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2023 Nevada Revised Statutes › Chapter 686B - Rates and Essential Insurance › NRS 686B.1751 - Definitions.

As used in NRS 686B.1751 to 686B.1799, inclusive, unless the context otherwise requires, the words and terms defined in NRS 686B.1752 to 686B.1762, inclusive, have the meanings ascribed to them in those sections.
(Added to NRS by 1995, 2049; A 1999, 2220, 3381; 2001, 2256; 2017, 2348)
2023 Nevada Revised Statutes › Chapter 686B - Rates and Essential Insurance › NRS 686B.17595 - "Large-deductible agreement" defined.

"Large-deductible agreement" means any combination of one or more policies, endorsements, contracts or security arrangements, which provide for the policyholder to bear the risk of loss of a specified amount of $25,000 or more per claim or occurrence covered under a policy of industrial insurance and which may be subject to an aggregate limit of the policyholder’s reimbursement obligations.
(Added to NRS by 2017, 2342)
2023 Nevada Revised Statutes › Chapter 686B - Rates and Essential Insurance › NRS 686B.176 - "Plan for rating experience" defined.

"Plan for rating experience" means a procedure used to predict the future losses of an individual policyholder by measuring the past losses of the individual policyholder against the losses of other policyholders in the same classification to determine any prospective credit, debit or unitary modifications of premiums for the individual policyholder.
(Added to NRS by 1995, 2049)
2023 Nevada Revised Statutes › Chapter 686B - Rates and Essential Insurance › NRS 686B.17605 - "Prospective loss cost" defined.

"Prospective loss cost" means the portion of a rate that is based on historical aggregate losses and loss adjustment expenses which are adjusted to their ultimate value and projected to a future point in time. Except as otherwise provided in this section, the term does not include provisions for expenses or profit.
(Added to NRS by 1999, 2219)
2023 Nevada Revised Statutes › Chapter 686B - Rates and Essential Insurance › NRS 686B.1761 - "Rate" defined.

"Rate" means the cost of insurance based on a unit of exposure to liability before any adjustments are made for an individual employer’s losses, or expenses, or a combination of both. The term does not include minimum premiums charged by an insurer.
(Added to NRS by 1995, 2049)
2023 Nevada Revised Statutes › Chapter 686B - Rates and Essential Insurance › NRS 686B.1762 - "Willful" defined.

"Willful" or "willfully" in relation to an act or omission which constitutes a violation of this chapter means with actual knowledge or belief that the act or omission constitutes a violation and with specific intent to commit the violation.
(Added to NRS by 1995, 2049)
2023 Nevada Revised Statutes › Chapter 686B - Rates and Essential Insurance › NRS 686B.1763 - Applicability of provisions; Commissioner required to administer provisions.

1. NRS 686B.1751 to 686B.1799, inclusive, apply to insurers providing industrial insurance and to the Advisory Organization designated by the Commissioner. The Commissioner shall administer the provisions of these sections.
2. These provisions apply to all industrial insurance issued in this state except reinsurance.
(Added to NRS by 1995, 2049; A 2017, 2348)
2023 Nevada Revised Statutes › Chapter 686B - Rates and Essential Insurance › NRS 686B.1764 - Designation as statistical agent; duties.

The Commissioner shall designate one licensed advisory organization to act as the Commissioner’s statistical agent and to assist the Commissioner in compiling relevant statistical information. The designation must be made pursuant to reasonable competitive bidding procedures established by the Commissioner. The Advisory Organization shall:
1. Provide reliable statistics for industrial insurance.
2. Collect and tabulate information and statistics in a Uniform Statistical Plan, to be approved and used by the Commissioner.
3. Formulate a manual of rules reasonably related to the recording and reporting of data according to the Uniform Statistical Plan, Uniform Plan for Rating Experience and the Uniform System of Classification, and present the proposed manual to the Commissioner for approval.
(Added to NRS by 1995, 2050)
2023 Nevada Revised Statutes › Chapter 686B - Rates and Essential Insurance › NRS 686B.17645 - Duty to file with Commissioner formula to assess insurers for certain costs; approval of formula.

1. The Advisory Organization shall, at least 60 days before imposing an assessment pursuant to this section, file with the Commissioner a formula for an assessment on all insurers, which results in an equitable distribution among all insurers, of:
(a) The costs of paying the expenses of the members of the appeals panel for industrial insurance pursuant to the provisions of NRS 616B.770; and
(b) Any costs incurred by the Advisory Organization to administer the appeals panel for industrial insurance pursuant to the provisions of NRS 616B.760 to 616B.790, inclusive.
2. The formula for the assessment filed pursuant to subsection 1 shall be deemed approved unless it is disapproved by the Commissioner within 60 days after it is filed.
(Added to NRS by 1999, 3381; A 2001, 2256)
2023 Nevada Revised Statutes › Chapter 686B - Rates and Essential Insurance › NRS 686B.1765 - Powers.

The Advisory Organization may:
1. Develop statistical plans including definitions for the classification of risks.
2. Collect statistical data from its members and subscribers or any other reliable source.
3. Prepare and distribute data on prospective loss costs.
4. Prepare and distribute manuals of rules and schedules for rating which do not permit calculating the final rates without using information other than the information in the manual.
5. Distribute any information filed with the Commissioner which is open to public inspection.
6. Conduct research and collect statistics to discover, identify and classify information on the causes and prevention of losses.
7. Prepare and file forms and endorsements for policies and consult with its members, subscribers and any other knowledgeable persons on their use.
8. Collect, compile and distribute information on the past and current premiums charged by individual insurers if the information is available for public inspection.
9. Conduct research and collect information to determine what effect changes in benefits to injured employees pursuant to chapters 616A to 617, inclusive, of NRS will have on prospective loss costs.
10. Prepare and distribute rules and rating values for the Uniform Plan for Rating Experience.
11. Calculate and provide to the insurer the modification of premiums based on the individual employer’s losses.
12. Assist an individual insurer to develop rates, supplementary rate information or other supporting information if authorized to do so by the insurer.
(Added to NRS by 1995, 2050; A 1997, 1450, 1451; 1999, 444, 2220, 2224; 2001, 154)
2023 Nevada Revised Statutes › Chapter 686B - Rates and Essential Insurance › NRS 686B.1767 - Prohibited acts by advisory organization.

An advisory organization shall not:
1. Compile or distribute recommendations concerning rates which include expenses, other than expenses to adjust losses or profit; or
2. File rates, supplementary rate information or supporting information on behalf of an insurer.
(Added to NRS by 1995, 2050; A 1997, 1451, 1452; 1999, 444, 2224)
2023 Nevada Revised Statutes › Chapter 686B - Rates and Essential Insurance › NRS 686B.1769 - Uniform Plan for Rating Experience: Requirements; use.

1. The Uniform Plan for Rating Experience must:
(a) Contain reasonable standards for eligibility in the Plan;
(b) Provide adequate incentives for employers to prevent losses; and
(c) Permit sufficient differences in an insurer’s premiums to encourage safety at the employer’s place of business.
2. The Plan must be the exclusive basis for adjusting future premiums by evaluating an individual employer’s characteristics which tend to produce losses, but an insurer may file a rating plan that provides for an adjustment of premiums retrospectively based on an individual employer’s past experience of losses.
(Added to NRS by 1995, 2051)
2023 Nevada Revised Statutes › Chapter 686B - Rates and Essential Insurance › NRS 686B.177 - Rating information to be filed with Commissioner; approval of rates.

The Advisory Organization shall file with the Commissioner a copy of every prospective loss cost, every manual of rating rules, every rating schedule and every change, amendment or modification to them which is proposed for use in this state at least 60 days before they are distributed to the Organization’s members, subscribers or other persons. The rates shall be deemed to be approved unless they are disapproved by the Commissioner within 60 days after they are filed.
(Added to NRS by 1995, 2051; A 1997, 1452; 1999, 444, 2221, 2224; 2001, 154; 2017, 1042)
2023 Nevada Revised Statutes › Chapter 686B - Rates and Essential Insurance › NRS 686B.1771 - Insurer not required to issue policy of industrial insurance to any particular employer; plan for apportionment among insurers of persons entitled to insurance who have not been accepted by an insurer; approval of rates for plan by Commissioner; regulations.

1. No insurer is required to issue to any particular employer a policy for industrial insurance.
2. The Commissioner shall approve a plan submitted by the Advisory Organization for equitable apportionment among insurers of those persons who in good faith are entitled to insurance but who have not been accepted by an insurer. Every insurer shall participate in the plan. The Commissioner shall adopt regulations to carry out the plan.
3. The Advisory Organization shall submit to the Commissioner the rates, supplementary rate information and forms for policies for the plan at least 60 days before they become effective. The rates submitted to the Commissioner must:
(a) Reflect the experience of the persons insured pursuant to the plan to the extent that those rates are actuarially appropriate.
(b) Be actuarially determined to ensure that the plan is self-sustaining.
4. The Commissioner shall disapprove any rates for the plan which do not meet the standards of NRS 686B.050. The rates shall be deemed to be approved unless they are disapproved by the Commissioner within 60 days after they are filed pursuant to the procedures in NRS 686B.1775.
(Added to NRS by 1995, 2051; A 1997, 973; 1999, 428)
2023 Nevada Revised Statutes › Chapter 686B - Rates and Essential Insurance › NRS 686B.1772 - Insurers required to adhere to Uniform System of Classifications of Risks and Uniform Plan for Rating Experience; filing with and approval by Commissioner of subclassifications for Uniform System of Classification.

1. Every insurer shall adhere to the Uniform System of Classifications of Risks and Uniform Plan for Rating Experience filed with the Commissioner by the Advisory Organization.
2. Any insurer may develop a subclassification or subclassifications for the Uniform System of Classification. Any subclassification must be filed with the Commissioner 60 days before it becomes effective. The Commissioner shall disapprove the subclassification if the insurer fails to show the data to be produced by it will be consistent with the Uniform Statistical Plan and System of Classification filed by the Advisory Organization with the Commissioner.
(Added to NRS by 1995, 2051)
2023 Nevada Revised Statutes › Chapter 686B - Rates and Essential Insurance › NRS 686B.1773 - Insurers required to record and report certain information and adhere to manual of rules and Uniform Plan for Rating Experience.

1. Every insurer shall:
(a) Record and report its experience and losses for policies of industrial insurance to the Advisory Organization in a form consistent with the Uniform Statistical Plan approved by the Commissioner; and
(b) Adhere to the manual of rules and Uniform Plan for Rating Experience when providing or reporting its business for industrial insurance.
2. No insurer may agree with another insurer or the Advisory Organization to adhere to a manual of rules which is not reasonably related to the recording or reporting of data according to the Uniform Statistical Plan or Uniform System of Classifications filed by the Advisory Organization.
(Added to NRS by 1995, 2051)
2023 Nevada Revised Statutes › Chapter 686B - Rates and Essential Insurance › NRS 686B.1774 - Commissioner required to determine whether interaction among insurers and employers for buying and selling industrial insurance is competitive.

1. The Commissioner shall determine whether the interaction among insurers and employers for the buying and selling of industrial insurance is competitive. Competition among these insurers is presumed to exist unless the Commissioner specifically finds, after a hearing and review of the structure, performance and conduct of the insurers, that there is no reasonable degree of competition among them and that the interaction is not competitive. Any finding by the Commissioner that there is no competition among the insurers and that the interaction is not competitive, expires 1 year after the date it is issued.
2. To determine whether competition exists among insurers, the Commissioner shall review existing information available to the Commissioner or participate in the development of new sources of such information. The Commissioner may conduct his or her own studies, cooperate with knowledgeable officers in other states, hire outside consultants or conduct studies in any other appropriate manner.
(Added to NRS by 1995, 2052; A 1997, 1456; 1999, 2224)
2023 Nevada Revised Statutes › Chapter 686B - Rates and Essential Insurance › NRS 686B.1777 - Circumstances under which Commissioner authorized to require supporting information regarding rates and required to hold hearing related to disapproval of rates.

1. If the Commissioner finds that:
(a) The interaction among insurers is not competitive;
(b) The rates filed by insurers whose interaction is competitive are inadequate or unfairly discriminatory; or
(c) The rates violate the provisions of this chapter,
the Commissioner may require the insurers to file information supporting their existing rates. Before the Commissioner may disapprove those rates, the Commissioner shall notify the insurers and hold a hearing on the rates and the supplementary rate information.
2. The Commissioner may disapprove any rate without a hearing. Any insurer whose rates are disapproved in this manner may request in writing and within 30 days after the disapproval that the Commissioner conduct a hearing on the matter.
(Added to NRS by 1995, 2053; A 1997, 1454; 1999, 444, 2222, 2224; 2001, 154)
2023 Nevada Revised Statutes › Chapter 686B - Rates and Essential Insurance › NRS 686B.1779 - Disapproval of rates: Authority of Commissioner; required grounds.

1. The Commissioner may disapprove a rate filed by an insurer at any time.
2. The Commissioner shall disapprove a rate if:
(a) An insurer has failed to meet the requirements for filing a rate pursuant to this chapter or the regulations of the Commissioner;
(b) The rate is inadequate or unfairly discriminatory and the interaction among insurers and employers is competitive; or
(c) A rate is inadequate, excessive or unfairly discriminatory and the Commissioner has found and issued an order that the interaction among the insurers and employers is not competitive.
(Added to NRS by 1995, 2053; A 1997, 1455; 1999, 444, 2223, 2224; 2001, 154)
2023 Nevada Revised Statutes › Chapter 686B - Rates and Essential Insurance › NRS 686B.178 - Disapproval of rates: Commissioner required to issue written order stating reasons for disapproval and date by which insurer must discontinue use of rate.

If the Commissioner disapproves a rate, the Commissioner shall issue a written order stating the reasons for the disapproval and stating the date when the rate must no longer be used for policies which are issued or renewed. The date established by the Commissioner must be within a reasonable period after the written order is issued. The Commissioner shall issue the order within 30 days after the hearing. The Commissioner may require that the premiums be adjusted after the date of the order for those policies in effect on the date of the order.
(Added to NRS by 1995, 2053)
2023 Nevada Revised Statutes › Chapter 686B - Rates and Essential Insurance › NRS 686B.1781 - Payment of dividends: Prohibition against discrimination among policyholders; submission of plan for payments and other requirements related to industrial insurance.

1. An insurer shall not unfairly discriminate among its policyholders in paying a dividend, savings, unearned premium deposits or an equivalent abatement of premiums allowed or returned by an insurer for a policy of industrial insurance.
2. A plan for the payment of dividends for industrial insurance must be filed before there is a dividend payment. The plan shall be deemed approved unless the Commissioner disapproves the plan within 30 days after it is filed and received by the Commissioner. An insurer shall not condition the payment of a dividend upon the renewal of a policy or contract by the policyholder, member or subscriber.
3. An insurer paying savings, unearned premium deposits or an equivalent abatement for premiums allowed or returned for a policy of industrial insurance must receive prior approval.
(Added to NRS by 1995, 2053; A 2003, 3305)
2023 Nevada Revised Statutes › Chapter 686B - Rates and Essential Insurance › NRS 686B.1782 - Agreements to lessen competition among insurers prohibited; insurers prohibited from agreeing to rates established in manner that conflicts with provisions.

1. No insurer or advisory organization may make any agreement with any person, insurer or advisory organization to restrain trade unreasonably or to lessen substantially the competition between insurers.
2. No insurer may agree to use any rate, rating plan or rating rules, other than the uniform plan for rating experience, except as necessary to comply with the provisions of this chapter concerning the activity of the Advisory Organization and insurers relating to the Uniform Statistical Plan, the Uniform Plan for Rating Experience and the Uniform System of Classifications of Risks and the development of subclassifications.
3. The fact that two or more insurers, whether or not they subscribe to the Advisory Organization, use consistently or intermittently the same rates, rating plans, rating schedules, rating rules, classifications for rates, rules for underwriting, surveys, inspections or similar materials does not require a finding by the Commissioner that an agreement to restrain trade or lessen competition exists.
4. Two or more insurers which are commonly owned or operated in this state with common management or control may act or agree to act among themselves as if they were a single insurer for any activities authorized by NRS 686B.1751 to 686B.1799, inclusive.
(Added to NRS by 1995, 2053)
2023 Nevada Revised Statutes › Chapter 686B - Rates and Essential Insurance › NRS 686B.1783 - Maintenance of records by insurer, advisory organization or plan for apportioned risks; examination of records by Commissioner.

Every insurer, advisory organization and plan for apportioned risks shall maintain records of the kind reasonably adapted to its method of operation and reflecting its experience or the experience of its members and the data or other information collected or used by it. The Commissioner may examine those records at any reasonable time to determine whether the activities of the insurer, advisory organization or plan for apportioned risks comply with the provisions of this chapter and chapters 616A to 617, inclusive, of NRS. These records must be maintained in an office in this state or must be made available to the Commissioner for examination or inspection at any time after reasonable notice to the insurer, advisory organization or plan for apportioned risks.
(Added to NRS by 1995, 2054)
2023 Nevada Revised Statutes › Chapter 686B - Rates and Essential Insurance › NRS 686B.1784 - Examination of insurer, advisory organization or plan for apportioned risks by Commissioner; exception; cost of examination.

1. The Commissioner may examine any insurer, advisory organization or plan for apportioned risks whenever the Commissioner determines that such an examination is necessary.
2. The reasonable cost of an examination must be paid by the insurer or other person examined upon presentation by the Commissioner of an accounting of those costs pursuant to NRS 679B.290.
3. In lieu of an examination, the Commissioner may accept the report of an examination made by the agency of another state that regulates insurance.
(Added to NRS by 1995, 2054; A 1999, 2223)
2023 Nevada Revised Statutes › Chapter 686B - Rates and Essential Insurance › NRS 686B.1785 - Request for reconsideration of rates by Advisory Organization or insurer; appeal.

Any person aggrieved by any decision, action or omission of the Advisory Organization or an insurer regarding rates or other information filed with the Commissioner may request in writing that the Organization or insurer reconsider the decision, action or omission. Except as otherwise provided in NRS 616B.772, 616B.775 and 616B.787, if the request for reconsideration is rejected or is not acted upon within 30 days by the Organization or insurer, the person requesting reconsideration may, within 30 days thereafter, appeal from the decision, action or omission to the Commissioner by filing a written complaint and request for a hearing specifying the grounds relied upon.
(Added to NRS by 1995, 2054; A 1999, 3381; 2001, 2256)
2023 Nevada Revised Statutes › Chapter 686B - Rates and Essential Insurance › NRS 686B.1786 - Large-deductible agreements: Applicability.

This section and NRS 686B.17863 and 686B.17867 apply to any policy of industrial insurance which:
1. Is issued by an insurer which:
(a) Has a rating of less than "A-" from A.M. Best Company, Inc., or a substantially equivalent rating from another rating agency, as determined by the Commissioner; and
(b) Has less than $200,000,000 in surplus, with surplus calculated as the difference between the insurer’s net admitted assets and the insurer’s total liabilities;
2. Contains a large-deductible agreement;
3. Is not issued to a federal, state or local governmental entity; and
4. Is issued for delivery or renewed on or after January 1, 2018.
(Added to NRS by 2017, 2343)
2023 Nevada Revised Statutes › Chapter 686B - Rates and Essential Insurance › NRS 686B.17863 - Large-deductible agreements: Full collateralization required; size of obligations limited.

An insurer shall:
1. Require full collateralization of the outstanding obligations owed under a large-deductible agreement using one of the following methods:
(a) A surety bond issued by a surety insurer authorized to transact such insurance in this State, and whose financial strength and size ratings from A.M. Best Company, Inc., are not less than "A" and "V," respectively, or are substantially equivalent ratings from another rating agency, as determined by the Commissioner;
(b) An irrevocable letter of credit issued by a financial institution with an office physically located within this State, and the deposits of which are federally insured; or
(c) Cash or securities held in trust by a third party or the insurer and subject to a trust agreement for the express purpose of securing the policyholder’s obligation under a large-deductible agreement, provided that if the assets are held by the insurer, those assets may not be commingled with the insurer’s other assets; and
2. Limit the size of the policyholder’s obligations under a large-deductible agreement to 20 percent of the total net worth of the policyholder at the inception of the policy and again at each renewal, as determined by an audited financial statement as of the most recent fiscal year-end for which such a statement is available, with the total net worth of the policyholder calculated as the difference between the total assets and the total liabilities of the policyholder.
(Added to NRS by 2017, 2344)
2023 Nevada Revised Statutes › Chapter 686B - Rates and Essential Insurance › NRS 686B.17867 - Large-deductible agreements: Insurer in hazardous financial condition prohibited from issuing or renewing policy containing large-deductible agreement; exception.

Except when otherwise specifically approved by the Commissioner in writing or by electronic communication, any insurer determined to be in a hazardous financial condition pursuant to NRS 680A.205, or the equivalent provisions of law in any other state as determined by the Commissioner, is prohibited from issuing or renewing a policy that includes a large-deductible agreement.
(Added to NRS by 2017, 2344)
2023 Nevada Revised Statutes › Chapter 686B - Rates and Essential Insurance › NRS 686B.1787 - Insurer or advisory organization authorized to request hearing before Commissioner related to order made or action taken by Commissioner without hearing.

Any insurer or advisory organization, to which is directed any order made or action taken by the Commissioner without a hearing, may request a hearing before the Commissioner.
(Added to NRS by 1995, 2054)
2023 Nevada Revised Statutes › Chapter 686B - Rates and Essential Insurance › NRS 686B.1789 - Provisions governing hearing.

A hearing required by any of the provisions of NRS 686B.1751 to 686B.1799, inclusive, is governed by NRS 679B.310 to 679B.370, inclusive, except that any limits of time imposed by NRS 686B.1751 to 686B.1799, inclusive, control.
(Added to NRS by 1995, 2054; A 2017, 2348)
2023 Nevada Revised Statutes › Chapter 686B - Rates and Essential Insurance › NRS 686B.1793 - Penalties.

1. An insurer or other person who violates any provision of NRS 686B.1751 to 686B.1799, inclusive, shall, upon the order of the Commissioner, pay an administrative fine not to exceed $1,000 for each violation and not to exceed $10,000 for each willful violation. These administrative fines are in addition to any other penalty provided by law. Any insurer using a rate before it has been filed with the Commissioner as required by NRS 686B.1775, shall be deemed to have committed a separate violation for each day the insurer failed to file the rate.
2. The Commissioner may suspend or revoke the license of any advisory organization or insurer who fails to comply with an order within the time specified by the Commissioner or any extension of that time made by the Commissioner. Any suspension of a license is effective for the time stated by the Commissioner in his or her order or until the order is modified, rescinded or reversed.
3. The Commissioner, by written order, may impose a penalty or suspend a license pursuant to this section only after written notice to the insurer, organization or plan for apportioned risks and a hearing.
(Added to NRS by 1995, 2055; A 1999, 2223; 2017, 2348)
2023 Nevada Revised Statutes › Chapter 686B - Rates and Essential Insurance › NRS 686B.1797 - Insurer prohibited from withholding or giving false or misleading information to Commissioner or Advisory Organization.

An insurer or other person shall not willfully withhold information from, or knowingly give false or misleading information to, the Commissioner or to the Advisory Organization, which will affect the rates, classifications of risks or Uniform Statistical Plan for industrial insurance.
(Added to NRS by 1995, 2055)
2023 Nevada Revised Statutes › Chapter 686B - Rates and Essential Insurance › NRS 686B.1799 - Limitation on liability of insurer or rating organization acting within scope of employment.

No insurer or rating organization or member thereof in its capacity as a member or officer or employee of the licensed rating organization when acting within the scope of his or her employment is liable for injury or death or other damage proximately caused by a failure to inspect, or the manner or extent of inspection of, an employer’s locations, plants or operations for classification, control of losses or rating, or by that person’s comment or failure to comment on the subject matter or object of the inspection.
(Added to NRS by 1995, 2055)
2023 Nevada Revised Statutes › Chapter 686B - Rates and Essential Insurance › NRS 686B.185 - Immunity of Commissioner and association.

There is no liability on the part of, and no cause of action of any nature arises against, the Commissioner or the representatives of the Commissioner or any essential insurance association, its agents or employees, under a plan established pursuant to the provisions of NRS 686B.180, for any good faith action taken by them in the performance of their powers and duties under such plan.
(Added to NRS by 1975, 403)
2023 Nevada Revised Statutes › Chapter 686B - Rates and Essential Insurance › NRS 686B.200 - Voluntary plan for sharing risks: Submission to and approval by Commissioner.

Insurers doing business within this state are authorized to prepare voluntary plans providing any specified kind, line or class of insurance coverage or subdivision or combination thereof for all or any part of this state in which such insurance is not readily available in the voluntary market and in which the public interest requires the availability of such coverage. Such plans shall be submitted to the Commissioner and if approved by the Commissioner may be put into operation.
(Added to NRS by 1971, 1707)
2023 Nevada Revised Statutes › Chapter 686B - Rates and Essential Insurance › NRS 686B.210 - Nevada Essential Insurance Association: Establishment; membership; plan of operation; regulations.

1. If after a hearing the Commissioner determines that a voluntary or mandatory plan would, in the judgment of the Commissioner, fail for any reason to provide essential insurance coverage, the Commissioner may, by regulation, establish a nonprofit unincorporated legal entity to be known as the Nevada Essential Insurance Association. All insurers required to participate pursuant to subsection 3 of NRS 686B.180 shall become members of the Association as a condition of their authority to transact insurance in this state.
2. The Association shall perform its functions under a plan of operation established by regulations promulgated by the Commissioner pursuant to subsection 1 of NRS 686B.180.
(Added to NRS by 1975, 398)
2023 Nevada Revised Statutes › Chapter 686B - Rates and Essential Insurance › NRS 686B.220 - Nevada Essential Insurance Association: Membership and reimbursement of Board of Directors; submission to and approval or adoption of plan of operation by Commissioner.

1. The administrative powers of the Nevada Essential Insurance Association shall be vested in a Board of Directors consisting of not less than five nor more than nine members serving terms as established in the plan of organization. The members of the Board shall be appointed by the Commissioner with due consideration given to the composition of the membership of the Association and to the interests of the insureds who are provided essential insurance coverage by the Association.
2. Members of the Board may be reimbursed from the assets of the Association for expenses incurred by them as members of the Board of Directors and for reasonable and equitable compensation as may be prescribed by the terms of the plan of organization.
3. The Board of Directors of the Association shall submit to the Commissioner a plan of organization for the Association and make suitable or necessary amendments thereto to assure the fair, reasonable and equitable administration of the Association. The plan of operation shall become effective upon approval in writing by the Commissioner.
4. If the Association fails to submit a suitable plan of operation within a reasonable period of time, or if at any time thereafter the Association fails to submit suitable amendments to the plan, the Commissioner shall promulgate a plan as necessary or advisable to effectuate the provisions of this section.
(Added to NRS by 1975, 398)
2023 Nevada Revised Statutes › Chapter 686B - Rates and Essential Insurance › NRS 686B.240 - Nevada Essential Insurance Association: Powers of Commissioner and Association.

The Commissioner and the Nevada Essential Insurance Association may:
1. Give consideration to the need for adequate and readily accessible coverage, to alternative methods of improving the market affected, to the preferences of the insurers and agents, to the inherent limitations of the insurance mechanism, to the need for reasonable underwriting standards and to the requirement of reasonable loss-prevention measures.
2. Establish procedures that will create minimum interference with the voluntary market.
3. Spread the burden imposed by the facility equitably and efficiently.
4. Establish procedures for applicants and participants to have grievances reviewed.
5. Take all reasonable and necessary steps to dissolve the Association at the earliest date when essential insurance becomes readily available in the private market. The dissolution of the Association, including its assets and liabilities, must be accomplished under the supervision of the Commissioner in an equitable and reasonable manner. The dissolution must, if determined to be appropriate by the Commissioner, provide for the repayment of any loans or other money provided or contributed by the State of Nevada for the formation or continuance of the Association.
(Added to NRS by 1975, 399; A 2003, 3306)
2023 Nevada Revised Statutes › Chapter 686B - Rates and Essential Insurance › NRS 686B.250 - Nevada Essential Insurance Association: Immunity from liability.

There is no liability on the part of, and no cause of action of any nature arises against, the Nevada Essential Insurance Association or its agents or employees, members of the Board or the Commissioner or the representatives of the Commissioner for any good faith performance of their powers and duties under NRS 686B.210 to 686B.240, inclusive.
(Added to NRS by 1975, 400)
2023 Nevada Revised Statutes › Chapter 686B - Rates and Essential Insurance › NRS 686B.260 - Conversion into domestic stock insurer: "Insured" defined.

As used in NRS 686B.270 to 686B.320, inclusive, unless the context otherwise requires, "insured" means any person who has maintained at least 1 year of coverage with an essential insurance association.
(Added to NRS by 1981, 1021)
2023 Nevada Revised Statutes › Chapter 686B - Rates and Essential Insurance › NRS 686B.270 - Conversion into domestic stock insurer: Applicability of certain provisions governing nonprofit cooperative corporations.

The provisions of NRS 81.130 and 81.510 do not apply to the conversion of an essential insurance association to a domestic stock insurer as provided in NRS 686B.280 to 686B.320, inclusive.
(Added to NRS by 1981, 1023; A 1985, 1878; 1991, 1318)
2023 Nevada Revised Statutes › Chapter 686B - Rates and Essential Insurance › NRS 686B.280 - Conversion into domestic stock insurer: Filing and contents of notice of intent to qualify.

1. An essential insurance association shall, whenever requested to do so by the Commissioner, file a notice of intent to qualify as a domestic stock insurer. In the absence of a request by the Commissioner, an essential insurance association may file such a notice whenever it considers it appropriate.
2. The notice must be filed with the Commissioner at least 4 months before the date the association is to become a domestic stock insurer and must contain:
(a) An application prepared pursuant to chapter 680A of NRS for a certificate of authority to transact business in Nevada as a domestic stock insurer;
(b) A valuation of capital and surplus according to both market and amortized value based on the association’s annual financial statement for the previous year;
(c) The value and number of shares of stock to which each insured is entitled; and
(d) The terms of any proposal offering money or its equivalent in lieu of issuing fractional shares.
(Added to NRS by 1981, 1021)
2023 Nevada Revised Statutes › Chapter 686B - Rates and Essential Insurance › NRS 686B.290 - Conversion into domestic stock insurer: Notice to insurers and insureds; hearing.

1. At the time the association files a notice of intent to qualify as a domestic stock insurer, it must give notice of its intent to all participating insurers and all insureds on a form approved by the Commissioner. The notice to each insured must state the total amount of stock to be issued and the amount of shares to which the insured is entitled.
2. Any participating insurer or insured may, within 30 days after the date of the notice, apply to the Division for a hearing concerning the association’s ability to qualify as a domestic insurer, the valuation of capital and surplus, or the proposed number and distribution of shares of stock.
(Added to NRS by 1981, 1022; A 1991, 1630; 1993, 1917; 2003, 3307)
2023 Nevada Revised Statutes › Chapter 686B - Rates and Essential Insurance › NRS 686B.300 - Conversion into domestic stock insurer: Determination of percentage of stock for each insured.

The association shall determine the percentage of stock to which each insured is entitled as follows:
1. The amount of gain or loss from operations, including an equitable allocation of investment income attributable to operations, is calculated for each of the following groups:
(a) Insureds who have not paid a capital stabilization charge;
(b) Insureds who have paid this charge for a given policy year; and
(c) Insureds who have paid a single charge to cover all policy years of participation in the association.
2. For each calendar year the association has been in operation, the amount of gain or loss from operations, including an equitable allocation of investment income attributable to each group, is divided by the number of insured months in that group.
3. For each group in which an insured participated in any calendar year, the insured’s number of insured months in that group is multiplied by the amount of income per insured month attributable to that group, as determined in subsection 2.
4. For each insured, the results of the calculations performed under subsection 3 for each group in which the insured was a member during a particular calendar year are added.
5. For each insured, the total amount the insured paid in capital stabilization charges is computed.
6. For each insured, the sum of the results of the calculations performed under subsections 4 and 5 are divided by the total surplus of the association as shown in its financial statement for the year preceding its conversion to a domestic stock insurer, to obtain that insured’s percentage of ownership of the total stock to be distributed.
(Added to NRS by 1981, 1022)
2023 Nevada Revised Statutes › Chapter 686B - Rates and Essential Insurance › NRS 686B.310 - Conversion into domestic stock insurer: Capitalization.

An association must comply with the provisions of NRS 680A.120 to qualify as a domestic stock insurer. Any paid-in capital in excess of the minimum amount required may be shown as surplus.
(Added to NRS by 1981, 1023)
2023 Nevada Revised Statutes › Chapter 686B - Rates and Essential Insurance › NRS 686B.320 - Conversion into domestic stock insurer: Issuance of certificate of authority.

Upon determining that the Association has complied with NRS 686B.280 to 686B.310, inclusive, and all other requirements applicable to domestic stock insurers, the Commissioner may issue to the Association a certificate of authority to transact business as a domestic stock insurer.
(Added to NRS by 1981, 1023; A 2003, 3307)
2023 Nevada Revised Statutes › Chapter 686B - Rates and Essential Insurance › NRS 686B.330 - Conversion into domestic mutual insurer or domestic reciprocal insurer: "Insured" defined.

As used in NRS 686B.330 to 686B.370, inclusive, unless the context otherwise requires, "insured" has the meaning ascribed to it in NRS 686B.260.
(Added to NRS by 2003, 3303)
2023 Nevada Revised Statutes › Chapter 686B - Rates and Essential Insurance › NRS 686B.340 - Conversion into domestic mutual insurer or domestic reciprocal insurer: Exemption from applicability of NRS 81.130 and 81.510.

The provisions of NRS 81.130 and 81.510 do not apply to the conversion of an essential insurance association to a domestic mutual insurer or a domestic reciprocal insurer as provided in NRS 686B.330 to 686B.370, inclusive.
(Added to NRS by 2003, 3304)
2023 Nevada Revised Statutes › Chapter 686B - Rates and Essential Insurance › NRS 686B.350 - Conversion into domestic mutual insurer or domestic reciprocal insurer: Filing and contents of notice of intent to qualify.

1. An essential insurance association shall, if requested to do so by the Commissioner, file a notice of intent to qualify as a domestic mutual insurer or a domestic reciprocal insurer. In the absence of a request by the Commissioner, an essential insurance association may file such a notice at such time as the association determines appropriate.
2. The notice must be filed with the Commissioner at least 4 months before the date the association is to become a domestic mutual insurer or a domestic reciprocal insurer and must include:
(a) An application prepared pursuant to chapter 680A of NRS for a certificate of authority to transact business in Nevada as a domestic mutual insurer or a domestic reciprocal insurer;
(b) A valuation of the policyholder’s surplus according to both market and amortized value based on the association’s annual financial statement for the previous year; and
(c) A provision for the return of any unused portion of the insured’s capital stabilization charges.
(Added to NRS by 2003, 3304)
2023 Nevada Revised Statutes › Chapter 686B - Rates and Essential Insurance › NRS 686B.360 - Conversion into domestic mutual insurer or domestic reciprocal insurer: Notice to insurers and insured; hearing; compliance with certain provisions for qualification.

1. At the time the association files a notice of intent to qualify as a domestic mutual insurer or domestic reciprocal insurer, it must give a notice of intent to all participating insurers and all insureds on a form approved by the Commissioner.
2. Any participating insurer or insured may, within 30 days after the date of the notice, apply to the Division for a hearing concerning the association’s ability to qualify as a domestic mutual insurer or domestic reciprocal insurer.
3. An association must comply with the provisions of:
(a) Chapter 692B of NRS, as applicable to mutual insurers, to qualify as a domestic mutual insurer; or
(b) Chapter 694B of NRS, as applicable to reciprocal insurers, to qualify as a domestic reciprocal insurer.
(Added to NRS by 2003, 3304)
2023 Nevada Revised Statutes › Chapter 686B - Rates and Essential Insurance › NRS 686B.370 - Conversion into domestic mutual insurer or domestic reciprocal insurer: Issuance of certificate of authority.

Upon determining that an association has complied with NRS 686B.330 to 686B.370, inclusive, and all other requirements applicable to domestic mutual insurers, if the association is qualifying as a domestic mutual insurer, or to domestic reciprocal insurers, if the association is qualifying as a domestic reciprocal insurer, the Commissioner may issue to the association a certificate of authority to transact business as a domestic mutual insurer or a domestic reciprocal insurer.
(Added to NRS by 2003, 3304)
2023 Nevada Revised Statutes › Chapter 686C - Nevada Life and Health Insurance Guaranty Association › NRS 686C.020 - Purpose of chapter.

The purpose of this chapter is to protect, within certain limits, the persons specified in subsections 1 and 2 of NRS 686C.030 against failure in the performance of contractual obligations under life insurance, health insurance and annuity policies or contracts specified in subsection 4 of NRS 686C.030 because of the impairment or insolvency of a member insurer issuing such policies or contracts.
(Added to NRS by 1973, 302; A 1991, 869; 2001, 1030; 2019, 1084)
2023 Nevada Revised Statutes › Chapter 686C - Nevada Life and Health Insurance Guaranty Association › NRS 686C.030 - Scope of chapter: Coverage provided.

1. This chapter provides coverage for the life insurance, health insurance and annuity policies or contracts described in subsection 4 to persons who are:
(a) Owners of, enrollees in or certificate holders under such policies or contracts, other than structured settlement annuities, and who:
(1) Are residents of this state; or
(2) Are not residents, but only if:
(I) The member insurer that issued the policies or contracts is domiciled in this state;
(II) The states in which the persons reside have associations similar to the Association created by this chapter; and
(III) The persons are not eligible for coverage by an association in another state because the member insurer was not authorized in the other state at the time specified in that state’s law governing guaranty associations; and
(b) Regardless of where they reside, beneficiaries, assignees or payees of the persons covered under paragraph (a), including, without limitation, providers of health care rendering services covered under policies or certificates of health insurance, except for nonresident certificate holders under group policies or contracts.
2. For structured settlement annuities, except as otherwise provided in subsection 3, this chapter provides coverage to a payee under the annuity, or beneficiary of a payee if the payee is deceased, if the payee or beneficiary:
(a) Is a resident of this state, regardless of the residence of the owner of the annuity; or
(b) Is not a resident of this state, but:
(1) The owner of the annuity is a resident of this state, or the issuer of the annuity is domiciled in this state and the state in which the owner resides has an association similar to the Association created by this chapter; and
(2) Neither the payee or beneficiary nor the owner of the annuity is eligible for coverage by the association of the state in which the payee, beneficiary or owner resides.
3. This chapter does not provide coverage for a payee or beneficiary of a structured settlement annuity if the owner of the annuity is a resident of this state and the payee or beneficiary is afforded any coverage by the association of another state. In determining the application of the provisions of this chapter to a situation where a person could be covered by the association of more than one state, this chapter must be construed in conjunction with the laws of other states to result in coverage by only one association.
4. This chapter provides coverage to the persons described in subsections 1 and 2 for policies or contracts of direct, nongroup life insurance, health insurance and annuities, for certificates under direct group policies and contracts, and for supplemental contracts to any of these, in each case issued by member insurers, except as limited by this chapter.
(Added to NRS by 1973, 302; A 1991, 869; 2001, 1030; 2015, 3474; 2019, 1084)
2023 Nevada Revised Statutes › Chapter 686C - Nevada Life and Health Insurance Guaranty Association › NRS 686C.038 - Applicability of chapter to riders for long-term care.

For the purposes of this chapter, benefits provided pursuant to a rider for long-term care to a life insurance policy or annuity contract shall be deemed the same type of benefits provided in the life insurance policy or annuity contract to which the rider applies.
(Added to NRS by 2019, 1084)
2023 Nevada Revised Statutes › Chapter 686C - Nevada Life and Health Insurance Guaranty Association › NRS 686C.040 - Definitions.

As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS 686C.045 to 686C.127, inclusive, have the meanings ascribed to them in those sections.
(Added to NRS by 1973, 302; A 1991, 870; 2001, 1033; 2011, 3370; 2019, 1087)
2023 Nevada Revised Statutes › Chapter 686C - Nevada Life and Health Insurance Guaranty Association › NRS 686C.055 - "Authorized assessment" defined.

"Authorized assessment" or "authorized" as used in the context of assessments means or describes an assessment authorized by a resolution of the Board of Directors of the Association to be imposed immediately or later on member insurers in a specified amount.
(Added to NRS by 2001, 1026)
2023 Nevada Revised Statutes › Chapter 686C - Nevada Life and Health Insurance Guaranty Association › NRS 686C.065 - "Called assessment" defined.

"Called assessment" or "called" as used in the context of assessments means or describes an authorized assessment required by a notice mailed by the Association to member insurers to be paid within the time set forth in the notice.
(Added to NRS by 2001, 1026)