Nev. Admin. Code § 616B.424

Current through November 8, 2024

Section 616B.424 - Eligibility to self-insure

In order to be eligible to establish a program of self-insurance, an employer must:

1. Except as otherwise provided in NAC 616B.427 and 616B.433, be a legally qualified business entity having a tangible net worth of at least $2,500,000.

2. If other than a governmental employer, be licensed to do business in Nevada.

3. Make the deposit required by NAC 616B.436. If the business has been operated at a loss in any of the past 3 years, the Commissioner may increase the required deposit by a minimum amount of 20 percent of the deposit.

4. Provide a complete copy of a policy of excess insurance to the Commissioner within 60 days after the issuance of the policy as evidence of excess insurance in accordance with NRS 616B.300. The policy must, without limitation:

(a) Provide coverage for losses in excess of a self-insured retention of not less than $100,000;

(b) Contain a provision requiring at least 60 days' notice of cancellation; and

(c) Contain a provision which states that the bankruptcy or insolvency of the self-insured employer will not relieve the insurer of its duties under the policy and that reimbursement will be made by the insurer as if the self-insured employer had not become bankrupt or insolvent.

5. Present evidence that the business has administrative resources which will enable it to timely report, administer and settle all claims. The resources which are necessary include, without limitation:

(a) The ability of the employer to know and correctly apply the worker's compensation laws and regulations of this State;

(b) A qualified, licensed and competent administrator of the program who is located in Nevada;

(c) An existing and feasible plan for the program of self-insurance which provides for an immediate and personal response to an employee's claim;

(d) A plan for the administration of claims which includes written instructions or examples of how to apply the worker's compensation law to ensure continuity of service to employees as well as ease of audit by company personnel and regulatory agencies;

(e) The ability to communicate the plan for the administration of the program, including, without limitation, such topics as benefits, filing procedures and the right of appeal, to the appropriate managers of the business and to all employees; and

(f) Standards of performance for the administration of the program of self-insurance.

Nev. Admin. Code § 616B.424

Comm'r of Insurance, PC-25 § 11, eff. 8-6-80-NAC A 1-4-91-Substituted in revision for NAC 616.156; A by R095-17AP, eff. 2/27/2018

NRS 616B.300 and 679B.130