Nev. Admin. Code § 683A.155

Current through October 11, 2024

Section 683A.155 - Bond or certificate of deposit

1. Except as otherwise provided in subsection 3, and in addition to the amount prescribed by statute, the amount of the bond for each administrator must be increased as follows for each $1,000,000 of the total amount of money handled by the administrator within this State during an average month:

Amount of Money Handled	Total Amount of Bond
$1,000,000 or less ........................................................................	...................... $100,000
More than $1,000,000, but less than $2,000,000 .........................	............................ 200,000
$2,000,000 or more, but less than $3,000,000 .............................	............................ 300,000
$3,000,000 or more, but less than $4,000,000 .............................	............................ 400,000
$4,000,000 or more, but less than $5,000,000 .............................	............................ 500,000
$5,000,000 or more ......................................................................	10 percent of the amount of money handled, but not more than $1,000,000

2. If the Commissioner finds that the increased bonds are unavailable, the Division will accept proof of coverage over $100,000 in the additional amounts specified in subsection 1 under a fidelity policy and a policy which covers the errors and omissions of the administrator or his or her employees. The policies must be reviewed and approved by the Division and provide for notice to the Division 90 days before their cancellation or nonrenewal. Proof of the increases in the bond or the policies of insurance must be furnished to the Division within 30 days after the increase.

3. If an administrator is not authorized to issue a check or draft and only handles claims for the person employing him or her, the administrator is only required to maintain the bond for $100,000.

4. For the purposes of this section, the amount of money handled by the administrator during an average month is the total amount of money handled by the administrator on behalf of contracted entities in connection with his or her activities as an administrator in this State during a fiscal year, divided by 12.

5. An administrator may submit a certificate of deposit from a financial institution in this State that is insured federally, made payable to the Commissioner of Insurance and the administrator, in lieu of the bond required by NRS 683A.0857. The certificate of deposit must:

(a) State that the amount of the deposit is unavailable for withdrawal except upon the signed authorization of the Division; and

(b) Be accompanied by a statement or letter from the issuing financial institution which verifies that:

(1) The requisite amount of money is being held to satisfy the requirement for a deposit; and

(2) The amount of the deposit is unavailable for withdrawal except upon the signed authorization of the Division.

Nev. Admin. Code § 683A.155

Added to NAC by Comm'r of Insurance, eff. 1-22-86; A 11-21-88; 5-27-92; 12-15-94; R152-99, 1-28-2000; A by R075-16A, eff. 11/2/2016

NRS 679B.130, 683A.0857