ccupational diseases secured by such security, or to assure the payment of claims for aggravation, payment of claims under NRS 616C.390 and payment of claims under NRS 616C.392 based on such accidental injuries or occupational diseases. 2. At the expiration of the 36-month period, or such other period as the Commissioner deems proper, the Commissioner may accept, in lieu of any security so deposited, a policy of paid-up insurance in a form approved by the Commissioner. (Added to NRS by 1979, 1038; A 2005, 1489) NRS 616B.336 Self-insured employers to furnish annual financial statements to Commissioner; Commissioner may examine records and interview employees. 1. Each self-insured employer shall furnish audited financial statements, certified by an auditor licensed to do business in this State, to the Commissioner annually within 120 days after the expiration of the self-insured employer’s fiscal year. 2. The Commissioner may examine the records and interview the employees of each self-insured employer as often as he deems advisable to determine the adequacy of the deposit which the employer has made with the Commissioner, the sufficiency of reserves and the reporting, handling and processing of injuries or claims. The Commissioner shall examine the records for that purpose at least once every 3 years. The self-insured employer shall reimburse the Commissioner for the cost of the examination. (Added to NRS by 1979, 1039; A 2003, 3339) ASSOCIATIONS OF SELF-INSURED EMPLOYERS NRS 616B.350 Qualification as association of self-insured public or private employers; application for certification; fee; confidentiality of financial information submitted for certification. 1. A group of five or more employers may not act as an association of self-insured public employers unless the group: (a) Is composed of employers engaged in the same or similar classifications of employment; and (b) Has been issued a certificate to act as such an association by the Commissioner. 2. A group of five or more employers may not act as an association of self-insured private employers unless each member of the group: (a) Is a member or associate member of a bona fide trade association, as determined by the Commissioner, which: (1) Is incorporated in this State; and (2) Has been in existence for at least 5 years; and (b) Has been issued a certificate to act as such an association by the Commissioner. 3. An association of public or private employers that wishes to be issued a certificate must file with the Commissioner an application for certification. 4. The application must include: (a) The name of the association. (b) The address of: (1) The principal office of the association. (2) The location where the books and records of the association will be maintained. (c) The date the association was organized. (d) The name and address of each member of the association. (e) The names of the initial members of the board of trustees and the name of the initial association’s administrator. (f) Such other information as the Commissioner may require. 5. The application must be accompanied by: (a) A nonrefundable filing fee of $1,000. (b) Proof of compliance with NRS 616B.353. (c) Proof that the association or its third-party administrator is licensed or otherwise authorized to conduct business in this State pursuant to title 57 of NRS. (d) A copy of the agreements entered into with the association’s administrator and a third-party administrator. (e) A copy of the bylaws of the association. (f) A copy of an agreement jointly and severally binding the association and each member of the association to secure the payment of all compensation due pursuant to chapters 616A to 617, inclusive, of NRS. (g) A pro forma financial statement prepared by an independent certified public accountant in accordance with generally accepted accounting principles that shows the financial ability of the association to pay all compensation due pursuant to chapters 616A to 617, inclusive, of NRS. (h) A reviewed financial statement prepared by an independent certified public accountant for each proposed member of the association or evidence of the ability of the association or its proposed members to provide a solvency bond pursuant to subsection 3 of NRS 616B.353. (i) Proof that each member of the association will make the initial payment to the association required pursuant to NRS 616B.416 on a date specified by the Commissioner. The payment shall be deemed to be a part of the assessment required to be paid by each member for the first year of self-insurance if certification is issued to the association. 6. Any financial information relating to a member of an association received by the Commissioner pursuant to the provisions of this section is confidential and must not be disclosed. 7. For the purposes of this section, “associate member of a bona fide trade association” means a supplier whose business, as determined by the Commissioner: (a) Is limited to a specific industry; and (b) Primarily involves providing a product or service that is directly used or consumed by substantially all of the members of the trade association or bears a direct relationship to the business of the members of the association. (Added to NRS by 1993, 669; A 1995, 1978)—(Substituted in revision for NRS 616.3791) NRS 616B.353 Indemnity agreement; policy of excess insurance; assessment; bond or similar security; minimum combined tangible net worth; bond required of association’s administrator or third-party administrator; Account for Associations of Self-Insured Public and Private Employers created. 1. An association of self-insured public or private employers shall: (a) Execute an indemnity agreement jointly and severally binding the association and each member of the association to secure the payment of all compensation due pursuant to chapters 616A to 617, inclusive, of NRS. The indemnity agreement must be in a form prescribed by the Commissioner. An association may add provisions to the indemnity agreement if they are first approved by the Commissioner. (b) Except as otherwise provided in this subsection, maintain a policy of specific and aggregate excess insurance in a form and amount required by the Commissioner. The excess insurance must be written by an insurer approved by the Commissioner. To determine the amount of excess insurance required, the Commissioner shall consider: (1) The number of members in the association; (2) If the association is an association of self-insured public employers, the types of governmental services provided by the members of the association; (3) If the association is an association of self-insured private employers, the classifications of employment of the members of the association; (4) The number of years the association has been in existence; and (5) Such other information as the Commissioner deems necessary. Nothing in this paragraph prohibits an association from purchasing secondary excess insurance in addition to the excess insurance required by this paragraph. (c) Collect an annual assessment from each member of the association in an aggregate amount of at least $250,000 or in an aggregate amount which the Commissioner determines is satisfactory based on an annual review conducted by him of the actuarial solvency of the association. (d) Except as otherwise provided in paragraph (e), deposit as security with the Commissioner a bond executed by the association as principal, and by a licensed surety, payable to the State of Nevada, and conditioned upon the payment of compensation for injuries and occupational diseases to their employees. The bond must be i

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