NRS616B.003. Periodic audit of insurers; required standard auditing procedures; information to be shared by Division of Insurance; report to Legislature.

      1.  The Administrator shall cause to be conducted at least every 5 years an audit of all insurers who provide benefits to injured employees pursuant to chapters 616A to 616D, inclusive, or chapter 617 of NRS. The Administrator shall cause to be conducted each year on a random basis additional partial audits of any insurer who has a history of violations of the provisions of chapters 616A to 616D, inclusive, or chapter 617 of NRS, or the regulations adopted pursuant thereto, as determined by the Administrator.

      2.  The Administrator shall require the use of standard auditing procedures and shall establish a manual to describe the standard auditing procedures. The manual must include:

      (a) Specific audit objectives;

      (b) Standards for documentation;

      (c) Policies for supervisory review;

      (d) Policies for the training of auditors;

      (e) The format for the audit report; and

      (f) Procedures for the presentation, distribution and retention of the audit report.

      3.  The Commissioner and the Administrator shall establish a procedure for sharing information between the Division of Insurance of the Department of Business and Industry and the Division concerning the qualifications of employers as self-insured employers pursuant to NRS 616B.300 or as an association of self-insured public or private employers pursuant to NRS 616B.353.

      4.  On or before March 1 of each year, the Administrator shall make a report of each audit to the Legislature, if it is in session, or to the Interim Finance Committee if the Legislature is not in session.

      (Added to NRS by 1991, 2394; A 1993, 700, 1857; 1995, 531; 2003, 1670)