Nac: Chapter 686B - Rates And Essential Insurance

Link to law: http://www.leg.state.nv.us/nac/NAC-686B.html
Published: 2015

[Rev. 11/22/2013 10:26:13

AM--2013]



[NAC-686B Revised Date: 11-13]

CHAPTER 686B - RATES AND ESSENTIAL

INSURANCE

GENERAL PROVISIONS

686B.005         Definitions.

686B.100         Electronic filing of rates, rules

and forms and payment of fees.

REPORTING FINANCIAL AND STATISTICAL DATA

686B.300         Definitions.

686B.308         “Annual statement” defined.

686B.314         “Fast track reports” defined.

686B.318         “Insurance expense exhibit” defined.

686B.324         “NAIC” defined.

686B.331         “Participating insurer” defined.

686B.336         “Statistical agent” defined.

686B.338         “Statistical plan” defined.

686B.345         Agreements for compilation and

analysis of data; duties of statistical agents.

686B.351         Financial reports: General

requirements.

686B.361         Statistical reports: Submission of

information to statistical agents.

686B.365         Statistical reports: Submission of

annual data.

686B.371         Statistical reports: Submission of

data for fast track reports.

686B.380         Statistical reports: Submission of

fast track reports to Commissioner.

686B.385         Reporting thresholds.

686B.390         Permission for late submission of

reports or data.

686B.395         Penalties for failure to file

information.

FILING AND USE OF LOSS COSTS

686B.400         Definitions.

686B.405         “Advisory prospective loss costs” defined.

686B.409         “Expenses” defined.

686B.415         “Prospective loss costs” defined.

686B.420         “Rate” defined.

686B.425         “Supplementary rate information”

defined.

686B.430         “Supporting information” defined.

686B.435         Applicability of provisions.

686B.440         Reference filings containing

advisory prospective loss costs; requirements for filing of rates; adjustments

to prospective loss costs.

686B.445         Requirements for filings that refer

to reference filings of prospective loss costs.

686B.450         Filing of supplementary rate

information.

686B.455         Requirements for filing of final

rate pages and submission of rates.

686B.460         Refiling of previously approved

rates and loss costs; use of previously filed rates, loss costs and deviations.

MISCELLANEOUS PROVISIONS

686B.500         Filing and forwarding of supporting

data regarding rates.

686B.501         Requirements for filing for increase

or decrease in rates: Professional liability insurance for certain

practitioners.

686B.502         Requirements for filing for increase

or decrease in rates: Supplemental personal liability insurance.

686B.503         Requirements for filing for increase

or decrease in rates: Homeowners’ insurance or property insurance for

dwellings.

686B.504         Policy fees.

686B.505         Required filings.

686B.510         Insurance rating: Deviations and

modifications.

686B.520         Approval of rate different from

filed rate.

686B.525         Notice of material change in premium

based upon change in zip code of policyholders.

686B.530         Exemption of insurance for aviation

from certain statutory provisions concerning rates.

686B.550         Examination of rate service

organizations.

686B.610         Individual risk premium modification

plans.

MOTOR VEHICLE INSURANCE COVERING PRIVATE PASSENGER VEHICLES

686B.700         Definitions.

686B.705         Applicability of provisions.

686B.710         Procedure for filing of rates or

forms; acceptance of nonconforming filing prohibited.

686B.715         Supporting data required with filing

of rates; exempt filings.

686B.720         Requirements for filing of

profitability reports.

686B.725         Hearings to review filings: Issuance

and notice of order for hearing; scheduling; procedural requirements.

686B.730         Hearings to review filings: Hearing

officer; date; continuance.

686B.735         Hearings to review filings:

Intervention; questions and testimony; burden of proof; exhibits; copies of

transcripts and other items.

686B.740         Hearings to review filings: Filing

of pleadings.

686B.745         Hearings to review filings: Proof of

service.

686B.750         Hearings to review filings:

Prehearing conference.

686B.755         Hearings to review filings: Official

notice.

686B.760         Hearings to review filings: Order of

hearing officer.

686B.765         Hearings to review filings: Review

of disapproval by hearing officer.

INDUSTRIAL INSURANCE

General Provisions

686B.800         Definitions.

686B.802         “Advisory Organization” defined.

686B.805         “Industrial insurance” defined.

686B.810         “Insurer” defined.

686B.815         “Nevada Workers’ Compensation

Insurance Plan” defined.

Nevada Workers’ Compensation Insurance Plan

686B.818         Authority of Advisory Organization.

686B.820         Effective date.

686B.825         Plan Administrator: Appointment;

selection of insurer to service plan; notification of termination of

management.

686B.830         Requirements of insurers.

686B.835         Distribution of premiums paid and

losses incurred.

686B.840         Requirements for qualification for

insurance.

Miscellaneous Provisions

686B.843         Filing requirements for final rates

and loss cost multipliers; use of loss cost multipliers.

686B.845         Plan for payment of dividends; plan

for payment of savings, unearned premium deposits or equivalent abatement for

premiums allowed or returned for policy.

 

 

GENERAL PROVISIONS

      NAC 686B.005  Definitions.  As

used in this chapter, unless the context otherwise requires:

     1.  “Commissioner”

means the Commissioner of Insurance.

     2.  “Division” means the Division of

Insurance of the Department of Business and Industry.

     (Supplied in codification)

      NAC 686B.100  Electronic filing of rates, rules and forms and payment of fees. (NRS 679B.130,

679B.136, 680B.010)

     1.  Any rate, rule or form required to be

filed pursuant to the provisions of chapter

686B of NRS must be filed in accordance with the System for Electronic Rate

and Form Filing developed and implemented by the National Association of

Insurance Commissioners.

     2.  Any fee required when filing a rate, rule

or form pursuant to NRS 680B.010

must be paid using the Electronic Funds Transfer function within the System for

Electronic Rate and Form Filing.

     (Added to NAC by Comm’r of Insurance by R115-02, eff. 3-18-2003;

A by R097-10, 12-16-2010, eff. 12-31-2010)

REPORTING FINANCIAL AND STATISTICAL DATA

      NAC 686B.300  Definitions. (NRS 679B.130, 679B.430, 686B.160)  As used

in NAC 686B.300 to 686B.395,

inclusive, unless the context otherwise requires, the words and terms defined

in NAC 686B.308 to 686B.338,

inclusive, have the meanings ascribed to them in those sections.

     (Added to NAC by Comm’r of Insurance, eff. 1-12-89; A

by R098-10, 12-16-2010)

      NAC 686B.308  “Annual statement” defined. (NRS 679B.130, 679B.430, 686B.160)  “Annual

statement” means the annual report of an insurer as of each December 31, which

provides detailed information on assets and liabilities, including data on

premiums, losses, reserves, expenses, dividends, taxes and investments.

     (Added to NAC by Comm’r of Insurance, eff. 1-12-89)

      NAC 686B.314  “Fast track reports” defined. (NRS 679B.130, 679B.430, 686B.160)  “Fast

track reports” means information generated from the National Association of

Insurance Commissioners’ fast track monitoring system that gives a sampling of

significant data for property and casualty insurance on a quarterly basis by

insurers comprising a major segment of the market for the types of insurance

indicated.

     (Added to NAC by Comm’r of Insurance, eff. 1-12-89; A

12-9-91)

      NAC 686B.318  “Insurance expense exhibit” defined. (NRS 679B.130,

679B.430, 686B.160)  “Insurance

expense exhibit” means the supplement to an insurer’s annual statement which

provides a detailed analysis of expenses on a net basis for all types of

business.

     (Added to NAC by Comm’r of Insurance, eff. 1-12-89)

      NAC 686B.324  “NAIC” defined. (NRS 679B.130, 679B.430, 686B.160)  “NAIC”

means the National Association of Insurance Commissioners.

     (Added to NAC by Comm’r of Insurance, eff. 1-12-89)

      NAC 686B.331  “Participating insurer” defined. (NRS 679B.130, 679B.430, 686B.160)  “Participating

insurer” means an insurer licensed to transact the business of property and

casualty insurance in this State which:

     1.  Has a market share for a type or class of

insurance greater than the amounts established in NAC

686B.385; and

     2.  Is required to report on a quarterly or

annual basis.

     (Added to NAC by Comm’r of Insurance, eff. 1-12-89)

      NAC 686B.336  “Statistical agent” defined. (NRS 679B.130, 679B.430, 686B.160)  “Statistical

agent” means an organization designated by the Commissioner to gather and

compile statistical data relating to the experience of insurers.

     (Added to NAC by Comm’r of Insurance, eff. 1-12-89)

      NAC 686B.338  “Statistical plan” defined. (NRS 679B.130, 679B.430, 686B.160)  “Statistical

plan” means a system for collecting and recording information relating to

insurance premiums, losses, exposures and expenses.

     (Added to NAC by Comm’r of Insurance, eff. 1-12-89)

      NAC 686B.345  Agreements for compilation and analysis of data; duties of

statistical agents. (NRS 679B.130, 679B.430, 686B.160)

     1.  The Commissioner may enter into

agreements with any qualified data collection service corporation, association

or other entity to compile and analyze data collected pursuant to NAC 686B.300 to 686B.395,

inclusive.

     2.  A statistical agent shall:

     (a) Collect and compile any data required by NAC 686B.361 to 686B.380,

inclusive;

     (b) Provide summaries of that information to the

Commissioner as he or she may request; and

     (c) Make available to the Commissioner a list of

any other reports it may compile from that information and furnish a copy of

those reports to the Commissioner upon request.

     (Added to NAC by Comm’r of Insurance, eff. 1-12-89)

      NAC 686B.351  Financial reports: General requirements. (NRS 679B.130,

679B.430, 686B.160)  As a

condition of doing business in this State, each insurer licensed to transact

the business of property and casualty insurance must, in addition to any other

reports required, report to the Commissioner financial data for the preceding

year as follows:

     1.  An insurance expense exhibit must be

filed with the Commissioner on or before April 1 of each year, or on a later

date, if appropriate. The exhibit must provide information from across the

country on the insurer’s expenses for the previous calendar year. The exhibit

must be in the form prescribed by the National Association of Insurance

Commissioners. Information from the insurer’s insurance expense exhibit shall

be deemed to be filed with the Commissioner if it is filed at the Central

Office of the National Association of Insurance Commissioners, 1100 Walnut Street,

Suite 1500, Kansas City, Missouri 64106-2197, on or before April 1 of each

year. The information must be filed pursuant to the specifications of the

National Association of Insurance Commissioners for filing information for an

annual statement on diskette.

     2.  Other schedules or supplements must be

filed as required by the Commissioner. Any additional National Association of

Insurance Commissioners’ schedule required by the Commissioner must be in the

form prescribed by the National Association of Insurance Commissioners.

     (Added to NAC by Comm’r of Insurance, eff. 1-12-89; A

12-9-91)

      NAC 686B.361  Statistical reports: Submission of information to statistical

agents. (NRS 679B.130, 679B.430, 686B.160)  Each

insurer licensed to transact the business of property and casualty insurance in

this State shall report statistical information regarding its experience to at

least one of the statistical agents designated by the Commissioner. The

information must be submitted in the form prescribed by NAC

686B.365 to 686B.380, inclusive, and specified

in the statistical plans adopted by the Commissioner.

     (Added to NAC by Comm’r of Insurance, eff. 1-12-89)

      NAC 686B.365  Statistical reports: Submission of annual data. (NRS 679B.130,

679B.430, 686B.160)  At least

annually, insurers shall submit to a statistical agent, data which conforms to

the following specifications:

     1.  The following types of insurance must be

included in the annual data:

     (a) Motor vehicle-commercial.

     (b) Motor vehicle-private passenger.

     (c) Boiler and machinery.

     (d) Burglary.

     (e) Business owners.

     (f) Commercial multiple peril.

     (g) Crop-hail.

     (h) Farm owners.

     (i) Fidelity and surety.

     (j) Fire and extended coverage.

     (k) General liability.

     (l) Glass.

     (m) Homeowners.

     (n) Inland marine.

     (o) Personal property other than homeowners.

     (p) Medical professional liability.

     2.  The following information must be

included, by territory, if applicable:

     (a) Premiums written.

     (b) Premiums earned.

     (c) Losses paid.

     (d) Allocated loss adjustment expenses paid.

     (e) Losses outstanding.

     (f) Allocated loss adjustment expenses outstanding.

     (g) Number of claims.

     (Added to NAC by Comm’r of Insurance, eff. 1-12-89; A

by R098-10, 12-16-2010)

      NAC 686B.371  Statistical reports: Submission of data for fast track reports. (NRS 679B.130,

679B.430, 686B.160)  Data

necessary to produce fast track reports must be submitted to the statistical

agents by selected insurers within 45 days after the end of the calendar year.

The data must be submitted as follows:

     1.  Fast track quarterly premium and loss

data must be submitted for the following types of insurance:

     (a) Private passenger liability.

     (b) Private passenger physical damage.

     (c) Commercial motor vehicle liability.

     (d) Commercial motor vehicle physical damage.

     (e) Homeowners.

     (f) Dwelling fire.

     (g) Dwelling allied lines.

     (h) Commercial fire.

     (i) Commercial allied lines.

     (j) Farm business.

     (k) Commercial multiple peril.

     (l) Liability other than motor vehicle.

     (m) Medical malpractice.

     2.  Claim cost and claim severity data must

be included for the following types of insurance:

     (a) Private passenger comprehensive.

     (b) Private passenger collision.

     (c) Private passenger bodily injury liability.

     (d) Private passenger property damage liability.

     (e) Private passenger personal injury protection,

if applicable.

     (Added to NAC by Comm’r of Insurance, eff. 1-12-89)

      NAC 686B.380  Statistical reports: Submission of fast track reports to

Commissioner. (NRS 679B.130, 679B.430, 686B.160)  Statistical

agents shall provide fast track reports to the Commissioner within 60 days

after the close of the calendar quarter for private passenger motor vehicle

insurance and homeowners insurance. Fast track reports for other types of

insurance must be provided within 75 days after the close of the calendar

quarter.

     (Added to NAC by Comm’r of Insurance, eff. 1-12-89; A

by R098-10, 12-16-2010)

      NAC 686B.385  Reporting thresholds. (NRS 679B.130, 679B.430, 686B.160)

     1.  For general liability insurance, insurers

shall report data based on the reporting thresholds established in this

section. The thresholds must be based on an analysis of an insurer’s premium

volume by type and class. The analysis must be made at least once every 3 years

by a statistical agent. Any changes made to an insurer’s reporting level must

be applied on a prospective basis only.

     2.  An insurer shall report at least

quarterly pursuant to the specifications for the commercial general liability

statistical plans adopted by the Commissioner if it:

     (a) Is in the 80th percentile of the total written

premiums for all types of commercial general liability insurance across the

country;

     (b) Has more than 1 percent of the written premiums

in this State for all types of commercial general liability insurance; or

     (c) Has more than $5,000,000 of written premiums in

this State for all types of commercial general liability insurance.

     3.  An insurer shall report at least

quarterly in selected market detail pursuant to the specifications for the

commercial general liability statistical plans adopted by the Commissioner if

it does not meet the criteria established in subsection 2 and it:

     (a) Has more than $1,000,000 of written premiums in

this State for a selected market; or

     (b) Has more than 10 percent of the written

premiums in this State for a selected market and more than $100,000 of written

premiums for that market.

     4.  An insurer shall report at least annually

pursuant to the specifications for the commercial general liability statistical

plans adopted by the Commissioner if it does not meet the criteria established

in subsection 2, but is in the 98th percentile of the total written premiums in

this State for all types of commercial general liability insurance.

     5.  An insurer shall report at least annually

in selected market detail pursuant to the specifications for the commercial

general liability statistical plans adopted by the Commissioner if it does not

meet the criteria established in this section, but has more than 10 percent of

the written premiums in this State for a selected market and less than $100,000

written premiums for that market.

     6.  The experience of all other insurers and

any experience not reported pursuant to subsections 2 to 5, inclusive, must be

reported annually pursuant to the specifications for the commercial general

liability statistical plans adopted by the Commissioner.

     (Added to NAC by Comm’r of Insurance, eff. 1-12-89)

      NAC 686B.390  Permission for late submission of reports or data. (NRS 679B.130,

679B.430, 686B.160)  Upon

application by a statistical agent or an insurer, the Commissioner may allow

the submission of a report or statistical data on a date which is later than

that required by NAC 686B.300 to 686B.385, inclusive, if the submission of the report

or data on the date required would create a substantial hardship to the

statistical agent or insurer.

     (Added to NAC by Comm’r of Insurance, eff. 1-12-89)

      NAC 686B.395  Penalties for failure to file information. (NRS 679B.130,

679B.430, 686B.160)  Failure

to file the information required by NAC 686B.300

to 686B.390, inclusive, pursuant to the

statistical plan adopted by the Commissioner may result in the imposition of

the penalties prescribed by NRS

679B.460, 680A.200 or 680A.280.

     (Added to NAC by Comm’r of Insurance, eff. 1-12-89; A

by R143-12, 11-1-2012)

FILING AND USE OF LOSS COSTS

      NAC 686B.400  Definitions. (NRS 679B.130, 686B.070, 686B.100)  As used

in NAC 686B.400 to 686B.460,

inclusive, unless the context otherwise requires, the words and terms defined

in NAC 686B.405 to 686B.430,

inclusive, have the meanings ascribed to them in those sections.

     (Added to NAC by Comm’r of Insurance, eff. 6-20-90)

      NAC 686B.405  “Advisory prospective loss costs” defined. (NRS 679B.130,

686B.070, 686B.100)  “Advisory

prospective loss costs” means the prospective loss costs filed by a rate

service organization with the Commissioner.

     (Added to NAC by Comm’r of Insurance, eff. 6-20-90)

      NAC 686B.409  “Expenses” defined. (NRS 679B.130, 686B.070, 686B.100)  “Expenses”

means the portion of a rate that is attributable to the costs of acquisition,

field supervision, collection expenses, general expenses, taxes, licenses and

fees.

     (Added to NAC by Comm’r of Insurance, eff. 6-20-90)

      NAC 686B.415  “Prospective loss costs” defined. (NRS 679B.130,

686B.070, 686B.100)  “Prospective

loss costs” means the portion of a rate that is based on historical aggregate

losses and loss adjustment expenses which are adjusted to their ultimate value

and projected to a future point in time. Except as otherwise provided in this

section, the term does not include provisions for expenses or profit.

     (Added to NAC by Comm’r of Insurance, eff. 6-20-90)

      NAC 686B.420  “Rate” defined. (NRS 679B.130, 686B.070, 686B.100)  “Rate”

means the cost of insurance per exposure unit and may be expressed as a single

number or as prospective loss costs that include an adjustment to account for

the treatment of expenses, profit and variations in loss experience before

individual risk variations based on loss or expense are applied. The term does

not include minimum premiums.

     (Added to NAC by Comm’r of Insurance, eff. 6-20-90)

      NAC 686B.425  “Supplementary rate information” defined. (NRS 679B.130,

686B.070, 686B.100)  In

addition to the kinds of information listed in subsection 4 of NRS 686B.020, “supplementary rate

information” includes any classification system, code or description of a

territory, rating plan and other information needed to determine the applicable

premium for an insured. The term includes factors and relativities such as

increased limit factors, classification relativities and deductible

relativities.

     (Added to NAC by Comm’r of Insurance, eff. 6-20-90)

      NAC 686B.430  “Supporting information” defined. (NRS 679B.130,

686B.070, 686B.100)  “Supporting

information” includes:

     1.  The experience and judgment of the filer

and the experience or data of other insurers or organizations relied upon by

the filer;

     2.  The interpretation of any statistical

data relied upon by the filer;

     3.  A description of the method used in

making the rates; and

     4.  Any other information required by the

Commissioner to be filed.

     (Added to NAC by Comm’r of Insurance, eff. 6-20-90)

      NAC 686B.435  Applicability of provisions. (NRS 679B.130, 686B.070, 686B.100)  Except

as otherwise provided in NRS

686B.040, NAC 686B.400 to 686B.460, inclusive, applies to:

     1.  Insurers writing the kinds and lines of

direct insurance not exempted by NRS

686B.030; and

     2.  Insurers and rate service organizations

making filings pursuant to NRS

686B.070.

     (Added to NAC by Comm’r of Insurance, eff. 6-20-90)

      NAC 686B.440  Reference filings containing advisory prospective loss costs;

requirements for filing of rates; adjustments to prospective loss costs. (NRS 679B.130,

686B.070, 686B.100)

     1.  A rate service organization may develop

and make a reference filing containing advisory prospective loss costs.

     2.  The reference filing must:

     (a) Contain statistical data and supporting

information for any calculation or assumption underlying the prospective loss

costs; and

     (b) Be filed and effective in the same manner as

rates filed pursuant to chapter 686B

of NRS.

     3.  An insurer may make a filing of rates by:

     (a) Becoming a participating insurer of a licensed

rate service organization that makes reference filings of advisory prospective

loss costs;

     (b) Filing with the Commissioner the information

required by NAC 686B.445; and

     (c) Authorizing the Commissioner to accept a

reference filing on its behalf.

     4.  The rates of the insurer must include:

     (a) The prospective loss costs filed by the rate

service organization pursuant to subsection 1; and

     (b) Any adjustment to the prospective loss costs

filed as required by NAC 686B.445 that are in

effect for that insurer.

     5.  The filing of an adjustment to the

prospective loss costs by an insurer becomes effective in the same manner as

rates filed pursuant to chapter 686B

of NRS.

     (Added to NAC by Comm’r of Insurance, eff. 6-20-90)

      NAC 686B.445  Requirements for filings that refer to reference filings of prospective

loss costs. (NRS 679B.130, 686B.070, 686B.100)

     1.  A filing by an insurer that refers to a

reference filing of prospective loss costs made by a rate service organization

must include, without limitation, a completed copy of the NAIC Loss Cost Filing

Document adopted by reference pursuant to subsection 2 or a reference filing

adoption form that is substantially similar to the NAIC Loss Cost Filing

Document and a summary of supporting information.

     2.  The Commissioner hereby adopts by

reference the NAIC Loss Cost Filing Document published by the National Association

of Insurance Commissioners. A copy of the document is available free of charge

from the National Association of Insurance Commissioners at the Internet

address http://www.naic.org.

     (Added to NAC by Comm’r of Insurance, eff. 6-20-90; A 5-27-92;

R083-06 & R099-06, 6-28-2006)

      NAC 686B.450  Filing of supplementary rate information. (NRS 679B.130,

686B.070, 686B.100)

     1.  A rate service organization may develop

and make a filing of supplementary rate information in accordance with the

provisions of NRS 686B.010 to 686B.175, inclusive.

     2.  An insurer may make a filing of

supplementary rate information by:

     (a) Becoming a participating insurer of a licensed

rate service organization; and

     (b) Authorizing the Commissioner to accept a filing

by the organization on behalf of the insurer.

     3.  Except for any modification filed by the

insurer, the supplementary rate information of the insurer must be the same as

that filed by the rate service organization.

     (Added to NAC by Comm’r of Insurance, eff. 6-20-90)

      NAC 686B.455  Requirements for filing of final rate pages and submission of

rates. (NRS 679B.130, 686B.070, 686B.100)

     1.  If the final rates of an insurer are

determined by applying its adjustment to the prospective loss costs, as

presented in the reference filing adoption form, to the prospective loss costs

that are contained in the reference filing and printed in the rating manual of

the rating organization, the insurer is not required to develop or file its

final rate pages with the Commissioner.

     2.  If an insurer prints and distributes

final rate pages for its own use and the rates are based on the application of

its filed adjustments to the prospective loss costs of a rating organization,

the insurer must file those pages with the Commissioner.

     3.  If a rating organization does not print

prospective loss costs in its rating manual, the insurer must submit its rates

to the Commissioner.

     (Added to NAC by Comm’r of Insurance, eff. 6-20-90)

      NAC 686B.460  Refiling of previously approved rates and loss costs; use of

previously filed rates, loss costs and deviations. (NRS 679B.130,

686B.070, 686B.100)

     1.  Except as otherwise provided in

subsection 2, NAC 686B.400 to 686B.460, inclusive, do not require a rate service

organization or its participating insurers to refile a rate or loss cost

previously approved by the Commissioner.

     2.  A participating insurer of a rate service

organization may continue to use any rate, loss cost or deviation filed and

approved for its use until:

     (a) The rate, loss cost or deviation is

disapproved; or

     (b) The insurer makes its own filing to change its

rate by making an independent filing or by filing a reference filing adoption

form that adopts the prospective rates or loss costs of a rate service

organization or an adjustment to the prospective rates or loss costs by the

insurer.

     3.  The provisions of this section do not

apply to the filing of a rate, loss cost or deviation relating to a policy of

industrial insurance.

     (Added to NAC by Comm’r of Insurance, eff. 6-20-90; A

by R099-06, 6-28-2006)

MISCELLANEOUS PROVISIONS

      NAC 686B.500  Filing and forwarding of supporting data regarding rates. (NRS 679B.130,

686B.100)

     1.  An insurer or rate service organization

shall promptly forward to the Division any of the following information

requested by the Division for each filing of supporting data required by the

Commissioner pursuant to NRS

686B.100:

     (a) Relevant profitability reports.

     (b) Descriptions of the components of losses.

     (c) Components of expenses for both current and

proposed rates, excluding the items for loss adjustment expenses.

     (d) Income earned on the money of policyholders

that is expressed as a percentage of earned premium.

     (e) Any other related matters or actuarial

information that is requested.

     2.  An insurer or rate service organization

shall, at the request of the Division, forward a copy of the filing to any

other person named by the Division. The insurer or rate service organization

shall provide to the Division satisfactory proof that the filing was forwarded

to that person.

     (Added to NAC by Comm’r of Insurance, eff. 1-27-92)

      NAC 686B.501  Requirements for filing for increase or decrease in rates:

Professional liability insurance for certain practitioners. (NRS 679B.130,

686B.070, 686B.100, 686B.110)

     1.  A filing for an increase or decrease in

rates for professional liability insurance for practitioners licensed pursuant

to chapters 630 to 640, inclusive, of NRS must:

     (a) Include a profitability report in the form

prescribed by the Commissioner;

     (b) Identify the largest theoretical rate increase

proposed by the filing; and

     (c) Identify the components of the rate increase.

     2.  The profitability report required by

subsection 1 must:

     (a) Include the statistical test, including, if

applicable, the “students t” test, used to justify the proposed differences in

rates by territory, or, if a statistical test is not provided, an explanation

as to the reason why a test was not provided; and

     (b) Be certified by an officer of the insurer as to

its accuracy.

     3.  The Division’s actuary may specify, where

reserve charges are coded to a specific year, the years in which accidents have

occurred, commonly referred to as “calendar accident years,” that the insurer

must include in the profitability report.

     4.  Unless otherwise required by the

Commissioner, if an insurer has previously submitted a profitability report,

the new report must include updated numbers for all calendar accident years in

the previous report and all subsequent years in which accidents have occurred

for a maximum reporting period of 10 years.

     5.  The insurer and the Division’s actuary

may agree to use the data from the fiscal year in which accidents have

occurred, commonly referred to as “fiscal accident year,” as the basis for

profitability reports.

     (Added to NAC by Comm’r of Insurance, eff. 5-15-96)

      NAC 686B.502  Requirements for filing for increase or decrease in rates:

Supplemental personal liability insurance. (NRS 679B.130, 686B.070, 686B.100, 686B.110)  A filing

for an increase or decrease in rates for supplemental personal liability

insurance must:

     1.  Identify the largest theoretical rate

increase proposed by the filing; and

     2.  Identify the components of the rate

increase.

     (Added to NAC by Comm’r of Insurance, eff. 5-15-96)

      NAC 686B.503  Requirements for filing for increase or decrease in rates:

Homeowners’ insurance or property insurance for dwellings. (NRS 679B.130,

686B.070, 686B.100, 686B.110)  A filing

for an increase or decrease in rates for homeowners’ insurance or for property

insurance for dwellings, commonly referred to as “dwelling fire insurance,”

must:

     1.  Identify the largest theoretical rate

increase proposed by the filing; and

     2.  Identify the contribution of each component

of the increase, including, but not limited to, the contribution of the amount

of insurance, the protection class, the territory and the construction class.

     (Added to NAC by Comm’r of Insurance, eff. 5-15-96)

      NAC 686B.504  Policy fees. (NRS 679B.130, 686B.070)

     1.  A policy fee must comply with the

provisions set forth in NRS

686B.050 and 686B.060.

     2.  An insurer who charges a policy fee shall

file the fee with the Commissioner pursuant to NRS 686B.070.

     3.  An insurer shall not charge a policy fee

for the renewal of a policy of insurance.

     4.  As used in this section, “policy fee”

means a charge imposed by an insurer for the issuance of a policy of insurance.

     (Added to NAC by Comm’r of Insurance by R151-99, eff. 1-28-2000)

      NAC 686B.505  Required filings. (NRS 679B.130, 686B.030)  The

Commissioner will interpret subsection 2 of NRS 686B.030 as requiring the

following filings:

     1.  Policy coverage forms, endorsements,

application forms and declarations pages for all business and commercial

insurance.

     2.  Rules, rates, policy coverage forms,

endorsements, application forms and declarations pages for the following types

of insurance:

     (a) Dwelling, up to 4 units;

     (b) Personal inland marine, including, but not

limited to, personal watercraft;

     (c) Vehicle mechanical breakdown; and

     (d) Insurance for home protection which is

regulated pursuant to NRS 690B.100

to 690B.180, inclusive.

     (Added to NAC by Comm’r of Insurance, eff. 12-15-94; A

by R111-04, 5-24-2005)

      NAC 686B.510  Insurance rating: Deviations and modifications. (NRS 679B.130,

686B.070, 686B.100)

     1.  Any company which uses rate modifications

or deviations of filings made by a licensed rate service organization shall

file annually, during the month of July, statistics for the 3 previous calendar

years, including:

     (a) Premiums written.

     (b) Premiums earned.

     (c) Losses incurred on a calendar year basis

including loss adjustment.

     (d) Loss ratio based on paragraphs (b) and (c) of

this subsection.

     (e) An indication of the break-even loss ratio.

     2.  If the modification is based on expense

considerations alone, it is necessary only to establish that the modification

is proper in relation to the expense differential.

     3.  Any deviation or modification on which

statistical justification has not been received by the last day of August will

be terminated on the first day of the following September.

     [Comm’r of Insurance, PC-7, eff. 9-23-72]

      NAC 686B.520  Approval of rate different from filed rate. (NRS 679B.130,

686B.070, 686B.110)

     1.  An insurance company which requires a

rate different from the rate provided by a filing otherwise applicable to a

specific risk may request the different rate by written application to the

Commissioner for approval or disapproval.

     2.  An application must:

     (a) Include one copy of the face of the policy.

     (b) Show a comparison of the filed rate to the

requested rate.

     (c) Give a brief statement of steps which the

insured can take to improve his or her insurability and qualify for a lower

rate if the requested rate is in excess of the filed rate.

     (d) Provide a space for the insured or a

representative to sign as evidence of consent to the requested rate.

     (e) Give any other information required by the Commissioner.

     [Comm’r of Insurance, PC-2, eff. 9-23-72]—(NAC A by

R111-04, 5-24-2005)

      NAC 686B.525  Notice of material change in premium based upon change in zip

code of policyholders. (NRS 679B.130, 686B.119)

     1.  If an insurer proposes to increase

materially the premium rate of a policyholder solely because the zip code

assigned to the address of the policyholder is changed by the United States

Postal Service, the insurer shall notify the insured of the proposed change in

the rate:

     (a) For a policy with a term of 31 days or less, at

least 30 days before the increase in premium becomes effective; and

     (b) For any other policy, at least 30 days before

the next date on which the policy could be renewed.

     2.  An insurer who fails to provide notice

required by this section shall renew the policy pursuant to the terms of the

current, expiring policy.

     3.  As used in this section, the term

“increase materially” means an increase of 10 percent or more of the total

premium of the policy.

     (Added to NAC by Comm’r of Insurance, eff. 12-15-94)

      NAC 686B.530  Exemption of insurance for aviation from certain statutory

provisions concerning rates. (NRS 679B.130, 686B.040)  Classes

of insurance relating to insurance for aviation are exempt from the provisions

of NRS 686B.010 to 686B.125, inclusive.

     (Added to NAC by Comm’r of Insurance, eff. 9-19-90)

      NAC 686B.550  Examination of rate service organizations. (NRS 679B.130,

686B.170)

     1.  Except as otherwise provided in

subsection 2, the Commissioner will, as often as the Commissioner deems

advisable, examine the affairs and conditions of each rate service organization

in accordance with the provisions of NRS 686B.170.

     2.  The Commissioner will examine the affairs

and conditions of each licensed rate service organization not less frequently

than every 5 years.

     (Added to NAC by Comm’r of Insurance by R099-06, eff. 6-28-2006)

      NAC 686B.610  Individual risk premium modification plans. (NRS 679B.130,

686B.070, 686B.100)

     1.  For the purposes of this section,

“schedule rating” means application of judgment credits and debits to the risk

rate or premium charge which has been developed through the use of base rate or

class rate modified by:

     (a) Package discounts where applicable; and

     (b) Any other approved rating plan which does not

duplicate credits or debits.

     2.  The Commissioner will accept individual

risk premium modification plans if:

     (a) Schedule-rating factors apply only to

individual risk characteristics which reflect potential hazards.

     (b) Schedule rating applies only to risks which

develop at least $500 annual premium or $1,500 3-year prepaid premium. When

schedule credits are being applied, the resulting premium must be $500 or more

for 1 year, or $1,500 or more for 3 years.

     (c) The schedule-rating plan must provide for

debits and credits, and is subject to maximum total debits or credits of 25

percent.

     (d) No risk may be modified except after inspection

of the property. The insurer shall retain adequate supporting data, including

copies of inspection reports, which may be inspected by the Division.

     3.  Each filing of an individual risk premium

modification plan must be accompanied by a statement by the filing official

affirming that the filing conforms to the provisions of this section.

     4.  This section does not apply to automobile

liability, automobile physical damage, general liability, medical malpractice

liability, burglary, glass, fidelity or boiler and machinery rating plans.

     [Comm’r of Insurance, PC-16, eff. 9-23-72]—(NAC A by

R072-02, 7-12-2002)

MOTOR VEHICLE INSURANCE COVERING PRIVATE PASSENGER VEHICLES

      NAC 686B.700  Definitions. (NRS 679B.130)  As used

in NAC 686B.700 to 686B.765,

inclusive, unless the context otherwise requires:

     1.  “Hearing officer” means the Commissioner

or a person designated by the Commissioner to conduct a hearing.

     2.  “Insurer” means an insurer whose rates or

forms are the subject of any hearing conducted pursuant to NAC 686B.730 to 686B.765,

inclusive.

     (Added to NAC by Comm’r of Insurance, eff. 1-27-92)

      NAC 686B.705  Applicability of provisions. (NRS 679B.130, 686B.070)  NAC 686B.700 to 686B.765,

inclusive, apply to the filing of rates and forms for motor vehicle insurance

covering private passenger vehicles.

     (Added to NAC by Comm’r of Insurance, eff. 1-27-92)

      NAC 686B.710  Procedure for filing of rates or forms; acceptance of

nonconforming filing prohibited. (NRS 679B.130, 686B.070)

     1.  The Division shall prescribe the

procedure to be followed by insurers for the filing of rates or forms. The

procedure must be made available upon request.

     2.  The Division shall not accept any filing

that does not conform to its requirements.

     (Added to NAC by Comm’r of Insurance, eff. 1-27-92)

      NAC 686B.715  Supporting data required with filing of rates; exempt filings. (NRS 679B.130,

686B.070, 686B.100)

     1.  A filing of rates made pursuant to NRS 686B.070 must contain:

     (a) The supporting data listed in NRS 686B.100 and NAC 686B.500.

     (b) The following supporting data, which must be

listed on the current “NV PC1” form which is available from the Division:

          (1) The name of the insurer.

          (2) By territory, the percentage of change in

the base rates for:

               (I) Liability for bodily injury;

               (II) Liability for property damage;

               (III) Coverage for uninsured or

underinsured motorists;

               (IV) Medical payments;

               (V) Comprehensive coverage; and

               (VI) Collision coverage.

          (3) If necessary, for each of those base

rates, any changes in:

               (I) Territory;

               (II) Age, sex or marital status;

               (III) Coverage for one vehicle or more

than one vehicle; and

               (IV) Use categories.

          (4) The largest theoretical rate increase resulting

from a combination of factors in subparagraph (3), a listing of the

contribution of each component and the compound result of all components.

          (5) If applicable, the adjustment of variable

expenses to fixed expenses, commonly referred to as “expense flattening.”

          (6) If necessary, for each of the factors

listed in subparagraph (3), a separate list of the factors for the balancing of

increases and decreases of components to achieve a preselected overall change

in rates, commonly referred to as “off-balance factors.”

          (7) For each of the coverages listed in

subparagraph (2), the written premium at current rates for a recent 12-month

period and the requested change in rates indicated by percentage and amount in

dollars.

          (8) The total number of vehicles insured for

bodily injury or property damage which are principally kept in this State and

the percentage of those vehicles insured in each territory of the insurer. The

Commissioner may, at the request of the insurer, allow the information required

by this paragraph to be submitted separately to the Division and to be deemed

confidential pursuant to subsection 5 of NRS 679B.190.

          (9) The total number of vehicles insured and

principally kept in this State.

          (10) A statement by the insurer explaining why

the filing meets the standards of NRS

686B.050 and 686B.060.

          (11) A statement by the insurer describing the

actions it has taken to reduce costs for motor vehicle insurance covering

private passenger vehicles, including programs:

               (I) To reduce the insurer’s own

operational or other expenses.

               (II) To reduce fraudulent claims.

               (III) For the management of medical cases

or other programs to contain medical costs.

               (IV) To reduce the costs of repairing

vehicles.

               (V) For risk management, loss prevention,

safety, and the training or education of drivers that are promoted by the

insurer.

     (c) A cover letter or filing memorandum which

summarizes the filing and includes:

          (1) A statement as to whether the policy

allows the proration or other limitation of coverage, commonly referred to as

the “stacking” of coverage for:

               (I) Medical payments; or

               (II) Uninsured and underinsured

motorists.

          (2) A verification that the insurer has

complied with:

               (I) Subsection 1 of NAC 690B.240;

               (II) Subsections 2 and 3 of NRS 687B.145; and

               (III) Division Bulletin No. 89-002.

     (d) A statement concerning chargeable accidents

which must include:

          (1) A copy of the rules of the insurer

concerning chargeable accidents; and

          (2) An explanation as to how the dollar

threshold was established for a chargeable accident.

     (e) A list of all discounts required by title 57 of

NRS which an insurer offers on premiums with a reference to the page number in

the manual of the insurer which describes the discount.

     (f) A copy of the evidence of insurance provided to

the insured pursuant to NRS

690B.023.

     (g) If the filing is made by an insurer providing

coverage for at least 15,000 vehicles principally kept in this State, a list of

the 10 largest losses for each of the most recent 5 years, with the status of

the claim as either open or closed for:

          (1) Liability for bodily injury;

          (2) Coverage for uninsured and underinsured

motorists; and

          (3) Coverage for medical payments.

     (h) A distribution of policy limits by the number

of insureds for:

          (1) Liability for bodily injury;

          (2) Coverage for uninsured or underinsured

motorists; and

          (3) Coverage for medical payments.

     (i) A distribution of the number of insured

vehicles with:

          (1) Collision coverage;

          (2) Comprehensive coverage; and

          (3) Collision and comprehensive coverage.

     (j) The description of each territory used by the

insurer.

     (k) The ratios which compare the base rates of the

insurer for the lowest and highest rated territories for:

          (1) Liability for bodily injury;

          (2) Coverage for uninsured and underinsured

motorists;

          (3) Coverage for medical payments;

          (4) Comprehensive coverage; and

          (5) Collision coverage.

     (l) Actuarial exhibits which demonstrate generally

accepted actuarial principles, including:

          (1) Actuarial models used in the filing;

          (2) Indications of necessary rate level

changes;

          (3) Credibility models;

          (4) Development of trend factors;

          (5) Development of relativity factors;

          (6) Loss development triangles;

          (7) Loss development factors;

          (8) Permissible loss ratios; and

          (9) Other actuarial data relevant to the

filing.

     (m) An index of all exhibits and documents included

in the filing.

     2.  The provisions of this section do not

apply to the filing of prospective loss costs by a licensed rate service

organization. As used in this subsection, “prospective loss costs” has the

meaning ascribed to it in NAC 686B.415.

     (Added to NAC by Comm’r of Insurance, eff. 1-27-92; A 5-15-96)

      NAC 686B.720  Requirements for filing of profitability reports. (NRS 679B.130,

686B.070, 686B.100, 686B.110)

     1.  An insurer or group of insurers that is

insuring more than 2,000 vehicles principally kept in this State must include a

profitability report with all filings for an increase or decrease in rates.

     2.  A profitability report must be in the

form required by the Division and certified by an officer of the insurer as to

its accuracy.

     3.  The Division’s actuary may specify, where

reserve charges are coded to a specific year, the years in which accidents have

occurred, commonly referred to as “calendar accident years,” that the insurer

must include in the profitability report.

     4.  Unless otherwise required by the

Commissioner, if an insurer has previously submitted a profitability report,

the new report must include updated numbers for all calendar accident years in

the previous report and all subsequent years in which accidents have occurred

for a maximum reporting period of 10 years.

     5.  The insurer and the Division’s actuary

may agree to use the data from the fiscal year in which accidents occurred,

commonly referred to as “fiscal accident year,” as the basis for the

profitability reports.

     6.  The Division’s actuary may specify that a

profitability report filed by an insurer providing coverage for at least 60,000

vehicles principally kept in this State must include profitability by

territory.

     (Added to NAC by Comm’r of Insurance, eff. 1-27-92; A 5-15-96)

      NAC 686B.725  Hearings to review filings: Issuance and notice of order for

hearing; scheduling; procedural requirements. (NRS 679B.130, 679B.310, 679B.320, 686B.110)

     1.  If the Commissioner deems it appropriate,

the Commissioner will issue an order for a hearing to allow consideration of a

filing and send the order by certified mail to the insurer not less than 20

days before the hearing. A copy of the order will be posted at the Division’s

offices and at the location of the hearing.

     2.  If an order is issued pursuant to

subsection 1, the hearing must be scheduled to enable the Commissioner to make

his or her decision within the time authorized for each proposed increase in

the rate of any kind or line of insurance or subdivision thereof by subsection

1 of NRS 686B.110, unless the

parties stipulate to a later date.

     3.  A hearing conducted pursuant to the

provisions of this section will comply with the procedural requirements for a

hearing set forth in NAC 686B.730 to 686B.765, inclusive.

     (Added to NAC by Comm’r of Insurance, eff. 1-27-92)

      NAC 686B.730  Hearings to review filings: Hearing officer; date; continuance. (NRS 679B.130,

679B.310, 679B.330, 686B.110)

     1.  A hearing conducted to review the filing

of rates or forms must be held before the Commissioner or a hearing officer

designated by the Commissioner.

     2.  A hearing may be set for a date which is

earlier than the date set forth in the notice of the hearing if the Division

and the insurer agree in writing. Public notice must be given for any change of

the date of a hearing.

     3.  Upon the written request of the Division,

a party, an intervener or an insurer, the hearing officer may:

     (a) Continue the hearing until a later date; or

     (b) Upon good cause shown, continue the hearing for

the submission of further proof on any matter.

     (Added to NAC by Comm’r of Insurance, eff. 1-27-92)

      NAC 686B.735  Hearings to review filings: Intervention; questions and

testimony; burden of proof; exhibits; copies of transcripts and other items. (NRS 679B.130,

679B.310, 679B.330, 686B.110)

     1.  No person other than the insurer or a

person insured by the insurer may intervene in any hearing conducted to review

the filing of rates or forms by the insurer.

     2.  Any person who intends to submit

questions or testimony for the hearing shall submit the questions or testimony

to the hearing officer in writing not less than 5 days before the hearing. The

hearing officer may ask those questions or submit that testimony for the

record.

     3.  Only parties to the hearing may ask

questions at the hearing. At the discretion of the hearing officer, any person

may offer oral or written testimony before or during the hearing.

     4.  The insurer has the burden to prove:

     (a) Its compliance with chapter 686B of NRS; and

     (b) Any action it claims it has taken to reduce the

costs of coverage.

     5.  The following exhibits may be entered

into the record:

     (a) The insurer’s filing of rates or forms and any

supporting data or documents received by the Division; and

     (b) Any additional information presented by the

insurer, a party, an intervener, the Division or any other interested person.

     6.  Upon payment of the appropriate costs,

any person may request, in writing, a copy of the transcript of the hearing or

any documents or other items submitted for the filing of rates or the hearing.

     (Added to NAC by Comm’r of Insurance, eff. 1-27-92; A 5-15-96)

      NAC 686B.740  Hearings to review filings: Filing of pleadings. (NRS 679B.130,

679B.310, 686B.110)  All

pleadings, including complaints, petitions, answers, briefs, motions,

affidavits and applications, must be addressed to the Commissioner. A pleading

shall be deemed to be officially filed with the Commissioner at the time a true

copy is received by the Division.

     (Added to NAC by Comm’r of Insurance, eff. 1-27-92)

      NAC 686B.745  Hearings to review filings: Proof of service. (NRS 679B.130,

679B.310, 686B.110)  An

acknowledgment of service or a certificate in substantially the following form

must appear on all documents required to be served:

 

     I hereby certify that I have this date served the

foregoing document upon all parties of record in this proceeding (by delivering

a copy thereof in person to ...................................) (by mailing a

copy thereof, properly addressed, with postage prepaid, to

...................................)

     DATED at ..................., this ............(day) of

...................(month) of ...........(year)

     .......................................................................Signature

 

     (Added to NAC by Comm’r of Insurance, eff. 1-27-92)

      NAC 686B.750  Hearings to review filings: Prehearing conference. (NRS 679B.130,

679B.310, 686B.110)

     1.  The hearing officer may, upon the motion

of the hearing officer or the Division, a party, an intervener or an insurer,

by giving reasonable notice of the time and place, hold a prehearing conference

to:

     (a) Formulate or simplify the issues;

     (b) Obtain admissions of fact and documents in

order to avoid unnecessary offers of proof;

     (c) Arrange for the exchange of proposed exhibits

or prepared expert testimony;

     (d) Limit the number of witnesses; or

     (e) Consider any factor which may permit rapid,

orderly conduct and the disposition of the proceedings.

     2.  Any action taken at a prehearing conference

and any agreement, admission or stipulation made at the conference must be made

a part of the record and must be approved by the Division and the insurer. If

approved, such action controls the course of subsequent proceedings, unless

otherwise stipulated by the Division, the party, the intervener, if any, and

the insurer. The hearing officer must consent to any such stipulation.

     (Added to NAC by Comm’r of Insurance, eff. 1-27-92)

      NAC 686B.755  Hearings to review filings: Official notice. (NRS 679B.130,

679B.310, 686B.110)  The

hearing officer may take official notice of:

     1.  Rules, regulations, official reports,

decisions and orders of any regulatory agency of this State or any court of

law.

     2.  The contents of decisions, orders,

certificates, licenses and records maintained or issued by the Division.

     (Added to NAC by Comm’r of Insurance, eff. 1-27-92)

      NAC 686B.760  Hearings to review filings: Order of hearing officer. (NRS 679B.130,

679B.310, 686B.110)

     1.  The hearing officer shall file a copy of

any order entered pursuant to NAC 686B.700 to 686B.765, inclusive, with the Division. The copy must

be made available for public inspection.

     2.  If the hearing officer is not the

Commissioner, the Commissioner will indicate on the order his or her

concurrence or dissent with the order of the hearing officer.

     (Added to NAC by Comm’r of Insurance, eff. 1-27-92)

      NAC 686B.765  Hearings to review filings: Review of disapproval by hearing

officer. (NRS 679B.130, 679B.310, 686B.110)

     1.  If proposed rates are disapproved by an

order of the hearing officer:

     (a) The insurer may request a hearing as provided

in subsection 3 of NRS 686B.110;

or

     (b) The parties may, by stipulation, declare that a

hearing held pursuant to NAC 686B.730 to 686B.765, inclusive, shall be deemed a hearing to

determine the validity of the action as provided in subsection 3 of NRS 686B.110, in order to allow

the insurer to seek judicial review of the order.

     2.  If the insurer requests a hearing as

provided in subsection 3 of NRS

686B.110, the hearing must be conducted as a hearing de novo.

     (Added to NAC by Comm’r of Insurance, eff. 1-27-92)

INDUSTRIAL INSURANCE

General Provisions

      NAC 686B.800  Definitions. (NRS 679B.130)  As used

in NAC 686B.800 to 686B.845,

inclusive, unless the context otherwise requires, the words and terms defined

in NAC 686B.802 to 686B.815,

inclusive, have the meanings ascribed to them in those sections.

     (Added to NAC by Comm’r of Insurance by R091-98, eff.

11-2-98; A by R196-99, 1-27-2000; R099-06, 6-28-2006)

      NAC 686B.802  “Advisory Organization” defined. (NRS 679B.130)  “Advisory

Organization” has the meaning ascribed to it in NRS 686B.1752.

     (Added to NAC by Comm’r of Insurance by R196-99, eff. 1-27-2000)

      NAC 686B.805  “Industrial insurance” defined. (NRS 679B.130)  “Industrial

insurance” means insurance which provides the compensation required by chapters 616A to 617, inclusive, of NRS and employer’s

liability insurance provided in connection with that insurance.

     (Added to NAC by Comm’r of Insurance by R091-98, eff.

11-2-98)

      NAC 686B.810  “Insurer” defined. (NRS 679B.130)  “Insurer”

means all private carriers authorized to provide industrial insurance in this

State.

     (Added to NAC by Comm’r of Insurance by R091-98, eff.

11-2-98)

      NAC 686B.815  “Nevada Workers’ Compensation Insurance Plan” defined. (NRS 679B.130,

686B.1771)  “Nevada

Workers’ Compensation Insurance Plan” means the plan submitted by the Advisory

Organization pursuant to subsection 2 of NRS 686B.1771 for the equitable

apportionment among insurers of those persons who in good faith are entitled to

industrial insurance but who have not been accepted by an insurer.

     (Added to NAC by Comm’r of Insurance by R091-98, eff.

11-2-98)

Nevada

Workers’ Compensation Insurance Plan

      NAC 686B.818  Authority of Advisory Organization. (NRS 679B.130,

686B.1771)  The

Advisory Organization may file with the Commissioner a program of group

insurance for persons who have not been accepted by an insurer.

     (Added to NAC by Comm’r of Insurance by R196-99, eff. 1-27-2000)

      NAC 686B.820  Effective date. (NRS 679B.130, 686B.1771)  The

Nevada Workers’ Compensation Insurance Plan becomes effective on July 1, 1999.

     (Added to NAC by Comm’r of Insurance by R091-98, 11-2-98,

eff. 7-1-99)

      NAC 686B.825  Plan Administrator: Appointment; selection of insurer to service

plan; notification of termination of management. (NRS 679B.130,

686B.1771)

     1.  The Commissioner will appoint a Plan

Administrator to perform the day-to-day management of the Nevada Workers’

Compensation Insurance Plan.

     2.  The Plan Administrator shall select,

pursuant to the rules of competitive bidding, at least one insurer to service

the Nevada Workers’ Compensation Insurance Plan. Each insurer selected pursuant

to this section must be approved by the Commissioner.

     3.  The Plan Administrator shall notify the

Commissioner at least 180 days before the Plan Administrator terminates his or her

management of the Nevada Workers’ Compensation Insurance Plan.

     (Added to NAC by Comm’r of Insurance by R091-98, eff.

11-2-98)

      NAC 686B.830  Requirements of insurers. (NRS 679B.130, 686B.1771)

     1.  Each insurer providing industrial

insurance in this State shall:

     (a) Participate in the Nevada Workers’ Compensation

Insurance Plan; and

     (b) Subscribe to the Articles of Agreement of the

National Workers’ Compensation Reinsurance Pool,

Ê which are

hereby adopted by reference.

     2.  Copies of the Nevada Workers’

Compensation Insurance Plan and the Articles of Agreement of the National

Workers’ Compensation Reinsurance Pool may be obtained, free of charge, from

the National Council on Compensation Insurance, Customer Service Center, 901

Peninsula Corporate Circle, Boca Raton, Florida 33487, telephone (800)

622-4123.

     (Added to NAC by Comm’r of Insurance by R091-98, 11-2-98,

eff. 7-1-99; A by R111-04, 5-24-2005)

      NAC 686B.835  Distribution of premiums paid and losses incurred. (NRS 679B.130,

686B.1771)

     1.  The premiums paid and losses incurred by

insurers for industrial insurance provided pursuant to the Nevada Workers’

Compensation Insurance Plan must be:

     (a) Ceded first to the National Workers’

Compensation Reinsurance Pool; and

     (b) Redistributed periodically based on the

proportionate voluntary market share of each participant in the pool, as set

forth in:

          (1) The Articles of Agreement of the National

Workers’ Compensation Reinsurance Pool; or

          (2) The Quota Share Reinsurance Agreement of

the National Council on Compensation Insurance, which is hereby adopted by

reference.

     2.  A copy of the Quota Share Reinsurance

Agreement of the National Council on Compensation Insurance may be obtained,

free of charge, from the National Council on Compensation Insurance, Customer

Service Center, 901 Peninsula Corporate Circle, Boca Raton, Florida 33487,

telephone (800) 622-4123.

     (Added to NAC by Comm’r of Insurance by R091-98, 11-2-98,

eff. 7-1-99; A by R111-04, 5-24-2005)

      NAC 686B.840  Requirements for qualification for insurance. (NRS 679B.130,

686B.1771)

     1.  To qualify for insurance under the Nevada

Workers’ Compensation Insurance Plan, an employer must have been declined

coverage by at least two insurers that are not affiliated with each other.

     2.  The provisions of subsection 1 must not

be construed to prohibit an employer from continuing to apply for industrial

insurance after the employer has been declined coverage by two qualified

insurers.

     (Added to NAC by Comm’r of Insurance by R091-98, 11-2-98,

eff. 7-1-99; A by R091-98, 11-2-98, eff. 1-1-2001; R196-99, 1-27-2000)

Miscellaneous Provisions

      NAC 686B.843  Filing requirements for final rates and loss cost multipliers;

use of loss cost multipliers. (NRS 679B.130, 686B.1775)

     1.  For each filing of final rates or loss

cost multipliers for policies of industrial insurance made pursuant to NRS 686B.1775, the insurer:

     (a) Shall complete and include, without limitation:

          (1) If an expense constant applies, Expense

Worksheet A, which is prescribed by the Commissioner; or

          (2) If an expense constant does not apply,

Expense Worksheet B, which is prescribed by the Commissioner.

     (b) Shall include, without limitation, reference to

the premium discount tables which apply and the rules for applying the

discounts.

     (c) Except as otherwise provided in paragraph (d),

may continue to use the loss cost multipliers filed until:

          (1) The loss cost multipliers are disapproved

by the Commissioner; or

          (2) The insurer submits a new filing to

replace the loss cost multipliers previously filed.

     (d) Unless the Commissioner has explicitly approved

otherwise, shall use the current loss cost multipliers filed by the Advisory

Organization in accordance with the anniversary rating date rule in the manuals

of rating rules approved by the Commissioner pursuant to NRS 686B.177.

     2.  As used in this section, “expense constant”

means a premium charged to each policy of industrial insurance regardless of

the size of the policy.

     (Added to NAC by Comm’r of Insurance by R099-06, eff. 6-28-2006)

      NAC 686B.845  Plan for payment of dividends; plan for payment of savings,

unearned premium deposits or equivalent abatement for premiums allowed or

returned for policy. (NRS 679B.130, 686B.1781)

     1.  An insurer must file its plan for the

payment of dividends for a policy of industrial insurance with the Commissioner

at least 30 days before the effective date of the plan.

     2.  The plan for the payment of dividends

filed pursuant to subsection 1 must include:

     (a) The dividend plan disclosure forms and dividend

payment forms used by the insurer;

     (b) The conditions under which the insured will be

eligible to receive a dividend;

     (c) The criteria used by the insurer for

determining which plan is applicable for each particular kind of risk; and

     (d) Any applicable formula or factor used by the

insurer for calculating dividends, including, without limitation:

          (1) Loss ratios;

          (2) Tax multipliers;

          (3) Loss conversion factors; and

          (4) Premiums.

     3.  A proposal, example, illustration

or explanation of dividends presented to or made available to the insured or a

potential policyholder must include, without limitation, disclosures including

the following information:

     (a) The insurer will not declare dividends before

the expiration of the policy.

     (b) Only the board of directors or other governing

body of the insurer, at its sole discretion, may declare and distribute

dividends.

     (c) Dividends will be paid from the policyholder

surplus and not from earned premiums.

     (d) Payment of dividends by the insurer is not

guaranteed and the actual payment of dividends may differ from the amount of

expected dividends.

     (e) The insurer will not pay dividends if the

Commissioner determines that the payment of dividends would jeopardize the

solvency of the insurer or be hazardous to the interests of the general public

or the creditors or the policyholders of the insurer.

     4.  An insurer must file a written

description of its plan for the payment of savings, unearned premium deposits

or an equivalent abatement for premiums allowed or returned for a policy of

industrial insurance with the Commissioner at least 30 days before the

effective date of the plan.

     5.  At the request of the insurer, the

Commissioner will keep confidential the information submitted to the

Commissioner by the insurer pursuant to paragraph (d) of subsection 2.

     (Added to NAC by Comm’r of Insurance by R172-03, eff. 2-12-2004)
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