Payment of compensation by insurer prohibited before required; recovery of overpayment by insurer.
1. An insurer shall not provide compensation to or for an employee or his dependents before the compensation is required to be paid pursuant to the provisions of chapters 616A to 616D, inclusive, of NRS.
2. If, within 30 days after a payment is made to an injured employee pursuant to the provisions of chapters 616A to 616D, inclusive, of NRS, the insurer determines that it has overpaid the injured employee as a result of a clerical error in its calculation of the amount of payment, or as a result of using improper or incorrect information to determine the injured employee’s eligibility for payment or to calculate the amount of payment, the insurer may deduct the amount of the overpayment from future benefits related to that claim to which the injured employee is entitled, other than accident benefits, if:
(a) The insurer notifies the injured employee in writing of its determination;
(b) The insurer informs the injured employee of his right to contest the deduction; and
(c) The injured employee fails to contest the deduction or does so and upon final resolution of the contested deduction, it is determined that such an overpayment was made.
3. Any deductions made pursuant to subsection 2 must be made in a reasonable manner which does not cause undue hardship to the injured employee.
Last modified: February 25, 2006