NAC616B.603. Determination and consideration of loss ratio.

Except as otherwise provided in this section, an employer with a loss ratio of 115 percent or higher under any program or contract of insurance for workers’ compensation may not join an association. The Commissioner may allow an employer with a loss ratio higher than 115 percent to join an association if the employer demonstrates to the Commissioner that its loss ratio is the result of an unusual circumstance, such as a single loss, a claim that should have been subrogated or a claim that should have been submitted to a Subsequent Injury Account. The Commissioner will determine the loss ratio of a prospective member of an association by taking the average of the loss ratios of the prospective member for the 3 most recent fiscal years ending not less than 1 year before the date of application by the prospective member.

     (Added to NAC by Comm’r of Insurance, eff. 3-22-96; A by Div. of Industrial Relations by R112-98, 12-18-98)