616B.374 - Solicitor’s permit: Advertising or offering for sale membership in proposed association of self-insured public or private employers without permit prohibited; application for permit; fee; p
616B.374 Solicitor’s permit: Advertising or offering for sale membership in proposed association of self-insured public or private employers without permit prohibited; application for permit; fee; penalty; exceptions.
1. Except as otherwise provided in this section, a person shall not advertise or offer for sale in this State any policies or memberships or solicit or receive any money, subscriptions, applications, premiums, assessments, memberships or any other fee or charge in connection with a proposed association of self-insured public or private employers unless the person has obtained a solicitor’s permit from the Commissioner.
2. To obtain a solicitor’s permit, a person must file a written application with the Commissioner. The application must include:
(a) The name, type and purposes of the association formed or proposed to be formed or financed;
(b) On forms furnished by the Commissioner, for each person associated or to be associated as director, promoter, manager, member of the board or in another similar capacity in the association, or in the formation of the proposed association or in the proposed financing:
(1) His or her name, residential address and qualifications;
(2) His or her business, professional or employment experience for the preceding 10 years; and
(3) A complete set of his or her fingerprints which the Commissioner may forward to the Central Repository for Nevada Records of Criminal History for submission to the Federal Bureau of Investigation for its report;
(c) A full disclosure of the terms of all pertinent understandings and agreements existing or proposed among any persons or entities so associated or to be associated, and a copy of each such agreement;
(d) A copy of the articles of incorporation and bylaws of a solicitor, if incorporated;
(e) The plan according to which solicitations are to be made and a reasonably detailed estimate of all administrative and sales expenses to be incurred;
(f) A copy of any certificate proposed to be offered, and a copy of any proposed application therefor;
(g) A copy of any prospectus, offering circular, advertising or sales literature or materials proposed to be used;
(h) Proof of an escrow account and agreement for the deposit of all funds collected during the formation of the association; and
(i) Such additional pertinent information as the Commissioner may reasonably require.
3. The application must be accompanied by a fee of $500 for the filing of the application and for the issuance of the permit, if granted. A solicitor must submit this fee each year thereafter if the solicitor continues to recruit new members for an association.
4. A person who violates subsection 1 is guilty of a category D felony and shall be punished as provided in NRS 193.130.
5. The provisions of this section do not apply to:
(a) A bona fide trade association that has been in existence for at least 5 years and solicits members of its trade association; or
(b) A person who is employed by:
(1) Current members of an association; or
(2) Employers that are considering membership in an association,
Ê whose primary duties do not include solicitation of potential members of the association.
(Added to NRS by 1995, 1975; A 1997, 576, 1190; 1999, 431; 2003, 2859)