Minimum Threshold for Consolidated Insurance Programs

Bulletin No. 04-003 June 30, 2004 MINIMUM THRESHOLD FOR CONSOLIDATED INSURANCE PROGRAMS The eligibility requirements for Consolidated Insurance Programs are defined in Chapter 616B of Nevada Revised Statutes (NRS). NRS 616B.710 set the initial minimum estimated total cost of a construction project to be $150 million for such a program. On June 30 of each year, the Commissioner is required to adjust the minimum estimated total cost of a construction project to reflect the present value of that amount with respect to the “construction cost index.” NRS 616B.710(4)(a) states “‘Construction cost index means’ the construction cost index published by the Engineering News-Record as a measure of inflation.” Effective July 1, 2004, the minimum estimated total cost of a construction project must be $174 million for the project to be eligible for a Consolidated Insurance Program. ____________________________________ ALICE A. MOLASKY-ARMAN Commissioner of Insurance