616B.368 - Board of trustees: Fiscal responsibilities; establishment of accounts; review of accounts by Commissioner.
616B.368 Board of trustees: Fiscal responsibilities; establishment of accounts; review of accounts by Commissioner.
1. The board of trustees of an association of self-insured public or private employers is responsible for the money collected and disbursed by the association.
2. The board of trustees shall:
(a) Establish a claims account in a financial institution in this State which is approved by the Commissioner and which is federally insured or insured by a private insurer approved pursuant to NRS 678.755. Except as otherwise provided in subsection 3, at least 75 percent of the annual assessment collected by the association from its members must be deposited in this account to pay:
(1) Claims;
(2) Expenses related to those claims;
(3) The costs associated with the association’s policy of excess insurance; and
(4) Assessments, payments and penalties related to the Subsequent Injury Account and the Uninsured Employers’ Claim Account.
(b) Establish an administrative account in a financial institution in this State which is approved by the Commissioner and which is federally insured or insured by a private insurer approved pursuant to NRS 678.755. The amount of the annual assessment collected by the association that is not deposited in its claims account must be deposited in this account to pay the administrative expenses of the association.
3. The Commissioner may authorize an association to deposit less than 75 percent of its annual assessment in its claims account if the association presents evidence to the satisfaction of the Commissioner that:
(a) More than 25 percent of the association’s annual assessment is needed to maintain its programs for loss control and occupational safety; and
(b) The association’s policy of excess insurance attaches at less than 75 percent.
4. The board of trustees may invest the money of the association not needed to pay the obligations of the association pursuant to chapter 682A of NRS.
5. The Commissioner shall review the accounts of an association established pursuant to this section at such times as the Commissioner deems necessary to ensure compliance with the provisions of this section.
(Added to NRS by 1993, 673; A 1999, 1527; 2001, 2756)