Revises provisions relating to industrial insurance. (BDR 53-946)
One of the most significant impacts of SB274 is the alteration of how insurers and third-party administrators can manage insurance claims. The legislation removes certain requirements mandating that insurers maintain physical offices in the state. This change is intended to provide flexibility for insurance companies and potentially reduce operational costs, but it raises concerns regarding the accessibility of services for injured workers. There is a strong emphasis on ensuring that all necessary records can be accessed online, which supporters argue will streamline processes and improve users’ experience.
Senate Bill 274, sponsored by Senator Daly, proposes notable revisions to the Nevada Industrial Insurance Act, which governs compensation for employees injured in the course of employment. Primarily, the bill revises the requirements for the administration of insurance claims and the management of related records. Key changes include allowing insurers to administer claims from outside the state while still ensuring that records are maintained adequately. Additionally, the bill enables records to be inspected electronically, which aims to improve accessibility for injured employees seeking information about their claims.
In summary, SB274 aims to modernize the administration of industrial insurance in Nevada by enhancing accessibility and streamlining procedures. While these changes are met with enthusiasm from some industry stakeholders who anticipate greater efficiency, there are valid concerns about how this may affect injured workers' rights and the effectiveness of their compensation claims.
However, the bill has faced opposition focused on the oversight of claims and the management of medical evaluations. Critics argue that allowing third-party administrators to operate outside the state might create barriers to effective communication between claimants and insurers. Moreover, revisions regarding how physicians and chiropractic physicians are selected for evaluations could dilute the quality and consistency of medical assessments. Concerns have also been raised about the suitability of the penalties for violations of the Industrial Insurance Act, with the bill proposing to increase minimum penalty amounts significantly.