Section 616B.572 - Purchase of annuity for payment of claim1. 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.Nev. Admin. Code § 616B.572
Added to NAC by Comm'r of Insurance, eff. 11-1-96; A by R134-20A, eff. 9/20/2022; Added to NAC by Div. of Industrial Relations by R134-20RA, eff. 12/19/2022; A by R028-23A, eff. 2/20/2024