NAC616B.424. Eligibility to self-insure.

In order to be eligible to establish a program of self-insurance, an employer must:

     1. Except as otherwise provided in NAC 616B.427 and 616B.433, be a legally qualified business entity having a tangible net worth of at least $2,500,000.

     2. If other than a governmental employer, be licensed to do business in Nevada.

     3. Make the deposit required by NAC 616B.436. If the business has been operated at a loss in any of the past 3 years, the Commissioner may increase the required deposit by a minimum amount of 20 percent of the deposit.

     4. Present evidence that the business has administrative resources which will enable it to timely report, administer and settle all claims. The resources which are necessary include, but are not limited to:

     (a) The ability of the employer to know and correctly apply the worker’s compensation laws and regulations of this State;

     (b) A qualified, licensed and competent administrator of the program who is located in Nevada;

     (c) An existing and feasible plan for the program of self-insurance which provides for an immediate and personal response to an employee’s claim;

     (d) A plan for the administration of claims which includes written instructions or examples of how to apply the worker’s compensation law to ensure continuity of service to employees as well as ease of audit by company personnel and regulatory agencies;

     (e) The ability to communicate the plan for the administration of the program, including such topics as benefits, filing procedures and the right of appeal, to the appropriate managers of the business and to all employees; and

     (f) Standards of performance for the administration of the program of self-insurance.

     [Comm’r of Insurance, PC-25 § 11, eff. 8-6-80]—(NAC A 1-4-91)—(Substituted in revision for NAC 616.156)