Section 519A.595 - Payment of entry deposit and premiums1. Each participant must pay the annual premiums, established as an equal percentage of the participant's bond coverage, as required by this section to maintain participation in the bond pool.2. If an operator became a participant before the effective date of this regulation, premiums must be paid by the participant: (a) In quarterly installments on or before March 31, June 30, September 30 and December 31; or(b) Annually in accordance with a schedule approved by the Administrator or a person designated by him or her.3. If an operator becomes a participant after the effective date of this regulation, premiums must be paid by the participant for:(a) A bond for a project that is not a notice-level project, in quarterly installments on or before March 31, June 30, September 30 and December 31; or(b) A bond for a notice-level project, annually in accordance with a schedule approved by the Administrator or a person designated by him or her.4. Upon entry to the bond pool, the participant must, based on the date of entry, pay a prorated amount of the first:(a) Quarterly premium; or(b) Annual premium, if the participant pays the premium in accordance with a schedule approved by the Administrator or a person designated by him or her pursuant to this section. After entry to the bond pool, the participant must pay the regular quarterly or annual amount on or before the date the premium is due.
5. The annual premium will be calculated as follows: (a) Except as otherwise provided in paragraph (b), for bonds that were issued before August 23, 2002, the annual premium is 5 percent of the bond coverage of a participant.(b) For bonds that were issued or that increased because the plan was amended on or after August 23, 2002, and before the effective date of this regulation, the annual premium: (1) Except as otherwise provided in subparagraph (3), for bonds whose total amount is less than $10,000, is 3 percent of the amount of the bonds.(2) Except as otherwise provided in subparagraph (3), for bonds whose total amount is at least $10,000, is a percentage of the amount of the bond calculated using the following formula: - 0.5 /299,000 (amount of bond - 10,000) +10
(3) If the amount of the deposit and the premiums paid by a participant equal or exceed the amount of the bond, is 2 percent of the amount of the bond. For the purposes of this subparagraph, any late penalty paid by a participant will not be considered in determining the amount of the annual premium. (c) For bonds that are issued or increased because the plan is amended on or after the effective date of this regulation: (1) Except as otherwise provided in subparagraph 2, for bonds whose total amount is at least $10,000, is a percentage of the amount of the bond calculated using the following formula: - 0.5 /299,000 (amount of bond - 10,000) +10
(2) If the amount of the deposit and the premiums paid by a participant equal or exceed the amount of the bond, is 2 percent of the amount of the bond. For the purposes of this subparagraph, any late penalty paid by a participant will not be considered in determining the amount of the annual premium. 6. Except as otherwise provided in NAC 519A.610 and 519A.615, the annual premium is nonrefundable.7. If a change occurs in the required premium as a percentage of the bond coverage of a participant, the Administrator or a person designated by him or her will notify the participant not less than 30 days before the due date of the next: (a) Quarterly premium; or(b) Annual premium, if the participant pays his or her premium in accordance with a schedule approved by the Administrator or a person designated by the Administrator pursuant to this section. The Administrator or a person designated by him or her will base any change in the percentage of the premium on the recommendation of an actuary who is approved by the Commissioner of Insurance to review the status of the bond pool. The findings of the actuary must show that a change in percentage allows the bond pool to remain self-sustaining under statistically expected forfeiture rates and forecasted administrative costs.
8. The Administrator or a person designated by him or her will:(a) Consult with the Risk Management Division of the Department of Administration to determine the availability and cost of obtaining insurance to insure against exposure to a risk that would cause the liability of the bond pool to exceed the amount of money in the bond pool.(b) Consult with the Commission to determine whether to obtain such insurance. If the insurance is obtained, the Administrator or a person designated by him or her will establish a schedule for payment of the premiums for each participant based on the participant's portion of the total liability of the bond pool.(c) Notify each participant of the amount of the premium the participant owes not less than 30 days before the premium is due.Nev. Admin. Code § 519A.595
Added to NAC by Dep't of Minerals, eff. 10-9-90; A by Div. of Minerals, 11-14-97; A by Comm'n on Mineral Resources by R066-02, 8-23-2002; A by R044-19A, eff. 12/17/2019