695F.190 - Requirements for reserve. - Nevada 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.

      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 678.755. 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.

      (Added to NRS by 1991, 1118; A 1999, 1554)