After the first three years of being a self-insurer, what is the minimum net worth requirement for continued status?

The requirement for a self-insurer to maintain their status after three years is indeed based on a multiple of the average claims paid. Specifically, the law in Nevada stipulates that to continue as a self-insurer, an entity must demonstrate a minimum net worth that is five times the average amount of claims that they have paid out over the years. This requirement is designed to ensure that the self-insurer has sufficient financial backing to cover potential liabilities and claims, thereby protecting both the insurer and the public.

Maintaining sufficient net worth helps to guarantee that the self-insurer can meet its obligations in the event of claims, enhancing the stability and reliability of the self-insurance program. The requirement reflects a prudent approach to risk management and underscores the necessity of having adequate reserves to cover claims. In contrast, the other options either provide an insufficient multiplier or a fixed amount that does not align with the regulatory framework established for self-insurers in Nevada.