Premium Tax and Insolvency Reserves Required by NAC 695C.137

RICHARD H. BRYAN Governor LARRY D. STRUVE Director STATE OF NEVADA DAVID A. GATES Commissioner of Insurance [LOGO] # DEPARTMENT OF COMMERCE INSURANCE DIVISION 201 South Fall Street Carson City, Nevada 89710 (702) 885-4270 BULLETIN NO. 88-1 April 18, 1988 ## PREMIUM TAX AND INSOLVENCY RESERVES REQUIRED BY NAC 695C.137 Pursuant to regulations adopted by the Division of Insurance in NAC 695C.137, each health maintenance organization (HMO) licensed in Nevada is required to maintain an account with the following reserves: 1. An amount equal to the premium owed pursuant to Chapter 680B of NRS; and 2. After the first year of operation, an amount equal to twice its actual average monthly uncovered expenditures or $500,000 whichever is greater. The reserves held by an HMO pursuant to NAC 695C.137 are required to be maintained in a trust account in a federally insured financial institution in Nevada. The requirement of this Bulletin is in addition to the requirements set forth in Bulletin 87-1 issued January 14, 1987. Proof of compliance with the requirements contained herein must be submitted to the division within 30 days from this date. DAVID A. GATES Commissioner of Insurance DAG/HGD/ja (O)-3459