NRS 616B.440
Insolvency

  • termination of liability on surety bond
  • effect of termination of surety bond.

1.

For the purposes of NRS 616B.350 to 616B.446, inclusive, an association of self-insured public or private employers is insolvent if it is unable to pay its outstanding obligations as they mature in the regular course of its business.

2.

If an association of self-insured public or private employers becomes insolvent, institutes any voluntary proceeding pursuant to the Bankruptcy Act or is named in any voluntary proceeding thereunder, makes a general or special assignment for the benefit of creditors or fails to pay compensation pursuant to chapters 616A to 616D, inclusive, or chapter 617 of NRS after an order for the payment of any claim becomes final, the Commissioner may, after giving at least 10 days’ notice to the association and any insurer or guarantor, use money or interest on securities, sell securities or institute legal proceedings on surety bonds deposited with the Commissioner to the extent necessary to make those payments.

3.

A licensed surety providing a surety bond pursuant to NRS 616B.353 may terminate liability on its surety bond by giving the Commissioner and the association, association’s administrator or third-party administrator 90 days’ written notice. The termination does not limit liability that was incurred under the surety bond before the termination. If the association fails to requalify as an association of self-insured public or private employers on or before the termination date, the association’s certificate is withdrawn when the termination becomes effective.

Source: Section 616B.440 — Insolvency; termination of liability on surety bond; effect of termination of surety bond., https://www.­leg.­state.­nv.­us/NRS/NRS-616B.­html#NRS616BSec440.

616B.350
Qualification as association of self-insured public or private employers 616B.353
Indemnity agreement 616B.356
Certificate of authority required before surety or bonding company may furnish bond or other security for association. 616B.359
Certificate of qualification as an association of self-insured employers: Time for consideration of application 616B.362
Effect of certification 616B.365
Board of trustees: Members 616B.368
Board of trustees: Fiscal responsibilities 616B.371
Association’s administrator prohibited from financial interest in third-party administrator 616B.374
Solicitor’s permit: Advertising or offering for sale membership in proposed association of self-insured public or private employers without permit prohibited 616B.377
Solicitor’s permit: Commissioner to conduct investigation after filing of application for permit 616B.380
Solicitor’s permit: Power of Commissioner to suspend or revoke permit 616B.383
Advertisements or written materials to join association of self-insured public or private employers 616B.386
Membership in association: Application 616B.388
Provision of member information upon request. 616B.392
Notification of Commissioner required if change in information submitted for certification. 616B.395
Examination of books, records, accounts and assets of association by Commissioner 616B.398
Commissioner is agent of association for receipt of initial legal process. 616B.401
Merger of associations. 616B.404
Statement of financial condition: Filing dates 616B.407
Calculation of annual assessment paid by each member of association. 616B.410
Annual audits 616B.413
Payment of dividends to members of association. 616B.416
Plan for payment of annual assessments by members of association. 616B.419
Required reserves. 616B.422
Insufficient assets to pay compensation due and maintain reserves. 616B.425
Order by Commissioner to cease and desist 616B.428
Administrative fines for violations 616B.431
Withdrawal of certificate of association: Informal meeting 616B.434
Retention by Commissioner of security deposit in event of termination of association. 616B.437
Judicial review of Commissioner’s decision. 616B.440
Insolvency 616B.443
Assessment of all associations to provide for claims against insolvent association 616B.446
Regulations.
Last Updated

Jun. 24, 2021

§ 616B.440’s source at nv​.us