Nevada_Executive_Budget_2013-2015

B&I - CAPTIVE INSURERS
504-3818
PROGRAM DESCRIPTION
A captive insurer is an insurance company established and owned by a parent firm in order to insure its loss exposures while reducing premium costs, providing easier access to a reinsurer,
and perhaps easing tax burdens. A risk retention group (RRG) and risk purchasing group (RPG) are similar insurers, owned by their members or purchase insurance as a group, respectively
by virtue of federal law. The captive insurer section's budget was established by the 1999 Legislative Session. All fees and assessments received by the division pursuant to NRS 694C must
be credited to the account. In addition, 25 percent of the premium tax imposed under NRS 694C.450 must be deposited for the regulation and supervision of captive insurers. Of that 25
percent, 2 percent is paid to the Commission on Economic Development for promotional services. At the end of each fiscal year, that portion of the balance in the account that exceeds
$500,000 must be transferred to the state General Fund. Statutory Authority: NRS 694C and 695E.
BASE
This request continues funding for two positions and associated operating costs. One-time expenditures have been eliminated and partial year costs have been annualized.
2012-2013 2013-2014 2013-2014 2014-2015 2014-2015
2011-2012 WORK AGENCY GOVERNOR AGENCY GOVERNOR
ACTUAL PROGRAM REQUEST RECOMMENDS REQUEST RECOMMENDS
RESOURCES:
BALANCE FORWARD FROM PREVIOUS YEAR 294,577 377,294 428,889 428,889 490,031 578,573
BALANCE FORWARD TO NEW YEAR -377,293 0 0 0 0 0
LICENSES AND FEES 39,264 44,400 44,100 44,100 44,100 44,100
APPLICATION FEES 4,800 7,000 7,500 7,500 7,500 7,500
EXAMINATION FEES 612,245 773,800 1,151,161 1,151,161 749,746 749,746
ADMINISTRATION FEE-E 259,388 371,326 575,580 575,580 374,873 374,873
INSURANCE PREMIUMS 195,387 187,500 187,500 219,000 187,500 219,000
TOTAL RESOURCES: 1,028,368 1,761,320 2,394,730 2,426,230 1,853,750 1,973,792
EXPENDITURES:
PERSONNEL SERVICES 158,809 161,306 171,724 170,214 173,404 171,894
IN-STATE TRAVEL 602 880 602 602 602 602
OPERATING 8,300 9,460 11,736 10,525 11,890 10,675
EXAMINATION EXPENSES 482,326 773,800 1,151,161 1,151,161 749,745 749,745
TRANSFER TO INSURANCE REGULATION 365,563 375,455 557,124 502,647 563,991 520,885
INFORMATION SERVICES 3,425 377 362 362 362 362
TRANSFER TO DEPT B&I 9,123 10,933 11,017 11,192 11,248 11,277
DHRM COST ALLOCATION 0 0 753 734 766 747
RESERVE 0 428,889 490,031 578,573 341,522 507,385
PURCHASING ASSESSMENT 220 220 220 220 220 220
TOTAL EXPENDITURES: 1,028,368 1,761,320 2,394,730 2,426,230 1,853,750 1,973,792
TOTAL POSITIONS: 2.00 2.00 2.00 2.00 2.00 2.00
DEPARTMENT OF BUSINESS AND INDUSTRY B & I - 40
B&I - INSURANCE DIVISION