Revises provisions relating to industrial insurance. (BDR 53-325)

A.B. 332

- *AB332*

ASSEMBLY BILL NO. 332–ASSEMBLYMEMBER O’NEILL

MARCH 3, 2025
____________

Referred to Committee on Commerce and Labor

SUMMARY—Revises provisions relating to industrial insurance .
(BDR 53-325)

FISCAL NOTE: Effect on Local Government: No.
Effect on the State: Yes.

~

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

AN ACT relating to industrial insurance; revising provisions
relating to certain administrators employed by an
association of self -insured employers; eliminating
assessments relating to a subsequent injury account;
prohibiting certain claims against a subsequent injury
account; repealing certain provisions relating to the
calculation of premium costs and certain audits; and
providing other matters properly relating thereto.
Legislative Counsel’s Digest:
Existing law governs industrial insurers in this State that provide bene fits to 1
employees who are injured in the course of employment. (Chapter 616B of NRS) 2
Existing law authorizes certain groups of public or private employers to act as an 3
association of self -insured employers if the group and each employer within the 4
group meet certain requirements. (NRS 616B.350 -616B.446) Existing law requires 5
a board of trustees to operate any such association and to employ: (1) an 6
administrator of the association to carry out the policies of the board and perform 7
such duties as the board de legates; and (2) a third -party administrator to administer 8
the plan of insurance of the association. Existing law prohibits the administrator of 9
an association from performing any of the duties assigned to the third -party 10
administrator. (NRS 616B.365) Section 3 of this bill specifies that the administrator 11
of an association is prohibited from directly administering claims. Existing law also 12
prohibits the administrator of the association and the third -party administrator from 13
having a direct or indirect financial interest in each other. (NRS 616B.371) Section 14
4 of this bill removes the prohibition on the administrator of the association and the 15
third-party administrator having a financial interest in each other. Section 1 of this 16
bill revises a definition of the term “association’s administrator” to specify that the 17
responsibilities of the administrator of the association to carry out the daily 18
operations of the association are at the direction of the board of trustees. 19

– 2 –

- *AB332*
Existing law requires a third -party administrator for an association of self -20
insured employers to obtain a certificate as an administrator from the 21
Commissioner of Insurance and to file with the Commissi oner a surety bond for 22
the benefit of any person damaged by any fraudulent act or conduct of the 23
administrator. (NRS 616B.503, 683A.08524, 683A.0857) Existing law also 24
requires the third -party administrator to file with the Commissioner an additional 25
surety bond conditioned upon the faithful performance of its duties relative to a 26
particular association of self -insured employers. Existing law requires the 27
administrator of the association to file a similar surety bond relative to the 28
association. (NRS 616B.3 53) Section 2 of this bill eliminates the requirement for 29
the third-party administrator to file an additional surety bond relative to its duties to 30
a particu lar association. Section 5 of this bill makes a conforming change to 31
remove the procedure for terminating liability on the bond eliminated by section 2. 32
Existing law establishes the Fund for Workers’ Compensation and Safety 33
within the State Treasury. (NRS 616A.425) Within the Fund, existing law creates a 34
Subsequent Injury Account for each of the following insurers: (1) self -insured 35
employers; (2) associations of self -insured public or private employers; and (3) 36
private carriers. (NRS 616B.554, 616B.575, 616B.584) Existing law requires that 37
money in the Account s be used to provide compensation or reimbursement in 38
situations where an employee who has a preexisting permanent physical 39
impairment incurs a subsequent disability by injury arising out of and in the course 40
of employment which entitles the employee to co mpensation for the combined 41
disability that is substantially greater than that which would have resulted from the 42
subsequent injury alone. (NRS 616B.545 -616B.590) Existing law requires a board 43
for administration or the Administrator of the Division of Industrial Relations of the 44
Department of Business and Industry to administer each Account. (NRS 616B.548, 45
616B.554, 616B.569, 616B.575, 616B.584) Existing law and regulations require 46
self-insured employers, associations of self-insured public or private employers and 47
private carriers to pay an annual assessment which funds the Accounts. (NRS 48
616B.554, 616B.575, 616B.584; chapter 616B of NAC) 49
Sections 6, 9 and 12 of this bill remove the authority to adopt regulations 50
which impose such assessments from each board for administration and the 51
Administrator of the Division, and section 16 of this bill voids the provisions of 52
existing regulations relating to such assessments, thus eliminating the requirement 53
for assessments to be paid for each Account. Sections 7, 8, 10, 11, 13 and 14 of 54
this bill require an employee to have incurred a subsequent injury and disability on 55
or before September 30, 2025, in order for the compensation or reimbursement 56
provisions to apply, thus prohibiting any claims agains t the Accounts due to a 57
subsequent injury and disability which is incurred on or after October 1, 2025. 58
For purposes of calculating the amount of a premium which is due pursuant to 59
the terms of a policy of industrial insurance, existing law provides that the 60
maximum amount paid to any one employee for services performed during the 12 -61
month period during which a policy is effective shall be deemed to be $36,000. 62
(NRS 616B.222) Existing law also deems as $36,000 to be the maximum amount 63
paid in a policy year to an officer or manager of a quasi -public or private 64
corporation or limited -liability company who receives pay for services performed 65
as an officer, manager or employee of the corporation or company. (NRS 66
616B.624) Sections 15 and 18 of this bill eliminate the $36,000 maximum amount 67
of pay for employees for purposes of calculating the amount of a premium which is 68
due pursuant to the terms of a policy of industrial insurance. 69
Existing law requires the Administrator of the Division, at least every 5 years, 70
to audit all insurers who provide benefits to injured employees, including 71
associations of self -insured employers. (NRS 616A.270, 616B.003) Existing law 72
also requires the Commissioner of Insurance, at least annually, to audit each 73
association of self -insured employers to verify certain information. 74

– 3 –

- *AB332*
(NRS 616B. 410) Section 18 repeals the requirement that the Commissioner 75
examine each association of self-insured employers annually. 76

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. NRS 616A.060 is hereby amended to read as 1
follows: 2
616A.060 “Association’s administrator” means a person who is 3
[employed] : 4
1. Employed by or has contracted with the board of trustees of 5
an association of self -insured public or private employers to carry 6
out the policies of the board of trustees ; and [to be] 7
2. At the direction of the board of trustees, responsible [for] to 8
carry out the daily [operation] operations of the association [.] , 9
including, without limitation, to meet the obligations of the 10
association pursuant to NRS 616B.362. 11
Sec. 2. NRS 616B.353 is hereby amended to read as follows: 12
616B.353 1. An association of self -insured public or private 13
employers shall: 14
(a) Execute an indemnity agreement jointly and severally 15
binding the association and each member of the association to 16
secure the payment of all compensation due pursuant to chapters 17
616A to 617, inclusive, of NRS. The indemnity a greement must be 18
in a form prescribed by the Commissioner. An association may add 19
provisions to the indemnity agreement if they are first approved by 20
the Commissioner. 21
(b) Except as otherwise provided in this subsection, maintain a 22
policy of specific and aggregate excess insurance in a form and 23
amount required by the Commissioner. The excess insurance must 24
be written by an insurer approved by the Commissioner. To 25
determine the amount of excess insurance required, the 26
Commissioner shall consider: 27
(1) The number of members in the association; 28
(2) If the association is an association of self -insured public 29
employers, the types of governmental services provided by the 30
members of the association; 31
(3) If the association is an association of self -insured private 32
employers, the classifications of employment of the members of the 33
association; 34
(4) The number of years the association has been in 35
existence; and 36
(5) Such other information as the Commissioner deems 37
necessary. 38

– 4 –

- *AB332*
 Nothing in this paragraph prohibit s an association from 1
purchasing secondary excess insurance in addition to the excess 2
insurance required by this paragraph. 3
(c) Collect an annual assessment from each member of the 4
association in an aggregate amount of at least $250,000 or in an 5
aggregate amount which the Commissioner determines is 6
satisfactory based on an annual review conducted by the 7
Commissioner of the actuarial solvency of the association. 8
(d) Except as otherwise provided in paragraph (e), deposit as 9
security with the Commissioner a bond executed by the association 10
as principal, and by a licensed surety, payable to the State of 11
Nevada, and conditioned upon the payment of compensation for 12
injuries and occupational diseases to their employees. The bond 13
must be in an amount determined by the Commissioner to be 14
reasonably sufficient to ensure payment of such compensation, but 15
in no event may it be less than $100,000. 16
(e) In lieu of a bond, deposit with the Commissioner a like 17
amount of lawful money of the United States or any other form o f 18
security authorized by NRS 100.065. If security is provided in the 19
form of a savings certificate, certificate of deposit or investment 20
certificate, the certificate must state that the amount is unavailable 21
for withdrawal except upon order of the Commissioner. 22
2. Except as otherwise provided in subsection 3, in addition to 23
complying with the requirements of subsection 1, an association of 24
self-insured private employers shall: 25
(a) At the time of initial qualification and until the association 26
has operate d successfully as a qualified association of self -insured 27
private employers for 3 years, as determined by the Commissioner, 28
have a combined tangible net worth of all members in the 29
association of at least $2,500,000 , as evidenced by a statement of 30
tangible net worth provided to the Division of Insurance of the 31
Department of Business and Industry by an independent certified 32
public accountant; or 33
(b) After 3 years of successful operation as a qualified 34
association of self -insured private employers, as determ ined by the 35
Commissioner, have combined net cash flows from operating 36
activities plus net cash flows from financing activities of all 37
members in the association of five times the average of claims paid 38
for each of the last 3 years or $7,500,000, whichever is less. 39
3. In lieu of complying with the requirements of subsection 2, 40
the association’s administrator shall ensure that a solvency bond, in 41
a form prescribed by the Commissioner and in an aggregate amount 42
of at least $2,500,000, is deposited with the C ommissioner by the 43
association or members of the association on behalf of the 44
association. 45

– 5 –

- *AB332*
4. The association’s administrator shall deposit with the 1
Commissioner a bond executed by the association’s administrator as 2
principal, and by a licensed surety, p ayable to the State of Nevada, 3
and conditioned upon the faithful performance of his or her duties. 4
The bond must be in an amount determined by the Commissioner. 5
5. [Any third-party administrator providing claims services for 6
the association shall deposit with the Commissioner a bond executed 7
by the third -party administrator as principal, and by a licensed 8
surety, payable to the State of Nevada, and conditioned upon the 9
faithful performance of its duties. The bond must be in an amount 10
determined by the Commissioner. 11
6.] The Commissioner may increase or decrease the amount of 12
any bond or money required to be deposited by this section in 13
accordance with chapter 681B of NRS and the Commissioner’s 14
regulations for loss reserves in casualty insurance. If the 15
Commissioner requires an association [,] or association’s 16
administrator [or third -party administrator ] to increase its deposit, 17
the Commissioner may specify the form of the additional security. 18
The association [,] or association’s administrator [or third -party 19
administrator] shall comply with such a requirement within 60 days 20
after receiving notice from the Commissioner. 21
[7.] 6. The Account for Associations of Self-Insured Public and 22
Private Employers is hereby created in the State Agency Fund for 23
Bonds. All money received by the Commissioner pursuant to this 24
section must be deposited with the State Treasurer to the credit of 25
the Account. All claims against this Account must be paid as other 26
claims against the State are paid. 27
Sec. 3. NRS 616B.365 is hereby amended to read as follows: 28
616B.365 1. An association of self -insured public or private 29
employers must be operated by a board of trustees consisting of at 30
least five members whom the members of the association elect fo r 31
terms set forth in the bylaws of the association. If the association is 32
an association of self-insured: 33
(a) Public employers, the members of the board of trustees must 34
be officers or employees of the public employers who are members 35
of the association. 36
(b) Private employers, at least two -thirds of the members of the 37
board of trustees must be employees, officers or directors of the 38
members of the association. No association’s administrator or third -39
party administrator employed by the association, or any owner, 40
officer, employee or other person affiliated with the association’s 41
administrator or third-party administrator, may serve as a member of 42
the board of trustees. Each member of the board of trustees must be 43
a resident of this State or an officer of a corporation authorized to do 44
business in this State. 45

– 6 –

- *AB332*
2. The board of trustees of an association shall: 1
(a) Ensure the prompt payment of any compensation due 2
pursuant to chapters 616A to 616D, inclusive, or chapter 617 of 3
NRS. 4
(b) Take such actions as are necessary to protect the assets of the 5
association. 6
(c) Employ full-time an association’s administrator to carry out 7
the policies of the board of trustees and perform such duties as the 8
board delegates to him or her. An association’s administrator shall 9
not directly administer claims or perform any of the other duties 10
assigned to a third-party administrator. 11
(d) Employ a third-party administrator to carry out the duties set 12
forth in NRS 616B.503. 13
(e) Employ an independent certified public accountant to 14
prepare the statement of financial condition required by 15
NRS 616B.404. 16
(f) Maintain minutes of its meetings and make the minutes 17
available for inspection by the Commissioner. 18
3. The board of trustees of an association shall not: 19
(a) Extend credit to any member of the association for the 20
payment of that member ’s annual assessment, except pursuant to a 21
payment plan approved by the Commissioner. 22
(b) Borrow any money from the association or in the name of 23
the association, except in the ordinary course of its business, without 24
the prior approval of the Commissioner. 25
Sec. 4. NRS 616B.371 is hereby amended to read as follows: 26
616B.371 1. An association’s administrator [employed by an 27
association of self -insured public or private employers, or an 28
employee, officer or director of an association’s administrator, may 29
not be an employee, officer or director of a third -party administrator 30
employed by the association or ] may have a direct or indirect 31
financial interest in the third -party administrator [of the] employed 32
by the board of trustees of an association [.] of self-insured public 33
or private employers. 34
2. [The third -party administrator of an association of self -35
insured public or private employers, or an employee, officer or 36
director of the third -party a dministrator, may not be an employee, 37
officer or director of an association’s administrator employed by the 38
association or have a direct or indirect financial interest in that 39
association’s administrator. 40
3.] Any contract entered into by an association o f self-insured 41
public or private employers and a third -party administrator must 42
include a provision which states that, unless the Commissioner 43
otherwise provides, the third -party administrator shall administer 44

– 7 –

- *AB332*
any claim or other obligation of the associati on to its conclusion 1
during the period of the contract. 2
Sec. 5. NRS 616B.440 is hereby amended to read as follows: 3
616B.440 1. For the purposes of NRS 616B.350 to 4
616B.446, inclusive, an association of self -insured public or private 5
employers is insolvent if it is unable to pay its outstanding 6
obligations as they mature in the regular course of its business. 7
2. If an association of self -insured public or private employers 8
becomes insolvent, institutes any voluntary proc eeding pursuant to 9
the Bankruptcy Act or is named in any voluntary proceeding 10
thereunder, makes a general or special assignment for the benefit of 11
creditors or fails to pay compensation pursuant to chapters 616A to 12
616D, inclusive, or chapter 617 of NRS af ter an order for the 13
payment of any claim becomes final, the Commissioner may, after 14
giving at least 10 days’ notice to the association and any insurer or 15
guarantor, use money or interest on securities, sell securities or 16
institute legal proceedings on sur ety bonds deposited with the 17
Commissioner pursuant to NRS 679B.175 to the extent necessary to 18
make those payments. 19
3. A licensed surety providing a surety bond pursuant to NRS 20
616B.353 may terminate liability on its surety bond by giving the 21
Commissioner and the association [,] or association’s administrator 22
[or third -party administrator ] 90 days’ written notice. The 23
termination does not limit liability that was incurred under the 24
surety bond before the termination. 25
Sec. 6. NRS 616B.554 is hereby amended to read as follows: 26
616B.554 1. There is hereby created in the Fund for 27
Workers’ Compensation and Safety in the State Treasury the 28
Subsequent Injury Account for Self -Insured Employers, which may 29
be used only to make payments in accordance with the provisions of 30
NRS 616B.557 and 616B.560. The Board shall administer the 31
Account based upon recommendations made by the Administrator 32
pursuant to subsection [8.] 7. 33
2. All [assessments,] penalties, bonds, securities and all oth er 34
properties received, collected or acquired by the Board for the 35
Subsequent Injury Account for Self -Insured Employers must be 36
delivered to the custody of the State Treasurer. 37
3. All money and securities in the Account must be held by the 38
State Treasurer as custodian thereof to be used solely for workers’ 39
compensation for employees of self-insured employers. 40
4. The State Treasurer may disburse money from the Account 41
only upon written order of the Board. 42
5. The State Treasurer shall invest money of the Account in the 43
same manner and in the same securities in which the State Treasurer 44
is authorized to invest State General Funds which are in the custody 45

– 8 –

- *AB332*
of the State Treasurer. Income realized from the investment of the 1
assets of the Account must be credited to the Fund. 2
6. The Board shall adopt regulations for the establishment and 3
administration of [assessment rates, ] payments and penalties. 4
[Assessment rates must result in an equitable distribution of costs 5
among the self-insured employers and must be based upon expected 6
annual expenditures for claims for payments from the Subsequent 7
Injury Account for Self-Insured Employers.] 8
7. [The Commissioner shall assign an actuary to review the 9
establishment of assessment rates. The rates must be filed with the 10
Commissioner 30 days before their effective date. Any self -insured 11
employer who wishes to appeal the rate so filed must do so pursuant 12
to NRS 679B.310. 13
8.] The Administrator shall: 14
(a) Evaluate any claim submitted to the Board for payment or 15
reimbursement from the Subsequent Injury Account for Self-Insured 16
Employers and recommend to the Board any appropriate action to 17
be taken concerning the claim; and 18
(b) Submit to the Board any other recommendations relating to 19
the Account. 20
Sec. 7. NRS 616B.557 is hereby amended to read as follows: 21
616B.557 Except as otherwise provided in NRS 616B.560: 22
1. If an employee of a self -insured employer has a permanent 23
physical impairment from any cause or origin and incurs , on or 24
before September 30, 2025, a subsequent disability by injury arising 25
out of and in the course of his or her employment which entitles the 26
employee to compensation for disability that is substantially greater 27
by reason of the combined effects of the preexisting impairment and 28
the subsequent injury than that which would have resulted from the 29
subsequent injury alone, the compensation due must be charged to 30
the Subsequent Injury Account for Self -Insured Employers in 31
accordance with regulations adopted by the Board. 32
2. If the subsequent injury of such an employee incurred on or 33
before September 30, 2025, results in his or her death and it is 34
determined that the death would not have occurred except for the 35
preexisting permanent physical impairment, the compensation due 36
must be charged to the Subsequent Injury Account for Self -Insured 37
Employers in accordance with regulations adopted by the Board. 38
3. As used in this section, “permanent physical impairment” 39
means any permanent condition, whether congenita l or caused by 40
injury or disease, of such seriousness as to constitute a hindrance or 41
obstacle to obtaining employment or to obtaining reemployment if 42
the employee is unemployed. For the purposes of this section, a 43
condition is not a “permanent physical im pairment” unless it would 44
support a rating of permanent impairment of 6 percent or more of 45

– 9 –

- *AB332*
the whole person if evaluated according to the American Medical 1
Association’s Guides to the Evaluation of Permanent Impairment as 2
adopted and supplemented by the Div ision pursuant to 3
NRS 616C.110. 4
4. To qualify under this section for reimbursement from the 5
Subsequent Injury Account for Self -Insured Employers, the self -6
insured employer must establish by written records that the self -7
insured employer had knowledge of the “permanent physical 8
impairment” at the time the employee was hired or that the 9
employee was retained in employment after the self -insured 10
employer acquired such knowledge. 11
5. A self -insured employer must submit to the Board a claim 12
for reimbursement from the Subsequent Injury Account for Self -13
Insured Employers. 14
6. The Board shall adopt regulations establishing procedures 15
for submitting claims against the Subsequent Injury Account for 16
Self-Insured Employers. The Board shall notify the self -insured 17
employer of its decision on such a claim within 120 days after the 18
claim is received. 19
7. An appeal of any decision made concerning a claim against 20
the Subsequent Injury Account for Self -Insured Employers must be 21
submitted directly to the district court. 22
Sec. 8. NRS 616B.560 is hereby amended to read as follows: 23
616B.560 1. A self -insured employer who pays 24
compensation due to an employee who has a permanent physical 25
impairment from any cause or origin and incurs , on or b efore 26
September 30, 2025, a subsequent disability by injury arising out of 27
and in the course of his or her employment which entitles the 28
employee to compensation for disability that is substantially greater 29
by reason of the combined effects of the preexisting impairment and 30
the subsequent injury than that which would have resulted from the 31
subsequent injury alone is entitled to be reimbursed from the 32
Subsequent Injury Account for Self-Insured Employers if: 33
(a) The employee knowingly made a false representa tion as to 34
his or her physical condition at the time the employee was hired by 35
the self-insured employer; 36
(b) The self -insured employer relied upon the false 37
representation and this reliance formed a substantial basis of the 38
employment; and 39
(c) A causal connection existed between the false representation 40
and the subsequent disability. 41
 If the subsequent injury of the employee incurred on or before 42
September 30, 2025, results in his or her death and it is determined 43
that the death would not have occurred except for the preexisting 44
permanent physical impairment, any compensation paid is entitled 45

– 10 –

- *AB332*
to be reimbursed from the Subsequent Injury Account for Self -1
Insured Employers. 2
2. A self -insured employer shall notify the Board of any 3
possible claim against th e Subsequent Injury Account for Self -4
Insured Employers pursuant to this section no later than 60 days 5
after the date of the subsequent injury or the date the self -insured 6
employer learns of the employee’s false representation, whichever is 7
later. 8
Sec. 9. NRS 616B.575 is hereby amended to read as follows: 9
616B.575 1. There is hereby created in the Fund for 10
Workers’ Compensation and Safety in the State Treasury the 11
Subsequent Injury Account for Associations of Self -Insured Public 12
or Private Employers, which may be used only to make payments in 13
accordance with the provisions of NRS 616B.578 and 616B.581. 14
The Board shall administer the Account based upon 15
recommendations made by the Administrator pursuant to subsection 16
[8.] 7. 17
2. All [assessments,] penalties, bonds, securities and all other 18
properties received, collected or acquired by the Board for the 19
Subsequent Injury Account for Associations of Self -Insured Public 20
or Private Employers must be delivered to the custody of th e State 21
Treasurer. 22
3. All money and securities in the Account must be held by the 23
State Treasurer as custodian thereof to be used solely for workers’ 24
compensation for employees of members of Associations of Self -25
Insured Public or Private Employers. 26
4. The State Treasurer may disburse money from the Account 27
only upon written order of the Board. 28
5. The State Treasurer shall invest money of the Account in the 29
same manner and in the same securities in which the State Treasurer 30
is authorized to invest State General Funds which are in the custody 31
of the State Treasurer. Income realized from the investment of the 32
assets of the Account must be credited to the Account. 33
6. The Board shall adopt regulations for the establishment and 34
administration of [assessment rates, ] payments and penalties. 35
[Assessment rates must result in an equitable distribution of costs 36
among the associations of self -insured public or private employers 37
and must be based upon expected annual expenditures for claims for 38
payments from the Su bsequent Injury Account for Associations of 39
Self-Insured Public or Private Employers.] 40
7. [The Commissioner shall assign an actuary to review the 41
establishment of assessment rates. The rates must be filed with the 42
Commissioner 30 days before their effect ive date. Any association 43
of self-insured public or private employers that wishes to appeal the 44
rate so filed must do so pursuant to NRS 679B.310. 45

– 11 –

- *AB332*
8.] The Administrator shall: 1
(a) Evaluate any claim submitted to the Board for payment or 2
reimbursement fr om the Subsequent Injury Account for 3
Associations of Self -Insured Public or Private Employers and 4
recommend to the Board any appropriate action to be taken 5
concerning the claim; and 6
(b) Submit to the Board any other recommendations relating to 7
the Account. 8
Sec. 10. NRS 616B.578 is hereby amended to read as follows: 9
616B.578 Except as otherwise provided in NRS 616B.581: 10
1. If an employee of a member of an association of self-insured 11
public or private employers has a permanent physical impairment 12
from any cause or origin and incurs , on or before September 30, 13
2025, a subsequent disability by injury arising out of and in the 14
course of his or her employment which entitles the employee to 15
compensation for disability that is substantially greater by reason of 16
the combined effects of the preexisting impairment and the 17
subsequent injury than that which would have resulted from the 18
subsequent injury alone, the compensation due must be charged to 19
the Subsequent Injury Account for Associations of Self -Insured 20
Public or Private Employers in accordance with regulations adopted 21
by the Board. 22
2. If the subsequent injury of such an employee incurred on or 23
before September 30, 2025, results in his or her death and it is 24
determined that the death would not have occurred except for the 25
preexisting permanent physical impairment, the compensation due 26
must be charged to the Subsequent Injury Account for Associations 27
of Self -Insured Public or Private Employers in accordance with 28
regulations adopted by the Board. 29
3. As used in this section, “permanent physical impairment” 30
means any permanent condition, wh ether congenital or caused by 31
injury or disease, of such seriousness as to constitute a hindrance or 32
obstacle to obtaining employment or to obtaining reemployment if 33
the employee is unemployed. For the purposes of this section, a 34
condition is not a “perman ent physical impairment” unless it would 35
support a rating of permanent impairment of 6 percent or more of 36
the whole person if evaluated according to the American Medical 37
Association’s Guides to the Evaluation of Permanent Impairment as 38
adopted and suppleme nted by the Division pursuant to 39
NRS 616C.110. 40
4. To qualify under this section for reimbursement from the 41
Subsequent Injury Account for Associations of Self -Insured Public 42
or Private Employers, the association of self -insured public or 43
private employers must establish by written records that the 44
employer had knowledge of the “permanent physical impairment” at 45

– 12 –

- *AB332*
the time the employee was hired or that the employee was retained 1
in employment after the employer acquired such knowledge. 2
5. An association of self-insured public or private employers 3
must submit to the Board a claim for reimbursement from the 4
Subsequent Injury Account for Associations of Self -Insured Public 5
or Private Employers. 6
6. The Board shall adopt regulations establishing procedures 7
for submitting claims against the Subsequent Injury Account for 8
Associations of Self -Insured Public or Private Employers. The 9
Board shall notify the Association of Self -Insured Public or Private 10
Employers of its decision on such a claim within 120 days after t he 11
claim is received. 12
7. An appeal of any decision made concerning a claim against 13
the Subsequent Injury Account for Associations of Self -Insured 14
Public or Private Employers must be submitted directly to the 15
district court. 16
Sec. 11. NRS 616B.581 is hereby amended to read as follows: 17
616B.581 1. An association of self -insured public or private 18
employers that pays compensation due to an employee who has a 19
permanent physical impairment from any cause or origin and incurs 20
, on or before September 30, 2025, a subsequent disability by injury 21
arising out of and in the course of his or her employment which 22
entitles the employee to compensation for disability that is 23
substantially greater by reason of the combined effects of the 24
preexisting impairment and the subsequent injury than that which 25
would have resulted from the subsequent injury alone is entitled to 26
be reimbursed from the Subsequent Injury Account for Associations 27
of Self-Insured Public or Private Employers if: 28
(a) The employee knowingly made a false representation as to 29
his or her physical condition at the time the employee was hired by 30
the member of the Association of Self -Insured Public or Private 31
Employers; 32
(b) The employer relied upon the false representation and this 33
reliance formed a substantial basis of the employment; and 34
(c) A causal connection existed between the false representation 35
and the subsequent disability. 36
 If the subsequent injury of the employee incurred on or before 37
September 30, 2025, results in his or her death and it is determined 38
that the death would not have occurred except for the preexisting 39
permanent physical impairment, any compensation paid is entitled 40
to be reimbursed from the Subsequent Injury Account for 41
Associations of Self-Insured Public or Private Employers. 42
2. An association of self -insured public or private employers 43
shall notify the Board of any possible claim against the Subsequent 44
Injury Account for Associations of Self -Insured Public or Private 45

– 13 –

- *AB332*
Employers pursuant to this sec tion no later than 60 days after the 1
date of the subsequent injury or the date the employer learns of the 2
employee’s false representation, whichever is later. 3
Sec. 12. NRS 616B.584 is hereby amended to read as follows: 4
616B.584 1. There is hereby created in the Fund for 5
Workers’ Compensation and Safety in the State Treasury the 6
Subsequent Injury Account for Private Carriers, which may be used 7
only to make payments in accordance with the provisions of NRS 8
616B.587 and 616B .590. The Administrator shall administer the 9
Account. 10
2. All [assessments,] penalties, bonds, securities and all other 11
properties received, collected or acquired by the Administrator for 12
the Subsequent Injury Account for Private Carriers must be 13
delivered to the custody of the State Treasurer. 14
3. All money and securities in the Account must be held by the 15
State Treasurer as custodian thereof to be used solely for workers’ 16
compensation for employees whose employers are insured by 17
private carriers. 18
4. The State Treasurer may disburse money from the Account 19
only upon written order of the State Controller. 20
5. The State Treasurer shall invest money of the Account in the 21
same manner and in the same securities in which the State Treasurer 22
is authorized to invest State General Funds which are in the custody 23
of the State Treasurer. Income realized from the investment of the 24
assets of the Account must be credited to the Account. 25
6. The Administrator shall adopt regulations for the 26
establishment and administration of [assessment rates, ] payments 27
and penalties. [Assessment rates must reflect the relative hazard of 28
the employments covered by private carriers, must result in an 29
equitable distribution of costs among the private carriers and must 30
be based upon expected annual premiums to be received. 31
7. The Commissioner shall assign an actuary to review the 32
establishment of assessment rates. The rates must be filed with the 33
Commissioner 30 days before their effective date. Any private 34
carrier who wishes to appeal the rate so filed must do so pursuant to 35
NRS 679B.310.] 36
Sec. 13. NRS 616B.587 is hereby amended to read as follows: 37
616B.587 Except as otherwise provided in NRS 616B.590: 38
1. If an employee of an employer who is insured by a private 39
carrier has a permanent physical impairment from any cause or 40
origin and incurs , on or before September 30, 2025, a subsequent 41
disability by injury arising out o f and in the course of his or her 42
employment which entitles the employee to compensation for 43
disability that is substantially greater by reason of the combined 44
effects of the preexisting impairment and the subsequent injury than 45

– 14 –

- *AB332*
that which would have resul ted from the subsequent injury alone, 1
the compensation due must be charged to the Subsequent Injury 2
Account for Private Carriers in accordance with regulations adopted 3
by the Administrator. 4
2. If the subsequent injury of such an employee incurred on or 5
before September 30, 2025, results in his or her death and it is 6
determined that the death would not have occurred except for the 7
preexisting permanent physical impairment, the compensation due 8
must be charged to the Subsequent Injury Account for Private 9
Carriers in accordance with regulations adopted by the 10
Administrator. 11
3. As used in this section, “permanent physical impairment” 12
means any permanent condition, whether congenital or caused by 13
injury or disease, of such seriousness as to constitute a hindr ance or 14
obstacle to obtaining employment or to obtaining reemployment if 15
the employee is unemployed. For the purposes of this section, a 16
condition is not a “permanent physical impairment” unless it would 17
support a rating of permanent impairment of 6 percen t or more of 18
the whole person if evaluated according to the American Medical 19
Association’s Guides to the Evaluation of Permanent Impairment as 20
adopted and supplemented by the Division pursuant to 21
NRS 616C.110. 22
4. To qualify under this section for reimbur sement from the 23
Subsequent Injury Account for Private Carriers, the private carrier 24
must establish by written records that the employer had knowledge 25
of the “permanent physical impairment” at the time the employee 26
was hired or that the employee was retained in employment after the 27
employer acquired such knowledge. 28
5. A private carrier must submit to the Administrator a claim 29
for reimbursement from the Subsequent Injury Account for Private 30
Carriers. 31
6. The Administrator shall adopt regulations establishing 32
procedures for submitting claims against the Subsequent Injury 33
Account for Private Carriers. The Administrator shall notify the 34
private carrier of his or her decision on such a claim within 120 days 35
after the claim is received. 36
7. An appeal of any decision made concerning a claim against 37
the Subsequent Injury Account for Private Carriers must be 38
submitted directly to the appeals officer. The appeals officer shall 39
hear such an appeal within 45 days after the appeal is submitted to 40
the appeals officer. 41
Sec. 14. NRS 616B.590 is hereby amended to read as follows: 42
616B.590 1. A private carrier who pays compensation due to 43
an employee who has a permanent physical impairment from any 44
cause or origin and incurs , on or before September 30, 2025, a 45

– 15 –

- *AB332*
subsequent disability by injury arising out of and in the course of his 1
or her employment which entitles the employee to compensation for 2
disability that is substantially greater by reason of the combined 3
effects of the preexisting impairment and the subsequent injury than 4
that which would have resulted from the subsequent injury alone is 5
entitled to be reimbursed from the Subsequent Injury Account for 6
Private Carriers if: 7
(a) The employee knowingly made a false representat ion as to 8
his or her physical condition at the time the employee was hired by 9
the employer insured by a private carrier; 10
(b) The employer relied upon the false representation and this 11
reliance formed a substantial basis of the employment; and 12
(c) A causal connection existed between the false representation 13
and the subsequent disability. 14
 If the subsequent injury of the employee incurred on or before 15
September 30, 2025, results in his or her death and it is determined 16
that the death would not have occurre d except for the preexisting 17
permanent physical impairment, any compensation paid is entitled 18
to be reimbursed from the Subsequent Injury Account for Private 19
Carriers. 20
2. A private carrier shall notify the Administrator of any 21
possible claim against the Subsequent Injury Account for Private 22
Carriers pursuant to this section no later than 60 days after the date 23
of the subsequent injury or the date the employer learns of the 24
employee’s false representation, whichever is later. 25
Sec. 15. NRS 616B.624 is hereby amended to read as follows: 26
616B.624 1. If a quasi -public or private corporation or a 27
limited-liability company is required to be insured pursuant to 28
chapters 616A to 616D, inclusive, of NRS, an officer of the 29
corporation or a manager of the company who: 30
(a) Receives pay for services performed as an officer [,] or 31
manager [or employee ] of the corporation or company shall be 32
deemed for the purposes of those chapters to receive a minimum pay 33
of $6,000 per policy year and a maximum pay of $36,000 per policy 34
year. 35
(b) Does not receive pay for services performed as an officer, 36
manager or employee of the corporation or company shall be 37
deemed for the purposes of those chapters to receive a minimum pay 38
of $500 per month or $6,000 per policy year. 39
2. An officer or manager who does not receive pay for services 40
performed as an officer, manager or employee of the corporation or 41
company may elect to reject coverage for himself or herself by filing 42
written notice thereof w ith the corporation or company and the 43
insurer. The rejection is effective upon receipt of the notice by the 44
insurer. 45

– 16 –

- *AB332*
3. An officer or manager of such a corporation or company 1
who: 2
(a) Owns the corporation or company; and 3
(b) Receives pay for the services performed, 4
 may elect to reject coverage for himself or herself by filing 5
written notice thereof with the insurer. The rejection is effective 6
upon receipt of the notice by the insurer. 7
4. An officer or manager who has rejected coverage may 8
rescind t hat rejection by filing written notice thereof with the 9
corporation or company and the insurer. The rescission is effective 10
upon receipt of the notice by the insurer. Except as otherwise 11
provided in subsection 3, if an officer or manager who has rejected 12
coverage receives pay for services performed as an officer, manager 13
or employee of the corporation or company, the officer or manager 14
shall be deemed to have rescinded that rejection. 15
5. A nonprofit corporation whose officers do not receive pay 16
for services performed as officers or employees of the corporation 17
may elect to reject coverage for its current officers and all future 18
officers who do not receive such pay by filing written notice thereof 19
with the corporation and the insurer. The rejection is effec tive upon 20
receipt of the notice by the insurer. 21
6. A nonprofit corporation which has rejected coverage for its 22
officers who do not receive pay for services performed as officers or 23
employees of the corporation may rescind that rejection by filing 24
written notice thereof with the corporation and the insurer. The 25
rescission is effective upon receipt of the notice by the insurer. If an 26
officer of a nonprofit corporation which has rejected coverage 27
receives pay for services performed as an officer or employee of the 28
corporation, the corporation shall be deemed to have rescinded that 29
rejection. 30
Sec. 16. 1. The provisions of any administrative regulations 31
which conflict or are inconsistent with the provisions of this act are 32
void, including, without limitation, the provisions of any 33
administrative regulations which impose an assessment relating to a 34
subsequent injury account pursuant to NRS 616B.554, 616B.575 or 35
616B.584, as those sections existed before October 1, 2025. 36
2. As used in this section, “subsequent injury account” means: 37
(a) The Subsequent Injury Account for Self -Insured Employers 38
created by NRS 616B.554; 39
(b) The Subsequent Injury Account for Associations of Self -40
Insured Public or Private Employers created by NRS 616B.575; and 41
(c) The Subsequent Injury Account for Private Carriers created 42
by NRS 616B.584. 43

– 17 –

- *AB332*
Sec. 17. The amendatory provisions of sections 6 to 14, 1
inclusive, and 16 of this act do not affect a claim, action or 2
proceeding commenced or right accrued before October 1, 2025. 3
Sec. 18. NRS 616B.222 and 616B.410 are hereby repealed. 4

TEXT OF REPEALED SECTIONS

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.
616B.410 Annual a udits; 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 industr ial 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 ma y
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.

– 18 –

- *AB332*
5. The expenses of any audit conducted pursuant to this section
must be paid by the association.

H