NRS 695D.250 Reserves: Maintenance; exception; held in fiduciary capacity; deposit; penalty for diversion or appropriation; regulations.

246 words·~1 min read·/nv/chapter-695d-plans-for-dental-care/695d-250·

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

1. An organization for dental care shall set aside a reserve equal to 3 percent of the premiums collected from its members up to a total of $500,000. This reserve is in addition to the bond or deposit filed with the Commissioner.

2. This section does not apply to organizations receiving money from federal, state or municipal governments or their political subdivisions or another comparable resource which have had their deposit or bond reduced by the Commissioner.

3. Every organization shall maintain the reserves required by NRS 681B.080 , unless a larger amount is required by subsection 1 of this section.

4. The reserve required by subsection 1 is held by the organization in a fiduciary capacity. The organization must deposit the reserve in an interest-bearing trust account established in a bank, credit union, savings and loan association or savings bank in this state that is federally insured or insured by a private insurer approved pursuant to NRS 672.755 . The account must be separate from all other accounts maintained by the organization.

5. Any person who diverts or appropriates reserves held in a fiduciary capacity pursuant to this section for the person’s own use is guilty of embezzlement.

6. The Commissioner may adopt reasonable regulations related to the adequacy of a reserve required by this section and the establishment and maintenance of a trust account pursuant to this section.