Consolidated Insurance Programs

JIM GIBBONS Governor DIANNE CORNWALL Director STATE OF NEVADA BRETT J. BARRATT Acting Commissioner of Insurance # DEPARTMENT OF BUSINESS AND INDUSTRY # DIVISION OF INSURANCE 788 Fairview Drive, Suite 300 Carson City, Nevada 89701-5491 (775) 687-4270 • Fax (775) 687-3937 Website: doi.state.nv.us E-mail: insinfo@doi.state.nv.us Bulletin 10-007 June 30, 2010 # CONSOLIDATED INSURANCE PROGRAMS The eligibility requirements for consolidated insurance programs for industrial insurance (workers' compensation construction wrap-ups) are set forth in Nevada Revised Statute ("NRS") 616B.710. The 1999 Legislature set the initial minimum estimated total cost, or base amount, of a construction project needed to qualify to be administered as a consolidated insurance program at $150 million. Pursuant to NRS 616B.710(3), on June 30th 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) defines the construction cost index as the construction cost index published by Engineering News-Record as a measure of inflation. Effective July 1, 2010, to be eligible for a consolidated insurance program, the estimated total cost of a construction project must be at least $216 million. BRETT J. BARRATT, ESQ. Acting Commissioner of Insurance (NSPO Rev. 5-10) L 5