Nevada § 425.364 - Insurers to exchange certain information with Program; duties of insurers

§ 425.364. Insurers to exchange certain information with Program; duties of insurers

1. Except as otherwise provided in subsections 7 and 8, each insurer shall, not later

than 5 days after opening a tort liability claim for bodily injury or wrongful death,

a workers' compensation claim or a claim under a policy of life insurance, exchange

information with the Program in the manner prescribed by the Division to verify whether

the claimant owes debt for the support of one or more children to the Division or

to a person receiving services from the Program. To the extent feasible, the Division shall facilitate a secure electronic process

to exchange information with insurers pursuant to this subsection. The obligation of an insurer to exchange information with the Program is discharged

upon complying with the requirements of this subsection. 2. Except as otherwise provided in subsections 4 and 6, if an insurer is notified

by the Program that a claimant owes debt for the support of one or more children to

the Division or to a person receiving services from the Program, the insurer shall,

upon receipt of a notice issued by the enforcing authority identifying the amount

of debt owed pursuant to chapter 31A of NRS: (a) Not later than 5 days after receiving notice from the enforcing authority, notify

the claimant and his or her attorney, if known to the insurer, of the debt owed; (b) Withhold from payment on the claim the amount specified in the notice; and (c) Remit the amount withheld from payment to the enforcing authority within 30 days. 3. If an insurer withholds any money from payment on a claim and remits the money

to the enforcing authority pursuant to subsection 2, the insurer shall notify the

claimant and his or her attorney, if known to the insurer, of that fact. 4. The enforcing authority shall give any lien, claim or demand for attorney's fees

or costs, medical expenses or property damage, including, without limitation, a demand

for attorney's fees or costs incurred in connection with compensation that is subject

to the provisions of NRS 616C.205 , priority over any withholding of payment pursuant to subsection 2. 5. Any information obtained pursuant to this section must be used only for the purpose

of carrying out the provisions of this section. Notwithstanding the provisions of this subsection, an insurer or an insurance claim

data collection organization approved by the Division or other entity that performs

the functions described in subsection 8 may not be held liable in any civil or criminal

action for any act made in good faith pursuant to this section, including, without

limitation: (a) Any disclosure of information to the Division or to the Program; or (b) The withholding of any money from payment on a claim or the remittance of such

money to the enforcing authority. 6. An insurer shall not delay the disbursement of a payment on a claim to comply with

the requirements of this section. An insurer is not required to comply with subsection 2 if the notice issued by the

enforcing authority is received by the insurer after the insurer has disbursed the

payment on the claim. In the case of a claim that will be paid through periodic payments, the insurer: (a) Is not required to comply with the provisions of subsection 2 with regard to any

payments on the claim disbursed to the claimant before the notice was received by

the insurer; and (b) Must comply with the provisions of subsection 2 with regard to any payments on

the claim scheduled to be made after the receipt of the notice. 7. If periodic payments will be made to a claimant, an insurer is only required to

engage in the exchange of information pursuant to subsection 1 before issuing the

initial payment. 8. Except as otherwise provided in this subsection, if an insurer reports information

concerning claimants to an insurance claim data collection organization approved by

the Division, the insurer may comply with the requirements of this section by authorizing

the insurance claim data collection organization to provide claimant information to

the federal Office of Child Support Enforcement of the Administration for Children

and Families of the United States Department of Health and Human Services, the Program

or a designee identified by the Program for the sole purpose of complying with this

section. If no insurance claim data collection organization is approved by the Division,

an insurer may comply with the requirements of this section by authorizing an entity

determined by the Division to perform the same function as an insurance claim data

collection organization to provide claimant information to the federal Office of Child

Support Enforcement, the Program or a designee identified by the Program for the sole

purpose of complying with this section. 9. As used in this section: (a) “ Claimant ” means any person who: (1) Brings a tort liability claim for bodily injury or wrongful death against an insured

under a casualty insurance policy, as defined in NRS 681A.020 , or a property insurance policy, as defined in NRS 681A.060 ; (2) Is a beneficiary under a life insurance policy; or (3) Is receiving workers' compensation benefits. (b) “ Claim for bodily injury ” does not include a claim for uninsured or underinsured vehicle coverage or medical

payments coverage under a motor vehicle liability policy. (c) “ Insurance claim data collection organization ” means an organization that maintains a centralized database of information concerning

insurance claims to assist insurers that subscribe to the database in processing claims

and detecting and preventing fraud. (d) “ Insurer ” means: (1) A person who holds a certificate of authority to transact insurance in this State

pursuant to NRS 680A.060 . (2) A nonadmitted insurer, as defined in NRS 685A.0375 , with whom nonadmitted insurance, as defined in NRS 685A.037 , is placed. (3) The Nevada Insurance Guaranty Association created by NRS 687A.040 .