AB332

Existing law governs industrial insurers in this State that provide benefits to employees who are injured in the course of employment. (Chapter 616B of NRS) Existing law authorizes certain groups of public or private employers to act as an association of self-insured employers if the group and each employer within the group meet certain requirements. (NRS 616B.350-616B.446) Existing law requires a board of trustees to operate any such association and to employ: (1) an administrator of the association to carry out the policies of the board and perform such duties as the board delegates; and (2) a third-party administrator to administer the plan of insurance of the association. Existing law prohibits the administrator of an association from performing any of the duties assigned to the third-party administrator. (NRS 616B.365) Section 3 of this bill specifies that the administrator of an association is prohibited from directly administering claims. Existing law also prohibits the administrator of the association and the third-party administrator from having a direct or indirect financial interest in each other. (NRS 616B.371) Section 4 of this bill removes the prohibition on the administrator of the association and the third-party administrator having a financial interest in each other. Section 1 of this bill revises a definition of the term “association's administrator” to specify that the responsibilities of the administrator of the association to carry out the daily opera