Nevada Administrative Code › Chapter 683A - Persons Involved in Sale or Administration of Insurance › ADMINISTRATORS › Section 683A.155 - Bond or certificate of deposit

Current through June 11, 2024
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.