NAC616B.433. Determination of tangible net worth of employer; authority of Commissioner to accept additional deposit.

     1. To determine the tangible net worth, as defined in NRS 616A.330, of a self-insured employer, he or she shall submit to the Commissioner all financial statements and accompanying footnotes, including an independent auditor’s opinion. Each statement must be audited.

     2. The following factors must be used to review the audited financial statements:

     (a) The auditor’s opinion.

     (b) The various financial ratios, including working capital and cash flow.

     (c) Any footnotes related to:

          (1) A contingency or commitment;

          (2) A party;

          (3) A bad debt; or

          (4) The restructuring of an operation.

     3. If any of the factors in subsection 2 are deemed material, the Commissioner may deny certification.

     4. If, after the adjustments are made pursuant to subsection 1, the employer’s statement demonstrates a strong financial position and meets the tests in subsection 2, the Commissioner may accept as an additional deposit any instrument described in NAC 616B.436 in the amount of $2,500,000 in lieu of the requirement set forth in subsection 1 of NAC 616B.424. The deposit described in this subsection must be separate from the deposit required pursuant to NRS 616B.300.

     (Added to NAC by Comm’r of Insurance, eff. 1-4-91; A by R112-04, 8-25-2004; R119-07, 12-4-2007)