Election to operate as risk-assuming carrier or reinsuring carrier: Notice to Commissioner; effective date; change in status.
1. Within 30 days after the date on which a plan of operation is approved by the Commissioner pursuant to NRS 689C.770, or for a new carrier within 30 days after the date on which it enters the small employer market, each carrier shall elect to operate as either a risk-assuming carrier or a reinsuring carrier and shall notify the Commissioner of its election.
2. The initial election of a carrier to act as a risk-assuming or reinsuring carrier is effective on the carrier for 2 years after the date on which it notifies the Commissioner pursuant to subsection 1. After the initial 2-year period, such an election is effective for 5 years. The Commissioner may allow a carrier to modify its election at any time for good cause shown. The Commissioner may waive or modify the period during which the election of a carrier to operate as a risk-assuming or reinsuring carrier is effective.
3. A carrier may apply to the Commissioner, in a manner prescribed by the Commissioner by regulation, to change its status as a risk-assuming or reinsuring carrier.
4. A reinsuring carrier that elects or is subsequently authorized by the Commissioner to operate as a risk-assuming carrier:
(a) Shall not continue to reinsure any small employer health benefit plan with the Program of Reinsurance.
(b) Shall pay a prorated assessment based upon business issued as a reinsuring carrier for any portion of the year that the business was reinsured.
5. As used in this section:
(a) “Plan of operation” means the plan of operation of the Program of Reinsurance established pursuant to NRS 689C.610 to 689C.980, inclusive.
(b) “Reinsuring carrier” means a carrier participating in the Program of Reinsurance established pursuant to NRS 689C.610 to 689C.980, inclusive.
Last modified: February 27, 2006