1. Except as
otherwise provided in subsection 3, and in addition to the amount prescribed by
statute, the amount of the bond for each administrator must be increased as
follows for each $1,000,000 of the total amount of money handled by the
administrator within this State during an average month:
|
Amount of Money Handled
|
Total Amount of Bond
|
|
$1,000,000 or less
........................................................................
|
...................... $100,000
|
|
More than $1,000,000, but less than $2,000,000
.........................
|
............................ 200,000
|
|
$2,000,000 or more, but less than $3,000,000
.............................
|
............................ 300,000
|
|
$3,000,000 or more, but less than $4,000,000
.............................
|
............................ 400,000
|
|
$4,000,000 or more, but less than $5,000,000
.............................
|
............................ 500,000
|
|
$5,000,000 or more
......................................................................
|
10 percent of the amount of money handled, but not
more than $1,000,000
|
2. If
the Commissioner finds that the increased bonds are unavailable, the Division
will accept proof of coverage over $100,000 in the additional amounts specified
in subsection 1 under a fidelity policy and a policy which covers the errors
and omissions of the administrator or his or her employees. The policies must
be reviewed and approved by the Division and provide for notice to the Division
90 days before their cancellation or nonrenewal. Proof of the increases in the
bond or the policies of insurance must be furnished to the Division within 30
days after the increase.
3. If an
administrator is not authorized to issue a check or draft and only handles
claims for the person employing him or her, the administrator is only required
to maintain the bond for $100,000.
4. For the purposes of this section, the
amount of money handled by the administrator during an average month is the
total amount of money handled by the administrator on behalf of contracted
entities in connection with his or her activities as an administrator in this
State during a fiscal year, divided by 12.
5. An administrator may submit a certificate
of deposit from a financial institution in this State that is insured
federally, made payable to the
Commissioner of Insurance and the administrator,
in lieu of the bond required by
NRS
683A.0857. The certificate of deposit must:
(a) State that the amount of the deposit is
unavailable for withdrawal except upon the signed authorization of the
Division; and
(b) Be accompanied by
a statement or letter from the issuing financial institution which verifies
that:
(1) The requisite amount of money is
being held to satisfy the requirement for a deposit; and
(2) The amount of the deposit is unavailable
for withdrawal except upon the signed authorization of the Division.
Notes
Nev. Admin. Code §
683A.155
Added to NAC by Comm'r
of Insurance, eff. 1-22-86; A 11-21-88; 5-27-92; 12-15-94; R152-99, 1-28-2000;
A by
R075-16A,
eff. 11/2/2016
NRS
679B.130,
683A.0857
