What happens if my workers' compensation insurer refuses to pay a settlement or award in Nevada?

Under NRS 616D.120, refusing to pay compensation that has already been ordered by a hearing officer, appeals officer, or court is a serious violation. The Administrator is required to impose a fine of $1,500 for a first offense and $15,000 for repeat offenses. On top of that, the insurer can be ordered to pay you a benefit penalty ranging from $17,000 to $120,000 depending on the harm you suffered. If the payment was only slightly late or involved a small amount under $500, the penalty is $3,000. These penalties must be paid directly to you within 15 days of the Administrator's decision.

What is a benefit penalty in Nevada workers' compensation and who receives it?

A benefit penalty is a financial punishment paid directly to an injured worker when an insurer, employer, or administrator commits certain serious violations, like pressuring a claimant into a lowball settlement or refusing to process a claim. The penalty amount falls between $17,000 and $120,000 in most cases, and it is separate from any workers' compensation benefits you were already owed. Receiving a benefit penalty does not reduce your other compensation. If the injured worker dies before the payment is made, the money is paid to their estate instead.

Can an insurer lose its license for violating workers' compensation rules in Nevada?

Yes. Under this statute, an insurer or third-party administrator that accumulates two or more fines of $1,000 or more within a single year can have that record used as grounds to revoke their certification. The Commissioner has the authority to withdraw a certificate to operate as a self-insured employer or as a registered third-party administrator after a hearing confirms the violations. This means repeated bad behavior puts an organization's ability to operate in Nevada at serious risk.

What qualifies as an illegal attempt to pressure an injured worker into a low settlement in Nevada?

The statute specifically prohibits any effort to convince an injured worker to settle for less than a reasonable amount, whether or not a hearing or appeal is already pending. It also covers situations where someone is pressured to accept less than what a court or hearing officer has already determined they are owed. These actions are treated as serious violations that trigger mandatory fines and benefit penalties, not just discretionary ones.

How long does an insurer have to pay a workers' compensation settlement or award in Nevada?

The deadlines depend on the type of decision. For a written settlement agreement or stipulation, payment must be made within 10 days. For a decision issued by a court, hearing officer, appeals officer, or the Division, the deadline is 30 days unless a stay has been granted. If a stay is later lifted, payment must follow within 10 days after that. Missing these deadlines without justification is a violation that can result in both administrative fines and a benefit penalty paid directly to the injured worker.

Resources

Illustrated graphic of the Nevada State Legislature building with the Senate wing and Nevada state flag, featuring a yellow banner headline that reads NRS 616D.120 Administrative fines and benefit penalties for certain violations; powers of Administrator; revocation or withdrawal of certificate of self-insurance or registration as third-party administrator; claim against bond for payment of administrative fines or benefit penalties.

NRS 616D.120 Administrative fines and benefit penalties for certain violations; powers of Administrator; revocation or withdrawal of certificate of self-insurance or registration as third-party administrator; claim against bond for payment of administrative fines or benefit penalties.

Nevada Revised Statutes

May 27 2025

Statutory Text Nevada Revised Statute 616D.120 sets up a system of fines and financial penalties for insurers, employers, and other organizations that mistreat injured workers during the workers' compensation process. The law is designed to protect claimants from being taken [...]

NRS 690B.020 Coverage for uninsured or hit-and-run vehicles required; exceptions; insolvency of insurer; payment; presumption.

Nevada Revised Statutes

May 27 2025

Statutory Text 1. Except as otherwise provided in this section and NRS 690B.035, no policy insuring against liability arising out of the ownership, maintenance or use of any motor vehicle may be delivered or issued for delivery in this State unless [...]

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Nevada Revised Statutes

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Statutory Text 1. NRS 687B.310 to 687B.420, inclusive, apply to all binders and all contracts of insurance the general terms of which are required to be approved or are subject to disapproval by the Commissioner, except as otherwise provided by statute [...]

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Nevada Revised Statutes

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Nevada Revised Statutes

May 15 2025

Statutory Text 1. For the purposes of this section, a dog is: (a) “Dangerous” if: (1) It is so declared pursuant to subsection 2; or (2) Without provocation, on two separate occasions within 18 months, it behaved menacingly, to a degree that would lead [...]

NRS 41.133 Conviction of crime is conclusive evidence of facts necessary to impose civil liability for related injury.

Nevada Revised Statutes

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Statutory Text If an offender has been convicted of the crime which resulted in the injury to the victim, the judgment of conviction is conclusive evidence of all facts necessary to impose civil liability for the injury. (Added to NRS [...]