686B.230 - Nevada Essential Insurance Association: General powers.
686B.230 Nevada Essential Insurance Association: General powers.
1. The Nevada Essential Insurance Association has, for purposes of this section and to the extent approved by the Commissioner, the general powers and authority granted under the laws of this state to carriers licensed to transact the kinds of insurance defined in NRS 681A.020 to 681A.080, inclusive.
2. The Association may take any necessary action to make available necessary insurance, including but not limited to, the following:
(a) Assess participating insurers amounts necessary to pay the obligations of the Association, administration expenses, the cost of examinations conducted pursuant to NRS 687A.110 and other expenses authorized by this chapter. The assessment of each member insurer for the kind or kinds of insurance designated in the plan must be in the proportion that the net direct written premiums of the member insurer for the preceding calendar year bear to the net direct written premiums of all member insurers for the preceding calendar year. A member insurer may not be assessed in any year an amount greater than 5 percent of his or her net direct written premiums for the preceding calendar year. Each member insurer must be allowed a premium tax credit at the rate of 20 percent per year for 5 successive years beginning on the first day of the calendar year after the calendar year in which the insurer pays the assessment pursuant to this subsection.
(b) Enter into such contracts as are necessary or proper to carry out the provisions and purposes of this section.
(c) Sue or be sued, including taking any legal action necessary to recover any assessments for, on behalf of or against participating carriers.
(d) Investigate claims brought against the fund and adjust, compromise, settle and pay covered claims to the extent of the Association’s obligation and deny all other claims. Process claims through its employees or through one or more member insurers or other persons designated as servicing facilities. Designation of a service facility is subject to the approval of the Commissioner, but such a designation may be declined by a member insurer.
(e) Classify risks as may be applicable and equitable.
(f) Establish appropriate rates, rate classifications and rating adjustments and file those rates with the Commissioner in accordance with this chapter.
(g) Administer any type of reinsurance program for or on behalf of the Association or any participating carriers.
(h) Pool risks among participating carriers.
(i) Issue and market, through agents, policies of insurance providing the coverage required by this section in its own name or on behalf of participating carriers.
(j) Administer separate pools, separate accounts or other plans as may be deemed appropriate for separate carriers or groups of carriers.
(k) Invest, reinvest and administer all funds and moneys held by the Association.
(l) Borrow funds needed by the Association to carry out the purposes of this section.
(m) Develop, effectuate and promulgate any loss-prevention programs aimed at the best interests of the Association and the insuring public.
(n) Operate and administer any combination of plans, pools, reinsurance arrangements or other mechanisms as deemed appropriate to best accomplish the fair and equitable operation of the Association for the purposes of making available essential insurance coverage.
3. In providing for the recoupment of a deficit of the Association, an option must be offered to an insured each policy year to pay a capital stabilization charge which must not exceed 100 percent of the premium charged to the insured in that year. The Board of Directors shall determine the amount of the charge from appropriate factors of loss experience and risk associated with the Association and the insured. An insured who pays the stabilization charge must not be required to pay any assessment to recoup a deficit of the Association incurred in any policy year for which the charge is paid. The Association’s plan of operation must provide for the return to the insured of so much of the insured’s payment as remains after all actual or potential liabilities under the policy have been discharged.
(Added to NRS by 1975, 398; A 1977, 305; 2003, 3305)