1. If the assets of an association of self-insured public or private employers exceed the amount necessary for the association to:
- (a) Pay its obligations and administrative expenses;
- (b) Carry reasonable reserves; and
(c) Provide for contingencies,
the board of trustees of the association may, after obtaining the approval of the Commissioner, declare and distribute dividends to the members of the association.
- 2. Any dividend declared pursuant to subsection 1 must be distributed not less than 12 months after the end of the fund year.
- 3. A dividend may be paid only to those members who are members of the association for the entire fund year. The payment of a dividend must not be conditioned upon the member continuing his or her membership in the association after the fund year.
- 4. An association shall give to each prospective member of the association a written description of its plan for distributing dividends when the prospective member applies for membership in the association.
(Added to NRS by 1993, 676; A 2003, 3343)