NRS 686B.17863
Large-deductible agreements: Full collateralization required

  • size of obligations limited.
An insurer shall:

1.

Require full collateralization of the outstanding obligations owed under a large-deductible agreement using one of the following methods:

(a)

A surety bond issued by a surety insurer authorized to transact such insurance in this State, and whose financial strength and size ratings from A.M. Best Company, Inc., are not less than “A” and “V,” respectively, or are substantially equivalent ratings from another rating agency, as determined by the Commissioner;

(b)

An irrevocable letter of credit issued by a financial institution with an office physically located within this State, and the deposits of which are federally insured; or

(c)

Cash or securities held in trust by a third party or the insurer and subject to a trust agreement for the express purpose of securing the policyholder’s obligation under a large-deductible agreement, provided that if the assets are held by the insurer, those assets may not be commingled with the insurer’s other assets; and

2.

Limit the size of the policyholder’s obligations under a large-deductible agreement to 20 percent of the total net worth of the policyholder at the inception of the policy and again at each renewal, as determined by an audited financial statement as of the most recent fiscal year-end for which such a statement is available, with the total net worth of the policyholder calculated as the difference between the total assets and the total liabilities of the policyholder.

Source: Section 686B.17863 — Large-deductible agreements: Full collateralization required; size of obligations limited., https://www.­leg.­state.­nv.­us/NRS/NRS-686B.­html#NRS686BSec17863.

686B.176
“Plan for rating experience” defined. 686B.177
Rating information to be filed with Commissioner 686B.178
Commissioner to issue written order stating reasons for disapproval and date by which insurer must discontinue use of rate. 686B.179
Revocation or suspension of license. 686B.1751
Definitions. 686B.1752
“Advisory Organization” defined. 686B.1753
“Basic premium rate” defined. 686B.1754
“Classification of risks” defined. 686B.1755
“Expenses” defined. 686B.1757
“Industrial insurance” defined. 686B.1759
“Insurer” defined. 686B.1761
“Rate” defined. 686B.1762
“Willful” defined. 686B.1763
Applicability of provisions 686B.1764
Designation 686B.1765
Powers. 686B.1767
Prohibited acts. 686B.1769
Uniform Plan for Rating Experience: Requirements 686B.1771
Plan for apportionment among insurers of persons entitled to insurance who have not been accepted by an insurer. 686B.1772
Insurers to adhere to Uniform System of Classifications of Risks and Uniform Plan for Rating Experience 686B.1773
Insurers to record and report certain information and adhere to manual of rules and Uniform Plan for Rating Experience. 686B.1774
Commissioner to determine whether interaction among insurers and employers is competitive. 686B.1775
Filing of rates and supplementary rate information by insurer with Commissioner 686B.1777
When Commissioner may require supporting information regarding rates 686B.1779
Grounds for disapproval of rates. 686B.1781
Payment of dividends: Prohibition against discrimination 686B.1782
Agreements to lessen competition among insurers prohibited 686B.1783
Maintenance of records 686B.1784
Examination by Commissioner 686B.1785
Request for reconsideration of rates 686B.1786
Large-deductible agreements: Applicability. 686B.1787
Insurer or advisory organization may request hearing before Commissioner. 686B.1789
Provisions governing hearing. 686B.1793
Penalties. 686B.1797
Insurer prohibited from withholding or giving false or misleading information to Commissioner or Advisory Organization. 686B.1799
Limitation on liability of insurer or rating organization acting within scope of employment. 686B.17595
“Large-deductible agreement” defined. 686B.17605
“Prospective loss cost” defined. 686B.17645
Duty to file with Commissioner formula to assess insurers for certain costs 686B.17863
Large-deductible agreements: Full collateralization required 686B.17867
Large-deductible agreements: Insurer in hazardous financial condition prohibited from issuing or renewing policy containing large-deductible agreement
Last Updated

Jun. 24, 2021

§ 686B.17863’s source at nv​.us