Nevada SB 393: Revises provisions related to dental insurance. (BDR 57-101)

Bill Text

- 82nd Session (2023)
Senate Bill No. 393–Senator Seevers Gansert

CHAPTER..........

AN ACT relating to insurance; revising the circumstances under
which a rate paid for dental coverage is presumed to be
excessive; establishing certain procedures to enforce the
prohibition on imposing excessive rates for dental coverage;
and providing other matters properly relating thereto.
Legislative Counsel’s Digest:
Existing law prohibits the sale or offering for sale of any contract providing
coverage for dental care at a rate which is excessive, defined as a ratio of losses to
premiums collected which is less than 75 percent. Existing law exempts contracts
providing coverage for dental care that are sold to small employers from this
prohibition. (NRS 686B.125) Section 3 of this bill requires an insurer, organization
or person licensed to engage in the business of insurance in this State that provides
coverage for dental care in this State to report certain information concerning the
losses and premiums collected by the insurer, organization or person. Section 3
authorizes the Commissioner of Insurance to examine the records and transactions
of those insurers, organizations and persons to ascertain compliance with the
prohibition on selling or offering for sale any contract providing coverage for
dental care at an excessive rate and the reporting requirement. Beginning in 2026, if
the Commissioner determines that an insurer, organization or person has violated
the prohibition on charging excessive rates, section 3.5 of this bill: (1) requires the
insurer, organization or person to submit an adjusted rate filing; and (2) authorizes
the Commissioner to require the insurer, organization or person to submit a plan to
compensate insureds or members who were affected by excessive rates.

EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Sections 1 and 2. (Deleted by amendment.)
Sec. 3. NRS 686B.125 is hereby amended to read as follows:
686B.125 1. Except as otherwise provided in this section, no
insurer, organization or person licensed pursuant to this title may
sell or offer to sell any contract providing coverage for dental care at
a rate which is excessive for the benefits offered to the insured or
member. For the purpose of this section, a ratio of losses to
premiums collected which is less than 75 percent is presumed to
show an excessive rate.
2. The provisions of subsection 1 do not apply to a contract
providing coverage for dental care that is sold to a small employer
pursuant to the provisions of chapter 689C of NRS.
[3.] As used in this [section,] subsection, “small employer” has
the meaning ascribed to it in NRS 689C.095.

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- 82nd Session (2023)
3. Each year, every insurer, organization or person licensed
pursuant to this title who provides coverage for dental care in this
State shall, in accordance with requirements established by
regulation of the Commissioner, file with the Commissioner a
report of the losses and premiums collected for that insurer,
organization or person, as applicable, for the calendar year.
4. For the purposes of subsection 3, the values of losses and
premiums collected must be determined at the end of each
calendar year for the entire calendar year.
5. The Commissioner may, pursuant to NRS 679B.240,
examine the accounts, records, documents and transactions of any
insurer, organization or person licensed pursuant to this title who
sells or offers to sell any contract providing coverage for dental
care in this State to ascertain compliance with the provisions of
this section.
Sec. 3.5. NRS 686B.125 is hereby amended to read as follows:
686B.125 1. Except as otherwise provided in this section, no
insurer, organization or person licensed pursuant to this title may
sell or offer to sell any contract providing coverage for dental care at
a rate which is excessive for the benefits offered to the insured or
member. For the purpose of this section, a ratio of losses to
premiums collected which is less than 75 percent is presumed to
show an excessive rate.
2. [The provisions of subsection 1 do not apply to a contract
providing coverage for dental care that is sold to a small employer
pursuant to the provisions of chapter 689C of NRS. As used in this
subsection “small employer” has the meaning ascribed to it in
NRS 689C.095.
3.] Each year, every insurer, organization or person licensed
pursuant to this title who provides coverage for dental care in this
State shall, in accordance with requirements established by
regulation of the Commissioner, file with the Commissioner a report
of the losses and premiums collected for that insurer, organization or
person, as applicable, for the calendar year.
[4.] 3. For the purposes of subsection [3,] 2, the values of
losses and premiums collected must be determined at the end of
each calendar year fo