NAC287.361. Application to leave Program: Considerations for approval or denial; basis for findings by Board.

     1. In determining whether to approve or deny an application to leave the Program, the Board:

     (a) Shall consider whether:

          (1) The departure of the group from the Program would cause an increase of more than 5 percent in the costs of premiums or contributions for the remaining participants in the Program;

          (2) The proposed opt-out plan is financially sound and operated pursuant to sound accounting and financial management practices;

          (3) The proposed opt-out plan provides adequate benefits at the time of application that includes offering the same coverage to active officers and employees and retired officers and employees using rates based on the commingled experience of all active and retired participants; and

          (4) The group applying to leave the Program, and the members thereof, meet the requirements set forth in subsection 3 of NRS 287.0479.

     (b) May consider:

          (1) Whether the cumulative impact of a group leaving the Program on the costs of premiums or contributions for the remaining participants in the Program is so detrimental as to cause a significant negative impact on the Program;

          (2) Whether the current financial condition of the Program is such that the departure of the group would constitute a significant negative impact on the Program;

          (3) Whether the departure of the group is administratively feasible;

          (4) Whether independent, actuarial or other reviews obtained by the Board indicate that the departure of the group will cause a significant negative impact on the Program; and

          (5) Any other information that the Board deems relevant.

     2. Findings by the Board concerning the considerations described in subsection 1 must be based exclusively on substantial evidence.

     (Added to NAC by Bd. of Pub. Employees’ Benefits Prog. by R097-03, eff. 9-24-2003; A by R089-05, 6-28-2006; R002-12, 6-29-2012)