Nev. Admin. Code § 695D.300 - Maintenance of financial security
1. An organization
shall maintain:
(a) A capital account with a
net worth in an amount which is the greater of:
(1) The amount of risk-based capital
determined in the manner set forth in
NRS
681B.290 and the regulations adopted pursuant
thereto; or
(2) The amount,
according to the number of members in the organization, that is not less than
the following amounts:
|
Number of Members |
Net Worth |
|
Less than 2,500 |
$50,000 |
|
2,500 to 5,000 |
$75,000 |
|
5,000 or more |
$125,000 |
(b) Except as otherwise provided in this
paragraph, a surety bond or deposit of cash or securities for the protection of
members of not less than the amount required by
NRS
695D.170. The Commissioner will allow the
bond or deposit to be reduced to $125,000 until the organization has 5,000
members.
(c) Blanket fidelity
coverage issued by an authorized insurer in an amount of not less than
$1,000,000.
(d) A contract of
insurance providing that, in the event the organization is declared insolvent
by the Division or a court of competent jurisdiction, the insurer will pay all
claims made by a member from the first dollar of eligible expenses for a period
of not less than 60 days. If this coverage is cancelled, written notice of the
cancellation must be given to the Division by the organization and its insurer
not less than 90 days before the cancellation becomes effective. The insurer
may require the organization to include in its agreements with its providers, a
requirement that the provider accept any assignment made by the organization to
the insurer for the continuation of benefits upon the insolvency of the
organization.
(e) A contract of
insurance to stop the losses of the organization, in an amount acceptable to
the Commissioner.
2. The
reserves required by
NRS
695D.250 must be segregated in a trust fund
located in a federally insured financial institution in this State. Any
interest earned on the fund may be credited to the organization.
Notes
NRS 679B.130, 695D.100, 695D.250
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