Manner in which carrier may establish separate class of business; transferring small employer into or out of class of business.
1. Except as otherwise provided in subsection 2, a carrier serving small employers may establish no more than nine separate classes of business, and each class must reflect substantial differences in expected claim experience or administrative costs related to the following:
(a) The use of more than one type of system for the marketing and sale of health benefit plans to small employers;
(b) The acquisition of a class of business from another carrier serving small employers; or
(c) The provision of coverage to one or more groups that meet the requirements of NRS 689B.026.
2. The Commissioner may approve the establishment of additional classes of business upon application by a carrier and a finding by the Commissioner that this action would enhance the efficiency and fairness of the market for health insurance for small employers.
3. The Commissioner may adopt regulations to provide for a period of transition for a carrier serving small employers to comply with subsection 1 if the carrier acquires an additional class of business from another carrier serving small employers.
4. A carrier shall not transfer a small employer involuntarily into or out of a class of business. A carrier shall not offer to transfer a small employer into or out of a class of business unless the offer is to transfer all small employers in the class of business without regard to characteristics, claim experience, health status or duration of coverage.
Last modified: February 27, 2006