mployers to ensure the accurate and complete reporting of financial information. 4. The Commissioner may require the filing of such other reports as he deems necessary to carry out the provisions of this section, including, without limitation: (a) Audits of the payrolls of the members of an association of self-insured public or private employers; (b) Reports of losses; and (c) Quarterly financial statements. (Added to NRS by 1993, 675; A 2003, 3343) NRS 616B.407 Calculation of annual assessment paid by each member of association. 1. Except as otherwise provided in subsection 2, the annual assessment required to be paid by each member of an association of self-insured public or private employers must be: (a) Calculated by a rate service organization that is licensed pursuant to chapter 686B of NRS; and (b) Based on the premium rate for the standard industrial classification of that member, adjusted by the member’s individual experience. If approved by the Commissioner, payments of assessments may be reduced by an amount based on the association’s level of expenses and loss experience. 2. If approved by the Commissioner, an association may calculate the annual assessment required to be paid by each member of the association. An assessment calculated by the association must be based on at least 5 years of the member’s individual experience. (Added to NRS by 1993, 676; A 1999, 1722) NRS 616B.410 Annual audits; objection to assignment of standard industrial classification. 1. The Commissioner shall cause to be conducted at least annually an audit of each association of self-insured public or private employers in order to verify: (a) The standard industrial classification of each member of the association; (b) The individual experience of each member of the association; (c) The payroll of each member of the association; and (d) The assessment required to be paid by each member of the association. 2. The audit required by this section must be conducted by an auditor approved by the Commissioner. 3. A report of the audit must be filed with the Commissioner in a form required by the Commissioner. 4. The association or any member of the association may request a hearing before the Commissioner to object to any standard industrial classification assigned to a member of the association as a result of the audit. If the Commissioner determines that the assessment required to be paid by any member of the association is: (a) Insufficient because of the standard industrial classification assigned to him, the Commissioner shall order the association to collect from that member any amount required to recover the deficiency. (b) Excessive because of the standard industrial classification assigned to him, the Commissioner shall order the association to pay to the member the excess amount collected. 5. The expenses of any audit conducted pursuant to this section must be paid by the association. (Added to NRS by 1993, 676)—(Substituted in revision for NRS 616.37957) NRS 616B.413 Payment of dividends to members of association. 1. If the assets of an association of self-insured public or private employers exceed the amount necessary for the association to: (a) Pay its obligations and administrative expenses; (b) Carry reasonable reserves; and (c) Provide for contingencies, the board of trustees of the association may, after obtaining the approval of the Commissioner, declare and distribute dividends to the members of the association. 2. Any dividend declared pursuant to subsection 1 must be distributed not less than 12 months after the end of the fund year. 3. A dividend may be paid only to those members who are members of the association for the entire fund year. The payment of a dividend must not be conditioned upon the member continuing his membership in the association after the fund year. 4. An association shall give to each prospective member of the association a written description of its plan for distributing dividends when he applies for membership in the association. (Added to NRS by 1993, 676; A 2003, 3343) NRS 616B.416 Plan for payment of annual assessments by members of association. 1. Each association of self-insured public or private employers shall adopt a plan for the payment of annual assessments by the members of the association which must be approved by the Commissioner. 2. The plan must include a requirement for: (a) An initial payment, in advance, of a portion of the annual assessment due from each member of the association. If the association is an association of self-insured public employers, the initial payment must be in an amount approved by the Commissioner. If the association is an association of self-insured private employers, the initial payment must be in an amount equal to at least 25 percent of the member’s annual assessment. (b) Payment of the balance of the annual assessment due in quarterly or monthly installments. (Added to NRS by 1993, 677)—(Substituted in revision for NRS 616.37965) NRS 616B.419 Required reserves. Each association of self-insured public or private employers shall maintain: 1. Actuarially appropriate loss reserves. Such reserves must include reserves for: (a) Actual claims and the expenses associated with those claims; and (b) Claims incurred but not reported, and the expenses associated with those claims. 2. Reserves for uncollected debts based on the experience of the association or other associations. (Added to NRS by 1993, 677; A 2003, 3344) NRS 616B.422 Insufficient assets to pay compensation due and maintain reserves. 1. If the assets of an association of self-insured public or private employers are insufficient to make certain the prompt payment of all compensation under chapters 616A to 617, inclusive, of NRS and to maintain the reserves required by NRS 616B.419, the association shall immediately notify the Commissioner of the deficiency and: (a) Transfer any surplus acquired from a previous fund year to the current fund year to make up the deficiency; (b) Transfer money from its administrative account to its claims account; (c) Collect an additional assessment from its members in an amount required to make up the deficiency; or (d) Take any other action to make up the deficiency which is approved by the Commissioner. 2. If the association wishes to transfer any surplus from one fund year to another, the association must first notify the Commissioner of the transfer. 3. The Commissioner shall order the association to make up any deficiency pursuant to subsection 1 if the association fails to do so within 30 days after notifying the Commissioner of the deficiency. The association shall be deemed insolvent if it fails to: (a) Collect an additional assessment from its members within 30 days after being ordered to do so by the Commissioner; or (b) Make up the deficiency in any other manner within 60 days after being ordered to do so by the Commissioner. (Added to NRS by 1993, 677; A 2003, 3344) NRS 616B.425 Order by Commissioner to cease and desist; penalty for violation of order. 1. The Commissioner may issue an order requiring an association of self-insured public or private employers or a member of the association to cease and desist from engaging in any act or practice found to be in violation of any provision of NRS 616B.350 to 616B.446, inclusive, or any regulation adopted pursuant thereto. 2. If the Commissioner determines that an association or a member of the association has violated an order to cease and desist, the Commissioner may impose an administrative fine of not more than $10,000 for each violation of the order, not to exceed an

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