1. To determine his or her obligation to pay premiums for industrial insurance on behalf of his or her subcontractors and independent contractors and their employees, a principal contractor or owner of property acting as a principal contractor may request the appropriate insurer to:

(a) Provide the principal contractor or owner with a statement certifying whether:

(1) Each of the subcontractors and independent contractors working in the principal contractor’s or owner’s project is insured; and

(2) Each sole proprietor who is a subcontractor or independent contractor has elected coverage for himself or herself pursuant to chapters 616A to 617, inclusive, of NRS.

(b) During the course of the project, notify the principal contractor or owner whenever any of the subcontractors or independent contractors fail to pay premiums or otherwise maintain industrial insurance.

2. Upon completion of the project, the principal contractor or owner may request the insurer to certify that each subcontractor or independent contractor who was previously reported by the insurer as having coverage for industrial insurance has maintained it by paying all premiums due throughout the entire course of the project. The insurer shall, within 60 days after receiving such a request, issue:

(a) A final certificate which states that each such subcontractor and independent contractor has paid in full all premiums due for the project and that the principal contractor or owner is relieved of all liability for payment of any additional premiums related to the particular project; or

(b) A letter denying the issuance of a final certificate related to the project. Such a letter may be issued if a subcontractor or independent contractor:

(1) Is delinquent in the payment of premiums due on the project;

(2) Has left the State;

(3) Is uncooperative in a required audit of his or her records;

(4) Is principally located out of State and an audit is required;

(5) Is delinquent in submitting his or her records relating to his or her payroll;

(6) Has closed his or her account with the insurer and premiums are due;

(7) Has failed to submit required information to the insurer;

(8) Is protesting the results of a required audit;

(9) Elected not to insure himself or herself; or

(10) Has committed any other action which, in the opinion of the insurer, may result in his or her failure to pay all premiums due.

3. If the insurer does not issue a final certificate or letter denying the issuance of the certificate within 60 days after receiving a request therefor, a final certificate shall be deemed to have been issued.

(Added to NRS by 1987, 449; A 1995, 2017) — (Substituted in revision for NRS 616.288)