Nevada recently passed workers’ compensation statutes (NRS 616C.473 & NRS 616C.508) that mandate an annual 2.3%  cost of living adjustment (COLA) on all Permanent Total Disability (PTD) losses incurred after January 1, 2004 & Death Benefits.  The impact of these increases for insurers and self-insureds on Nevada workers’ compensation claims is quite dramatic.   For example, under the new statutes, a claimant with a 40-year life expectancy would receive approximately 61% more benefits than they would have without the COLA escalations over their life. 

While the restrictions on settlements limit traditional structured settlements, Chronovo can mitigate these ballooning future liabilities with annuities that fund Reinsurance Agreements and/or Periodic Payment Agreements (PPA).

Section NRS 616C.412 of Nevada’s worker’s comp statute allows the carrier or self-insured to purchase annuities to ensure the payment of benefits.  An annuity can exactly replicate these PTD & Death benefits and provide for the 2.3% COLA over the claimant’s lifetime.  As a result, an insurer/self-insured employer can take advantage of the discounted present value cost of the annuity and the reduction in overhead to administer these benefits by purchasing an annuity.

Because Nevada worker’s comp claimants have the right to reopen their claim, the carrier or self-insured cannot utilize an assigned qualified structured annuity.  Reinsurance Agreements and/or Periodic Payment Agreements (PPA) were created for these exact types of restrictions.  Reinsurance Agreements and/or Periodic Payment Agreements (PPA) are binding agreements that do not require the claimant’s consent. The life company assumes the liability to make future periodic payments on behalf of the insurer/self-insured employer.  Both these agreements meet the required obligations under the Nevada Workers Comp Act.

For more information about mitigating these future liabilities or to discuss specific claims, do not hesitate to reach out to me directly.  You can reach me by phone at (415) 298-7872 or email at  For additional articles about structured settlements and their implementation, you can visit our website at