1. The Commissioner shall impose an administrative fine, not to exceed $1,000 for each violation, and:

(a) Shall withdraw the certification of a self-insured employer if:

(1) The deposit required pursuant to NRS 616B.300 is not sufficient and the employer fails to increase the deposit after the employer has been ordered to do so by the Commissioner;

(2) The self-insured employer fails to provide evidence of excess insurance pursuant to NRS 616B.300 within 45 days after the employer has been so ordered; or

(3) Except as otherwise provided in subsection 4, the employer becomes insolvent, institutes any voluntary proceeding under the Bankruptcy Act or is named in any involuntary proceeding thereunder.

(b) May withdraw the certification of a self-insured employer if:

(1) The employer intentionally fails to comply with regulations of the Commissioner regarding reports or other requirements necessary to carry out the purposes of chapters 616A to 616D, inclusive, and chapter 617 of NRS;

(2) The employer violates the provisions of subsection 2 of NRS 616B.500 or any regulation adopted by the Commissioner or the Administrator concerning the administration of the employer’s plan of self-insurance; or

(3) The employer makes a general or special assignment for the benefit of creditors or fails to pay compensation after an order for payment of any claim becomes final.

2. Any employer whose certification as a self-insured employer is withdrawn must, on the effective date of the withdrawal, qualify as an employer pursuant to NRS 616B.650.

3. The Commissioner may, upon the written request of an employer whose certification as a self-insured employer is withdrawn pursuant to subparagraph (3) of paragraph (a) of subsection 1, reinstate the employer’s certificate for a reasonable period to allow the employer sufficient time to provide industrial insurance for his or her employees.

4. The Commissioner may authorize an employer to retain his or her certification as a self-insured employer during the pendency of a proceeding specified in subparagraph (3) of paragraph (a) of subsection 1 if the employer establishes to the satisfaction of the Commissioner that the employer is able to pay all claims for compensation during the pendency of the proceeding.

(Added to NRS by 1979, 1037; A 1981, 1466; 1985, 583; 1991, 2403; 1993, 2404; 1995, 2018; 1999, 216; 2003, 3339)