Skip to main content
Find a Lawyer

Nevada Revised Statutes Title 57. Insurance § 695F.200. Maintenance of capital account, surety bond or deposit and risk-based capital; determination of amount of increase by Commissioner

Current as of January 01, 2025 | Updated by Findlaw Staff

1. Except as otherwise provided in this section, each prepaid limited health service organization which receives a certificate of authority shall maintain all of the following:

(a) A capital account with a net worth of not less than $500,000 unless a lesser amount is permitted in writing by the Commissioner. The account must not be obligated for any accrued liabilities and must consist of cash, securities or a combination thereof which is acceptable to the Commissioner.

(b) A surety bond or deposit of cash or securities for the protection of enrollees of not less than $500,000.

(c) The amount of risk-based capital required by regulations adopted by the Commissioner pursuant to NRS 681B.550.

2. The Commissioner may increase the required amount of the organization's capital account, surety bond or deposit and capital maintained pursuant to paragraph (c) of subsection 1 to any amount the Commissioner determines to be appropriate pursuant to subsection 3 if the Commissioner determines that such an increase is necessary to:

(a) Assist the Commissioner in the performance of his or her regulatory duties;

(b) Ensure that the organization complies with the requirements of this Code; or

(c) Ensure the solvency of the organization.

3. When determining the appropriate amount of an increase pursuant to subsection 2, the Commissioner must base his or her determination on the type, volume and nature of premiums written and premiums assumed by the organization.

4. The amount of the organization's capital account, surety bond or deposit and capital maintained pursuant to paragraph (c) of subsection 1, as required pursuant to subsections 1 and 2:

(a) Is in addition to any reserve required by this chapter and any reserve established by the organization according to good business and accounting practices for incurred but unreported claims and other similar claims; and

(b) May increase the amount of risk-based capital required pursuant to NRS 681B.550.

5. The amount of the organization's surety bond or deposit and capital maintained pursuant to paragraph (c) of subsection 1, as required pursuant to subsections 1 and 2 may increase the amount of net worth required pursuant to subsections 1 and 2.

Previous Part of Code Next Part of Code
Back to Chapter List

Cite this article: FindLaw.com - Nevada Revised Statutes Title 57. Insurance § 695F.200. Maintenance of capital account, surety bond or deposit and risk-based capital; determination of amount of increase by Commissioner - last updated January 01, 2025 | https://codes.findlaw.com/nv/title-57-insurance/nv-rev-st-695f-200/

FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature before relying on it for your legal needs.

Was this helpful?

Welcome to FindLaw's Cases & Codes

A free source of state and federal court opinions, state laws, and the United States Code. For more information about the legal concepts addressed by these cases and statutes, visit FindLaw’s Learn About the Law.

Go to Learn About the Law

Latest Blog Posts

For Legal Professionals

Learn About The Law

Get help with your legal needs

FindLaw’s Learn About the Law features thousands of informational articles to help you understand your options. And if you’re ready to hire an attorney, find one in your area who can help.

Go to Learn About the Law

Need to Find an Attorney?

Search our directory by legal issue

Enter information in one or both fields (Required)

Copied to clipboard