Special Investigative Account; annual assessment for costs of program to investigate acts or practices of fraud; regulations

1. The Special Investigative Account is hereby established in the Fund for Insurance Administration and Enforcement created by NRS 680C.100 for use by the Commissioner. The Commissioner shall deposit all money received pursuant to this section with the State Treasurer for credit to the Account. Money remaining in the Account at the end of a fiscal year does not lapse to the State General Fund and may be used by the Commissioner in any subsequent fiscal year for the purposes of this section. 2. The Commissioner shall: (a) In cooperation with the Attorney General, biennially prepare and submit to the Governor, for inclusion in the executive budget, a proposed budget for the program established pursuant to NRS 679B.630; and (b) Authorize expenditures from the Special Investigative Account to pay the expenses of the program established pursuant to NRS 679B.630 and of any unit established in the Office of the Attorney General that investigates and prosecutes insurance fraud. 3. The money authorized for expenditure pursuant to paragraph (b) of subsection 2 must be distributed in the following manner: (a) Fifteen percent of the money authorized for expenditure must be paid to the Commissioner to oversee and enforce the program established pursuant to NRS 679B.630; and (b) Eighty-five percent of the money authorized for expenditure must be paid to the Attorney General to pay the expenses of the unit established in the Office of the Attorney General that investigates and prosecutes insurance fraud. 4. Except as otherwise provided in subsection 5, costs of the program established pursuant to NRS 679B.630 must be paid by the insurers authorized to transact insurance in this State. The Commissioner shall collect an annual assessment from each insurer authorized to transact insurance in this State. The annual amount so assessed to each insurer: (a) Is $1,000, if the total amount of the premiums charged to insureds in this State by the insurer is less than $100,000 or if the insurer is a reinsurer that has the authority to assume only reinsurance; (b) Is $1,500, if the total amount of the premiums charged to insureds in this State by the insurer is $100,000 or more, but less than $1,000,000; (c) Is $2,000, if the total amount of the premiums charged to insureds in this State by the insurer is $1,000,000 or more, but less than $10,000,000; (d) Is $3,000, if the total amount of the premiums charged to insureds in this State by the insurer is $10,000,000 or more, but less than $50,000,000; and (e) Is $4,000, if the total amount of the premiums charged to insureds in this State by the insurer is $50,000,000 or more. 5. The provisions of this section do not apply to an insurer who provides only workers’ compensation insurance and pays the assessment provided in NRS 232.680. 6. The Commissioner shall adopt regulations to carry out the provisions of this section, including, without limitation, the collection of the assessment. 7. As used in this section, “reinsurer” has the meaning ascribed to it in NRS 681A.370.