NAC706.192. Programs of self-insurance.

     1. A common or contract motor carrier may apply to operate under a program of self-insurance in lieu of or in addition to the insurance required by NAC 706.191.

     2. The application must include, without limitation, the following:

     (a) A certificate of self-insurance issued by the Department pursuant to NRS 485.380.

     (b) A letter requesting approval of the program of self-insurance and stating that the applicant understands the provisions of this section.

     (c) A proposal setting forth the proposed surety and an explanation of how it corresponds to the requirements of NAC 706.191.

     (d) A copy of the carrier’s application to the Department for the certificate of self-insurance and a copy of all attachments accompanying the application.

     (e) A letter from an adjusting company stating that it has agreed to handle any claims against the carrier if the program of self-insurance is approved by the Authority.

     (f) Any other information that the applicant considers relevant to the application or the Authority may request.

     3. A common or contract motor carrier may apply for self-insurance at the time of an application for a certificate, permit or license or at any time after the granting of a certificate, permit or license. If a carrier applies after the initial issuance of a certificate, permit or license, that carrier must maintain the insurance effective for that certificate, permit or license until the program of self-insurance is approved.

     4. A common or contract motor carrier may combine a contract of insurance and another surety in proposing its guarantee. The carrier must arrange for an adjusting company to handle any claims that may arise under the surety.

     5. Before the Authority grants approval of a program of self-insurance, the common or contract motor carrier must satisfy the Authority that the total surety proposed meets the minimum required pursuant to NAC 706.191.

     6. The common or contract motor carrier shall, at all times, ensure that any change in its financial position or other circumstances does not jeopardize the surety or the protection of the public.

     7. Exemption from the coverage of the insurance of materials and commodities having a low value may, upon specific application by a carrier, be authorized by the Authority. An authorized carrier may apply for this exemption whether it is self-insured or otherwise meets the requirements of NAC 706.191.

     (Added to NAC by Pub. Service Comm’n, eff. 9-1-87; A by Transportation Serv. Auth. by R071-98, 10-28-98; R078-98, 1-28-99)