Section 616B.463 - Estimated expenditures for claims; calculation of reserve for reopened claims1. A self-insured employer must calculate the estimated expenditure for each claim reported in the annual report. The estimated expenditure for a claim is the total liability attributable to the industrial accident or occupational disease, and includes the total amount of money disbursed as benefits for the claim and the estimated additional cost, including future costs actually and potentially due, which may result from the settlement of a claim, regardless of when it will be paid.2. The Commissioner may revise the estimated expenditure for a claim which, in his or her opinion, is inaccurate or inadequate. A revision will be made only after the self-insured employer has been notified in writing and given an opportunity to object to it.3. A reserve for reopened claims will be calculated by the Division of Insurance based upon a percentage of the actual expenses paid on all closed claims. The percentage will be based upon the following sliding scale according to the number of uninterrupted years the employer has been in the self-insured program: (a) Inception to 5 years in the program, 3 percent;(b) Six to 10 years in the program, 2 percent;(c) Eleven to 15 years in the program, 1 percent; and(d) More than 15 years in the program, 0.5 percent.4. The number of years an employer has been self-insured will be based upon the State's fiscal year beginning July 1 and ending June 30. If the date of certification is on or before December 31, a full year will be calculated for the first year of certification. If the date of certification is January 1 or after, the beginning year of certification will not be counted. The number of uninterrupted years an employer has been self-insured will be calculated from the last date on which he or she was certified a self-insured employer.Nev. Admin. Code § 616B.463
Comm'r of Insurance, PC-25 § 22, eff. 8-6-80-NAC A 1-24-92