NAC648.495. Insolvency of licensee.

     1. If a self-insured licensee becomes insolvent, the financial institution in which the deposit required by NAC 648.480 is made shall immediately give written notice to the Board regarding the licensee’s insolvency.

     2. Upon receipt of the notice, the Board may apply to a court of competent jurisdiction to have the deposit held for not more than 2 years to pay any claims made against the licensee.

     3. If a self-insured licensee becomes insolvent, he or she may, if allowed by the Board, present evidence to the Board that the licensee’s program of self-insurance should be allowed to continue. Such evidence must be presented not later than 10 days after the Board receives notice that the licensee is insolvent.

     4. For the purposes of this section, a licensee is insolvent if:

     (a) The amount of the licensee’s deposit is reduced below $200,000; or

     (b) The financial institution in which the deposit is made has reasonable cause to believe that the deposit will be so reduced.

     (Added to NAC by Priv. Investigator’s Lic. Bd., eff. 1-27-89)