NAC695F.100. Application: Contents; certification of financial statements.

     1. In addition to the documents required by NRS 695F.110, an application for a certificate of authority to operate an organization must include:

     (a) All documents describing the financing and ownership of the organization, including financial statements and copies of any contracts made or to be made between the organization and any:

          (1) Member of the governing board or committee of the organization;

          (2) Corporate officers of the organization, if the organization is a corporation;

          (3) Partners of the organization, if the organization is a partnership; and

          (4) Providers associated or to be associated with the organization, regarding the provision of a limited health service to enrollees.

     (b) A description of the proposed geographic area of service for the organization.

     (c) A proposed plan of operation for the first 3 years of operation based on projected total income and projected total expenses. The amounts set forth for the costs of a limited health service and the use of that service in the proposed plan must be certified by a qualified actuary.

     (d) Pro forma balance sheets and statements of earnings, retained earnings and cash flow for each of the 3 years of the proposed plan of operation.

     (e) A separate schedule setting forth all factors and underlying assumptions regarding the proposed plan of operation.

     (f) If the organization has 3 years or more of operational experience, financial statements demonstrating that the organization has realized a net financial gain, after taxes, from its underwriting activities and the investment of its income, during 3 or more recent years. The Commissioner may waive this requirement if the organization is a subsidiary of an insurer licensed in this State.

     2. All financial statements required by this section must be certified by an independent certified public accountant.

     (Added to NAC by Comm’r of Insurance, eff. 2-3-97)