1. The Association shall issue to each member insurer paying an assessment under this chapter, other than an assessment in Class A, a certificate of contribution, in a form prescribed by the Commissioner, for the amount of the assessment so paid. All outstanding certificates are of equal dignity and priority without reference to amounts or dates of issue. A member insurer may show a certificate of contribution as an asset in its financial statement in such form, for such amount, if any, and for such period as the Commissioner may approve.
2. A member insurer may offset against its liability for premium tax to this state, accrued with respect to business transacted in a calendar year, an amount equal to 20 percent of the amount certified pursuant to subsection 1 in each of the 5 calendar years following the year in which the assessment was paid. If a member insurer ceases to transact business, it may offset all uncredited assessments against its liability for premium tax for the year in which it so ceases.
3. A member insurer that is exempt from its liability for premium tax described in subsection 2 may recoup its assessments under this chapter by imposing a surcharge on its premiums in an amount approved by the Commissioner. The Commissioner shall approve such a surcharge upon determining that the amount of the surcharge is reasonably calculated to recoup the assessments over a reasonable period of time. Any amount recouped under this subsection shall not be deemed to constitute a premium for any purpose relating to this Code.
4. If a member insurer recoups a larger amount through a surcharge imposed pursuant to subsection 3 than it paid in assessments over a period of time prescribed in the plan of operation established and approved pursuant to NRS 686C.290, the member insurer shall remit the excess amount to the Association. The Association shall apply such excess amounts to reduce future assessments in the appropriate account in accordance with the plan of operation.
5. Any sum acquired by refund from the Association pursuant to NRS 686C.260 which previously had been written off by the contributing member insurer and offset against premium taxes as provided in subsection 2 must be paid to the Department of Taxation and deposited by it with the State Treasurer for credit to the State General Fund. The Association shall notify the Commissioner and the Department of Taxation of each refund made.
(Added to NRS by 1973, 308; A 1991, 877; 1995, 1103; 2001, 1043; 2019, 1102, effective January 1, 2020)