1. An association of self-insured public or private employers must be operated by a board of trustees consisting of at least five members whom the members of the association elect for terms set forth in the bylaws of the association. If the association is an association of self-insured:

(a) Public employers, the members of the board of trustees must be officers or employees of the public employers who are members of the association.

(b) Private employers, at least two-thirds of the members of the board of trustees must be employees, officers or directors of the members of the association. No association’s administrator or third-party administrator employed by the association, or any owner, officer, employee or other person affiliated with the association’s administrator or third-party administrator, may serve as a member of the board of trustees. Each member of the board of trustees must be a resident of this State or an officer of a corporation authorized to do business in this State.

2. The board of trustees of an association shall:

(a) Ensure the prompt payment of any compensation due pursuant to chapters 616A to 616D, inclusive, or chapter 617 of NRS.

(b) Take such actions as are necessary to protect the assets of the association.

(c) Employ full-time an association’s administrator to carry out the policies of the board of trustees and perform such duties as the board delegates to him or her. An association’s administrator shall not perform any of the duties assigned to a third-party administrator.

(d) Employ a third-party administrator to carry out the duties set forth in NRS 616B.503.

(e) Employ an independent certified public accountant to prepare the statement of financial condition required by NRS 616B.404.

(f) Maintain minutes of its meetings and make the minutes available for inspection by the Commissioner.

3. The board of trustees of an association shall not:

(a) Extend credit to any member of the association for the payment of that member’s annual assessment, except pursuant to a payment plan approved by the Commissioner.

(b) Borrow any money from the association or in the name of the association, except in the ordinary course of its business, without the prior approval of the Commissioner.

(Added to NRS by 1993, 672; A 1995, 1981) — (Substituted in revision for NRS 616.37925)