hird-party administrator, may serve as a member of the board of trustees. Each member of the board of trustees must be a resident of this State or an officer of a corporation authorized to do business in this State. 2. The board of trustees of an association shall: (a) Ensure the prompt payment of any compensation due pursuant to chapters 616A to 616D, inclusive, or chapter 617 of NRS. (b) Take such actions as are necessary to protect the assets of the association. (c) Employ full-time an association’s administrator to carry out the policies of the board of trustees and perform such duties as the board delegates to him. An association’s administrator shall not perform any of the duties assigned to a third-party administrator. (d) Employ a third-party administrator to carry out the duties set forth in NRS 616B.503. (e) Employ an independent certified public accountant to prepare the statement of financial condition required by NRS 616B.404. (f) Maintain minutes of its meetings and make the minutes available for inspection by the Commissioner. 3. The board of trustees of an association shall not: (a) Extend credit to any member of the association for the payment of that member’s annual assessment, except pursuant to a payment plan approved by the Commissioner. (b) Borrow any money from the association or in the name of the association, except in the ordinary course of its business, without the prior approval of the Commissioner. (Added to NRS by 1993, 672; A 1995, 1981)—(Substituted in revision for NRS 616.37925) NRS 616B.368 Board of trustees: Fiscal responsibilities; establishment of accounts; review of accounts by Commissioner. 1. The board of trustees of an association of self-insured public or private employers is responsible for the money collected and disbursed by the association. 2. The board of trustees shall: (a) Establish a claims account in a financial institution in this State which is approved by the Commissioner and which is federally insured or insured by a private insurer approved pursuant to NRS 678.755. Except as otherwise provided in subsection 3, at least 75 percent of the annual assessment collected by the association from its members must be deposited in this account to pay: (1) Claims; (2) Expenses related to those claims; (3) The costs associated with the association’s policy of excess insurance; and (4) Assessments, payments and penalties related to the Subsequent Injury Account and the Uninsured Employers’ Claim Account. (b) Establish an administrative account in a financial institution in this State which is approved by the Commissioner and which is federally insured or insured by a private insurer approved pursuant to NRS 678.755. The amount of the annual assessment collected by the association that is not deposited in its claims account must be deposited in this account to pay the administrative expenses of the association. 3. The Commissioner may authorize an association to deposit less than 75 percent of its annual assessment in its claims account if the association presents evidence to the satisfaction of the Commissioner that: (a) More than 25 percent of the association’s annual assessment is needed to maintain its programs for loss control and occupational safety; and (b) The association’s policy of excess insurance attaches at less than 75 percent. 4. The board of trustees may invest the money of the association not needed to pay the obligations of the association pursuant to chapter 682A of NRS. 5. The Commissioner shall review the accounts of an association established pursuant to this section at such times as he deems necessary to ensure compliance with the provisions of this section. (Added to NRS by 1993, 673; A 1999, 1527; 2001, 2756) NRS 616B.371 Association’s administrator prohibited from financial interest in third-party administrator; third-party administrator prohibited from financial interest in association’s administrator; contractual requirement. 1. An association’s administrator employed by an association of self-insured public or private employers, or an employee, officer or director of an association’s administrator, may not be an employee, officer or director of a third-party administrator employed by the association or have a direct or indirect financial interest in the third-party administrator of the association. 2. The third-party administrator of an association of self-insured public or private employers, or an employee, officer or director of the third-party administrator, may not be an employee, officer or director of an association’s administrator employed by the association or have a direct or indirect financial interest in that association’s administrator. 3. Any contract entered into by an association of self-insured public or private employers and a third-party administrator must include a provision which states that, unless the Commissioner otherwise provides, the third-party administrator shall administer any claim or other obligation of the association to its conclusion during the period of the contract. (Added to NRS by 1993, 673; A 1995, 1982)—(Substituted in revision for NRS 616.3793) NRS 616B.374 Solicitor’s permit: Advertising or offering for sale membership in proposed association of self-insured public or private employers without permit prohibited; application for permit; fee; penalty; exceptions. 1. Except as otherwise provided in this section, a person shall not advertise or offer for sale in this State any policies or memberships or solicit or receive any money, subscriptions, applications, premiums, assessments, memberships or any other fee or charge in connection with a proposed association of self-insured public or private employers unless he has obtained a solicitor’s permit from the Commissioner. 2. To obtain a solicitor’s permit, a person must file a written application with the Commissioner. The application must include: (a) The name, type and purposes of the association formed or proposed to be formed or financed; (b) On forms furnished by the Commissioner, for each person associated or to be associated as director, promoter, manager, member of the board or in another similar capacity in the association, or in the formation of the proposed association or in the proposed financing: (1) His name, residential address and qualifications; (2) His business, professional or employment experience for the preceding 10 years; and (3) A complete set of his fingerprints which the Commissioner may forward to the Central Repository for Nevada Records of Criminal History for submission to the Federal Bureau of Investigation for its report; (c) A full disclosure of the terms of all pertinent understandings and agreements existing or proposed among any persons or entities so associated or to be associated, and a copy of each such agreement; (d) A copy of the articles of incorporation and bylaws of a solicitor, if incorporated; (e) The plan according to which solicitations are to be made and a reasonably detailed estimate of all administrative and sales expenses to be incurred; (f) A copy of any certificate proposed to be offered, and a copy of any proposed application therefor; (g) A copy of any prospectus, offering circular, advertising or sales literature or materials proposed to be used; (h) Proof of an escrow account and agreement for the deposit of all funds collected during the formation of the association; and (i) Such additional pertinent information as the Commissioner may reasonably require. 3. The application must be accompanied by a fee of $500 for the filing of the application and for the issuance of the permit, if granted. A solicitor must submit this fee each year thereafter

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