Nev. Admin. Code § 616B.433 - Determination of tangible net worth of employer; authority of Commissioner to accept additional deposit

1. To enable the Commissioner to determine the tangible net worth of a self-insured employer, the employer 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. In determining the tangible net worth of a self-insured employer, the Commissioner will disallow as assets of the employer:

(a) Goodwill; and

(b) Any other item listed as an asset that is deemed unacceptable by the Commissioner because it cannot be justified or does not directly support the ability of the employer to pay a claim.

5. If, after accounting for the factors in subsection 2, the Commissioner determines that the employer's financial statements do not demonstrate the tangible net worth otherwise required by subsection 1 of NAC 616B.424, but demonstrate that the employer has sufficient financial resources to make certain the prompt payment of all compensation that may be due under chapters 616A to 616D, inclusive, or chapter 617 of NRS, 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.

Notes

Nev. Admin. Code § 616B.433

Added to NAC by Comm'r of Insurance, eff. 1-4-91; A by R112-04, 8-25-2004; R119-07, 12-4-2007; A by R072-16A, eff. 11/2/2016

NRS 616B.300, 679B.130