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:

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(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.