Nevada Revised Statutes 686C.240 – Computation; necessity; notification
1. The Board of Directors of the Association shall determine the amount of each assessment in Class A and may, but need not, prorate it. If an assessment is prorated, the Board may provide that any surplus be credited against future assessments in Class B. An assessment which is not prorated must not exceed $500 for each member insurer for any 1 calendar year.
Terms Used In Nevada Revised Statutes 686C.240
- Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
- Remainder: An interest in property that takes effect in the future at a specified time or after the occurrence of some event, such as the death of a life tenant.
2. The Board may determine the amount of each assessment in Class B for long-term care insurance written by an impaired or insolvent insurer according to a methodology included in the plan of operation established and approved pursuant to NRS 686C.290. The methodology must provide for the imposition of:
(a) One-half of the assessment on member insurers that primarily provide accident and health insurance; and
(b) One-half of the assessment on member insurers that primarily provide life insurance and annuities.
3. Except as otherwise provided in subsection 5, the Board may allocate any assessment in Class B among the accounts and among the subaccounts of the Life and Annuity Account according to a formula based on the premiums or reserves of the impaired or insolvent insurer or any other standard which the Board, in its sole discretion, considers fair and reasonable under the circumstances.
4. Except as otherwise provided in subsection 5, assessments in Class B against member insurers for each account and subaccount must be in the proportion that the premiums received on business in this State by each assessed member insurer on policies or contracts covered by each account or subaccount for the 3 most recent calendar years for which information is available preceding the year in which the insurer became impaired or insolvent bears to premiums received on business in this State for those calendar years by all assessed member insurers.
5. The Board shall allocate to:
(a) The Life and Annuity Account the percentage of an assessment in Class B for long-term care insurance written by an impaired or insolvent insurer that is equal to the quotient of:
(1) The difference between 0.5 and the percentage of the Health Account that was contributed by member insurers that primarily provide life insurance and annuities; and
(2) The difference between the percentage of the Life and Annuity Account that was contributed by member insurers that primarily provide life insurance and annuities and the percentage of the Health Account that was contributed by such member insurers.
(b) The Health Account the remainder of an assessment in Class B for long-term care insurance written by an impaired or insolvent insurer that is not allocated to the Life and Annuity Account pursuant to paragraph (a).
6. Assessments for money to meet the requirements of the Association with respect to an impaired or insolvent insurer must not be authorized or called until necessary to carry out the purposes of this chapter. Classification of assessments under subsection 2 of NRS 686C.230 and computation of assessments under this section must be made with a reasonable degree of accuracy, recognizing that exact determinations may not always be possible. The Association shall notify each member insurer of its anticipated prorated share of an assessment authorized but not yet called within 180 days after it is authorized.
7. For the purposes of this section, a member insurer shall be deemed to:
(a) Primarily provide life insurance and annuities if the sum of the accessible in-state life insurance premiums and annuity premiums of the member insurer is equal to or greater than the accessible in-state health insurance premiums of the member insurer. For the purposes of this paragraph, health insurance premiums:
(1) Include, without limitation, premiums for health maintenance organization coverage; and
(2) Do not include premiums for disability income and long-term care insurance.
(b) Primarily provide health insurance if the member insurer is not a member insurer described in paragraph (a).