if he continues to recruit new members for an association. 4. A person who violates subsection 1 is guilty of a category D felony and shall be punished as provided in NRS 193.130. 5. The provisions of this section do not apply to: (a) A bona fide trade association that has been in existence for at least 5 years and solicits members of its trade association; or (b) A person who is employed by: (1) Current members of an association; or (2) Employers that are considering membership in an association, whose primary duties do not include solicitation of potential members of the association. (Added to NRS by 1995, 1975; A 1997, 576, 1190; 1999, 431; 2003, 2859) NRS 616B.377 Solicitor’s permit: Commissioner to conduct investigation after filing of application for permit; required issuance of permit; Commissioner to give notice to applicant if application denied; fee nonrefundable. 1. After the filing of an application for a solicitor’s permit, the Commissioner shall promptly cause an investigation to be made of: (a) The identity, character, reputation, experience, financial standing and motives of the persons proposing to organize, promote or finance the association of self-insured public or private employers; (b) The character, financial responsibility, management experience and business qualifications of the officers, directors and managers of the existing or proposed association; and (c) Any other aspects of the solicitor, association or proposed financing as the Commissioner deems advisable. 2. The Commissioner shall expeditiously examine an application for a solicitor’s permit and complete the investigation required pursuant to subsection 1. Except as otherwise provided in subsection 3, if the Commissioner finds after performing an examination and investigation that: (a) The application is complete and the applicable fee has been paid; (b) The documents filed with the application are proper in form; and (c) The proposed financing is reasonable and adequate in amount for the purposes intended and the applicant is otherwise entitled to the permit, he shall issue a permit and assign a permit number to the applicant. 3. If the Commissioner does not so find, or finds that: (a) The applicant is not competent, trustworthy, financially responsible or of good personal and business reputation; (b) Any of the persons associated or to be associated with the association are not of good reputation as to business affairs or financial responsibility; or (c) There is material variance, adverse to the applicant, as between the information furnished by the applicant in connection with the application and that determined by the Commissioner on investigation, he shall give notice to the applicant that a permit will not be granted, stating the particulars of the grounds for the denial. The Commissioner shall not refund the fee for the filing of the application. (Added to NRS by 1995, 1976) NRS 616B.380 Solicitor’s permit: Power of Commissioner to suspend or revoke permit; hearing required. 1. The Commissioner may suspend or revoke a solicitor’s permit if he reasonably believes that: (a) A violation of this chapter or chapter 616A, 616C, 616D or 617 of NRS or title 57 of NRS or the terms of the permit or any proper order of the Commissioner has occurred; or (b) A material misrepresentation in the offering or sale of securities, policies or memberships pursuant to the permit has occurred. 2. If the Commissioner suspends or revokes a permit pursuant to subsection 1, he shall expeditiously conduct a hearing, giving the holder of the permit a reasonable opportunity to appear and be heard. (Added to NRS by 1995, 1977) NRS 616B.383 Advertisements or written materials to join association of self-insured public or private employers; solicitor to provide to Commissioner upon request copy of document relating to solicitation. 1. Any advertising or written material that solicits employers to join an association of self-insured public or private employers must contain the permit number of the solicitor. 2. A solicitor shall provide to the Commissioner upon request a copy of any document relating to a solicitation which was prepared after the solicitor filed his application for a permit. (Added to NRS by 1995, 1977) NRS 616B.386 Membership in association: Application; eligibility; authority of association to determine eligibility; termination by member; cancellation by association; information to be provided to Commissioner of Insurance; provision of compensation after membership has ceased. 1. If an employer wishes to become a member of an association of self-insured public or private employers, the employer must: (a) Submit an application for membership to the board of trustees or third-party administrator of the association; and (b) Enter into an indemnity agreement as required by NRS 616B.353. 2. The membership of the applicant becomes effective when each member of the association approves the application or on a later date specified by the association. The application for membership and the action taken on the application must be maintained as permanent records of the board of trustees. 3. Each member who is a member of an association during the 12 months immediately following the formation of the association must: (a) Have a tangible net worth of at least $500,000; or (b) Have had a reported payroll for the previous 12 months which would have resulted in a manual premium of at least $15,000, calculated in accordance with a manual prepared pursuant to subsection 4 of NRS 686B.1765. 4. An employer who seeks to become a member of the association after the 12 months immediately following the formation of the association must meet the requirement set forth in paragraph (a) or (b) of subsection 3 unless the Commissioner adjusts the requirement for membership in the association after conducting an annual review of the actuarial solvency of the association pursuant to subsection 1 of NRS 616B.353. 5. An association of self-insured private employers may apply to the Commissioner for authority to determine the amount of tangible net worth and manual premium that an employer must have to become a member of the association. The Commissioner shall approve the application if the association: (a) Has been certified to act as an association for at least the 3 consecutive years immediately preceding the date on which the association filed the application with the Commissioner; (b) Has a combined tangible net worth of all members in the association of at least $5,000,000; (c) Has at least 15 members; and (d) Has not been required to meet informally with the Commissioner pursuant to subsection 1 of NRS 616B.431 during the 18-month period immediately preceding the date on which the association filed the application with the Commissioner or, if the association has been required to attend such a meeting during that period, has not had its certificate withdrawn before the date on which the association filed the application. 6. An association of self-insured private employers may apply to the Commissioner for authority to determine the documentation demonstrating solvency that an employer must provide to become a member of the association. The Commissioner shall approve the application if the association: (a) Has been certified to act as an association for at least the 3 consecutive years immediately preceding the date on which the association filed the application with the Commissioner; (b) Has a combined tangible net worth of all members in the association of at least $5,000,000; and (c) Has at least 15 members. 7. The Commissioner may withdraw his approval of an application submitted pursuant to subsec

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