Nev. Admin. Code § 616B.537 - Required security deposit: Determination of amount; adjustment by Commissioner

1. The Commissioner will determine the amount of security an association must deposit pursuant to paragraph (d) of subsection 1 of NRS 616B.353 by calculating an amount that is one-half of the association's expected annual incurred cost of claims and increasing or decreasing that amount, if necessary and within the limitations set forth in subsection 2, based on:

(a) The past and future experience of the association with losses and expenses;

(b) The hazard of catastrophic loss for the association or the type of employers who are members of the association;

(c) The current trends concerning losses within the State;

(d) The nature of the businesses of the members of the association;

(e) The financial ability of the association to pay all compensation due under chapters 616A to 617, inclusive, of NRS;

(f) The probable stability and longevity of the operation of the association; and

(g) Such other contingencies as the Commissioner deems necessary.

2. Except as otherwise provided in subsection 3, the amount of security required must not be less than $100,000 and must not exceed an amount equal to the sum of two times the amount of the self-insured retention maintained by the association pursuant to its policy of aggregate excess insurance and the annual amount paid out for the administration of claims.

3. The Commissioner may adjust the amount of security required if he or she determines that changed conditions warrant such an adjustment, except in no case may the amount be less than $100,000.

Notes

Nev. Admin. Code § 616B.537

Added to NAC by Comm'r of Insurance, eff. 3-22-96

NRS 616B.353, 616B.446, 679B.130