SB 86 — Makes various changes relating to the regulation of insurers by the Division of Insurance of the Department of Business and Industry. (BDR 57-238)

Existing law establishes the requirements for the application for, and issuance and renewal of, a certificate of registration as a provider of service contracts.

(1) increases from $1,000 to $2,000 the fee that mustregistration befrom paid1 atyear theto time2 ofyears; application;

(2)(3) increases the termfee offor athe certificaterenewal of registrationae fromof 1certificate yearfrom $1,000 to 2$2,000; years;

(3) increases the fee for the renewal of a certificate from $1,000 to $2,000;

Sections 39-44, 46 and 49-51 of this bill revise provisions governing captive insurers to distinguish between association captive insurers and state-chartered risk retention groups for consistency with the accreditation standards of the National Association of Insurance Commissioners.

Existing law authorizes the Commissioner to suspend or revoke the license of a captive insurer after an examination and hearing if the Commissioner makes certain - *SB86_R2* – 4 – determinations.

(NRS 694C.270) Section 45 of this bill eliminates the requirement for an examination and clarifies that failure to pay required taxes on premiums is oneExistingone lawof prohibits a captive insurer from transacting insurance in this State unless the captivegrounds insureron haswhich made adequate arrangements with a banklicense locatedmay inbe thissuspended State.or revoked.

Existing law prohibits a captive insurer from transacting insurance in this State this State.

Existing law prohibits a captive insurer from paying certain dividends or certain other distributions unless the captive insurer has obtained the prior approval of the Commissioner.

requirements- for80th nonprofitSession corporations(2019) for– hospital,4 medical– andSections dental52, services,54, health58 maintenanceand organizations,61 organizationsof thatthis providebill: plans for dental care;

(1) establish minimum capital requirements for nonprofit corporations for hospital, medical and dental services, and (2) revise such requirements for prepaid limited health service organizations.organizations.;

Section 55.5 of this bill provides that provisions governing portability and organizations.accountability of individual health benefit plans apply to health maintenance orgSections 66-69 of this bill:

of individual health benefit plans apply to health maintenance Sections 66-69 of this bill:

and (2) revise provisions to include references to the InsurerCommissioners.ership Receivership Model Act adopted by the National Association of Insurance Commissioners.EXPLANATION – Matter in bolded italics is new;

THEmatter SENATEbetween ANDbrackets ASSEMBLY,[omitted DOmaterial] ENACTis ASmaterial FOLLOWS:Dto INbe Sectionomitted. 1.

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

Section 1.

As to expense [and compensation] involved in any such examination, the Commissioner shall give due consideration to scales and limitations recommended by the National Association of Insurance - *SB86_R2* – 5 – Commissioners and outlined in the examination manual sponsored by that association.

Sec.- 80th Session (2019) – 5 – 679B.440 NRS1.

2.The Commissioner may require that reportsws:

NRSsubmitted 679B.440pursuant isto herebyNRS amended679B.430 toinclude, readwithout aslimitation, follows:information regarding:

679B.440 1.

The Commissioner may require that reports submitted pursuant to NRS 679B.430 include, without limitation, information regarding:

and (6) Officers or directors of organizations formed pursuant to title 7 of NRS, reported separately for nonprofit entities and entities organized for profit;

(b)(1)(b) (1) Defective products;r:products;:

and (d)(e) Workers’In compensationaddition to any information provided pursuant to subparagraph (2) of paragraph (b) or NRS 690B.260, a policy of insurance .for medical malpractice.

[;

and (e) In addition to any information provided pursuant to subparagraph (2) of paragraph (b) or NRS 690B.260, a policy of - *SB86_R2* – 6 – insurance for medical malpractice.

(a)- 80th Session (2019) – 6 – (b) Premiums directly written;earned;;

(b) Premiums directly earned;

and(k)(k) Net operation gain or loss, including net investment income;

(l)and(l) Any other information requested by the Commissioner.

in3. its entirety, information regarding:

The Commissioner may also obtain, based upon an insurer (a)in Recoverableits federalentirety, incomeinformation tax;regarding:

(a) Recoverable federal income tax;

An insurer who fails or refuses to comply with an order issued by the Commissioner pursuant to NRS 679B.430 is subject, after notice and a hearing held pursuant to NRS 679B.310 totoect, 679B.370, inclusive, to suspension or revocation of the insurer’s certificate of authority to transact insurance in this state.

- *SB86_R2* – 7 – 3.

Sec.- 80th Session (2019) – 7 – 679B.700.

3.5.NRS1.

NRSThe 679B.700Special isInvestigative herebyAccount amendedis tohereby: read as follows:

679B.700established 1.in the Fund for Insurance Administration and Enforcement created by NRS 680C.100 for use by the Commissioner.

The Special Investigative Account is hereby established in the Fund for Insurance Administration and Enforcement created by NRS 680C.100 for use by the Commissioner.

and (b) Authorize expenditures from the Special Investigative Account to pay the expenses of the program established pursuant to NRS 679B.630 and of any unit established in the Office of the Attorney General that investigates and prosecutes insurance fraud.

(b)3. of subsection 2 must be distributed in the following manner:

(a)The Fifteen percent of the money authorized for expenditure pursuant to paragraph (b) of subsection 2 must establishedbe pursuantdistributed toin NRSthe 679B.630;following manner:

andd(a) enforceFifteen the program (b) Eighty-five percent of the money authorized for expenditure must be paid to the AttorneyCommissioner General to payoversee theand expensesenforce of the unitprogram established inpursuant theto OfficeNRS of679B.630; the Attorney General that investigates and prosecutes insurance fraud.

and (b) Eighty-five percent of the money authorized for expenditure must be paid to the Attorney General to pay the expenses of the unit established in the Office of the Attorney General that investigates and prosecutes insurance fraud.

The annual amount so assessedass(a) Is [$500,] $1,000, if the total amount of the premiums charged to eachinsureds insurer:in this State by the insurer is less than $100,000 or if the insurer is a reinsurer that has the authority to assume only reinsurance;

(a) Is [$500,] $1,000, if the total amount of the premiums charged to insureds in this State by the insurer is less than $100,000 or if the insurer is a reinsurer that has the authority to assume only reinsurance;

- *SB86_R2*80th Session (2019) – 8 – (c) Is [$1,000,] $2,000, if the total amount of the premiums charged to insureds in this State by the insurer is $1,000,000 or more, but less than $10,000,000;

(d) Is [$1,500,] $3,000, if the total amount of the premiums charged to insureds in this State by the insurer is $10,000,000 or more, but less than $50,000,000;

and the insurer is $10,000,000 or (e) Is [$2,000,] $4,000, if the total amount of the premiums charged to insureds in this State by the insurer is $50,000,000 or more.

home2. office address, state or country of organization, and the kinds of insurance the insurer is authorized to transact throughout Nevada.

authorityThe limitedcertificate, toif particularissued, typesshall ofstate insurancethe orinsurer’s coveragesname, withinhome aoffice kindaddress, state or country of insuranceorganization, asand definedthe inkinds NRSof 681A.010insurance tothe 681A.080,insurer inclusiveis (kindsauthorized ofto insurance).transact throughout Nevada.

At the insurer’s request, the Commissioner may issue a certificate of a kind of insurance as defined in NRS 681A.010 to 681A.080,ages within inclusive (kinds of insurance).

(a) In the general form and context of, and require information as called for by, an annual statement as is currently in general and customary- use80th inSession the(2019) United– States9 for– the type of insurer and kinds of insurance to be reported upon, with any useful or necessary -kinds *SB86_R2* – 9 – modification or adaptation thereof, supplemented by additional information required by the Commissioner;

and (c) Verified by the oath of the insurer’s president or vice president and secretary or actuary, as applicable, or, in the absence of the foregoing, by two other principal officers, or if a reciprocal insurer, by the oath of the attorney-in-fact, or its like officers if a corporation.cor2.

2.

or3. revoke, the certificate of authority of any insurer failing to file its annual statement when due.

Commissioner,The theCommissioner insurermay shallrefuse payto continue, or may suspend or revoke, the feecertificate forof filingauthority itsof annualany statementinsurer asfailing prescribedto byfile NRSits 680B.010.annual statement when due.

4.

At the time of filing [,] its annual statement with the Commissioner, the insurer shall pay the fee for filing its annual statement as prescribed by NRS 680B.010.

Each domestic insurer shall file with the Commissioner and the National Association of Insurance Commissioners a quarterly statement in the form most recently adopted by the National Association of Insurance Commissioners for that type of insurer.

The Commissioner may adopt regulations requiring each domestic, foreign and alien insurer which is authorized to transact insurance in this state to file the insurer’s annual statement with the - 80th Session (2019) – 10 – National Association of Insurance Commissioners or its successor organization.

Except as otherwise provided in NRS 239.0115, all work papers, documents and materials prepared pursuant to this -be *SB86_R2*disclosed – 10 – section by or on behalf of the Division.e Division are confidential and must not be[7.] disclosed8. by the Division.

[7.] 8.

authorized680A.300 insurer1. may make, write, place, renew or cause to be made, placed or renewed, any policy or duplicate policy, endorsement or contract of insurance of any kind upon persons, property or risks resident, located or to be performed in this State, except through its duly appointed and licensed agents .

[Except as provided in NRS 680A.310, no] No authorized insurer may make, write, place, renew or cause to be made, placed or renewed, any policy or duplicate policy, endorsement or contract of insurance of any kind upon persons, property or risks resident, located or to be performed in this State, except through its duly appointed and licensed agents .

3.] In any case where it is necessary to execute an emergency bond and a commissioned agent authorized to execute the bond is not present, a manager or other employee of the insurer having - 80th Session (2019) – 11 – authority under a power of attorney may execute the bond in order to produce a valid contract between the insurer and the obligee.

[The bond must subsequently be countersigned by a commissioned agent who is authorized to execute the bond.] The commissioned agent whorecord executesof the bondtransaction.l shall make and retain an adequate office record[4. of the transaction.

- *SB86_R2* – 11 – [4.

(c) If a triennial fee, paid on or before the time of continuation, renewal or other similar action in regard to a certificate, license, permit or other type of authorization, as applicable;

andande, Enforcementlicense, created(d) byDeposited NRSin 680C.100.urancethe Fund for Insurance Administration and 3.Enforcement created by NRS 680C.100.

3.

the4. Commissioner:ng fees must be paid by the following persons to (a) Associations of self-insured private employers, as defined in NRS 616A.050:

The following fees must be paid by the following persons to the Commissioner:

(a) Associations of self-insured private employers, as defined in NRS 616A.050:

(1) Initial fee.................................................................$1,300 (2) Annual fee...............................................................$1,300 - 80th Session (2019) – 12 – (c) Independent review organizations, as provided for in NRS 616A.469 or 683A.3715, or both:

(1) Initial fee......................................................................$60 (2) Annual fee....................................................................$60 (d) Producers of insurance, as defined inin.............................................$60 NRS 679A.117:

(1) Initial fee......................................................................$60 (2) Triennial fee.................................................................$60 - *SB86_R2* – 12 – (e) Reinsurers, as provided for in NRS 681A.1551 or 681A.160, as applicable:

(1) Initial fee......................................................................$60 (2) Triennial fee.................................................................$60 (j) Agents who perform utilization reviews, as defined(1) Initial fee......................................................................$60 (2) Annual fee....................................................................$60 (k) Insurance consultants, as defined in NRS 683A.376:683C.010:

(1) Initial fee......................................................................$60 (2) AnnualTriennial fee....................................................................$60fee.................................................................$60 (k)(l) InsuranceIndependent consultants,adjusters, as defined in NRS 683C.010:684A.030:

(2)(1) Triennial fee.................................................................$60$60 (l) Independent adjusters, as defined in NRS 684(1) Initial fee......................................................................$60 (2) Triennial fee.................................................................$60 (m) Public adjusters, as defined in NRS 684A.030:

(1) Initial fee......................................................................$60 (2) Triennial fee.................................................................$60 (n)- Associate80th Session (2019) – 13 – NRS 684A.030:iate adjusters, as defined in (1) Initial fee......................................................................$60 (2) Triennial fee.................................................................$60 (o) Motor vehicle physical damage appraisers, as defined in NRS 684A.030:684B.010:

(1) Initial fee......................................................................$60 (2) Triennial fee.................................................................$60 (o) Motor vehicle physical damage appraisers, as defined in NRS 684B.010:

- *SB86_R2* – 13 – (1) Initial fee.................................................................$1,300 (2) Annual fee...............................................................$1,300 (r) Rate service organizations, as defined in NRS 686B.020:

(1) Initial fee.................................................................$1,300 (2) Annual fee...............................................................$1,300 (s) Brokers of viatical settlements, as defined inin..............................$1,300 NRS 688C.030:

(1) Initial fee......................................................................$60 (2) Triennial fee.................................................................$60 (w) Sellers of prepaid burial contracts subject toto...................................$60 the pr(1) Initial fee......................................................................$60 (2) Triennial fee.................................................................$60 to the provisions of chapter 689 of NRS:ctsNRS: subject (1) Initial fee......................................................................$60 (2) Triennial fee.................................................................$60 (y) Providers, as defined in NRS 690C.070:

(1) Initial fee.................................................................$1,300fee......................................................................$60 (2) AnnualTriennial fee...............................................................$1,300fee.................................................................$60 (z)(x) EscrowSellers officers,of asprepaid definedfuneral incontracts NRSsubject 692A.028:to the provisions of chapter 689 of NRS:

(1) Initial fee......................................................................$60 (2) Triennial fee.................................................................$60 (aa)- Title80th agents,Session (2019) – 14 – (y) Providers, as defined in NRS 692A.060:690C.070:

(1) Initial fee.................................................................$1,300 (2) Annual fee...............................................................$1,300 (z) Escrow officers, as defined in NRS 692(1) Initial fee......................................................................$60 (2) Triennial fee.................................................................$60 (aa) Title agents, as defined in NRS 692A.060:

(1) Initial fee....................................................................$250 (2) Annual fee..................................................................$250 - *SB86_R2* – 14 – (cc) Insurance agents for societies, as provided for in NRS 695A.330:

(1) Initial fee....................................................................$250 (2) Annual fee..................................................................$250 (ff) Medical discount plans, as defined in NRS 695H.050:695(1) Initial fee.................................................................$1,300 (2) Annual fee...............................................................$1,300 (gg) Club agents, as defined in NRS 696A.040:

(1) Initial fee.................................................................$1,300 (2) Annual fee...............................................................$1,300 (gg) Club agents, as defined in NRS 696A.040:

(2)(1) Triennial fee.................................................................$60$60 (jj) Bail enforcement agents, as defined in NRS 69(1) Initial fee......................................................................$60 (2) Triennial fee.................................................................$60 (kk)(jj) Bail solicitors,enforcement agents, as defined in NRS 697.060:697.055:

(1) Initial fee......................................................................$60 (2) Triennial fee.................................................................$60 - 80th Session (2019) – 15 – (kk) Bail solicitors, as defined in NRS 697.060:

(1) Initial fee......................................................................$60 (2) Triennial fee.................................................................$60fee.................................................................$60$60 (mm) Exchange enrollment facilitators,asfacilitators, as defined in NRS 695J.050:

- *SB86_R2* – 15 – (c) Insurer who is authorized to transact life insurance, as defined in NRS 681A.040;

andand(j) (j) Prepaid limited health service organization, as defined in NRS 695F.050.

(c) The direct written premiums reported during the previous year by all insurers paying such fees;

anddand during the previous (d) The budget of the Division.

- 80th Session (2019) – 16 – pursuant to subsection 4 or subsections 5 and 6 shall pay to theal fee Commissioner an initial fee of $1,300 and an annual fee of $1,300.

An insurer shall not acquire an investment under NRS 682A.432 if, as a result of and after giving effect to the investment and any outstanding guarantees made by the insurer in connection with the investment, the aggregate amount of investments held by - *SB86_R2* – 16 – the insurer under NRS 682A.432 plus the guarantees outstanding would exceed:

An insurer shall not acquire an investment pursuant to NRS 682A.430 or 682A.432 if, as a result of and after giving effect to the investment and any guarantees made by the insurer in connection with the investment, the aggregate amount of all investments held by the insurer in accordance with those sections plus the guarantees outstanding would exceed 45 percent of the insurer’s admitted assets.

(b)- The80th insurerSession has(2019) not– more17 than– 10admitted percentassets ofinvested thein insurer’smortgage loans other than residential mortgage loans;

invested(c) inThe mortgageloan-to-value loansratio otherof thaneach residential (c)mortgage Theloan loan-to-valuedoes rationot ofexceed each60 residentialpercent at the time the mortgage loan is qualified pursuant to this increased authority, and the fair market value isiedis supported by an appraisal that is not more than 2 years old and prepared by an independent appraiser;

and (f) The insurer agrees to file annually with the Commissioner records which demonstrate that the insurer’s portfolio of residential mortgageplan.age loans is geographically diversified in accordance with the plan.4.

4.

An insurer shall not acquire real estate under NRS [682A.432] 682A.434 if, as a result of and after giving effect - *SB86_R2* – 17 – to the acquisition, the aggregate amount of real estate held by the insurer in accordance with that section would exceed 10 percent of its admitted assets.

A financial statement [that is certified by an officer] of the applicantpublic accountant and [must include:] which includes:rtified (a) [The] A statement regarding the amount of money that hasthe beenapplicant reviewedexpects byto ancollect independentfrom certifiedor publicdisburse accountantto andresidents [mustof include:]this whichstate includes:during the next calendar year .

(a) [The] A statement regarding the amount of money that the applicant expects to collect from or disburse to residents of this state during the next calendar year .

- 80th Session (2019) – 18 – (1) Prepared in accordance with generally accepted accounting principles [.

and accountant.eviewedaccountant.Reviewed by an independent certified public (d) A certification of the financial statement by an officer of the2.the applicant.

2.

A notarized affidavit from each person who manages or controls the administrator, including each member of the board of directors or board of trustees, each officer, partner and member of the business association of the administrator, and each shareholder - *SB86_R2* – 18 – of the administrator who holds not less than 10 percent of the voting stock of the administrator.

(a)experience Theof personalthe history,affiant;y, business record and insurance experience(b) ofWhether the affiant;affiant has been investigated by any regulatory authority or has had any license or certificate denied, suspended or revoked in any state;

(b) Whether the affiant has been investigated by any regulatory authority or has had any license or certificate denied, suspended or revoked in any state;

9.- 80th Session (2019) – 19 – administrator.

AThe statement thatmust describesinclude information:f the business(a) planConcerning the number of persons on the administrator.staff of the administrator and the activities proposed in this state or in any other state.

The(b) statementThat mustdemonstrates includethe information:capability of the administrator to provide a sufficient number of experienced and qualified persons for the processing of claims, the keeping of records and, if applicable, underwriting.

(a)10. Concerning the number of persons on the staff of the administrator and the activities proposed in this state or in any other state.

provide a sufficient number of experienced and qualified persons for the processing of claims, the keeping of records and, if applicable, und10.

683A.08524or 1.3, the Commissioner shall issue a certificate of registration as an administrator to an applicant who:

Except as otherwise provided in subsection 2 or 3, the Commissioner shall issue a certificate of registration as an administrator to an applicant who:

- *SB86_R2* – 19 – 2.

(d) Has had a license or certificate to transact insurance denied for cause, suspended or revoked in this state or any other state;state;ied (e) Has failed to comply with any provision of this chapter;

(e) Has failed to comply with any provision of this chapter;

[The Commissioner shall submit the information supplied by an applicant pursuant to subsection 1 to] If an applicant seeks final approval by the Division of Industrial Relations of the Department of Business and Industry [for final approval] in accordance with [the] regulations adopted pursuant to subsection 8 of NRS 616A.400 [.] , the Commissioner shall submit to the Division the information - 80th Session (2019) – 20 – supplied by the applicant pursuant to subsection 1.

Sec.follows:13.

13.NRS 683A.08526 is hereby amended to read as 683A.08526 1.

NRSA 683A.08526certificate of registration as an administrator is herebyvalid amendedfor to3 readyears asafter follows:the date the Commissioner issues the certificate to the administrator.

administrator2. is valid for 3 years after the date the Commissioner issues the certificate to the administrator.

theAn administrator submitsmay torenew thea Commissioner:tecertificate of registration if (a)the Anadministrator applicationsubmits onto a form prescribed by the Commissioner;Commissioner:

(a) An application on a form prescribed by the Commissioner;

Each annual report filed pursuant to this section must includeinc(a) allA financial statement of the following:administrator that has been reviewed by an independent certified public accountant.

- *SB86_R2* – 20 – (a) A financial statement of the administrator that has been reviewed by an independent certified public accountant.

(a)- Have80th beenSession reviewed(2019) by– an21 independent– certified public accountant;

andandn reviewed by an independent certified public (b) Include a balance sheet and income statement for each holder of a certificate of registration as an administrator in this State.

In lieu of complying with the requirements set forth in paragraphs (a) and (b) of subsection 3, an administrator who is a wholly owned subsidiary of a parent company may submit to the Com(a)Commissioner: The financial statement of the parent company that has been audited by an independent certified public accountant;

and(a) companyThe andfinancial whichstatement guaranteesof the financialparent solvencycompany ofthat thehas thebeen parentaudited administrator.by an independent certified public accountant;

and (b) A parental guaranty that is signed by an officer of the parent company and which guarantees the financial solvency of the administrator.

6.] The Commissioner shall, for each administrator, review the annual report that is most recently filed by the administrator.

or - *SB86_R2* – 21 – (b) Submit a statement to any electronic database maintained by the National Association of Insurance Commissioners or any affiliate or subsidiary of the Association:

(1) Indicating that, based on the annual report and accompanying financial statement, the administrator has a positive net worthwor(2) andSetting isforth any deficiency found by the Commissioner in compliancethe withannual existingreport law;and accompanying financial statement.] Sec.

or (2) Setting forth any deficiency found by the Commissioner in the annual report and accompanying financial statement.] Sec.

The address of such place shall appear upon the application for a license and upon the license, when issued, and the licensee shall promptly notify the Commissioner in writing- 80th Session (2019) – 22 – the maintenance of anysuch changeplace thereof.in the licensee’s residence in thisibit state.

Nothing in this section shall prohibit the maintenance of such place in the licensee’s residence in this state.

Each adjuster shall keep at his or her business underaddress theshown license.heon the adjuster’s license a record of all transactions 2.under the license.

2.

an(a) insurerA orcopy self-insurer.actof each contract between an independent adjuster and (b)an Ainsurer copy of all investigations or adjustmentsself-insurer. undertaken.

(b) A copy of all investigations or adjustments undertaken.

3.examination by the Commissioner at all times, and shall retain the records for at least 3 years [.] after the closure of the claim to which the records apply.

The adjuster shall make such records available for examination by the Commissioner at all times, and shall retain the records for at least 3 years [.] after the closure of the claim to which the records apply.

- *SB86_R2* – 22 – (a) For any cause specified in any other provision of this chapter;

(b) For any applicable cause for revocation of the license of a producerpro(c) ofIf insurancethe underlicensee NRShas 683A.451;for compensation represented or attempted to represent both the insurer and the insured in the same transaction.

or (c) If the licensee has for compensation represented or attempted to represent both the insurer and the insured in the same transaction.

The holder of any license which has been suspended or revoked shall forthwith surrender the license to the Commissioner.] - 80th Session (2019) – 23 – Sec.

684A.220 NRS 683A.451 [,] and 683A.461 [and 683A.480] also apply to suspension, revocation, limitation or refusal to continue adjusters’ licenses and associate adjusters’ licenses, except wherewheSec. in conflict with the express provisions of this chapter.

Sec.

(b) For any such applicable cause as for revocation of the license of a producer of insurance under NRS 683A.451;

orationor of the license (c) If the licensee has for compensation represented or attempted to 2.represent both the insurer and the insured in the same transaction.

The2. license of a business organization may be suspended,saction.

The license of a business organization may be suspended, revoked, limited or continuation refused for any cause which relates to any individual designated in or with respect to the license to exercise its powers.

Chapter 685A of NRS is hereby amended by adding theretotheSec. the provisions set forth as sections 22 and 23 of this act.

Sec.

“Domestic surplus lines insurer” means an insurerinsurers which is authorized by the Commissioner to accept surplus lines insurance pursuant to section 23 of this act.

-which *SB86_R2*is –authorized by the Commissioner to accept surplus lines insurance pursuant to section 23 –of Sec.this act.

Sec.

- 80th Session (2019) – 24 – 4.

and (b) All other provisions of this chapter which apply to the exportState ofis nonadmittedthe insurancehome state.surance for an insured for which this State5. is the home state.

5.

685A.030 As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS 685A.031 toxtto otherwise 685A.039, inclusive, and section 22 of this act have the meanings ascSec.ascribed to them in those sections.

Sec.

2.which this State is the home state, except as otherwise provided in this section, an insurer is not eligible to accept surplus lines or independently procured risks pursuant to this chapter unless it has capital and surplus or its equivalent in an amount of not less than $15,000,000 or the minimum capital and surplus requirements pursuant to NRS 680A.120, whichever is greater.

With3. respect to nonadmitted insurance for insureds for which this State is the home state, except as otherwise provided in this section, an insurer is not eligible to accept surplus lines or independently procured risks pursuant to this chapter unless it has capital and surplus or its equivalent in an amount of not less than $15,000,000 or the minimum capital and surplus requirements pursuant to NRS 680A.120, whichever is greater.

- *SB86_R2* – 24 – 3.

The Commissioner shall not make an affirmative finding of acceptability when- the80th [nonadmitted]Session (2019) – 25 – $4,500,000.onadmitted] insurer’s capital and surplus is less than $4,500,000.4.

4.

A broker shall not place surplus lines insurance with an alien insurer, unless the alien insurer is listed on the Quarterly Listing of Alien Insurers maintained by the International Insurers Department of the National Association of Insurance Commissioners or, if the alien insurer is not listed on the Quarterly Listing of Alien Insurers, it has and maintains in a bank or trust company which is a member of the United States Federal Reserve System a trust fund established pursuant to terms that are reasonably adequate to protect all of its an expiration date which is at any time less than 5 years in theave future, on a continuing basis.

(1) The liabilities are maintained in an irrevocable trust account in a qualified financial institution in the United States, on behalf of policyholders in the United States, consisting of cash, securities, letters of credit or any other investments of substantially the same character and quality as investments that are eligible investments pursuant to chapter 682A of NRS for the capital and statutory reserves of admitted insurers to write like kinds of - *SB86_R2* – 25 – insurance in this State.

(2) The alien insurer may request approval by the Commissioner to use the trust fund to pay any valid claim against a - 80th Session (2019) – 26 – surplus line if the balance of the trust fund is not, during any period, less than $5,400,000 or 30 percent of the alien insurer’s current gross liabilities for surplus lines in the United States, excluding any liabilities for aviation, wet marine and transportation insurance;

and (3) In calculating the amount of the trust fund required by this subsection, credit must be given for any deposits for any surplus lines that are separately required and maintained within a state or territory of the United States, not to exceed the amount of the alien insurer’s loss and loss adjustment reserves maintained in that state or territory.

Each insurer within the group must individually ofmaintain incorporatedcapital insurersand must:fsurplus of not less than $25,000,000.

The group (1) Operate under the supervision of theincorporated Departmentinsurers ofmust: Trade and In(2) Possesshe Unaggregatedom policyholdersccesurplusencyof $10,000,000,000, which must consist of money in trust in an amount not less than the assuming insurers’ liabilities attributable to insurance written in the United States;

(1) Operate under the supervision of the Department of Trade and Industry of the United Kingdom [;] or its successor agency;

(2) Possess aggregate policyholders surplus of $10,000,000,000, which must consist of money in trust in an amount not less than the assuming insurers’ liabilities attributable to insurance written in the United States;

[5.] 6.

A foreign insurer must be [authorized] :

- *SB86_R2* – 26 – (a) Facilitate and encourage compliance by its members with the laws of this State and the rules and regulations of the Commissioner concerning surplus lines insurance;

- 80th Session (2019) – 27 – (d) Receive and disseminate to brokers information relative to surplus lines coverages;

2.board of directors and shall file with the Commissioner:s through a (a) A copy of its constitution, articles of agreement or association or certificate of incorporation;

Every such organization shall exercise its powers through a board of directors and shall file with the Commissioner:

(a) A copy of its constitution, articles of agreement or association or certificate of incorporation;

and (f) An agreement that the Commissioner may examine the organization in accordance with the provisions of this section.

The Commissioner shall make an examination of the affairs, transactions, accounts, records and assets of such an organization and any of its members as often as the Commissioner deemsanizationdeems necessary for the protection of the interests of the people of this State, but no less frequently than once every 3 years.

The Commissioner shall furnish two copies of the examination report to the organization examined and shall notify the organization that it may, within 20 days thereof, request a hearing on the report or on any facts or recommendations set forth therein.

In lieu of an examination conducted pursuant to this subsection, the Commissioner may accept the report of an independent audit of - *SB86_R2* – 27 – such an organization if the Commissioner deems that an independent audit is in the best interest of the residents of this State.

Any proposed director may be disapproved by the - 80th Session (2019) – 28 – Commissioner and [serve] serves at the pleasure of the Commissioner.

Sec.follows:26.5.

26.5.NRS 685A.155 is hereby amended to read as 685A.155 [A] The licensed surplus lines broker who [places any] is first engaged by or on behalf of an applicant for insurance [coverage with an authorized insurer pursuant to subsection 3 of NRS 685A.060] may charge a fee for procuring surplus lines coverage.

NRS 685A.155 is hereby amended to read as follows:

685A.155 [A] The licensed surplus lines broker who [places any] is first engaged by or on behalf of an applicant for insurance [coverage with an authorized insurer pursuant to subsection 3 of NRS 685A.060] may charge a fee for procuring surplus lines coverage.

685A.220 In addition to those referred to in other provisions of this chapter, the following provisions of chapter 683A of NRS, tonsto of the extent applicable and not inconsistent with the express pro1.siNRSprovisions 683A.341;hapter,of this chapter, also apply to surplus lines brokers:

1.

NRS 683A.341;

7.][8.] 7.S NRS 683A.490;683A.520.

and [8.] 7.

NRS 683A.520.

The Commissioner shall perform an actuarial review of and consider each [proposed increase or decrease in the] - *SB86_R2* – 28 – rate filing of a health plan issued pursuant to the provisions of chapter 689A, 689B, 689C, 695B, 695C, 695D or 695F of NRS, including, without limitation, long-term care and Medicare supplement plans, filed with the Commissioner pursuant to - 80th Session (2019) – 29 – subsection 1 of NRS 686B.070.

If the Commissioner finds that a proposed [increase] rate which is contained in a rate filing will result in a rate which is not in compliance with NRS 686B.050 or subsection 3 of NRS 686B.070, the Commissioner shall disapprove disapprove each [proposal] rate filing not later than 60 days after the [proposal.][proposal] rate filing.filing is determined by the Commissioner to be complete pursuant to subsection 4.

The Commissioner shall approve or disapprove each [proposal] rate filing not later than 60 days after the [proposal] rate filing is determined by the Commissioner to be complete pursuant to subsection 4.

When new rates become legally effective, the Commissioner shall order the escrowed funds or any overcharge in the interim rates to be distributed appropriately, except that refunds to policyholders that are3.eare Ifde theminimis Commissionermust disapprovesnot abe [proposed]required. rate filing pursuant to subsection 1, and an insurer requests a hearing to has the burden of showing compliance with the applicable standardsrer for rates established in NRS 686B.010 to 686B.1799, inclusive.

3.

If the Commissioner disapproves a [proposed] rate filing pursuant to subsection 1, and an insurer requests a hearing to determine the validity of the action of the Commissioner, the insurer has the burden of showing compliance with the applicable standards for rates established in NRS 686B.010 to 686B.1799, inclusive.

(a) Within 30 days after the request for a hearing has been submittedsub(b) toWithin a period agreed upon by the Commissioner;insurer and the Commissioner.

or (b) Within a period agreed upon by the insurer and the Commissioner.

Each such [proposal] rate filing shall be deemed complete upon its filing with the Commissioner, unless the Commissioner, within 15 business days - *SB86_R2* – 29 – after the [proposal] rate filing is filed with the Commissioner, determines that the [proposal] rate filing is incomplete because the - 80th Session (2019) – 30 – [proposal] rate filing does not comply with the regulations adopted by the Commissioner pursuant to this subsection.

The Commissioner may assess against an insurer the actual cost for the external actuarial review of a rate filing submittedsubSec. pursuant to subsection 1.

Sec.

For the purposes of subsection 1, unless the context requires that a section apply only to insurers, any reference in those sections to “insurer” must be replaced by a reference to “agent” and “seller.”s“seller.” 3.

The provisions of NRS 679B.230 to 679B.300, inclusive, onlyapply to insurers,sellers. any reference in those sections to “insurer” must be replaced by a reference to “seller.” Sec.

32.Unless the context requires that a provision apply only to insurers, any reference in those sections to “insurer” must be replaced by a reference to “seller.” 690B.150 NRS An insurer who issues policies of insurance for home protection, other than casualty insurance, shall file [the] :

NRS 690B.150 is hereby amended to read as follows:

690B.150 An insurer who issues policies of insurance for home protection, other than casualty insurance, shall file [the] :

- *SB86_R2*80th –Session 30(2019) – (a)31 The– amountmedical ofspecialty;of gross premiums collected with regard to each medical(b) specialty;Information relating to loss ratios;

(b) Information relating to loss ratios;

3.insurer pursuant to subsection 2, the Commissioner may:tion from an (a) Determine whether the additional information offers a reasonable explanation for the results described in paragraph (a), (b) or (c) of subsection 2;

Ifand (b) Take any steps permitted by law that are necessary and appropriate to assure the Commissionerongoing requestsstability additionalof informationthe frommarket anfor insurerprofessional liability insurance for a practitioner licensed pursuant to subsectionchapter 2,630, the631, Commissioner632 may:or 633 of NRS in this State.

(a)4. Determine whether the additional information offers a reasonable explanation for the results described in paragraph (a), (b) or (c) of subsection 2;

On an ongoing basis, the Commissioner may analyze and (b)evaluate Takethe anyinformation stepscollected permittedpursuant byto lawthis thatsection areto necessarydetermine trends in and measure the health of the market for professional liability insurance for a practitioner licensed pursuant to chapter 630, 631, 632 or 633 of NRS in this State.

evaluate the information collected pursuant to this section to determine trends in and measure the health of the market for professional liability insurance for a practitioner licensed pursuant to chapter 630, 631, 632 or 633 of NRS in this State.

If the Commissioner convenes a hearing pursuant to subsection 1 of NRS 690B.350 and determines that the market for professional liability insurance issued to any class, type or specialty of practitioner licensed pursuant to chapter 630, 631 or 633 of NRSNRSalty is not competitive and that such insurance is unavailable or unaffordable for a substantial number of such practitioners, the Commissioner shall prepare and submit a report of the Commissioner’s findings and recommendations to the Director of the Legislative Counsel Bureau for transmittal to members of the Legislature.

- 80th Session (2019) – 32 – Sec.

- *SB86_R2* – 31 – (a) A registration application on a form prescribed by the Commissioner;Com(b) Proof that the provider has complied with the requirements for financial security set forth in NRS 690C.170;

(b) Proof that the provider has complied with the requirements for financial security set forth in NRS 690C.170;

and (2) Whether there are any pending criminal actions against the2.ersIn addition to the feeperson requiredother bythan subsectionmoving 1,traffic aviolations. provider must pay a fee of $25 for each type of service contract the provider fil3.

wiEachmust year,pay nota laterfee than the anniversary date of his$25 orfor hereach certificatetype of registration,service acontract the provider mustfiles paywith the annualCommissioner. fee required pursuant to NRS 680C.110 in addition to any other fee required pursuant to this section.

3.

Each year, not later than the anniversary date of his or her certificate of registration, a provider must pay the annual fee required pursuant to NRS 680C.110 in addition to any other fee required pursuant to this section.

and - 80th Session (2019) – 33 – (c) The information required by paragraph (f) of subsection 1:

or - *SB86_R2* – 32 – (2) For a controlling person who has not previously submittedto the informationCommissioner.ation required by paragraph (f) of subsection 1 to[4.] the5. Commissioner.

[4.] 5.

A captive insurer which ceases to transact the business of insurance, including, without limitation, the issuance applyof toinsurance thepolicies Commissionerand forthe aassumption certificate of dormancy.reinsurance, may app2.

toUpon application by a captive insurer pursuant to subsection 1, the Commissioner may 2.issue a certificate of dormancy to the captive insurer.

Upon application by a captive insurer pursuant to dormancy to the captive insurer.

- 80th Session (2019) – 34 – (c) Be subject to examination for any year for which the dormant captive insurer is not in compliance with the provisions of this section.

(a) At the discretion of the Commissioner, be subject to examination for any year for which the dormant captive insurer is in compliance with the provisions of this section.

- *SB86_R2* – 33 – (b) Continue to adjudicate and settle insurance claims under any contract of insurance or reinsurance that the captive insurer issued during any period in which the captive insurer was not a dormant captive insurer.

Except as otherwise provided by this section, before issuing any insurance policy or otherwise transacting the business of insurance, a dormant captive insurer must apply to the Commissioner for approval to surrender its certificate of dormancy and resume transacting the business of insurance.

The Commissioner shall revoke the certificate of dormancy provisions of thisa section.rdormant captive insurer that is not in compliance with the 9.provisions of this section.

The9. Commissioner may adopt regulations necessary to carSec.

The Commissioner may adopt regulations necessary to carry out the provisions of this section.

Sec.

694C.050 “Association captive insurer” means a captive insurer that only insures risks of the member organizations of an association and the affiliated companies of those members [, - 80th Session (2019) – 35 – including groups formed pursuant to the Product Liability Risk Retention Act of 1981, as amended, 15 U.S.C.

(a) [Own,] Have complete control [or hold with] over the power to vote all the outstanding voting securities of the associationassociationr captive insurer, if the association captive insurer is incorporated as a stock insurer;

or - *SB86_R2* – 34 – (b) Have complete voting control over the captive insurer, if the captive insurer is formed as a mutual insurer;

The terms and conditions set forth in chapter 696B of NRS pertaining to insurance reorganization, receiverships and injunctions apply to captive insurers incorporated pursuant to this chapter.

An agency captive insurer, a rental captive insurer and an 686Aassociation ofcaptive NRSinsurer which are applicablesubject to insurers.osethose provisions of chapter 3.686A of NRS which are applicable to insurers.

A3. state-chartered risk retention group is subject to the fol(a) The provisions of NRS 681A.250 to 681A.580, inclusive, regarding intermediaries;

A state-chartered risk retention group is subject to the following:

(a) The provisions of NRS 681A.250 to 681A.580, inclusive, regarding intermediaries;

and - 80th Session (2019) – 36 – (e) The provisions of NRS 693A.110 and any regulations adopted pursuant thereto regarding management and agency contracts of insurers.

694C.180Commissioner, 1.a pure captive insurer, an agency captive insurer, a the rental captive insurer or a sponsored captive insurer must be incorporated as a stock insurer.

Unless otherwise approved by the Commissioner, a pure captive insurer, an agency captive insurer, a rental captive insurer or a sponsored captive insurer must be incorporated as a stock insurer.

- *SB86_R2* – 35 – (a) Stock insurer;

(c) The competence of any person who, pursuant to a contract with the captive insurer, will manage the affairs of the captive insurer;ins(d) The competence, reputation and experience of the legal counsel of the captive insurer relating to the regulation of insurance;

(d) The competence, reputation and experience of the legal counsel of the captive insurer relating to the regulation of insurance;

(g)(f) SuchThe otherbusiness aspectsplan of the captive insurerinsurer; as the Commissioner deems advisable.

insurerand must(g) beSuch issuedother ataspects notof lessthe thancaptive parinsurer value.rporated as athe stockCommissioner 6.deems advisable.

5.

The capital stock of a captive insurer incorporated as a stock insurer must be issued at not less than par value.

6.

- 80th Session (2019) – 37 – 7.

A captive insurer formed pursuant to the provisions of this chapter has the privileges of, and is subject to, the provisions of general corporation law set forth in chapter 78 of NRS and, if formed as a nonprofit corporation, the provisions set forth in chapter 82 of NRS, as well as the applicable provisions contained in this chapter.

- *SB86_R2* – 36 – 8.

A captive insurer must not be issued a license, and shall not hold a license, unless the captive insurer has and maintains, in addition to any other capital or surplus required to be maintained pursuant to subsection 3, unimpaired paid-in capital and unencumberedune(a) surplusFor of:a pure captive insurer, not less than $200,000;

(a) For a pure captive insurer, not less than $200,000;

to2. subsection 3, the capital and surplus required to be maintained pursuant to this section must be in the form of cash or an irrevocable let3.

TheExcept Commissioneras mayotherwise prescribeprovided additionalby requirements relating to capital or surplus based on the type,Commissioner volumepursuant andto naturesubsection of3, the insurancecapital business that is transacted by the captive insurer and requirementssurplus regardingrequired whichto capitalbe andmaintained surplus,pursuant ifto any,this maysection must be in the form of cash or an irrevocable letter of credit.

3.

The Commissioner may prescribe additional requirements relating to capital or surplus based on the type, volume and nature of the insurance business that is transacted by the captive insurer and - 80th Session (2019) – 38 – requirements regarding which capital and surplus, if any, may be in the form of an irrevocable letter of credit.

(a) Be issued by a bank chartered by this State or a bank that is a member of the United States Federal Reserve System and has beenbeenat is a approved by the Commissioner;

- *SB86_R2* – 37 – (b) Be subordinate to:

or (2) Other(I) assetsAre that:acceptable to the Commissioner;

(I) Are acceptable to the Commissioner;

The Commissioner may suspend or revoke the license of a captive insurer if, after [an examination and] a hearing, the(a)the TheCommissioner captivedetermines insurer:that:

that:(a) The captive insurer:

(1) Is insolvent or has impaired its required capital or surplu(2)surplus; Has failed to meet a requirement of NRS 694C.250, 694C.320 or 694C.330;

- 80th Session (2019) – 39 – 694C.320 or 694C.330;to meet a requirement of NRS 694C.250, (3) Has refused or failed to submit an annual report, as required by NRS 694C.400, or any other report or statement required by law or by order of the Commissioner;

and - *SB86_R2* – 38 – (b) The suspension or revocation of the license of the captive insurer is in the best interest of its policyholders or the general public.

(c) May provide excess workers’ compensation insurance to its parentlaws andof affiliatedthe companies,state unlessin otherwisewhich prohibitedthe insurance is transacted.bited by the laws(d) ofMay thereinsure stateworkers’ incompensation whichinsurance theprovided pursuant to a program of self-funded insurance isof transacted.its parent and affiliated companies if:

(d)(1) MayThe reinsureparent workers’or compensationaffiliated company which is providing the self-funded insurance providedis pursuantcertified toas a programself-insured ofemployer self-fundedby insurancethe ofCommissioner, itsif parentthe andinsurance affiliatedis companiesbeing if:transacted in this State;

(1)or The- parent80th orSession affiliated(2019) company– which40 is– providing(2) theThe program of self-funded insurance is certifiedotherwise asqualified apursuant self-insuredto, employeror byin thecompliance Commis(2)with, Thethe programlaws of self-fundedthe state in which the insurance is otherwiseState;transacted.

or3. qualified pursuant to, or in compliance with, the laws of the state in whi3.

thAA pure captive insurer shall not insure any risks other than thosebusinesses.s of its parent and affiliated companies or controlled unaffiliated businesses.4.

4.

- *SB86_R2* – 39 – [8.] 9.

or (b) The chief regulatory officer for insurance in the state in whichwhiSec. the insurance is being transacted.

Sec.

(1)- A80th state-charteredSession bank,(2019) – 41 – a state-charteredthrift creditcompany unionlicensed pursuant to chapter 677 of NRS that is or located in this State;

or pursuant to chapter 677 of NRS that is (2) A federally chartered bank that has a branch which is located in this State ,  that is authorized pursuant to state or federal law to transfer money .

[;] (d) The captive insurer employs or has entered into a contract with qualified, experienced actuaries who are approved by the Commissioner to perform reviews and evaluations of the operations of the captive insurer .

and] (e) The captive insurer employs or has entered into a contract with an attorney who is licensed to practice law in this State and who meets the standards of competence and experience in matters - *SB86_R2* – 40 – concerning the regulation of insurance in this State established by the Commissioner by regulation.

A captive insurer other than a state-chartered risk retention group shall not pay extraordinary dividends out of, or make any other extraordinary distribution with respect to, its capital or surplus, or both, in violation of this section unless the captive insurer has obtained the prior approval of the Commissioner to make such a payment or distribution.

- 80th Session (2019) – 42 – (a) Ten percent of the surplus of the captive insurer as of December 31 next preceding the date of the dividend or distribution;

A state-chartered risk retention group shall not pay any dividend or distribution without prior approval of the Commissioner.

distribution without prior approval of the Sec.

- *SB86_R2* – 41 – (a) Is first approved in writing by the Commissioner;

(b) Is evidenced by a note that is in a form that is approved by the Commissioner;

andandy a note that is in a form that is approved by (c) Does not include any money that has been set aside as capital or surplus as required by subsection 1 of NRS 694C.250.

- 80th Session (2019) – 43 – (b) The amount and nature of initial capitalization of the group;

Before it may transact insurance in any state, the state- chartered risk retention group must submit to the Commissioner, for approval by the Commissioner, a plan of operation.

The riskriskner, for retention group shall submit an appropriate revision in the event of any subsequent material change in any item of the plan of operationfoperation within 10 days after the change.

The group shall not offer any additional kinds of liability insurance, in this State or in any other state, until a revision of the plan is approved by the Commissioner.erCommissioner. 3.

3.

(1) Generally accepted accounting principles, including any useful or necessary modifications or adaptations thereof that have been approved or accepted by the Commissioner for the type of insurancesupplementedd andkibys kindsofadditionaltoinformationd ofuprequiredas insurers to be reported upon, and as - *SB86_R2* – 42 – supplemented by additional information required by the Commissioner;

- 80th Session (2019) – 44 – Sec.

A captive insurer shall use generally accepted accounting principles and include any useful or necessary modifications or adaptations thereof that have been approved or accepted by thether Commissioner for the type of insurance and kinds of insurers to be reported upon, and as supplemented by additional information section, each association captive insurer, agency captive insurer, rental captive insurer or sponsored captive insurer shall file its chartered risk retention group shall file its report in the form required by NRSthe 680A.270.Commissioner.

Except as otherwise provided in this section, each association captive insurer, agency captive insurer, rental captive insurer or sponsored captive insurer shall file its report in the form required by the Commissioner.

Each state- chartered risk retention group shall file its report in the form required by NRS 680A.270.

4.authorization to file its annual report based on a fiscal year that is consistent with the fiscal year of the parent company of the pure captive insurer.

A pure captive insurer may apply, in writing, for authorization to file its annual report based on a fiscal year that is consistent with the fiscal year of the parent company of the pure - *SB86_R2* – 43 – captive insurer.

Any captive insurer failing, without just cause beyond the reasonable control of the captive insurer, to file its annual report of financial condition as required by subsection 1, its annual audit as required by subsection 2 or its financial statement as required by subsection 3 shall pay a penalty of $100 for each day the captive insurer fails to file the report of financial condition, the annual audit or the financial statement, but not to exceed an aggregate amount of - 80th Session (2019) – 45 – $3,000, to be recovered in the name of the State of Nevada by the Attorney General.

Any director, officer, agent or employee of a captive insurer who subscribes to, makes or concurs in making or publishing, any annual or other statement required by law, knowing the same to contain any material statement which is false, is guilty of a gross misdemeanor.

A corporation which has been issued a certificate of authority pursuant to this chapter shall maintain and report on its statement filed with the Commissioner pursuant to NRS 695B.160 a netstatementnet worth in an amount which is not less than the greater of:

1.

One million five hundred thousand dollars;

The statement must be in the form required by the Commissioner and must contain statements relative to the matters required to be established as a condition precedent to maintaining or operating a nonprofit hospital, medical or dental service plan and to other matters which the Commissioner may prescribe.

- *SB86_R2* – 44 – (b) Pay all applicable fees for the renewal of a certificate of authority and the fee for the filing of an annual statement.

Every corporation subject to the provisions of this chapter shall file with the Commissioner and the National Association of Insurance Commissioners a quarterly statement in the form most recently adopted by the National Association of Insurance - 80th Session (2019) – 46 – Commissioners for that type of insurer.

(a) Prepared in accordance with the instructions which are applicable to that form, including, without limitation, the required datedat(b) ofFiled submissionby forelectronic themeans.and form;4.

and (b) Filed by electronic means.

4.

[For examining the financial condition of every such corporation the Commissioner shall collect the] The actual expenses of the examination [.

Such expenses] must be paid by the corporation [.] in accordance with the provisions of NRS authority679B.290. or shall revoke a certificate of authority issued to any corporation which neglects or refuses to pay such expenses.

The Commissioner shall refuse to issue a certificate of authority or shall revoke a certificate of authority issued to any corporation which neglects or refuses to pay such expenses.

2.from premiums collected in the preceding 12-month period, plus 1 percent of the amount in excess of $150,000,000 earned as revenue from premiums collected in that same period;

Two percent of the first $150,000,000 earned as revenue from premiums collected in the preceding 12-month period, plus 1 percent of the amount in excess of $150,000,000 earned as revenue from premiums collected in that same period;

- *SB86_R2* – 45 – Sec.

For the purposes of subsection 1, unless the context requires that a provision apply only to insurers, any reference in those - 80th Session (2019) – 47 – sections to “insurer” must be replaced by “health maintenance organization.” Sec.

695C.057the 1.provisions of NRS 689A.470 to 689A.740, inclusive, 689B.340to to 689B.580, inclusive, and chapter 689C of NRS relating to the portability and availability of health insurance offered by such organizations.

A health maintenance organization is subject to the provisions of NRS 689A.470 to 689A.740, inclusive, 689B.340 to 689B.580, inclusive, and chapter 689C of NRS relating to the portability and availability of health insurance offered by such organizations.

For the purposes of subsection 1, unless the context requires that a provision apply only to a group health plan or a carrier that provides coverage under a group health plan, any reference in thosetthose sections to “group health plan” or “carrier” must be replaced by “heSec.“health maintenance organization.” Sec.

(a) A financial statement of the organization, including its balancecalendar sheetyear;and and receipts and disbursements for the preceding calendar(b) year;Any material changes in the information submitted pursuant to NRS 695C.070;

(b) Any material changes in the information submitted pursuant to NRS 695C.070;

- *SB86_R2* – 46 – (d) The number and amount of malpractice claims initiated against the health maintenance organization and any of the providers used by it during the year broken down into claims with and without form of legal process, and the disposition, if any, of each such claim, if requested by the Commissioner;

and - 80th Session (2019) – 48 – (f) Such other information relating to the performance of the health maintenance organization as is necessary to enable the Commissioner to carry out his or her duties pursuant to this chapter.

Every health maintenance organization shall file with the Commissioner annually an audited financial statement of the organization [preparedan[prepared by ananed independentfinindependent certified public accountant.

Every health maintenance organization shall file with the Commissioner and the National Association of Insurance Commissioners a quarterly statement in the form most recently adopted by the National Association of Insurance Commissioners for(a)for Prepared in accordance with the instructions which are applicable to that form,type including,of withoutinsurer. limitation, the required dat(b) Filed by electronic means.and 5.

The quarterly statement must be:

(a) Prepared in accordance with the instructions which are applicable to that form, including, without limitation, the required date of submission for the form;

and (b) Filed by electronic means.

5.

The Commissioner may grant a reasonable extension of time for filing [the] any report or [financial] statement required by this section, if the request for an extension is submitted in writing and shows good cause.

The Commissioner shall make an examination of the affairs of any health maintenance organization and providers with whom such organization has contracts, agreements or other arrangements pursuant to its health care plan as often as the Commissioner deems it necessary for the protection of the interests - *SB86_R2* – 47 – of the people of this State, but not less frequently than once every 3 years.

The Commissioner shall make an examination concerning any compliance program used by a health maintenance organization and any report, as determined to be appropriate by the Commissioner, regarding the health maintenance organization produced by an organization which examines best practices in the insurance- industry.80th Session (2019) – 49 – examination as often as the Commissioner deems it necessary for the protection of the interests of the people of this State, but not less frequently than once every 3 years.

The Commissioner shall make such an examination as often as the Commissioner deems it necessary for the protection of the interests of the people of this State, but not less frequently than once every 3 years.

maintenance(2) organizationAny whichrelationship isor thetransaction subjectbetween of the examinationhealth and any other health maintenance organization;

orthe examination (3) Any relationship or transaction between the health maintenance organization which is the subject of the examination and any provider.

For the purpose of examinations, the Commissioner may administer oaths to and examine the officers and agents of a health maintenancemaintenanceto and organization and the principals of providers concerning their business.

- *SB86_R2* – 48 – 5.

In lieu of an examination pursuant to this section, the Commissioner may accept the report of an examination made by the insurance- commissioner80th Session (2019) – 50 – agency of another state.f another state or an applicable regulatory agencySec. of another state.

Sec.

Number of members Less than 2,500...........................................................$50,000 At least 2,500 but not more than 5,000........................75,000 More than 5,000..........................................................125,000 695D.260 NRS1.NRS 1.

Every organization for dental care shall file with the Commissioner on or before March 1 of each year a report mustcovering beits verifiedactivities byfor at least two officers of the organization.eportpreceding 2.calendar year.

The report must be verified by at least two officers of the organization.

2.

(d) The costs of all goods, services and dental care provided that year.yea(e) Any other information relating to the plan for dental care requested by the Commissioner.

(e) Any other information relating to the plan for dental care requested by the Commissioner.

The statement must - *SB86_R2* – 49 – cover the most recent fiscal year of the organization and must be filed with the Commissioner within 120 days after the end of that fiscal year.] in accordance with the provisions of subsection 1 of NRS 680A.265.

- 80th Session (2019) – 51 – 4.

Every organization for dental care shall file with the Commissioner and the National Association of Insurance Commissioners a quarterly statement in the form most recently adopted by the National Association of Insurance Commissioners forfor(a) Prepared in accordance with the instructions which are applicable to that typeform, including, without limitation, the required date of insurer.submission for the form;

The quarterly statement must be:

(a) Prepared in accordance with the instructions which are applicable to that form, including, without limitation, the required date of submission for the form;

the[6.] annual7. tax, any penalty for nonpayment or delinquent payment of the tax imposed in chapter 680B of NRS, and a filing fee of $25 to Sec.

The organization shall pay the Department of Taxation the annual tax, any penalty for nonpayment or delinquent payment of the tax imposed in chapter 680B of NRS, and a filing fee of $25 to the Commissioner, at the time the annual report is filed.

Sec.

(a) A purchasing group [, a] ;

A risk retention group that violates any provision of this chapter is subject to the fines and penalties, including revocation of - *SB86_R2* – 50 – its right to do business in this state, applicable to licensed insurers under this title.

Sec.- 80th Session (2019) – 52 – 695F.200 1.

61.Except as otherwise provided in this section,s:

NRSeach 695F.200prepaid islimited herebyhealth amendedservice toorganization readwhich asreceives follows:a certificate of authority shall maintain [a:] all of the following:

695F.200 1.

Except as otherwise provided in this section, each prepaid limited health service organization which receives a certificate of authority shall maintain [a:] all of the following:

The Commissioner may increase the required amount of the organization’s capital account , [and the] surety bond or deposit and capital maintained pursuant to paragraph (c) of subsection 1 to any [amounts] amount the Commissioner determines to be appropriatedetermines pursuantthat tosuch subsectionan 3increase ifis necessary to:ssioner (a) Assist the Commissioner determinesin thatthe suchperformance anof increasehis isor necessaryher to:regulatory duties;

(a)(b) AssistEnsure that the Commissionerorganization incomplies with the performancerequirements of histhis orCode; her regulatory duties;

or (c) Ensure the solvency of thisthe Code;organization.

orat3. the organization complies with the requirements (c) Ensure the solvency of the organization.

When determining the appropriate amount of an increase pursuant to subsection 2, the Commissioner must base his or her determination on the type, volume and nature of premiums written and premiums assumed by the organization.

(a) Is in addition to any reserve required by this chapter and any reserve established by the organization according to good business and accounting practices for incurred but unreported claims andandess other similar claims;

- *SB86_R2*80th Session (2019) – 5153 – Sec.695F.310 1.

62.The Commissioner may examine the affairs ofows:

NRSany 695F.310prepaid limited health service organization as often as is herebyreasonably amendednecessary to readprotect asthe follows:interests of the residents of this State, but not less frequently than once every 3 years.

695F.310 1.

The Commissioner may examine the affairs of any prepaid limited health service organization as often as is reasonably necessary to protect the interests of the residents of this State, but not less frequently than once every 3 years.

Each prepaid limited health service organization shall file with the Commissioner annually, on or before March 1, a report showing its financial condition on the last day of the 1, a preceding calendar year.

(a) A financial statement of the organization, including its balance sheet and receipts and disbursements for the precedingspreceding calendar year;

(b) The number of subscribers at the beginning and the end of the year and the number of enrollments terminated during the year;

The statement must cover the most recent fiscal year of the organization and must be filed with the Commissioner within 120 days after thetheion end of that fiscal year.] in accordance with the provisions of subsection 1 of NRS 680A.265.

(a)- Prepared80th inSession accordance(2019) with– the54 instructions– which are applicable to that form, including, without limitation, the required date of submission for the form;

and - *SB86_R2* – 52 – (b) Filed by electronic means.

If an exchange enrollment facilitator fails to obtain an appointment by the Exchange within 30 days after the date on which the certificate was issued, the exchange enrollment facilitator’s certificate expires .

If the exchange enrollment facilitator does not obtain a new appointment by the Exchange within 30 days after the date the appointment was terminated, the exchange enrollment facilitator’s promptly deliver his or her certificate toexpires the. Commissioner.]r shall 3.

Except[and asthe otherwiseexchange providedenrollment infacilitator subsectionshall 4,promptly ifdeliver thehis Exchangeor terminatesher thecertificate appointmentto ofthe anCommissioner.] entity3. other than a natural person:

(a)Except as otherwise provided in subsection 4, if the Exchange terminates the appointment of an entity other than a nat(a) The appointments of exchange enrollment facilitators named on the entity’s appointment also terminate;

If the exchange enrollment facilitator does not obtain a new appointment by the Exchange within 30 days after the date on which the appointment was terminated, the exchange enrollment facilitator’s - 80th Session (2019) – 55 – certificate expires .

The provisions of subsection 3 do not apply to any appointments the exchange enrollment facilitator may have individuallyind5.iduUpon orthe throughtermination of an entityappointment otherfor thanan theentity terminatedority. entity.

-certificate *SB86_R2*holder, –the 53Executive –Director 5.of the Exchange shall notify the Commissioner of the effective date of the termination and the grounds for termination.

Upon the termination of an appointment for an entity or certificate holder, the Executive Director of the Exchange shall notify the Commissioner of the effective date of the termination and the grounds for termination.

and (b) Provide any additional information required pursuant to an order3.derInf ofadditiont otoas satisfyingeranyemsfilingprirequirements established by the courtNational orAssociation asof Insurance Commissioners, the receiver deemsshall appropriate.file the reports, statements and other documents required by this section with the court that has jurisdiction over the receivership.

established adbytiotheto NationalyinAssociationingofreInsurances Commissioners, the receiver shall file the reports, statements and jurisdiction over the receivership.ction with the court that has 4.

Not later than 1 year after the date of entry of an order appointing a receiver in delinquency proceedings for an insurer pursuant to this chapter, and at such intervals as may be agreed to between the receiver and a guaranty association but in no event less frequently than annually, each guaranty association which is affected by the delinquency proceedings shall comply with all applicable requirements for financial reporting as - 80th Session (2019) – 56 – specified by the National Association of Insurance Commissioners.

In addition to satisfying any filing requirements established by the National Association of Insurance Commissioners, each guaranty association which is affected by the delinquency proceedings shall file the reports and otherothery documents required by this section with:

- *SB86_R2* – 54 – (a) The court that has jurisdiction over the receivership;

696B.280inclusive, 1.(definitions) and NRS 696B.290 to 696B.340, inclusive, and sections 66 and 67 of this act comprise [and may be cited as the Uniform Insurers Liquidation Act.] the Uniform Insurers Liquidation Act and the Insurer Receivership Model Act.

This section, NRS 696B.030 to 696B.180, inclusive, (definitions) and NRS 696B.290 to 696B.340, inclusive, and sections 66 and 67 of this act comprise [and may be cited as Liquidation Act and the Insurer Receivership Model Act.rers 2.

If any provision of the [Uniform Insurers Liquidation Act] NAIC Acts or the application thereof to any person or circumstances is held invalid, such invalidity shall not affect other provisions or applications of the [act] NAIC Acts which can be given effect without the invalid provision or application, and to this end the provisions of the [act] NAIC Acts are declared to be severable.

To the extent that [its] the provisions [,] of the NAIC Acts, when - 80th Session (2019) – 57 – applicable, conflict with other provisions of this Code, the provisions of the [Uniform Insurers Liquidation Act] NAIC Acts shall control.

As used in this section, “NAIC Acts” means this section, NRS 696B.030 to 696B.180, inclusive, and NRS 696B.290 to 696B.340, inclusive, and sections 66 and 67 of this act.

697.360 Licensed bail agents, bail solicitors and bail enforcement agents, and general agents are also subject to the - *SB86_R2* – 55 – following provisions of this Code, to the extent reasonably applicable:

630.130provided 1.in this chapter, the Board shall, in the interest of the public, judiciously:

In addition to the other powers and duties provided in this chapter, the Board shall, in the interest of the public, judiciously:

(b) Establish by regulation standards for licensure under this cha(c)chapter; Conduct examinations for licensure and establish a system of scoring for those examinations;

issue(c) licensesConduct toexaminations thosefor applicantslicensure whoand meetestablish thea qualificationssystem setof byscoring thisfor chapterthose andexaminations; the Board;

(d) Investigate the character of each applicant for a license and issue licenses to those applicants who meet the qualifications set by this chapter and the Board;

On or before February 15 of each odd-numbered year, the Board shall submit to the Governor and to the Director of the Legislative- Counsel80th BureauSession for(2019) transmittal– to58 the– next regular session of the Legislature a written report compiling:

regular (a) Disciplinary action taken by the Board during the previous biennium against any licensee for malpractice or negligence;

- *SB86_R2* – 56 –  The report must include only aggregate information for statistical purposes and exclude any identifying information related to a particular person.

630.3069 If the Board receives a report pursuant to theows:

provisions of NRS 630.3067, 630.3068 [,] or 690B.250 [or 690B.260] indicating that a judgment has been rendered or an award has been made against a physician regarding an action or claim for malpractice or that such an action or claim against the physician has been resolved by settlement, the Board shall conduct an investigation to determine whether to impose disciplinary action against the physician regarding the action or claim, unless the Board has already commenced or completed such an investigation regarding the action or claim before it receives the report.

72.

NRS 630.3069 is hereby amended to read as follows:

630.3069 If the Board receives a report pursuant to the provisions of NRS 630.3067, 630.3068 [,] or 690B.250 [or 690B.260] indicating that a judgment has been rendered or an award has been made against a physician regarding an action or claim for malpractice or that such an action or claim against the physician has been resolved by settlement, the Board shall conduct an investigation to determine whether to impose disciplinary action against the physician regarding the action or claim, unless the Board has already commenced or completed such an investigation regarding the action or claim before it receives the report.

Sec.

If the Board or any investigative committee of the Board has reason to believe that the conduct of any physician has raised a reasonable question as to his or her competence to practice medicine with reasonable skill and safety to patients, or if the Board has630.3068 received[,] aor report690B.250 pursuant[or to690B.260] theindicating provisionsthat ofa NRSjudgment 630.3067,has 630.3068been [,]rendered or 690B.250an [oraward 690B.260]has indicatingbeen thatmade against a judgmentphysician regarding an action or claim for malpractice or that such an action or claim against the physician has been resolved by settlement, the Board or committee may order that the physician undergo a mental or physical examination, an examination testing his or hermentalher competence to practice medicine or any other examination designated by the Board to assist the Board or committee in determining the fitness of the physician to practice medicine.

- 80th Session (2019) – 59 – 2.

(a) Every physician who applies for a license or who is licensed under this chapter shall be deemed to have given consent to submit to a mental or physical examination or an examination testing his or her competence to practice medicine when ordered to do so in writing by the Board or an investigative committee of the Board.

- *SB86_R2* – 57 – Sec.

[and 690B.260;] and (c) Information reported to the Board during the previous biennium pursuant to NRS 633.524, including, without limitation, the number and types of surgeries performed by each holder of a license to practice osteopathic medicine and the occurrence ofofa sentinel events arising from such surgeries, if any.

633.528 If the Board receives a report pursuant to the provisions of NRS 633.526, 633.527 [,] or 690B.250 [or 690B.260] indicating that a judgment has been rendered or an award has been made against an osteopathic physician or physician assistant regarding an action or claim for malpractice or that such an action or claim against the osteopathic physician or physician assistant has been resolved by settlement, the Board shall conduct an investigation to determine whether to discipline the osteopathic physician or physician assistant regarding the action or claim, unless - 80th Session (2019) – 60 – the Board has already commenced or completed such an investigation regarding the action or claim before it receives the report.

Notwithstanding the provisions of chapter 622A of NRS, if the Board or an investigative committee of the Board receives a report pursuant to the provisions of NRS 633.526, 633.527 [,] or 690B.250 [or 690B.260] indicating that a judgment has been rendered or an award has been made against an osteopathic physician or physician assistant regarding an action or claim for malpractice, or that such an action or claim against the osteopathic physician or physician assistant has been resolved by settlement, the Board or committee may order the osteopathic physician orortlement, the physician assistant to undergo a mental or physical examination or any other examination designated by the Board to test his or her competence to practice osteopathic medicine or to practice as a - *SB86_R2* – 58 – physician assistant, as applicable.

LEADLINES~~~~~ OF19 REPEALED- SECTIONS80th 679B.144Session Commissioner(2019) required to collect information regarding closed claims for medical malpractice;

submission to Legislature;

regulations.

680A.310 Exceptions to requirements for countersignature by agent.

683A.480 Return of license to Commissioner.

690B.260 Physicians and osteopathic physicians:

Reports to Commissioner and licensing boards.

690B.340 Review of settlement or judgment by Commissioner.

696A.330 Surrender of certificate after revocation or suspension of license.

H - *SB86_R2*