Revises provisions relating to associations of self-insured employers. (BDR 53-198)

REQUIRES TWO-THIRDS MAJORITY VOTE
(§§ 1, 13)
S.B. 345

- *SB345*

SENATE BILL NO. 345–SENATOR DALY

MARCH 13, 2025
____________

Referred to Committee on Commerce and Labor

SUMMARY—Revises provisions relating to associations of self -
insured employers. (BDR 53-198)

FISCAL NOTE: Effect on Local Government: May have Fiscal Impact.
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 various
requirements for an association of self -insured public or
private employers, members of an association and
members of a board of trustees of an association; revising
permissible uses of money collec ted from members as
annual assessments; prohibiting the distribution of
dividends to members of an association by an association;
revising provisions relating to certain administrative
penalties; requiring an association of self -insured public
or private e mployers operating on October 1, 2025, to
apply for and be issued a new certificate to act as such an
association; and providing other matters properly relating
thereto.
Legislative Counsel’s Digest:
Existing law authorizes a group of five or more public or private employers, 1
under certain circumstances, to act as an association of self -insured employers for 2
the purpose of providing industrial insurance. (NRS 616B.350-616B.446) 3
Existing law requires members of such an association: (1) of public employers, 4
to be engaged in the same or similar classifications of employment; and (2) of 5
private employers, to be members or associate members of a bona fide trade 6
association, as determined by the Commissioner, which is incorporated in this State 7
and has been in existence for at least 5 years. (NRS 616B.350) Section 1 of this bill 8
additionally requires all members of an association of self -insured public or private 9
employers to perform related activities in a given industry. 10
Existing law requires an association of self -insured public or private employers 11
to be operated by a board of trustees whom the members of the association elect for 12
terms set forth in the bylaws o f the association. The board of trustees must be 13
composed of: (1) for public employers, members who are officers or employees of 14

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employers who are members of the association; and (2) for private employers, at 15
least two -thirds of members who are employees, officers or directors of the 16
members of the association. (NRS 616B.365) Section 3 of this bill requires that the 17
board of trustees of an association of self -insured: (1) public employers be officers 18
or managerial employees of the public employers who are members of the 19
association; and (2) private employers be managerial employees, offi cers or 20
directors of the members of the association. Section 1 requires the bylaws of an 21
association to: (1) establish a procedure for nominating persons who may be elected 22
to the board of trustees which is free from certain outside influence; and (2) contain 23
a statement of fiduciary responsibility for administering the plan of insurance. 24
Existing law requires an association of self -insured public or private employers 25
and each member of the association to execute an indemnity agreement which 26
jointly and severally binds the association and each member to secure the payment 27
of all compensation due for industrial insurance claims. (NRS 616B.350, 616B.353, 28
616B.386) Existing law authorizes the Commissioner of Insurance to assess all 29
associations of self -insured public or private employers to provide for claims 30
against any insolvent association. (NRS 616B.443) Section 2 of this bill requires 31
such an indemnity agreement to: (1) authorize the association to assess certain fees 32
from members if any member defaults; and (2) notify members that the 33
Commissioner may assess t he association to provide for claims against another 34
association pursuant to existing law. 35
Existing law requires an association of self -insured public or private employers 36
to: (1) collect an annual assessment from each member of the association; and (2) 37
maintain a policy of excess insurance in a form and amount required by the 38
Commissioner. (NRS 616B.353) Section 2 requires that: (1) money collected from 39
annual assessments be used only for the administration of the plan and to pay 40
claims; and (2) the required policy of excess insurance have a self -insured retention 41
of not less than $250,000. Section 2 also revises the minimum amount of a bond 42
which an association’s administrator is required to deposit with the Commissioner. 43
Section 4 of this bill requires the Commissioner, as part of an annual audit of each 44
association required by existing law, to verify the annual assessment required to be 45
paid by each member to ensure that the assessment is reasonable. 46
Existing law authorizes an association of self -insured public or private 47
employers, under certain circumstances, to declare and distribute dividends to the 48
members of the association. (NRS 616B.413) Section 5 of this bill: (1) prohibits an 49
association from declaring or distributing dividends to its members; and (2) 50
authorizes an association that has excess assets to reduce the annual assessment 51
required to be paid by each member of the association. 52
Existing law requires each association of self -insured public or private 53
employers to maintain certain reserves. (NRS 616B.419) Section 6 of this bill 54
requires an association to furnish information to the Commissioner upon request for 55
the review of such reserves. 56
Existing law authorizes the Commissioner to: (1) issue orders requiring that an 57
association of self -insured public or private employers or a member of the 58
association cease and desist from engaging in certain prohibited acts; and (2) 59
enforce such orders by imposing administrative fines or withdrawing the certificate 60
of the association if the association or a member violates such an order. (NRS 61
616B.425) Section 7 of this bill additionally authorizes the Commissioner to issue 62
and enforce such cease and desist orders against the board of trustees of an 63
association, the association’s administrator or a third -party administrator employed 64
by the association. 65
Existing law also authorizes the Commissioner to impose administrative fines 66
or institute proceedings to withdraw the certificate of an association for certain 67
violations of existing law and regulations. Existing law authorizes an association 68
that is aggrieved by a decision of the Commissioner to seek judicial review. 69

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(NRS 616B.428, 616B.431, 616B.437, 616D.120) Sections 8-10 and 12 of this bill 70
make those provisions equally applicable to an association’s administrator. 71
Section 11 of this bill requires the Commissioner to adopt regulations which 72
establish uniform policies for and the required contents of an underwri ting plan for 73
each association of self-insured public or private employers. 74
Section 13 of this bill provides that any certificate issued by the Commissioner 75
authorizing a g roup of employers to act as an association of self -insured public or 76
private employers that is in effect on October 1, 2025, expires on October 1, 2026. 77
Section 13 requires an association of self -insured public or private employers that 78
wishes to continue to act as such an association after October 1, 2026, to apply for 79
and be issued a new certificate. 80

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

Section 1. NRS 616B.350 is hereby amended to read as 1
follows: 2
616B.350 1. A group of five or more employers may not act 3
as an association of self-insured public employers unless the group: 4
(a) Is composed of employers that perform related activities in 5
a given industry and are engaged in the same or similar 6
classifications of employment; and 7
(b) Has been issued a certificate to act as such an association by 8
the Commissioner. 9
2. A group of five or more employers may not act as an 10
association of self-insured private employers unless each member of 11
the group [:] performs related activities in a given industry, and: 12
(a) Is a member or associate member of a bona fide trade 13
association, as determined by the Commissioner, which: 14
(1) Is incorporated in this State; and 15
(2) Has been in existence for at least 5 years; and 16
(b) Has been issued a certificate to act as such an association by 17
the Commissioner. 18
3. An association of public or private employers that wishes to 19
be issued a certificate must file with the Commissioner an 20
application for certification. 21
4. The application must include: 22
(a) The name of the association. 23
(b) The address of: 24
(1) The principal office of the association. 25
(2) The location where the books and records of the 26
association will be maintained. 27
(c) The date the association was organized. 28
(d) The name and address of each member of the association. 29
(e) The names of the initial members of the board of trustees and 30
the name of the initial association’s administrator. 31

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(f) Such other information as the Commissioner may require. 1
5. The application must be accompanied by: 2
(a) A nonrefundable filing fee of $1,000 and, in addition to any 3
other fee or charge, all applicable fees required pursuant to 4
NRS 680C.110. 5
(b) Proof of compliance with NRS 616B.353. 6
(c) Proof that the association or its third -party administrator is 7
licensed or otherwise authorized to conduct business in this State 8
pursuant to title 57 of NRS. 9
(d) A copy of the agreements entered into with the association’s 10
administrator and a third-party administrator. 11
(e) A copy of the bylaws of the association [.] , which must: 12
(1) Contain a statement of fiduciary responsibility for 13
administering the plan of insurance. 14
(2) Establish a procedure for nominating persons who may 15
be elected to the board of trustees of the association which is free 16
from outside influence, control or pressure. 17
(f) [A] An executed copy of an indemnity agreement [jointly 18
and severally binding the association and each member of the 19
association to secure the payment of all compensation due pursuant 20
to chapters 616A to 617, inclusive, of NRS. ] as required by 21
NRS 616B.353. 22
(g) A pro forma financial statement prepared by an independent 23
certified public accountant in accordance with generally accepted 24
accounting principles that shows the financial ability of the 25
association to pay all compensation due pursuant to chapters 616A 26
to 617, inclusive, of NRS. 27
(h) A reviewed financial statement prepared by an independent 28
certified public accountant for each proposed member of the 29
association or evidence of the ability of the association or its 30
proposed members to provide a solvency bond pursuant to 31
subsection 3 of NRS 616B.353. 32
(i) Proof that each member of the association will make the 33
initial payment to the association required pursuant to NRS 34
616B.416 on a date specified by the Commissioner. The payment 35
shall be deemed to be a part of the assessment required to be paid by 36
each member for the first year of self -insurance if certification is 37
issued to the association. 38
6. Except as otherwise provided in NRS 239.0115, any 39
financial information relating to a member of an association 40
received by the Commissioner pursuant to the provisions of this 41
section is confidential and must not be disclosed. 42
7. For the purposes of this sectio n, “associate member of a 43
bona fide trade association” means a supplier whose business, as 44
determined by the Commissioner: 45

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(a) Is limited to a specific industry; and 1
(b) Primarily involves providing a product or service that is 2
directly used or consumed by substantially all of the members of the 3
trade association or bears a direct relationship to the business of the 4
members of the association. 5
Sec. 2. NRS 616B.353 is hereby amended to read as follows: 6
616B.353 1. An association of self -insured public or private 7
employers shall: 8
(a) Execute an indemnity agreement jointly and severally 9
binding the association and each member of the association to 10
secure the payment of all compensation due pursuant to chapters 11
616A to 6 17, inclusive, of NRS. The indemnity agreement must be 12
in a form prescribed by the Commissioner [.] and must authorize 13
the association to assess fees from members if any member 14
defaults. The agreement must notify members that the 15
Commissioner may assess th e association to provide for claims 16
against another association pursuant to NRS 616B.443. An 17
association may add provisions to the indemnity agreement if they 18
are first approved by the Commissioner. 19
(b) Except as otherwise provided in this subsection, mai ntain a 20
policy of specific and aggregate excess insurance with a self-21
insured retention of not less than $250,000 in a form and amount 22
required by the Commissioner. The excess insurance must be 23
written by an insurer approved by the Commissioner. To determi ne 24
the amount of excess insurance required, the Commissioner shall 25
consider: 26
(1) The number of members in the association; 27
(2) If the association is an association of self -insured public 28
employers, the types of governmental services provided by the 29
members of the association; 30
(3) If the association is an association of self -insured private 31
employers, the classifications of employment of the members of the 32
association; 33
(4) The number of years the association has been in 34
existence; and 35
(5) Such other information as the Commissioner deems 36
necessary. 37
 Nothing in this paragraph prohibits an association from 38
purchasing secondary excess insurance in addition to the excess 39
insurance required by this paragraph. 40
(c) Collect an annual assessment from ea ch member of the 41
association in an aggregate amount of at least $250,000 or in an 42
aggregate amount which the Commissioner determines is 43
satisfactory based on an annual review conducted by the 44
Commissioner of the actuarial solvency of the association. Money 45

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collected from assessments may be used only for the 1
administration of the plan and to pay claims. 2
(d) Except as otherwise provided in paragraph (e), deposit as 3
security with the Commissioner a bond executed by the association 4
as principal, and by a licen sed surety, payable to the State of 5
Nevada, and conditioned upon the payment of compensation for 6
injuries and occupational diseases to their employees. The bond 7
must be in an amount determined by the Commissioner to be 8
reasonably sufficient to ensure payme nt of such compensation, but 9
in no event may it be less than $100,000. 10
(e) In lieu of a bond, deposit with the Commissioner a like 11
amount of lawful money of the United States or any other form of 12
security authorized by NRS 100.065. If security is provided in the 13
form of a savings certificate, certificate of deposit or investment 14
certificate, the certificate must state that the amount is unavailable 15
for withdrawal except upon order of the Commissioner. 16
2. Except as otherwise provided in subsection 3, in a ddition to 17
complying with the requirements of subsection 1, an association of 18
self-insured private employers shall: 19
(a) At the time of initial qualification and until the association 20
has operated successfully as a qualified association of self -insured 21
private employers for 3 years, as determined by the Commissioner, 22
have a combined tangible net worth of all members in the 23
association of at least $2,500,000 , as evidenced by a statement of 24
tangible net worth provided to the Division of Insurance of the 25
Department of Business and Industry by an independent certified 26
public accountant; or 27
(b) After 3 years of successful operation as a qualified 28
association of self -insured private employers, as determined by the 29
Commissioner, have combined net cash flows from o perating 30
activities plus net cash flows from financing activities of all 31
members in the association of five times the average of claims paid 32
for each of the last 3 years or $7,500,000, whichever is less. 33
3. In lieu of complying with the requirements of s ubsection 2, 34
the association’s administrator shall ensure that a solvency bond, in 35
a form prescribed by the Commissioner and in an aggregate amount 36
of at least $2,500,000, is deposited with the Commissioner by the 37
association or members of the association on behalf of the 38
association. 39
4. The association’s administrator shall deposit with the 40
Commissioner a bond executed by the association’s administrator as 41
principal, and by a licensed surety, payable to the State of Nevada, 42
and conditioned upon the faith ful performance of his or her duties. 43
The bond must be in an amount determined by the Commissioner [.] 44
, but in no event may it be less than $2,000,000. 45

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5. Any third-party administrator providing claims services for 1
the association shall deposit with the Commissioner a bond executed 2
by the third -party administrator as principal, and by a licensed 3
surety, payable to the State of Nevada, and conditioned upon the 4
faithful performance of its duties. The bond must be in an amount 5
determined by the Commissioner. 6
6. The Commissioner may increase or decrease the amount of 7
any bond or money required to be deposited by this section in 8
accordance with chapter 681B of NRS and the Commissioner’s 9
regulations for loss reserves in casualty insurance. If the 10
Commissioner requires an association, association’s administrator or 11
third-party administrator to increase its deposit, the Commissioner 12
may specify the form of the additional security. The association, 13
association’s administrator or third-party administrator shall comply 14
with such a requirement within 60 days after receiving notice from 15
the Commissioner. 16
7. The Account for Associations of Self -Insured Public and 17
Private Employers is hereby created in the State Agency Fund for 18
Bonds. All money received by the Commissioner pursuant to this 19
section must be deposited with the State Treasurer to the credit of 20
the Account. All claims against this Account must be paid as other 21
claims against the State are paid. 22
Sec. 3. NRS 616B.365 is hereby amended to read as follows: 23
616B.365 1. An association of self -insured public or private 24
employers must be operated by a board of trustees consisting of at 25
least five members who are nominated according to the terms set 26
forth in the bylaws of th e association and whom the members of 27
the association elect for terms set forth in the bylaws of the 28
association. If the association is an association of self-insured: 29
(a) Public employers, the members of the board of trustees must 30
be officers or managerial employees of the public employers who 31
are members of the association. 32
(b) Private employers, [at least two -thirds of ] the members of 33
the board of trustees must be managerial employees, officers or 34
directors of the members of the association. No associa tion’s 35
administrator or third -party administrator employed by the 36
association, or any owner, officer, employee or other person 37
affiliated with the association’s administrator or third -party 38
administrator, may serve as a member of the board of trustees. Eac h 39
member of the board of trustees must be a resident of this State or 40
an officer of a corporation authorized to do business in this State. 41
2. The board of trustees of an association shall: 42
(a) Ensure the prompt payment of any compensation due 43
pursuant to chapters 616A to 616D, inclusive, or chapter 617 of 44
NRS. 45

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(b) Take such actions as are necessary to protect the assets of the 1
association. 2
(c) Employ full-time an association’s administrator to carry out 3
the policies of the board of trustees and perfor m such duties as the 4
board delegates to him or her. An association’s administrator shall 5
not perform any of the duties assigned to a third-party administrator. 6
(d) Employ a third-party administrator to carry out the duties set 7
forth in NRS 616B.503. 8
(e) Employ an independent certified public accountant to 9
prepare the statement of financial condition required by 10
NRS 616B.404. 11
(f) Maintain minutes of its meetings and make the minutes 12
available for inspection by the Commissioner. 13
3. The board of trustees of an association shall not: 14
(a) Extend credit to any member of the association for the 15
payment of that member’s annual assessment, except pursuant to a 16
payment plan approved by the Commissioner. 17
(b) Borrow any money from the association or in the name of 18
the association, except in the ordinary course of its business, without 19
the prior approval of the Commissioner. 20
Sec. 4. NRS 616B.410 is hereby amended to read as follows: 21
616B.410 1. The Commissioner shall cause to be conducted 22
at least annually an audit of each association of self -insured public 23
or private employers in order to verify: 24
(a) The standard industrial classification of each member of the 25
association; 26
(b) The individual experience of each member of the 27
association; 28
(c) The payroll of each member of the association; and 29
(d) The assessment required to be paid by each member of the 30
association [.] , to ensure the assessment is reasonable. 31
2. The audit required by this section must be conducted by an 32
auditor approved by the Commissioner. 33
3. A report of the audit must be filed with the Commissioner in 34
a form required by the Commissioner. 35
4. The association or any member of the association may 36
request a hearing before the Commissioner to object to an y standard 37
industrial classification assigned to a member of the association as a 38
result of the audit. If the Commissioner determines that the 39
assessment required to be paid by any member of the association is: 40
(a) Insufficient because of the standard ind ustrial classification 41
assigned to the member, the Commissioner shall order the 42
association to collect from that member any amount required to 43
recover the deficiency. 44

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(b) Excessive because of the standard industrial classification 1
assigned to the member, the Commissioner shall order the 2
association to pay to the member the excess amount collected. 3
5. The expenses of any audit conducted pursuant to this section 4
must be paid by the association. 5
Sec. 5. NRS 616B.413 is hereby amended to read as follows: 6
616B.413 1. If the assets of an association of self -insured 7
public or private employers exceed the amount necessary for the 8
association to: 9
(a) Pay its obligations and administrative expenses; 10
(b) Carry reasonable reserves; and 11
(c) Provide for contingencies, 12
 the board of trustees of the association may, after obtaining the 13
approval of the Commissioner, [declare and distribute dividends to 14
the members] reduce the annual assessment required to be paid by 15
each member of the association. 16
2. [Any dividend declared pursuant to subsection 1 must be 17
distributed not less than 12 months after the end of the fund year. 18
3. A dividend may be paid only to those members who are 19
members of the association for the entire fund year. The payment of 20
a dividend must not be conditioned upon the member continuing his 21
or her membership in the association after the fund year. 22
4.] An association shall [give to each prospective member of 23
the association a written description of its pla n for distributing] not 24
declare or distribute dividends [when the prospective member 25
applies for membership in] to the members of the association. 26
Sec. 6. NRS 616B.419 is hereby amended to read as follows: 27
616B.419 Each association of self -insured public or private 28
employers shall : [maintain:] 29
1. [Actuarially] Maintain actuarially appropriate loss reserves. 30
Such reserves must include reserves for: 31
(a) Actual claims and the expenses associated with those claims; 32
and 33
(b) Claims incurred but not reported, and the expenses 34
associated with those claims. 35
2. [Reserves] Maintain reserves for uncollected debts based on 36
the experience of the association or other associations. 37
3. Upon request, furnish to the Commissioner an y 38
information necessary to review the reserves described in this 39
section. 40
Sec. 7. NRS 616B.425 is hereby amended to read as follows: 41
616B.425 1. The Commissioner may issue an order requiring 42
an association of self -insured public or private employers , the 43
board of trustees of the association, the association’s 44
administrator, a third -party administrator employed by the 45

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association or a member of the association to cease and desist from 1
engaging in any act or practice found to be in violation of any 2
provision of NRS 616B.350 to 616B.446, inclusive, or any 3
regulation adopted pursuant thereto. 4
2. If the Commissioner determines that an association , the 5
board of trustees of the association, the association’s 6
administrator, a third-party administrator employed by the 7
association or a member of the association has violated an order to 8
cease and desist, the Commissioner may impose an administrative 9
fine of not more than $10,000 for each violation of the order, not to 10
exceed an aggregate amount of $100,000, or withdraw the certificate 11
of the association [,] or the association’s administrator, or both. 12
Sec. 8. NRS 616B.428 is hereby amended to read as follows: 13
616B.428 1. The Commissioner may impose an 14
administrative fine for each violation of any provision of NRS 15
616B.350 to 616B.446, inclusive, or any regulation adopted 16
pursuant thereto. Except as otherwise provided in those sections, the 17
amount of the fine may not exceed $1,000 for each viol ation or an 18
aggregate amount of $10,000. 19
2. The Commissioner may withdraw the certificate of an 20
association of self -insured public or private employers or the 21
association’s administrator if: 22
(a) The [association’s] certificate of the association or the 23
association’s administrator was obtained by fraud; 24
(b) The application for certification contained a material 25
misrepresentation; 26
(c) The association is found to be insolvent; 27
(d) The association fails to have five or more members; 28
(e) The association fails to pay the costs of any examination or 29
any penalty, fee or assessment required by the provisions of chapters 30
616A to 616D, inclusive, or chapter 617 of NRS; 31
(f) The association or the association’s administrator fails to 32
comply with any of the provi sions of this chapter or chapter 616A, 33
616C, 616D or 617 of NRS, or any regulation adopted pursuant 34
thereto; 35
(g) The association or the association’s administrator fails to 36
comply with any order of the Commissioner within the time 37
prescribed by the provisions of chapters 616A to 616D, inclusive, or 38
chapter 617 of NRS or in the order of the Commissioner; or 39
(h) The association , the association’s administrator or its third-40
party administrator misappropriates, converts, illegally withholds or 41
refuses to pay any money to which a person is entitled and that was 42
entrusted to the association in its fiduciary capacity. 43
3. If the Commissioner withdraws the certification of an 44
association of self -insured public or private employers [,] or the 45

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association’s administrator, each employer who is a member of the 1
association remains liable for his or her obligations incurred before 2
and after the order of withdrawal. 3
4. Any employer who is a member of an association whose 4
certification is withdrawn shall, on the effective date of the 5
withdrawal, qualify as an employer pursuant to NRS 616B.650. 6
Sec. 9. NRS 616B.431 is hereby amended to read as follows: 7
616B.431 1. Except as otherwise provided in NRS 616D.120, 8
before any action may be taken pursuant to subsection 2, the 9
Commissioner shall arrange an informal meeting with an association 10
of self -insured public or private employers or the association’s 11
administrator to discuss and seek correction of any conduct which 12
would be grounds for withdrawal of the certificate of the association 13
[.] or the association’s administrator. 14
2. Except as otherwise provided in subsection 3 and NRS 15
616D.120, before the withdrawal of the certificate of any association 16
of self-insured public or private employers [,] or the association’s 17
administrator, the Commissioner shall give written notice to the 18
association or the association’s administrator by certified mail that 19
[its] the certificate will be withdrawn 10 days after receipt of the 20
notice unless, w ithin that time, the association or the association’s 21
administrator corrects the conduct set forth in the notice as the 22
reason for the withdrawal or submits a written request for a hearing 23
to the Commissioner. 24
3. The Commissioner may grant additional tim e, not to exceed 25
an additional 120 days, before the withdrawal of the certificate of an 26
association or the association’s administrator if: 27
(a) The grounds for withdrawal of the certificate of the 28
association or the association’s administrator are based on 29
paragraph (d) of subsection 2 of NRS 616B.428; and 30
(b) The association or the association’s administrator is 31
financially sound and capable of fulfilling its commitments. 32
4. If the association or the association’s administrator 33
requests a hearing: 34
(a) The Commissioner shall set a date for a hearing within 20 35
days after receiving the request and give the association or the 36
association’s administrator at least 10 business days’ notice of the 37
time and place of the hearing. 38
(b) A record of the hearing must be kept, but it need not be 39
transcribed unless requested by the association or the association’s 40
administrator with the cost of transcription to be charged to the 41
association [.] or the association’s administrator. 42
(c) Within 5 business days after the hearing, the Commissioner 43
shall either affirm or disaffirm the withdrawal and give the 44
association or the association’s administrator written notice thereof 45

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by certified mail. If withdrawal of certification is affirmed, the 1
withdrawal becomes effective 10 business days after the association 2
or the association’s administrator receives notice of the affirmance 3
unless within that period the association or the association’s 4
administrator corrects the conduct which was grounds for the 5
withdrawal or petitions for judicial review of the affirmance. 6
5. If the withdrawal of certification is affirmed following 7
judicial review, the withdrawal becomes effective 5 days after entry 8
of the final decree of affirmance. 9
Sec. 10. NRS 616B.437 is hereby amended to read as follows: 10
616B.437 Any association of self -insured public or private 11
employers or an association’s administrator that is aggrieved by a 12
decision of the Commissioner may petition for judicial review in the 13
manner provided by chapter 233B of NRS. 14
Sec. 11. NRS 616B.446 is hereby amended to read as follows: 15
616B.446 1. The Commissioner may adopt such regulations 16
as are necessary to carry out the provisions of NRS 616B.350 to 17
616B.446, inclusive. 18
2. The Commissioner shall adopt regulations which establish 19
uniform policies for and the required contents of an underwriting 20
plan for each association of self -insured public or private 21
employers. 22
Sec. 12. NRS 616D.120 is hereby amended to read as follows: 23
616D.120 1. Except as otherwise provided in this section, if 24
the Administrator determines that an insurer, organization for 25
managed care, health care provider, third -party administrator, 26
employer or professional employer organization has: 27
(a) Induced a claimant to fail to report an accidental injury or 28
occupational disease; 29
(b) Without justification, persuaded a claimant to: 30
(1) Settle for an amount which is less than reasonable; 31
(2) Settle for an amount which is less than reasonable while a 32
hearing or an appeal is pending; or 33
(3) Accept less than the compensation found to be due the 34
claimant by a hearing officer, appeals officer, court of competent 35
jurisdiction, written settlement agreement, writ ten stipulation or the 36
Division when carrying out its duties pursuant to chapters 616A to 37
617, inclusive, of NRS; 38
(c) Refused to pay or unreasonably delayed payment to a 39
claimant of compensation or other relief found to be due the 40
claimant by a hearing officer, appeals officer, court of competent 41
jurisdiction, written settlement agreement, written stipulation or the 42
Division when carrying out its duties pursuant to chapters 616A to 43
616D, inclusive, or chapter 617 of NRS, if the refusal or delay 44
occurs: 45

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(1) Later than 10 days after the date of the settlement 1
agreement or stipulation; 2
(2) Later than 30 days after the date of the decision of a 3
court, hearing officer, appeals officer or the Division, unless a stay 4
has been granted; or 5
(3) Later than 10 days after a stay of the decision of a court, 6
hearing officer, appeals officer or the Division has been lifted; 7
(d) Refused to process a claim for compensation pursuant to 8
chapters 616A to 616D, inclusive, or chapter 617 of NRS; 9
(e) Made it necessary for a claimant to initiate proceedings 10
pursuant to chapters 616A to 616D, inclusive, or chapter 617 of 11
NRS for compensation or other relief found to be due the claimant 12
by a hearing officer, appeals officer, court of competent jurisdiction, 13
written settlement agreement, written stipulation or the Division 14
when carrying out its duties pursuant to chapters 616A to 616D, 15
inclusive, or chapter 617 of NRS; 16
(f) Failed to comply with the Division’s regulations covering the 17
payment of an assessment relating to the fu nding of costs of 18
administration of chapters 616A to 617, inclusive, of NRS; 19
(g) Failed to provide or unreasonably delayed payment to an 20
injured employee or reimbursement to an insurer pursuant to 21
NRS 616C.165; 22
(h) Engaged in a pattern of untimely payme nts to injured 23
employees; or 24
(i) Intentionally failed to comply with any provision of, or 25
regulation adopted pursuant to, this chapter or chapter 616A, 616B, 26
616C or 617 of NRS, 27
 the Administrator shall impose an administrative fine of $1,500 28
for each in itial violation, or a fine of $15,000 for a second or 29
subsequent violation. 30
2. Except as otherwise provided in chapters 616A to 616D, 31
inclusive, or chapter 617 of NRS, if the Administrator determines 32
that an insurer, organization for managed care, health care provider, 33
third-party administrator, employer or professional employer 34
organization has failed to comply with any provision of this chapter 35
or chapter 616A, 616B, 616C or 617 of NRS, or any regulation 36
adopted pursuant thereto, the Administrator may t ake any of the 37
following actions: 38
(a) Issue a notice of correction for: 39
(1) A minor violation, as defined by regulations adopted by 40
the Division; or 41
(2) A violation involving the payment of compensation in an 42
amount which is greater than that required by any provision of this 43
chapter or chapter 616A, 616B, 616C or 617 of NRS, or any 44
regulation adopted pursuant thereto. 45

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 The notice of correction must set forth with particularity the 1
violation committed and the manner in which the violation may be 2
corrected. The provisions of this section do not authorize the 3
Administrator to modify or negate in any manner a determination or 4
any portion of a determination made by a hearing officer, appeals 5
officer or court of competent jurisdiction or a provision contained in 6
a written settlement agreement or written stipulation. 7
(b) Impose an administrative fine for: 8
(1) A second or subsequent violation for which a notice of 9
correction has been issued pursuant to paragraph (a); or 10
(2) Any other violation of this chapter or chapter 616A, 11
616B, 616C or 617 of NRS, or any regulation adopted pursuant 12
thereto, for which a notice of correction may not be issued pursuant 13
to paragraph (a). 14
 The fine imposed must not be greater than $375 for an initial 15
violation, or more than $3,000 for any second or subsequent 16
violation. 17
(c) Order a plan of corrective action to be submitted to the 18
Administrator within 30 days after the date of the order. 19
3. If the Administrator determines that a violation of any of the 20
provisions of paragraphs (a) to (e), inclusive, (h) or (i) of subsection 21
1 has occurred, the Administrator shall order the insurer, 22
organization for managed care, health care provider, third -party 23
administrator, employer or professional employer organization to 24
pay to the claimant a benefit penalty: 25
(a) Except as otherwise provided in paragraph (b), in an amount 26
that is not less than $17,000 and not greater than $120,000; or 27
(b) Of $3,000 if the violation involves a late payment of 28
compensation or other relief to a claim ant in an amount which is 29
less than $500 or which is not more than 14 days late. 30
4. To determine the amount of the benefit penalty, the 31
Administrator shall consider the degree of physical harm suffered by 32
the injured employee or the dependents of the injured employee as a 33
result of the violation of paragraph (a), (b), (c), (d), (e), (h) or (i) of 34
subsection 1, the amount of compensation found to be due the 35
claimant and the number of fines and benefit penalties, other than a 36
benefit penalty described in pa ragraph (b) of subsection 3, 37
previously imposed against the insurer, organization for managed 38
care, health care provider, third -party administrator, employer or 39
professional employer organization pursuant to this section. The 40
Administrator shall also consi der the degree of economic harm 41
suffered by the injured employee or the dependents of the injured 42
employee as a result of the violation of paragraph (a), (b), (c), (d), 43
(e), (h) or (i) of subsection 1. Except as otherwise provided in this 44
section, the bene fit penalty is for the benefit of the claimant and 45

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must be paid directly to the claimant within 15 days after the date of 1
the Administrator’s determination. If the claimant is the injured 2
employee and the claimant dies before the benefit penalty is paid to 3
him or her, the benefit penalty must be paid to the estate of the 4
claimant. Proof of the payment of the benefit penalty must be 5
submitted to the Administrator within 15 days after the date of the 6
Administrator’s determination unless an appeal is filed pur suant to 7
NRS 616D.140 and a stay has been granted. Any compensation to 8
which the claimant may otherwise be entitled pursuant to chapters 9
616A to 616D, inclusive, or chapter 617 of NRS must not be 10
reduced by the amount of any benefit penalty received pursua nt to 11
this subsection. To determine the amount of the benefit penalty in 12
cases of multiple violations occurring within a certain period of 13
time, the Administrator shall adopt regulations which take into 14
consideration: 15
(a) The number of violations within a certain number of years 16
for which a benefit penalty was imposed; and 17
(b) The number of claims handled by the insurer, organization 18
for managed care, health care provider, third -party administrator, 19
employer or professional employer organization in relati on to the 20
number of benefit penalties previously imposed within the period of 21
time prescribed pursuant to paragraph (a). 22
5. In addition to any fine or benefit penalty imposed pursuant 23
to this section, the Administrator may assess against an insurer who 24
violates any regulation concerning the reporting of claims 25
expenditures or premiums received that are used to calculate an 26
assessment an administrative penalty of up to twice the amount of 27
any underpaid assessment. 28
6. If: 29
(a) The Administrator determines that a person has violated any 30
of the provisions of NRS 616D.200, 616D.220, 616D.240, 31
616D.300, 616D.310 or 616D.350 to 616D.440, inclusive; and 32
(b) The Fraud Control Unit for Industrial Insurance of the Office 33
of the Attorney General established pursuan t to NRS 228.420 34
notifies the Administrator that the Unit will not prosecute the person 35
for that violation, 36
 the Administrator shall impose an administrative fine of not more 37
than $15,000. 38
7. Two or more fines of $1,000 or more imposed in 1 year for 39
acts enumerated in subsection 1 must be considered by the 40
Commissioner as evidence for the withdrawal of: 41
(a) A certificate to act as a self-insured employer. 42
(b) A certificate to act as an association of self -insured public or 43
private employers [.] or an association’s administrator. 44
(c) A certificate of registration as a third-party administrator. 45

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8. The Commissioner may, without complying with the 1
provisions of NRS 616B.327 or 616B.431, withdraw the 2
certification of a self -insured employer, association of self -insured 3
public or private employers , association’s administrator or third-4
party administrator if, after a hearing, it is shown that the self -5
insured employer, association of self -insured public or private 6
employers , association’s administrator or third-party administrator 7
violated any provision of subsection 1. 8
9. If the Administrator determines that a vocational 9
rehabilitation counselor has violated the provisions of NRS 10
616C.543, the Administrator may impose an administrative fine on 11
the vocational rehabilitation counselor of not more than $250 for a 12
first violation, $500 for a second violation and $1,000 for a third or 13
subsequent violation. 14
10. The Administrator may make a claim against the bond 15
required pursuant to NRS 683A.0857 for the pay ment of any 16
administrative fine or benefit penalty imposed for a violation of the 17
provisions of this section. 18
Sec. 13. 1. A certificate issued by the Commissioner of 19
Insurance pursuant to NRS 616B.359 to an association of self-20
insured public or private employers or an association’s administrator 21
which is in effect on October 1, 2025, expires on October 1, 2026. 22
2. An association of self -insured public or private employers 23
which holds a certificate described in subsection 1 that wishes to 24
continue to act as an association of self -insured public or private 25
employers after October 1, 2026, must, on or before that date, 26
submit a new application pursuant to NRS 616B.350 and be issued a 27
new certificate pursuant to NRS 616B.359. 28
3. As used in this section: 29
(a) “Association of self -insured private employers” has the 30
meaning ascribed to it in NRS 616A.050. 31
(b) “Association of self -insured public employers” has the 32
meaning ascribed to it in NRS 616A.055. 33
(c) “Association’s administrator” has the meaning ascribed to it 34
in NRS 616A.060. 35
Sec. 14. 1. This section becomes effective upon passage and 36
approval. 37
2. Sections 1 to 13, inclusive, of this act become effective: 38
(a) Upon passage and approval for the purpose of adopting any 39
regulations and performing any other preparatory administrative 40
tasks that are necessary to carry out the provisions of this act; and 41
(b) On October 1, 2025, for all other purposes. 42

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