Nevada Code § 617.401

Compensation from Uninsured Employers Claim Account: Administration and payment of claims; eligibility of employee; liability of employer; powers and duties of Division; appeals; collection
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1. The Division shall designate one:
(a) Third-party administrator who has a valid
certificate issued by the Commissioner pursuant to NRS 683A.085 ; or
(b) Insurer, other than a self-insured employer
or association of self-insured public or private employers,
to
administer claims against the Uninsured Employers Claim Account. The
designation must be made pursuant to reasonable competitive bidding procedures
established by the Administrator.
2. Except as otherwise provided in this
subsection, an employee may receive compensation from the Uninsured Employers
Claim Account if:
(a) The employee was hired in this State or is
regularly employed in this State;
(b) The employee contracts an occupational
disease that arose out of and in the course of employment:
(1) In this State; or
(2) While on temporary assignment outside
the State for not more than 12 months;
(c) The employee files a claim for compensation
with the Division; and
(d) The employee makes an irrevocable assignment
to the Division of a right to be subrogated to the rights of the employee
pursuant to NRS 616C.215 .
An employee
who contracts an occupational disease that arose out of and in the course of
employment while on temporary assignment outside the State is not entitled to
receive compensation from the Uninsured Employers Claim Account unless the
employee has been denied workers compensation in the state in which the
disease was contracted.
3. If the Division receives a claim
pursuant to subsection 2, the Division shall immediately notify the employer of
the claim.
4. For the purposes of this section and NRS 617.4015 , the employer has the burden
of proving that the employer provided mandatory coverage for occupational
diseases for the employee or that the employer was not required to maintain
industrial insurance for the employee.
5. Any employer who has failed to provide
mandatory coverage required by the provisions of this chapter is liable for all
payments made on behalf of the employer, including, but not limited to, any
benefits, administrative costs or attorneys fees paid from the Uninsured
Employers Claim Account or incurred by the Division.
6. The Division:
(a) May recover from the employer the payments
made by the Division that are described in subsection 5 and any accrued
interest by bringing a civil action or filing an application for the entry of
summary judgment pursuant to NRS 617.4015 in a court of competent jurisdiction. For the purposes of this paragraph, the
payments made by the Division that are described in subsection 5 are presumed
to be:
(1) Justified by the circumstances of the
claim;
(2) Made in accordance with applicable
law; and
(3) Reasonable and necessary.
(b) In any civil action or application for the
entry of summary judgment filed pursuant to NRS
617.4015 against the employer, is not required to prove that negligent
conduct by the employer was the cause of the occupational disease.
(c) May enter into a contract with any person to
assist in the collection of any liability of an uninsured employer.
(d) In lieu of a civil action or filing an
application for the entry of summary judgment pursuant to NRS 617.4015 , may enter into an agreement
or settlement regarding the collection of any liability of an uninsured
employer.
7. The Division shall:
(a) Determine whether the employer was insured
within 30 days after receiving the claim from the employee.
(b) Assign the claim to the third-party
administrator or insurer designated pursuant to subsection 1 for administration
and payment of compensation.
Upon
determining whether the claim is accepted or denied, the designated third-party
administrator or insurer shall notify the injured employee, the named employer
and the Division of its determination.
8. Upon demonstration of the:
(a) Costs incurred by the designated third-party
administrator or insurer to administer the claim or pay compensation to the
injured employee; or
(b) Amount that the designated third-party
administrator or insurer will pay for administrative expenses or compensation
to the injured employee and that such amounts are justified by the
circumstances of the claim,
the Division
shall authorize payment from the Uninsured Employers Claim Account.
9. Any party aggrieved by a determination
made by the Division regarding the assignment of any claim made pursuant to
this section may appeal that determination by filing a notice of appeal with an
appeals officer within 30 days after the determination is rendered. The
provisions of NRS 616C.345 to 616C.385 , inclusive, apply to an appeal
filed pursuant to this subsection.
10. Any party aggrieved by a determination
to accept or to deny any claim made pursuant to this section or by a
determination to pay or to deny the payment of compensation regarding any claim
made pursuant to this section may appeal that determination, within 70 days
after the determination is rendered, to the Hearings Division of the Department
of Administration in the manner provided by NRS
616C.315 .
11. All insurers shall bear a proportionate
amount of a claim made pursuant to this chapter, and are entitled to a
proportionate amount of any collection made pursuant to this section as an
offset against future liabilities.
12. An uninsured employer is liable for
the interest on any amount paid on his or her claims from the Uninsured
Employers Claim Account. The interest must be calculated at a rate equal to
the prime rate at the largest bank in Nevada, as ascertained by the
Commissioner of Financial Institutions, on January 1 or July 1, as the case may
be, immediately preceding the date of the claim, plus 3 percent, compounded
monthly, from the date the claim is paid from the Account until payment is
received by the Division from the employer.
13. Attorneys fees recoverable by the
Division pursuant to this section must be:
(a) If a private attorney is retained by the
Division, paid at the usual and customary rate for that attorney.
(b) If the attorney is an employee of the
Division, paid at the rate established by regulations adopted by the Division.
Any money
collected must be deposited to the Uninsured Employers Claim Account.
14. If the Division has not obtained a
civil judgment or an entry of summary judgment pursuant to NRS 617.4015 and the Division assigns a
debt that arises under this section to the State Controller for collection
pursuant to NRS 353C.195 , the State
Controller may bring an action in his or her own name in a court of competent
jurisdiction to recover any amount that the Division is authorized to recover
pursuant to this section.

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