1.  If for any reason the status of an employer as a self-insured employer is terminated, the security deposited under NRS 616B.300 must remain on deposit for a period of at least 36 months in such amount as necessary to secure the outstanding and contingent liability arising from accidental injuries or occupational diseases secured by such security, or to assure the payment of claims for aggravation, payment of claims under NRS 616C.390 and payment of claims under NRS 616C.392 based on such accidental injuries or occupational diseases.

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2.  At the expiration of the 36-month period, or such other period as the Commissioner deems proper, the Commissioner may accept, in lieu of any security so deposited, a policy of paid-up insurance in a form approved by the Commissioner.