nder a plan of operation established by regulations promulgated by the Commissioner pursuant to subsection 1 of NRS 686B.180. (Added to NRS by 1975, 398) NRS 686B.220 Nevada Essential Insurance Association: Board of Directors; reimbursement of members of Board; approval or adoption of plan by Commissioner. 1. The administrative powers of the Nevada Essential Insurance Association shall be vested in a Board of Directors consisting of not less than five nor more than nine members serving terms as established in the plan of organization. The members of the Board shall be appointed by the Commissioner with due consideration given to the composition of the membership of the Association and to the interests of the insureds who are provided essential insurance coverage by the Association. 2. Members of the Board may be reimbursed from the assets of the Association for expenses incurred by them as members of the Board of Directors and for reasonable and equitable compensation as may be prescribed by the terms of the plan of organization. 3. The Board of Directors of the Association shall submit to the Commissioner a plan of organization for the Association and make suitable or necessary amendments thereto to assure the fair, reasonable and equitable administration of the Association. The plan of operation shall become effective upon approval in writing by the Commissioner. 4. If the Association fails to submit a suitable plan of operation within a reasonable period of time, or if at any time thereafter the Association fails to submit suitable amendments to the plan, the Commissioner shall promulgate a plan as necessary or advisable to effectuate the provisions of this section. (Added to NRS by 1975, 398) NRS 686B.230 Nevada Essential Insurance Association: General powers. 1. The Nevada Essential Insurance Association has, for purposes of this section and to the extent approved by the Commissioner, the general powers and authority granted under the laws of this state to carriers licensed to transact the kinds of insurance defined in NRS 681A.020 to 681A.080, inclusive. 2. The Association may take any necessary action to make available necessary insurance, including but not limited to, the following: (a) Assess participating insurers amounts necessary to pay the obligations of the Association, administration expenses, the cost of examinations conducted pursuant to NRS 687A.110 and other expenses authorized by this chapter. The assessment of each member insurer for the kind or kinds of insurance designated in the plan must be in the proportion that the net direct written premiums of the member insurer for the preceding calendar year bear to the net direct written premiums of all member insurers for the preceding calendar year. A member insurer may not be assessed in any year an amount greater than 5 percent of his net direct written premiums for the preceding calendar year. Each member insurer must be allowed a premium tax credit at the rate of 20 percent per year for 5 successive years beginning on the first day of the calendar year after the calendar year in which the insurer pays the assessment pursuant to this subsection. (b) Enter into such contracts as are necessary or proper to carry out the provisions and purposes of this section. (c) Sue or be sued, including taking any legal action necessary to recover any assessments for, on behalf of or against participating carriers. (d) Investigate claims brought against the fund and adjust, compromise, settle and pay covered claims to the extent of the Association’s obligation and deny all other claims. Process claims through its employees or through one or more member insurers or other persons designated as servicing facilities. Designation of a service facility is subject to the approval of the Commissioner, but such a designation may be declined by a member insurer. (e) Classify risks as may be applicable and equitable. (f) Establish appropriate rates, rate classifications and rating adjustments and file those rates with the Commissioner in accordance with this chapter. (g) Administer any type of reinsurance program for or on behalf of the Association or any participating carriers. (h) Pool risks among participating carriers. (i) Issue and market, through agents, policies of insurance providing the coverage required by this section in its own name or on behalf of participating carriers. (j) Administer separate pools, separate accounts or other plans as may be deemed appropriate for separate carriers or groups of carriers. (k) Invest, reinvest and administer all funds and moneys held by the Association. (l) Borrow funds needed by the Association to carry out the purposes of this section. (m) Develop, effectuate and promulgate any loss-prevention programs aimed at the best interests of the Association and the insuring public. (n) Operate and administer any combination of plans, pools, reinsurance arrangements or other mechanisms as deemed appropriate to best accomplish the fair and equitable operation of the Association for the purposes of making available essential insurance coverage. 3. In providing for the recoupment of a deficit of the Association, an option must be offered to an insured each policy year to pay a capital stabilization charge which must not exceed 100 percent of the premium charged to the insured in that year. The Board of Directors shall determine the amount of the charge from appropriate factors of loss experience and risk associated with the Association and the insured. An insured who pays the stabilization charge must not be required to pay any assessment to recoup a deficit of the Association incurred in any policy year for which the charge is paid. The Association’s plan of operation must provide for the return to the insured of so much of his payment as remains after all actual or potential liabilities under the policy have been discharged. (Added to NRS by 1975, 398; A 1977, 305; 2003, 3305) NRS 686B.240 Nevada Essential Insurance Association: Powers of Commissioner and Association. The Commissioner and the Nevada Essential Insurance Association may: 1. Give consideration to the need for adequate and readily accessible coverage, to alternative methods of improving the market affected, to the preferences of the insurers and agents, to the inherent limitations of the insurance mechanism, to the need for reasonable underwriting standards and to the requirement of reasonable loss-prevention measures. 2. Establish procedures that will create minimum interference with the voluntary market. 3. Spread the burden imposed by the facility equitably and efficiently. 4. Establish procedures for applicants and participants to have grievances reviewed. 5. Take all reasonable and necessary steps to dissolve the Association at the earliest date when essential insurance becomes readily available in the private market. The dissolution of the Association, including its assets and liabilities, must be accomplished under the supervision of the Commissioner in an equitable and reasonable manner. The dissolution must, if determined to be appropriate by the Commissioner, provide for the repayment of any loans or other money provided or contributed by the State of Nevada for the formation or continuance of the Association. (Added to NRS by 1975, 399; A 2003, 3306) NRS 686B.250 Nevada Essential Insurance Association: Immunity from liability. There is no liability on the part of, and no cause of action of any nature arises against, the Nevada Essential Insurance Association or its agents or employees, members of the Board or the Commissioner or his representatives for any good faith performance of their powers and duties under NRS 686B.210 to 686B.240, inclusive. (Added to NRS by 1975, 400) NRS 686B.260 Conversion into domestic stock insurer: “Insured” defined.

Vegas Law