Section 388A.195 - Provision and maintenance of insurance coverage or reserve fund for certain compensatory damages and certain fees, costs and expenses1. In addition to maintaining the insurance required pursuant to NAC 388A.190, the governing body of a charter school shall maintain one of the following: (a) Insurance that includes coverage for the payment of:(1) Any compensatory damages and fees and costs for legal services that the charter school may be required to pay the parent of a pupil who files a due process complaint pursuant to NAC 388.306; and(2) The expenses of the hearing officer and any other expenses relating to a hearing described in NAC 388.306; or(b) A reserve fund that must be used exclusively for the payment of: (1) Any compensatory damages and fees and costs for legal services that the charter school may be required to pay to the parent of a pupil who files a due process complaint pursuant to NAC 388.306; and(2) The expenses of the hearing officer and any other expenses relating to a hearing described in NAC 388.306.2. If the governing body of a charter school:(a) Obtains insurance pursuant to paragraph (a) of subsection 1, the insurance must include minimum coverage in an amount required by the sponsor of the charter school.(b) Establishes a reserve fund pursuant to paragraph (b) of subsection 1, the governing body shall ensure that: (1) Not later than 5 years after the date on which the reserve fund is created, the fund has a balance of not less than $25,000.(2) The reserve fund is maintained in an account in a bank, credit union or other financial institution in this State that is separate from all other accounts of the charter school. Any interest earned on money in the account must be credited to the account.(3) If any money is withdrawn from the reserve fund, the amount withdrawn is repaid to the fund not later than the end of the fiscal year immediately following the fiscal year in which the money is withdrawn unless the sponsor of the charter school agrees to a different repayment schedule.3. An insurer that provides the insurance described in paragraph (a) of subsection 1 must have a rating of "A-" or better and be classified in a financial category of "VII" or better as determined by A.M. Best Company of Oldwick, New Jersey.Nev. Admin. Code § 388A.195
Added to NAC by Dep't of Education by R035-14, eff. 12-22-2014 - Substituted in revision for NAC 386.217