Nev. Admin. Code § 616B.572 - Purchase of annuity for payment of claim
1. Except as
otherwise provided in subsection 11, an association may purchase an annuity
payable to an employee who has filed a claim pursuant to chapters 616A to 617,
inclusive, of NRS, or to the employee's beneficiary, for the compensation owed
to the employee as a result of an industrial injury or occupational disease,
except accident benefits, if:
(a) The annuity
is purchased from an insurer authorized to do business in this State;
(b) The employee or the beneficiary is the
annuitant and all payments made pursuant to the annuity will be made directly
to the employee or the beneficiary; and
(c) The purchase of the annuity by the
association on behalf of the employee is made to provide compensation owed to
the employee or the beneficiary pursuant to chapters 616A to 617, inclusive, of
NRS.
2. The purchase of
an annuity pursuant to this section does not:
(a) Settle the employee's claim for
compensation;
(b) Prohibit the
employee from reopening or contesting the claim; or
(c) Transfer the responsibility of the
association to provide, in a timely manner, accurate payments of compensation
owed to the employee to the insurer or any other party.
3. Each contract for an annuity purchased
pursuant to this section must set forth the provisions of subsections 1 and
2.
4. An annuity purchased pursuant
to this section may not be assigned.
5. An association which purchases an annuity
pursuant to this section shall make all payments required for the purchase of
the annuity.
6. The amount of the
total payments made to an employee pursuant to an annuity purchased pursuant to
this section may not be less than the amount of compensation, other than
accident benefits, owed to the employee pursuant to chapters 616A to 617,
inclusive, of NRS.
7. An
association which purchases an annuity pursuant to this section:
(a) Shall classify the purchase of the
annuity as an amount paid for indemnity; and
(b) May reduce its reserve balance for
indemnity for the claim by the amount of compensation owed to the employee
pursuant to chapters 616A to 617, inclusive, of NRS for the period covered by
the annuity.
8. An
association shall submit to the Administrator and the Commissioner a report
which sets forth each annuity it purchased, if any, in the preceding year. The
association shall provide the following information for each annuity listed in
the report:
(a) The name of the employee on
whose behalf the annuity was purchased;
(b) The number assigned to the claim by the
association;
(c) The number of the
contract for the annuity;
(d) The
amount paid for the annuity; and
(e) The name of the insurer who issued the
annuity.
9. An
association shall submit the report required pursuant to subsection 8 to:
(a) The Administrator upon the request of the
Administrator; and
(b) The
Commissioner with the filing of the annual report which is required of
associations pursuant to NAC 616B.564.
10. An insurer who sells an annuity to an
association pursuant to this section shall, within 10 days after the contract
for the annuity is executed, submit a copy of that contract to the
Administrator, the Commissioner and the association.
11. An association may, upon the approval of
the Commissioner, purchase an annuity to pay the accident benefits of an
employee incurred as a result of an industrial injury or occupational
disease.
Notes
NRS 616A.400
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