Nevada Revised Statutes 695F.190 – Requirements for reserve
1. A prepaid limited health service organization shall set aside a reserve equal to 3 percent of the premiums collected from its enrollees in an amount not to exceed $500,000. The reserve is in addition to the bond or deposit filed with the Commissioner.
Terms Used In Nevada Revised Statutes 695F.190
- Trust account: A general term that covers all types of accounts in a trust department, such as estates, guardianships, and agencies. Source: OCC
2. The reserve:
(a) Must be deposited in a trust account in a financial institution which is located in this state and which is federally insured or insured by a private insurer approved pursuant to NRS 672.755. The income earned on money in the account must be paid to the organization and used for its operations.
(b) Is in addition to the reserve established by the organization according to good business and accounting practices for incurred but unreported claims and other similar claims.