730        Coverage of employees who do not work at site of construction project; separate policy required for certain employees who do not work at site of construction project; reimbursement for cost of separate policy.

NRS 616B.732        Determination of loss experience.

NRS 616B.735        Notification and explanation to bidders required if program may be established for construction project.

NRS 616B.737        Regulations.

APPEALS PANEL FOR INDUSTRIAL INSURANCE

NRS 616B.760        Creation; membership; terms; vacancies.

NRS 616B.762        Annual first meeting: Date; election of Chair.

NRS 616B.765        Duties and powers of Chair.

NRS 616B.767        Meetings; quorum.

NRS 616B.770        Compensation of members.

NRS 616B.772        Filing of grievance; parties to hearing; authority to appeal decision on hearing.

NRS 616B.775        Jurisdiction.

NRS 616B.777        Timing: Notification of hearing; issuance of decision.

NRS 616B.780        Hearings open to public; exception.

NRS 616B.782        Conflict of interest: Appointment of substitute member; waiver; determination.

NRS 616B.785        Issuance and delivery of decision; notification of right to appeal.

NRS 616B.787        Appeal of decision to Commissioner.

NRS 616B.790        Regulations.

MISCELLANEOUS PROVISIONS

NRS 616B.850        Insurer may establish plan to review small employers; objectives of plan.

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GENERAL PROVISIONS

      NRS 616B.003  Periodic audit of insurers; required standard auditing procedures; information to be shared by Division of Insurance; report to Legislature.

      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)

      NRS 616B.005  Insurers to cooperate with Commissioner; duty of private carriers to provide certain information to Commissioner.  Each insurer shall cooperate with the Commissioner in the performance of his or her 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)

      NRS 616B.006  Insurer required to provide information necessary for enforcement of statutes, regulations or standards; Administrator required to make written request for information.

      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 specifically indicate:

      (a) 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)

      NRS 616B.009  Reports required to be made by insurers.

      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)

      NRS 616B.012  Confidentiality and disclosure of information; penalty for disclosure or use of information; privileged communications.

      1.  Except as otherwise provided in this section and NRS 239.0115, 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 legal representative of the claimant 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. Except as otherwise provided in NRS 239.0115, 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; 2007, 2125)

      NRS 616B.015  Confidentiality of certain records and files of Division of Insurance concerning self-insured employers and associations of self-insured public or private employers; exceptions.

      1.  Except as otherwise provided in subsection 2 and NRS 239.0115, 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 an agent of the Governor 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; 2007, 2126)

      NRS 616B.018  Index of claims: Establishment; contents; format; use; fee; administrative fine for failure by insurer to provide information.

      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, the insurer 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)

      NRS 616B.021  Files of claims: Accessibility; maintenance; inspection; reproduction.

      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 the employee’s designated agent, the employer or the employer’s designated agent, or the Administrator or the Administrator’s 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 the Administrator’s designated agent, or the Nevada Attorney for Injured Workers or his or her 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)

      NRS 616B.024  Destruction of records.

      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)

      NRS 616B.027  Insurer to provide office in State and statewide toll-free telephone service; private carrier to provide adequate services and information to control losses and prevent accidents and occupational diseases.

      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 or her employees required by chapters 616A to 617, inclusive, of NRS; and

             (3) An employee or his or her 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)

      NRS 616B.028  Modified program of industrial insurance for offenders in prison industry or work program.

      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)

      NRS 616B.029  Modified program of industrial insurance for offenders engaged in work program directed by Administrator of county or city jail or other local detention facility.

      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)

      NRS 616B.030  Policy of insurance: Required provisions in policies of private carriers; regulations of Commissioner concerning basic policy used by private carriers.

      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)

      NRS 616B.031  Policy of insurance: Coverage of all employees of employer; coverage of employees under consolidated insurance program.

      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; 2011, 948)

      NRS 616B.032  Policy of insurance: Coverage for domestic worker as part of homeowner’s policy of insurance.

      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 or her employer at a wage:

             (1) Equal to his or her average monthly wage as determined pursuant to the regulations adopted by the Administrator pursuant to NRS 616C.420 if the domestic worker is employed more than 20 hours per week; or

             (2) Of $150 per month if the domestic worker 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)

      NRS 616B.033  Default of employer does not relieve insurer from liability; effect of statements contained in application for policy; notification of employer of cancellation of policy; defense based on act or omission of insured employer may not be raised by insurer against claimant; insurer placed in position of employer under certain circumstances.

      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 the employer’s 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)

      NRS 616B.036  Conditions for providing industrial insurance for organization or association of employers; approval of group or organization; adoption of regulations.

      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)

      NRS 616B.038  Prohibition against charging fee for inclusion on panel of providers of health care; penalty.

      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

      NRS 616B.040  Creation; source; investments.

      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)

      NRS 616B.042  Money to provide compensation held in trust; conditions when trust money to be deposited in Fund.

      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 the Commissioner pursuant to this subsection in the State Insurance Fund.

      (Added to NRS by 1999, 1762)—(Substituted in revision for NRS 616B.0865)

      NRS 616B.044  Authority of successor organization to take credit for reinsurance.

      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)

      NRS 616B.046  Disposition of money in Fund on repeal of statutes relating to workers’ compensation.  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

      NRS 616B.215  Appeal by principal contractor from denial of final certificate of coverage for project; appeal by employer from determination regarding vocational rehabilitation of injured employee.

      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 the account of the employer 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)

      NRS 616B.222  Determination of total amount paid to employees for services performed during policy year.  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)

      NRS 616B.224  Periodic report of payroll and reported tips; periodic payment of premiums; effect of failure to submit information or premiums; collection of premiums by insurer.

      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 the employer’s 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 the employer 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 the representative of the employer by first-class mail of any failure on his or her 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)

      NRS 616B.227  Submission and retention of reports concerning tips received by employees; payment of premiums for tips; calculation of compensation; notification of employees to report tips.

      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 or her tips to the United States Internal Revenue Service; and

      (b) Submit the copy to his or her private carrier upon request and retain another copy for his or her 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 or her records.

      2.  An employer who maintains his or her 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 or her private carrier and maintaining another copy of the report for his or her 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 or she 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 or her employees of the requirement to report income from tips to calculate his or her 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)

      NRS 616B.228  Budgeting for premiums and payment of premiums by public employers.  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

      NRS 616B.300  Qualification as self-insured employer: Establishment of financial ability to pay; deposit or security; evidence of excess insurance; Account for Self-Insured Employers.

      1.  An employer may qualify and remain qualified 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. For the purposes of this subsection, an employer has sufficient financial resources if:

      (a) At the time of initial qualification and until the employer has operated successfully as a qualified self-insured employer for 3 years, as determined by the Commissioner, the employer has a tangible net worth of not less than $2,500,000, as evidenced by a statement of tangible net worth provided to the Division of Insurance of the Department of Business and Industry by an independent certified public accountant; or

      (b) After 3 years of successful operation as a qualified self-insured employer, as determined by the Commissioner, the employer has net cash flows from operating activities plus net cash flows from financing activities of five times the average of claims paid for each of the last 3 years or $7,500,000, whichever is less.

      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 the employer’s 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 the Commissioner’s regulations for loss reserves in casualty insurance. If the Commissioner requires an employer to increase his or her 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; 2007, 3334)

      NRS 616B.303  Standard for insolvency.  For the purposes of NRS 616B.306, 616B.309 and 616B.318, an employer is insolvent if the employer’s assets are less than the employer’s liabilities.

      (Added to NRS by 1985, 582)—(Substituted in revision for NRS 616.2915)

      NRS 616B.306  Commissioner may sell securities or institute proceedings on surety bonds of self-insured employer to pay claims.

      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)

      NRS 616B.309  Assessment of self-insured employers to provide for claims against insolvent employers; Account for Insolvent Self-Insured Employers.

      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 the State Treasurer 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)

      NRS 616B.312  Certificate of qualification as self-insured employer: Issuance by Commissioner; contents; effective date; period certificate is in effect.

      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 the employer’s application, has had his or her 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)

      NRS 616B.315  Notification of change in ownership or control of self-insured employer; automatic termination of certification unless extension granted.  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. Documents declared confidential pursuant to this section are subject to the provisions of NRS 239.0115.

      (Added to NRS by 1985, 582; A 1995, 2137; 2007, 2127)

      NRS 616B.318  Grounds for withdrawal of certification of self-insured employer; exception; administrative fine.

      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 the employer 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 the employer 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 or her employees.

      4.  The Commissioner may authorize an employer to retain his or her 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)

      NRS 616B.321  Imposition of fine if self-insured employer fails to pay compensation as ordered.  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)

      NRS 616B.324  Self-insured employer liable for violation by employer’s agent.  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 or she 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)

      NRS 616B.327  Withdrawal of certification of self-insured employer: Informal meeting; notice of withdrawal; hearing; effective date of withdrawal.

      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 the employer’s 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)

      NRS 616B.330  Self-insured employer may appeal decision of Commissioner.  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)

      NRS 616B.333  Disposition of security after termination of status as self-insured employer.

      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)

      NRS 616B.336  Self-insured employers to furnish annual financial statements to Commissioner; Commissioner may examine records and interview employees.

      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 the Commissioner 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

      NRS 616B.350  Qualification as association of self-insured public or private employers; application for certification; fee; confidentiality of financial information submitted for certification.

      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 and, in addition to any other fee or charge, all applicable fees required pursuant to NRS 680C.110.

      (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.  Except as otherwise provided in NRS 239.0115, 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; 2007, 2128; 2009, 1828)

      NRS 616B.353  Indemnity agreement; policy of excess insurance; assessment; bond or similar security; minimum combined tangible net worth; combined net cash flows; bond required of association’s administrator or third-party administrator; Account for Associations of Self-Insured Public and Private Employers.

      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 the Commissioner 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:

      (a) At the time of initial qualification and until the association has operated successfully as a qualified association of self-insured private employers for 3 years, as determined by the Commissioner, have a combined tangible net worth of all members in the association of at least $2,500,000, as evidenced by a statement of tangible net worth provided to the Division of Insurance of the Department of Business and Industry by an independent certified public accountant; or

      (b) After 3 years of successful operation as a qualified association of self-insured private employers, as determined by the Commissioner, have combined net cash flows from operating activities plus net cash flows from financing activities of all members in the association of five times the average of claims paid for each of the last 3 years or $7,500,000, whichever is less.

      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 or her 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 the Commissioner’s 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; 2007, 3335)

      NRS 616B.356  Certificate of authority required before surety or bonding company may furnish bond or other security for association.  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)

      NRS 616B.359  Certificate of qualification as an association of self-insured employers: Time for consideration of application; issuance by Commissioner; contents; effective date; period certificate is in effect; cancellation by association.

      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, the Commissioner 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 the certificate is withdrawn by the Commissioner, the certificate is cancelled at the request of the association or an association does not pay, in addition to any other fee or charge, all applicable fees required pursuant to NRS 680C.110. 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; 2009, 1829)

      NRS 616B.362  Effect of certification; responsibility of association to provide compensation and administer claims.

      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)

      NRS 616B.365  Board of trustees: Members; duties; prohibited acts.

      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 or her. 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)

      NRS 616B.368  Board of trustees: Fiscal responsibilities; establishment of accounts; review of accounts by Commissioner.

      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 the Commissioner deems necessary to ensure compliance with the provisions of this section.

      (Added to NRS by 1993, 673; A 1999, 1527; 2001, 2756)

      NRS 616B.371  Association’s administrator prohibited from financial interest in third-party administrator; third-party administrator prohibited from financial interest in association’s administrator; contractual requirement.

      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)

      NRS 616B.374  Solicitor’s permit: Advertising or offering for sale membership in proposed association of self-insured public or private employers without permit prohibited; application for permit; fee; penalty; exceptions.

      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 the person 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 or her name, residential address and qualifications;

             (2) His or her business, professional or employment experience for the preceding 10 years; and

             (3) A complete set of his or her 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 the solicitor 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)

      NRS 616B.377  Solicitor’s permit: Commissioner to conduct investigation after filing of application for permit; required issuance of permit; Commissioner to give notice to applicant if application denied; fee nonrefundable.

      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 the Commissioner 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 the Commissioner 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)

      NRS 616B.380  Solicitor’s permit: Power of Commissioner to suspend or revoke permit; hearing required.

      1.  The Commissioner may suspend or revoke a solicitor’s permit if the Commissioner 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, the Commissioner 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)

      NRS 616B.383  Advertisements or written materials to join association of self-insured public or private employers; solicitor to provide to Commissioner upon request copy of document relating to solicitation.

      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 or her application for a permit.

      (Added to NRS by 1995, 1977)

      NRS 616B.386  Membership in association: Application; eligibility; authority of association to determine eligibility; termination by member; cancellation by association; information to be provided to Commissioner; provision of compensation after membership has ceased.

      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, as determined by the Commissioner, either:

             (1) A combined tangible net worth of all members in the association of at least $5,000,000; or

             (2) Combined net cash flows from operating activities plus net cash flows from financing activities of all members in the association of five times the average of claims paid for each of the last 3 years or $7,500,000, whichever is less;

      (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, as determined by the Commissioner, either:

             (1) A combined tangible net worth of all members in the association of at least $5,000,000; or

             (2) Combined net cash flows from operating activities plus net cash flows from financing activities of all members in the association of five times the average of claims paid for each of the last 3 years or $7,500,000, whichever is less; and

      (c) Has at least 15 members.

      7.  The Commissioner may withdraw approval of an application submitted pursuant to subsection 5 or 6 if the Commissioner 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 or her membership at any time. To terminate his or her 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 60 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 or her 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 the member’s 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 the member’s 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; 2007, 3337)

      NRS 616B.388  Provision of member information upon request.  If a member of an association of self-insured public or private employers requests, in writing, information required for the member’s certificate of insurance, the association shall, within 30 days after receiving the request, provide to the member information regarding claims paid and reserves for claims incurred that are maintained on behalf of the member.

      (Added to NRS by 2007, 3334)

      NRS 616B.392  Notification of Commissioner required if change in information submitted for certification.

      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)

      NRS 616B.395  Examination of books, records, accounts and assets of association by Commissioner; payment of related expenses.

      1.  The Commissioner may examine the books, records, accounts and assets of an association of self-insured public or private employers as the Commissioner 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)

      NRS 616B.398  Commissioner is agent of association for receipt of initial legal process.  An association of self-insured public or private employers shall be deemed to have appointed the Commissioner as its 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; A 2007, 2722)

      NRS 616B.401  Merger of associations.

      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 or her own motion conduct such a hearing.

      (Added to NRS by 1993, 675; A 1995, 1984)—(Substituted in revision for NRS 616.37947)

      NRS 616B.404  Statement of financial condition: Filing dates; contents; form; additional reports.

      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 the Commissioner 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)

      NRS 616B.407  Calculation of annual assessment paid by each member of association.

      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)

      NRS 616B.410  Annual audits; objection to assignment of standard industrial classification.

      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 the member, 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 the member, 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)

      NRS 616B.413  Payment of dividends to members of association.

      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 or her 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 the prospective member applies for membership in the association.

      (Added to NRS by 1993, 676; A 2003, 3343)

      NRS 616B.416  Plan for payment of annual assessments by members of association.

      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)

      NRS 616B.419  Required reserves.  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)

      NRS 616B.422  Insufficient assets to pay compensation due and maintain reserves.

      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)

      NRS 616B.425  Order by Commissioner to cease and desist; penalty for violation of order.

      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; A 2007, 3339)

      NRS 616B.428  Administrative fines for violations; authority of Commissioner to withdraw certification; effect of withdrawal.

      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 or her 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; 2007, 3339)

      NRS 616B.431  Withdrawal of certificate of association: Informal meeting; notice of withdrawal; hearing; effective date of withdrawal.

      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)

      NRS 616B.434  Retention by Commissioner of security deposit in event of termination of association.

      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)

      NRS 616B.437  Judicial review of Commissioner’s decision.  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)

      NRS 616B.440  Insolvency; termination of liability on surety bond; effect of termination of surety bond.

      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)

      NRS 616B.443  Assessment of all associations to provide for claims against insolvent association; Account for Insolvent Associations of Self-Insured Public or Private Employers.

      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 the State Treasurer 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)

      NRS 616B.446  Regulations.  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; A 2007, 3340)

PRIVATE CARRIERS

      NRS 616B.460  Election by employer to purchase industrial insurance from private carrier; cancellation of policy by employer to purchase insurance from another insurer.

      1.  An employer may elect to purchase industrial insurance from a private carrier for his or her 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 the employer’s 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)

      NRS 616B.461  Notification of Administrator regarding issuance, renewal, cancellation or reinstatement of policy; investigation of information reported by private carrier.

      1.  An employer who cancels a policy of industrial insurance issued to the employer 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, the designated agent of the Administrator, 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)

      NRS 616B.463  Authorization and security required before industrial insurance may be provided by private carrier; private carrier subject to Nevada Insurance Code.

      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)

      NRS 616B.466  Responsibility of private carrier after withdrawal of authorization to provide industrial insurance.  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)

      NRS 616B.472  Suspension of authorization of private carrier to provide industrial insurance: Grounds; hearing.

      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)

      NRS 616B.475  Requirements for handling claims; employer and private carrier subject to regulations of Division.  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

      NRS 616B.500  Administration of plan of insurance authorized; conditions.

      1.  An insurer may enter into a contract to have his or her 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)

      NRS 616B.503  Certification by Commissioner required; duties of third-party administrator.

      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 the person 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 the person’s contract with an insurer, transfer forthwith to a certified third-party administrator chosen by the insurer all of the records in the person’s 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)

      NRS 616B.506  Imposition of administrative fine for violations; withdrawal of certification.  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)

      NRS 616B.509  Regulations.  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

      NRS 616B.527  Authority of self-insured employers, associations of self-insured employers and private carriers; compliance with certain provisions.

      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)

      NRS 616B.5273  Adequacy of medical and health care services, choice of providers of health care and cost controls; regulations.

      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)

      NRS 616B.528  Restriction of or interference with communication between provider of health care and injured employee prohibited.  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)

      NRS 616B.5285  Contracts with providers of health care; prohibited acts.  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)

      NRS 616B.529  Inducements to deny, reduce or delay medically necessary services prohibited.

      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

      NRS 616B.545  “Board” defined.  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)

      NRS 616B.548  Board for Administration of Subsequent Injury Account for Self-Insured Employers: Creation; membership; officers; vacancies; members serve without compensation; legal counsel.

      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 Chair and Vice Chair from among the members appointed. After the initial election of a Chair and Vice Chair, 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 office of the Chair or Vice Chair, 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)

      NRS 616B.551  Board for Administration of Subsequent Injury Account for Self-Insured Employers: Meetings; regulations; quorum; administration of Account.

      1.  The members of the Board may meet throughout each year at the times and places specified by a call of the Chair 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)

      NRS 616B.554  Creation and administration of Subsequent Injury Account for Self-Insured Employers; assessment rates, payments and penalties.

      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 the State Treasurer is authorized to invest State General Funds which are in the custody of the State Treasurer. 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)

      NRS 616B.557  Payment of cost of additional compensation resulting from subsequent injury of employee of self-insured employer.  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 or her employment which entitles the employee 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 or her 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 person 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 must submit to the Board a claim for reimbursement from the Subsequent Injury Account for Self-Insured Employers.

      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 its decision on such a claim within 120 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; 2007, 392)

      NRS 616B.560  Reimbursement of self-insured employer for cost of additional compensation resulting from subsequent injury.

      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 or her employment which entitles the employee 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 or her physical condition at the time the employee 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 or her 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

      NRS 616B.563  “Board” defined.  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)

      NRS 616B.569  Board for Administration of Subsequent Injury Account for Associations of Self-Insured Public or Private Employers: Creation; membership; officers; vacancies; members serve without compensation; legal counsel.

      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 Chair and Vice Chair from among the members appointed. After the initial election of a Chair and Vice Chair, 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 office of the Chair or Vice Chair, 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)

      NRS 616B.572  Board for Administration of Subsequent Injury Account for Associations of Self-Insured Public or Private Employers: Meetings; regulations; quorum; administration of Account.

      1.  The members of the Board may meet throughout each year at the times and places specified by a call of the Chair 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)

      NRS 616B.575  Creation and administration of Subsequent Injury Account for Associations of Self-Insured Public or Private Employers; assessment rates, payments and penalties.

      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 the State Treasurer is authorized to invest State General Funds which are in the custody of the State Treasurer. 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)

      NRS 616B.578  Payment of cost of additional compensation resulting from subsequent injury of employee of member of association of self-insured public or private employers.  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 or her employment which entitles the employee 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 or her 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 person 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 must submit to the Board a claim for reimbursement from the Subsequent Injury Account for Associations of Self-Insured Public or Private Employers.

      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 120 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; 2007, 393)

      NRS 616B.581  Reimbursement of Association of Self-Insured Public or Private Employers for cost of additional compensation resulting from subsequent injury.

      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 or her employment which entitles the employee 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 or her physical condition at the time the employee 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 or her 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

      NRS 616B.584  Creation and administration of Subsequent Injury Account for Private Carriers; assessment rates, payments and penalties.

      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 the State Treasurer is authorized to invest State General Funds which are in the custody of the State Treasurer. 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)

      NRS 616B.587  Payment of cost of additional compensation resulting from subsequent injury of employee of employer insured by private carrier.  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 or her employment which entitles the employee 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 or her 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 person 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 must submit to the Administrator a claim for reimbursement from the Subsequent Injury Account for Private Carriers.

      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 or her decision on such a claim within 120 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 the appeals officer.

      (Added to NRS by 1995, 2124; A 1997, 593, 596; 2001, 2763; 2007, 394)

      NRS 616B.590  Reimbursement of private carrier for cost of additional compensation resulting from subsequent injury.

      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 or her employment which entitles the employee 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 or her physical condition at the time the employee 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 or her 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

      NRS 616B.600  Exemption of employer and employee temporarily within State; exception; effect of employee working in another state where coverage required.

      1.  Except as limited in subsection 3, any employee who has been hired outside of this State and his or her 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 the employer if the 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 employees of the employer 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 the license of the contractor.

      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 or her 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 the dependents of the employee. 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)

      NRS 616B.603  Independent enterprises.

      1.  A person is not an employer for the purposes of chapters 616A to 616D, inclusive, of NRS if:

      (a) The person enters into a contract with another person or business which is an independent enterprise; and

      (b) The person 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 or herself out as being engaged in a separate business and:

      (a) Holds a business or occupational license in his or her own name; or

      (b) Owns, rents or leases property used in furtherance of the 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-salesperson or salesperson associated with the real estate broker 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)

      NRS 616B.606  Real estate brokers and salespersons not employers under certain circumstances.  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)

      NRS 616B.609  Devices modifying liability void; exception.

      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)

      NRS 616B.612  Employers to provide compensation; effect of participation in consolidated insurance program; relief from certain liability.

      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 or her 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)

      NRS 616B.615  Self-insured employers to provide compensation; relief from premiums and liability; administration of claims.

      1.  An employer who is certified as a self-insured employer directly assumes the responsibility for providing compensation due his or her 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)

      NRS 616B.618  Applicability to State, political subdivisions and their contractors.  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)

      NRS 616B.621  Applicability to trainees of Rehabilitation Division of Department of Employment, Training and Rehabilitation.

      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)

      NRS 616B.624  Applicability to officers of quasi-public, private and nonprofit corporations and managers of limited-liability companies; rejection of coverage by certain officers and managers.

      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 or herself 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 or herself 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)

      NRS 616B.627  Contractor with State or political subdivision: Submission of certificate of compliance; coverage pursuant to contract; sole proprietor who does not use employees.

      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 or her 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 or herself during any period in which the sole proprietor performs work under the contract for which he or she 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 the employees of the sole proprietor, if any; and

      (b) Is not liable as a principal contractor to the sole proprietor or the employees of the sole proprietor, 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)

      NRS 616B.630  Notification of State Contractors’ Board and Administrator if contractor no longer provides industrial insurance.

      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 the contractor 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)

      NRS 616B.633  Applicability to all employers who employ at least one employee.  Where an employer has in his or her 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)

      NRS 616B.636  Actions at law by employees.

      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 the dependents of the employee may bring an action at law against the employer for damages as if those chapters did not apply.

      2.  The injured employee or the dependents of the employee 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 or her 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)

      NRS 616B.639  Limitation of liability of principal contractor for industrial injury to independent contractor or employee of independent contractor.

      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)

      NRS 616B.642  Limitation on liability of owner of property who is not acting as principal contractor.  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 the owner to assure payments under chapters 616A to 616D, inclusive, of NRS, of costs relating to industrial insurance required to be paid by the owner’s 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)

      NRS 616B.645  Determination of obligation of principal contractor or owner of property: Preliminary statement of coverage; issuance or denial of final certificate of coverage.

      1.  To determine his or her obligation to pay premiums for industrial insurance on behalf of his or her 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 the principal contractor or owner with a statement certifying whether:

             (1) Each of the subcontractors and independent contractors working in the principal contractor’s or owner’s project is insured; and

             (2) Each sole proprietor who is a subcontractor or independent contractor has elected coverage for himself or herself pursuant to chapters 616A to 617, inclusive, of NRS.

      (b) During the course of the project, notify the principal contractor or owner 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 or her records;

             (4) Is principally located out of State and an audit is required;

             (5) Is delinquent in submitting his or her records relating to his or her payroll;

             (6) Has closed his or her 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 herself; or

             (10) Has committed any other action which, in the opinion of the insurer, may result in his or her 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

      NRS 616B.650  Election by employer; effect of failure to provide industrial insurance.

      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 such 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 the employer’s premises in a conspicuous place. The employer at all times shall maintain the notice or notices so provided for the information of his or her employees.

      [Part 36:168:1947; 1943 NCL § 2680.36]—(NRS A 1979, 1045; 1993, 711; 1995, 2019)—(Substituted in revision for NRS 616.305)

      NRS 616B.653  Reporting of agreements with lessees engaged in mining or operating reduction plant; exception.

      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 workers 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 the lessee and any workers the lessee 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)

      NRS 616B.656  Election by employer of excluded persons.

      1.  An employer in this State having in his or her 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 the employer accepts the provisions of chapters 616A to 616D, inclusive, of NRS which, when filed, operates to subject the employer to the provisions of those chapters until the employer files with the Administrator and the insurer a notice in writing that the employer withdraws the 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 or her employer and to the Administrator and the insurer notice in writing that the employee 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 or her 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)

      NRS 616B.659  Election by sole proprietor; physical examination; payment of premiums; effect of failure to pay premiums; withdrawal of election.

      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 or herself 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 or her 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 or her 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 the sole proprietor files written notice with the Administrator and the private carrier that the sole proprietor withdraws his or her 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 the sole proprietor requests coverage, the sole proprietor files written notice with the Administrator and the private carrier that he or she 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)

      NRS 616B.662  Rejection of coverage by employer; relief from payment of premiums.  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 the employer’s 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

      NRS 616B.670  Definitions.  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; 2009, 1126)

      NRS 616B.673  Certificate of registration required; expiration; penalty.

      1.  A person shall not operate an employee leasing company in this State unless the person 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; 2009, 1126)

      NRS 616B.676  Written application for issuance or renewal of certificate of registration must be on approved form.  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)

      NRS 616B.679  Contents of application; fee; Administrator to be notified of certain changes in information about applicant; power of Administrator to revoke certificate of registration; financial statements.

      1.  Each application must include:

      (a) The applicant’s name and title of his or her 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 registered agent of the employee leasing company, if the applicant is not the registered 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 chapter 76 of NRS.

             (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) A financial statement of the applicant setting forth the financial condition of the employee leasing company. Except as otherwise provided in subsection 5, the financial statement must include, without limitation:

             (1) For an application for issuance of a certificate of registration, the most recent audited financial statement of the applicant, which must have been completed not more than 13 months before the date of application; or

             (2) For an application for renewal of a certificate of registration, an audited financial statement which must have been completed not more than 180 days after the end of the applicant’s fiscal year.

      (i) A registration or renewal fee of $500.

      (j) 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.

      5.  A financial statement submitted with an application pursuant to this section must be prepared in accordance with generally accepted accounting principles, must be audited by an independent certified public accountant licensed to practice in the jurisdiction in which the accountant is located and must be without qualification as to the status of the employee leasing company as a going concern. An employee leasing company that has not had sufficient operating history to have an audited financial statement based upon at least 12 months of operating history must present financial statements reviewed by a certified public accountant covering its entire operating history. The financial statements must be prepared not more than 13 months before the submission of an application and must:

      (a) Indicate that the applicant has positive working capital, as defined by generally accepted accounting principles, for the period covered by the financial statements; or

      (b) Be accompanied by a bond, irrevocable letter of credit or securities with a minimum market value equaling the maximum deficiency in working capital for the period covered by the financial statements plus $100,000. The bond, irrevocable letter of credit or securities must be held by a depository institution designated by the Administrator to secure payment by the applicant of all taxes, wages, benefits or other entitlements payable by the applicant.

      (Added to NRS by 1993, 2419; A 1999, 1725; 2003, 20th Special Session, 217; 2007, 2723; 2009, 1127, 2052; 2011, 1395)

      NRS 616B.682  Employee leasing company to maintain office or similar site in State; maintenance, inspection and copying of records.  Each employee leasing company operating in this State shall:

      1.  Maintain an office or similar site in this State for retaining, reviewing and auditing its payroll records and written agreements with client companies.

      2.  Maintain at that office or similar site in this State records establishing that the employee leasing company:

      (a) Maintains current policies of workers’ compensation insurance providing coverage for each employee it leases to each client company; or

      (b) Pursuant to NRS 616B.692, otherwise satisfies its obligation to provide coverage for workers’ compensation for the employees that the employee leasing company leases to each client company.

      3.  Keep the records described in subsection 2 open for inspection and copying, during its regular business hours, by:

      (a) Each employee it leases to each client company and any representative of each such employee; and

      (b) The public.

      (Added to NRS by 1995, 2124; A 2007, 3342; 2009, 1129)

      NRS 616B.685  Separate payroll records required upon operation of employee leasing company and temporary employment service; prohibition on maintaining policy of workers’ compensation insurance for both employee leasing company and temporary employment service.  If a person operates an employee leasing company and a temporary employment service in this State, the person:

      1.  Shall maintain separate payroll records for the company and the service. The records must be maintained in this State.

      2.  Shall not maintain a policy of workers’ compensation insurance which covers both employees of the employee leasing company and employees of the temporary employment service.

      (Added to NRS by 1995, 2124; A 2009, 1129)

      NRS 616B.688  Written agreement regarding employment relationship with leased employees.  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)

      NRS 616B.691  Responsibilities of employee leasing company; limitations; joint and several liability of client company.

      1.  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. The provisions of this subsection apply only for the purposes of chapters 612 and 616A to 617, inclusive, of NRS.

      2.  An employee leasing company shall be deemed to be an employer of its leased employees for the purposes of offering, sponsoring and maintaining any benefit plans. The provisions of this subsection do not affect the employer-employee relationship that exists between a leased employee and a client company.

      3.  An employee leasing company shall not offer, sponsor or maintain for its leased 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 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; 2007, 3340; 2009, 1129; 2011, 3421)

      NRS 616B.692  Provision of coverage for workers’ compensation by employee leasing company; required reports and disclosures; regulations.

      1.  An employee leasing company may satisfy its obligation to provide coverage for workers’ compensation for the employees that the employee leasing company leases to each client company by:

      (a) Confirming that the client company has obtained a policy of workers’ compensation insurance directly from an insurer, and maintains that policy, which covers all of the employees of the client company, including, without limitation, the employees leased from the employee leasing company, subject to the same requirements and conditions as if the client company were the sole employer of the leased employees for the purpose of providing coverage for workers’ compensation;

      (b) Confirming that the client company is a member of an association of self-insured employers which is certified by the Commissioner and which has assumed responsibility, and maintains responsibility, for covering all of the employees of the client company, including, without limitation, the employees leased from the employee leasing company, subject to the same requirements and conditions as if the client company were the sole employer of the leased employees for the purpose of providing coverage for workers’ compensation;

      (c) Confirming that the client company is certified by the Commissioner as a self-insured employer which self-insures all of the employees of the client company, including, without limitation, the employees leased from the employee leasing company, subject to the same requirements and conditions as if the client company were the sole employer of the leased employees for the purpose of providing coverage for workers’ compensation;

      (d) Obtaining a policy of workers’ compensation insurance directly from an insurer on a multiple coordinated policy basis, and maintaining that policy, which covers all of the employees leased to the client company or all of the employees leased to the client company and other client companies affiliated with the client company such that:

             (1) The policy covers the liability of both the employee leasing company and the client company or companies for payments required by chapters 616A to 616D, inclusive, or chapter 617 of NRS;

             (2) A separate policy is issued to or on behalf of each client company or group of affiliated client companies under the multiple coordinated policy; and

             (3) The employee leasing company controls payments and communications related to the policy; or

      (e) Obtaining a policy of workers’ compensation insurance on a master policy basis directly from an insurer, and maintaining that policy, which:

             (1) Covers some or all of the employees of the employee leasing company who are leased to one or more client companies; and

             (2) May cover all of the employees of the employee leasing company who work directly for the employee leasing company and are not leased to any client company.

      2.  With respect to a policy of workers’ compensation insurance described in paragraph (a) of subsection 1:

      (a) The policy may name the employee leasing company as an additional insured; and

      (b) If the employee leasing company is licensed as a producer of insurance pursuant to NRS 683A.261 and is authorized by the insurer, the employee leasing company may negotiate coverage, collect premiums on behalf of the insurer and otherwise act as an intermediary with respect to the policy.

      3.  If an employee leasing company or a client company maintains a policy of workers’ compensation insurance which provides coverage for leased employees, each insurer insuring leased employees shall report to the Advisory Organization, as defined in NRS 686B.1752:

      (a) Payroll and claims data for each client company in a manner that identifies both the client company and the employee leasing company; and

      (b) The status of coverage with respect to each client company in accordance with any applicable requirements regarding proof of coverage.

      4.  If the services that an employee leasing company offers to a client company do not include obtaining and maintaining a policy of workers’ compensation insurance for the employees which the employee leasing company will lease to the client company, the employee leasing company shall:

      (a) Before entering into an agreement with the client company to provide services as an employee leasing company, provide written notice to the client company that the client company will remain responsible for providing coverage for workers’ compensation for all of the employees of the client company, including, without limitation, the employees leased from the employee leasing company; and

      (b) In the written agreement with the client company to provide services as an employee leasing company, clearly set forth the responsibility of the client company to provide coverage for workers’ compensation for all of the employees of the client company, including, without limitation, the employees leased from the employee leasing company.

      5.  If an employee leasing company offers to provide coverage for workers’ compensation for the employees that the employee leasing company leases to a client company in accordance with paragraph (d) or (e) of subsection 1:

      (a) The coverage for workers’ compensation must not take effect until the client company executes the written agreement required by NRS 616B.688 between the employee leasing company and the client company; and

      (b) The written agreement required by NRS 616B.688 between the employee leasing company and the client company must:

             (1) Explain that coverage for workers’ compensation does not take effect until the effective date designated by the insurer in the policy of workers’ compensation insurance;

             (2) Provide that, while the policy of workers’ compensation insurance is in force, the employee leasing company will pay all premiums required by the policy, including, without limitation, any adjustments or assessments, and will be entitled to any refunds of premiums;

             (3) Set forth the procedures by which the client company or the employee leasing company may terminate the agreement and any fees or costs payable upon termination;

             (4) Provide that, except as otherwise provided by law, all services provided by the employee leasing company to the client company will cease immediately on the effective date of any termination of the agreement;

             (5) Provide that the insurer from whom the policy of workers’ compensation insurance is obtained by the employee leasing company has the right to inspect the premises and records of the client company;

             (6) Provide that the loss experience of the client company will continue to be reported in the name of the client company to the Commissioner and will be available to subsequent insurers upon request;

             (7) Provide that the policy of workers’ compensation insurance covers only those employees acknowledged in writing by the employee leasing company to be employees of the employee leasing company who are being leased to the client company;

             (8) Explain that the client company is responsible at all times for providing coverage for workers’ compensation for any employees of the client company who are not leased from the employee leasing company; and

             (9) Provide that the client company must provide satisfactory evidence of the coverage required by subparagraph (8) to the insurer from whom the policy of workers’ compensation insurance is obtained by the employee leasing company.

      6.  Nothing in this section prohibits the employees of an employee leasing company who are leased to one or more client companies from being considered as a group for the purposes of any eligibility for dividends, discounts on premiums, rating arrangements or options or obtaining policies with large deductibles.

      7.  The exclusive remedy provided by NRS 616A.020 applies to the employee leasing company, the client company and to all employees of the client company, including, without limitation, the employees leased from the employee leasing company, whether the employee leasing company or the client company provides the coverage for workers’ compensation.

      8.  The Administrator and the Commissioner may adopt regulations to carry out the provisions of this section.

      (Added to NRS by 2009, 1123)

      NRS 616B.693  Assurance organizations: Authority of Administrator; regulations; independence and approval required.

      1.  The Administrator may adopt regulations authorizing and setting forth qualifications for an assurance organization selected by an employee leasing company to act on behalf of the employee leasing company in complying with the requirements of NRS 616B.670 to 616B.697, inclusive, and any regulations adopted pursuant thereto, including, without limitation, any requirements regarding obtaining or renewing a certificate of registration. Such an assurance organization must be independent of the employee leasing company and approved by the Administrator.

      2.  Nothing in this section or any regulations adopted pursuant thereto:

      (a) Limits or otherwise affects the authority of the Administrator to issue or revoke a certificate of registration of an employee leasing company subject to the appeals process;

      (b) Limits or otherwise affects the authority of the Administrator to investigate compliance with or enforce any provision of NRS 616B.670 to 616B.697, inclusive, and any regulations adopted pursuant thereto; or

      (c) Requires an employee leasing company to authorize an assurance organization to act on its behalf.

      3.  As used in this section, “assurance organization” means a person who meets the qualifications set forth by the Administrator pursuant to regulations adopted pursuant to subsection 1.

      (Added to NRS by 2009, 1123)

      NRS 616B.694  Regulations.  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; 2009, 1130)

      NRS 616B.697  Action for damages for statutory violation.  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; 2009, 1130)

Consolidated Insurance Programs

      NRS 616B.710  Establishment and administration of program: Prerequisites; mandatory participation; payments to contractors or subcontractors; Commissioner to establish threshold cost for project eligible for program.

      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)

      NRS 616B.712  Industrial insurance for program; contract to provide insurance to be filed and reviewed by Commissioner.

      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)

      NRS 616B.717  Coverage of more than one construction project authorized.  A consolidated insurance program may cover more than one construction project.

      (Added to NRS by 1999, 3142)

      NRS 616B.720  Contents of contract to provide insurance for program.  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)

      NRS 616B.722  Liability of insurer for payment of compensation.  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)

      NRS 616B.725  Safety requirements: Contents of safety program; qualifications and duties of safety coordinators; duties of owner or principal contractor.

      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)

      NRS 616B.727  Administration of claims: Duties of administrator of claims; duties of owner or principal contractor.

      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 the dependents of the employee, 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 the responsibilities of the administrator of claims 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)

      NRS 616B.730  Coverage of employees who do not work at site of construction project; separate policy required for certain employees who do not work at site of construction project; reimbursement for cost of separate policy.

      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 or her 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)

      NRS 616B.732  Determination of loss experience.  If an owner or principal contractor establishes and administers a consolidated insurance program pursuant to NRS 616B.710, each employee of a contractor or subcontractor who is covered under the consolidated insurance program:

      1.  Is an employee of the contractor or subcontractor for the purpose of determining the loss experience of the contractor or subcontractor.

      2.  Shall not 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; A 2007, 614)

      NRS 616B.735  Notification and explanation to bidders required if program may be established for construction project.  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)

      NRS 616B.737  Regulations.  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

      NRS 616B.760  Creation; membership; terms; vacancies.

      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; and

             (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)

      NRS 616B.762  Annual first meeting: Date; election of Chair.

      1.  At its first meeting of each year, the Appeals Panel shall elect a Chair from among its members.

      2.  The Chair shall hold office for 1 year.

      3.  If a vacancy occurs in the office of the Chair, the members of the Panel shall elect a Chair from among its members for the remainder of the unexpired term of the Chair.

      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)

      NRS 616B.765  Duties and powers of Chair.

      1.  The Chair 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 Chair of the Appeals Panel may appoint from the membership of the Appeals Panel a secretary to whom the Chair may delegate his or her administrative functions.

      (Added to NRS by 1999, 3378; A 2001, 2256)

      NRS 616B.767  Meetings; quorum.

      1.  The Appeals Panel shall meet at the times and places specified by a call of the Chair.

      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)

      NRS 616B.770  Compensation of members.

      1.  Each member of the Appeals Panel is entitled to receive, for the member’s 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)

      NRS 616B.772  Filing of grievance; parties to hearing; authority to appeal decision on hearing.

      1.  An employer, other than a self-insured employer, who determines that circumstances specific to his or her 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)

      NRS 616B.775  Jurisdiction.

      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)

      NRS 616B.777  Timing: Notification of hearing; issuance of decision.

      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, the employer’s 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)

      NRS 616B.780  Hearings open to public; exception.  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)

      NRS 616B.782  Conflict of interest: Appointment of substitute member; waiver; determination.

      1.  If a member of the Appeals Panel determines that he or she 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 Chair 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 Chair 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 Chair of the Appeals Panel before the hearing. If the Chair 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)

      NRS 616B.785  Issuance and delivery of decision; notification of right to appeal.

      1.  Within 30 days after each hearing, the Chair or a member of the Appeals Panel designated by the Chair 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)

      NRS 616B.787  Appeal of decision to Commissioner.

      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)

      NRS 616B.790  Regulations.  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

      NRS 616B.850  Insurer may establish plan to review small employers; objectives of plan.  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)