HBA-MSH, NRS H.B. 845 77(R)BILL ANALYSIS Office of House Bill AnalysisH.B. 845 By: Nixon, Joe Insurance 7/18/2001 Enrolled BACKGROUND AND PURPOSE Prior to and during the Holocaust, insurance companies sold policies to individuals who subsequently became victims of the Holocaust. Many of these policies were lost or destroyed and still remain unpaid. Prior to the 77th Legislature, Holocaust survivors and their heirs, successors, assignees, or beneficiaries attempted to collect on these policies; however, the limitation period had expired. House Bill 845 allows an action to be brought against an insurer to recover on a claim arising out of an insurance policy issued to a Holocaust victim and provides penalties for insurers that deny a claim because of the age of the claim. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS House Bill 845 amends the Insurance Code to authorize a Holocaust victim, or the heir, beneficiary, assignee, or successor of a Holocaust victim who resides in this state and has a claim arising out of an insurance policy purchased or in effect in Europe before 1946 that was delivered, issued for delivery, or renewed by an insurer to bring an action against an insurer engaged in the business of insurance in this state to recover on that claim in a court of competent jurisdiction in this state. "Holocaust victim" means a person who was killed or injured, or who lost real or personal property or financial assets as the result of discriminatory laws, policies, or actions directed against any discrete group of which the person was a member during the period of 1920 to 1945, inclusive, in Germany, areas occupied by Germany, or countries allied with Germany. The bill prohibits the dismissal of such an action for failure to comply with any applicable limitations period if the action is brought before December 31, 2012. Failure by an insurer to comply with such a claim by denying the claim on the grounds that it was not timely or by asserting a statute of limitations constitutes a violation. If the commissioner of insurance (commissioner) considers it to be necessary, the bill authorizes the commissioner to initiate an examination. If the commissioner believes that a violation by an insurer has occurred or is occurring, the bill authorizes the commissioner to impose sanctions, issue a cease and desist order, assess an administrative penalty, or refer the matter to the attorney general for appropriate enforcement. EFFECTIVE DATE May 28, 2001.