NAC616B.579. Account for Insolvent Associations: Additional assessment; notification by mail; failure to pay; exception.

     1. Except as otherwise provided in subsection 4, if the Commissioner determines that the balance in the Account for Insolvent Associations of Self-Insured Public or Private Employers is not sufficient to pay compensation that is due pursuant to chapters 616A to 617, inclusive, of NRS on behalf of an insolvent association or if an insolvent association or its surety fails to reimburse the Account pursuant to NAC 616B.582, the Commissioner will collect an additional assessment from all certified associations. The additional assessment will be in an amount calculated to pay all compensation that is due pursuant to chapters 616A to 617, inclusive, of NRS or to reimburse the Account for Insolvent Associations of Self-Insured Public or Private Employers.

     2. At least 20 days before the additional assessment is due, the Commissioner will notify each association, by regular mail, of its obligation to pay the additional assessment pursuant to subsection 1. The notice will include:

     (a) The amount of money the association must pay; and

     (b) The date on which the additional assessment is due.

     3. For the purposes of NRS 616B.428, the failure of an association timely to pay the additional assessment pursuant to this section is prima facie evidence that the association intentionally failed to comply with a provision of a regulation adopted by the Commissioner pursuant to chapters 616A to 616D, inclusive, of NRS.

     4. If:

     (a) The Account for Insolvent Associations of Self-Insured Public or Private Employers has been used to pay the claims of an insolvent association;

     (b) That association fails to reimburse the Account for Insolvent Associations of Self-Insured Public or Private Employers; and

     (c) The Commissioner determines that the balance of the Account for Insolvent Associations of Self-Insured Public or Private Employers is sufficient to pay compensation that is due pursuant to chapters 616A to 617, inclusive, of NRS on behalf of other insolvent associations,

Ê the Commissioner may decide not to impose an assessment pursuant to this section against associations certified on that date.

     (Added to NAC by Comm’r of Insurance, eff. 3-22-96; A by R139-99, 1-27-2000)