616B.413 - Payment of dividends to members of association. - Nevada Statutes

616B.413  Payment of dividends to members of association.

      1.  If the assets of an association of self-insured public or private employers exceed the amount necessary for the association to:

      (a) Pay its obligations and administrative expenses;

      (b) Carry reasonable reserves; and

      (c) Provide for contingencies,

Ê the board of trustees of the association may, after obtaining the approval of the Commissioner, declare and distribute dividends to the members of the association.

      2.  Any dividend declared pursuant to subsection 1 must be distributed not less than 12 months after the end of the fund year.

      3.  A dividend may be paid only to those members who are members of the association for the entire fund year. The payment of a dividend must not be conditioned upon the member continuing his or her membership in the association after the fund year.

      4.  An association shall give to each prospective member of the association a written description of its plan for distributing dividends when the prospective member applies for membership in the association.

      (Added to NRS by 1993, 676; A 2003, 3343)