KINDS OF INSURANCE; LIMITS ON RISK; REINSURANCE

Nev. Rev. Stat. 681A
in effect

Nev. Rev. Stat. § 681A.010 Definitions; nonexclusive application.

1. As used in this Code, unless the context otherwise requires, the words and terms defined in NRS 681A.020 to 681A.080 , inclusive, have the meanings ascribed to them in those sections. 2. It is intended that certain insurance coverages may come within the definitions of two or more kinds of insurance as defined in this chapter, and the inclusion of such coverage within one definition shall not exclude it as to any other kind of insurance within the definition of which such coverage is likewise reasonably includable.

Nev. Rev. Stat. § 681A.020 “Casualty insurance” defined.

1. “Casualty insurance” includes: (a) Vehicle insurance. Insurance against loss of or damage to any land vehicle or aircraft or any draft or riding animal or to property while contained therein or thereon or being loaded or unloaded therein or therefrom, from any hazard or cause, and against any loss, liability or expense resulting from or incidental to ownership, maintenance or use of any such vehicle, aircraft or animal, together with insurance against accidental injury to natural persons, irrespective of legal liability of the insured, including the named insured, while in, entering, alighting from, adjusting, repairing, cranking, or caused by being struck by a vehicle, aircraft or draft or riding animal, if such insurance is issued as an incidental part of insurance on the vehicle, aircraft or draft or riding animal. (b) Liability insurance. Insurance against legal liability for the death, injury or disability of any human being, or for damage to property, including liability resulting from negligence in rendering expert, fiduciary or professional services, and provisions of medical, hospital, surgical, disability benefits to injured persons and funeral and death benefits to dependents, beneficiaries or personal representatives of persons killed, irrespective of legal liability of the insured, when issued as an incidental coverage with or supplemental to liability insurance. (c) Workers’ compensation and employer’s liability. Insurance of the obligations accepted by, imposed upon or assumed by employers under law for death, disablement or injury of employees. (d) Burglary and theft. Insurance against loss or damage by burglary, theft, larceny, robbery, forgery, fraud, vandalism, malicious mischief, confiscation, or wrongful conversion, disposal or concealment, or from any attempt at any of the foregoing, including supplemental coverage for medical, hospital, surgical and funeral expense incurred by the named insured or any other person as a result of bodily injury during the commission of a burglary, robbery or theft by another, and, also, insurance against loss of or damage to moneys, coins, bullion, securities, notes, drafts, acceptances or any other valuable papers and documents, resulting from any cause. (e) Personal property floater. Insurance upon personal effects against loss or damage from any cause. (f) Glass. Insurance against loss or damage to glass, including its lettering, ornamentation and fittings. (g) Boiler and machinery. Insurance against any liability and loss or damage to property or interest resulting from accidents to or explosions of boilers, pipes, pressure containers, machinery or apparatus, and to make inspection of and issue certificates of inspection upon boilers, machinery and apparatus of any kind, whether or not insured. (h) Leakage and fire extinguishing equipment. Insurance against loss or damage to any property or interest caused by the breakage or leakage of sprinklers, hoses, pumps and other fire-extinguishing equipment or apparatus, water pipes or containers, or by water entering through leaks or openings in buildings, and insurance against loss or damage to such sprinklers, hoses, pumps and other fire-extinguishing equipment or apparatus. (i) Credit and mortgage guaranty. Insurance against loss or damage resulting from failure of debtors to pay their obligations to the insured, and insurance of real property mortgage lenders against loss by reason of nonpayment of the mortgage indebtedness. (j) Elevator. Insurance against loss of or damage to any property of the insured, resulting from the ownership, maintenance or use of elevators, except loss or damage by fire, and to make inspection of and issue certificates of inspection upon, elevators. (k) Congenital defects. Insurance against congenital defects in human beings. (l) Livestock. Insurance against loss or damage to livestock, and services of a veterinary for such animals. (m) Entertainments. Insurance indemnifying the producer of any motion picture, television, radio, theatrical, sport, spectacle, entertainment, or similar production, event or exhibition against loss from interruption, postponement or cancellation thereof due to death, accidental injury or sickness of performers, participants, directors or other principals. (n) Legal expenses. Insurance against any liability of a person or entity for the costs of any specific legal services or specific legal expenses and which pays or reimburses the person or entity for the costs of such services or expenses. Legal expenses insurance does not include an arrangement through which: (1) A member of an organization prepays for specific legal services; (2) The organization of which the person is a member contracts directly with attorneys for the provision of the specific legal services and makes the specific legal services available to the members of the organization or the dependents of the members; and (3) The organization pays the attorneys with whom the organization has contracted fixed, prearranged payments and the attorneys receive no additional payment or reimbursement for the specific legal services. (o) Miscellaneous. Insurance against any other kind of loss, damage or liability properly a subject of insurance and not within any other kind of insurance as defined in this chapter, if such insurance is not disapproved by the Commissioner as being contrary to law or public policy, including insurance for home protection issued pursuant to NRS 690B.100 to 690B.180 , inclusive. 2. Provision of medical, hospital, surgical and funeral benefits, and of coverage against accidental death or injury, as incidental to and part of other insurance as stated under paragraphs (a) (vehicle), (b) (liability), (d) (burglary), (g) (boiler and machinery) and (j) (elevator) of subsection 1 shall for all purposes be deemed to be the same kind of insurance to which it is so incidental, and is not subject to provisions of this Code applicable to life and health insurances.

Nev. Rev. Stat. § 681A.022 “Continuous care coverage” defined.

“Continuous care coverage” is the issuance of a policy of insurance for workers’ compensation, as described in paragraph (c) of subsection 1 of NRS 681A.020, issued jointly with and supplemental to a policy for health insurance, as defined in NRS 681A.030, by one or more insurers covering the same employer for the same policy period.

Nev. Rev. Stat. § 681A.024 “Covered agreement” defined.

“Covered agreement” means an agreement entered into pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act, 31 U.S.C. §§ 313 and 314, that is currently in effect or in a period of provisional application and addresses the elimination, under specified conditions, of collateral requirements as a condition for entering into any reinsurance agreement with a ceding insurer domiciled in this State or for allowing the ceding insurer to recognize credit for reinsurance.

Nev. Rev. Stat. § 681A.030 “Health insurance” defined.

“Health insurance” is insurance of human beings against bodily injury, disablement or death by accident or accidental means, or the expense thereof, or against disablement or expense resulting from sickness, and every insurance appertaining thereto, together with provisions operating to safeguard contracts of health insurance against lapse in the event of strike or layoff due to labor disputes.

Nev. Rev. Stat. § 681A.040 “Life insurance” defined.

1. “Life insurance” is insurance on human lives. The transaction of life insurance includes the granting of endowment benefits, additional incidental benefits in the event of death or dismemberment by accident or accidental means, additional incidental benefits in the event of the insured’s disability, optional modes of settlement of proceeds of life insurance, and provisions operating to safeguard contracts of life insurance against lapse. 2. The term includes a policy of life insurance which incorporates long-term care insurance if the policy of life insurance may incorporate the long-term care insurance pursuant to NRS 688A.440 .

Nev. Rev. Stat. § 681A.050 “Marine and transportation” and “wet marine and transportation” insurance defined.

1. “Marine and transportation insurance” includes: (a) Insurance against any kinds of loss or damage to: (1) Vessels, craft, aircraft, cars, automobiles and vehicles of every kind, as well as all goods, freights, cargoes, merchandise, effects, disbursements, profits, moneys, bullion, precious stones, securities, choses in action, evidences of debt, valuable papers, bottomry and respondentia interests and all other kinds of property and interest therein, in connection with any and all risks or perils of navigation, transit or transportation, including war risks, on or under any seas or other waters, on land or in the air, or while being assembled, packed, crated, baled, compressed or similarly prepared for shipment or while awaiting the same or during any delays, storage, transshipment or reshipment incidental thereto, including marine builder’s risks and all personal property floater risks; (2) Person or property in connection with a marine, inland marine, transit or transportation insurance, including liability for loss of or damage to either, arising out of or in connection with the construction, repair, operation, maintenance or use of the subject matter of such insurance (but not including life insurance or surety bonds or insurance against loss by reason of bodily injury to the person arising out of the ownership, maintenance or use of automobiles); (3) Precious stones, jewels, jewelry, gold, silver and other precious metals, whether used in business or trade or otherwise and whether the same is in the course of transportation or otherwise; and (4) Bridges, tunnels and other instrumentalities of transportation and communication (excluding buildings, their furniture and furnishings, fixed contents and supplies held in storage) unless fire, tornado, sprinkler leakage, hail, explosion, earthquake, riot or civil commotion are the only hazards to be covered; piers, wharves, docks and slips, excluding the risks of fire, tornado, sprinkler leakage, hail, explosion, earthquake, riot or civil commotion; other aids to navigation and transportation, including dry docks and marine railways, against all risks. (b) “Marine protection and indemnity insurance,” meaning insurance against, or against legal liability of the insured for, loss, damage or expense arising out of, or incidental to, the ownership, operation, chartering, maintenance, use, repair or construction of any vessel, craft or instrumentality in use in ocean or inland waterways, including liability of the insured for personal injury, illness or death or for loss of or damage to the property of another person. 2. For the purposes of this Code, “wet marine and transportation” insurance is that part of “marine and transportation” insurance which includes only: (a) Insurance upon vessels, crafts, hulls and of interests therein or with relation thereto; (b) Insurance of marine builders’ risks, marine war risks and contracts of marine protection and indemnity insurance; (c) Insurance of freights and disbursements pertaining to a subject of insurance coming within this definition; and (d) Insurance of personal property and interests therein, in the course of exportation from or importation into any country, or in the course of transportation coastwise or on inland waters, including transportation by land, water or air from point of origin to final destination, in connection with any and all risks or perils of navigation, transit or transportation, and while being prepared for and while awaiting shipment, and during any delays, storage, transshipment or reshipment incident thereto.

Nev. Rev. Stat. § 681A.055 “NAIC” defined.

“NAIC” means the National Association of Insurance Commissioners or its successor organization.

Nev. Rev. Stat. § 681A.060 “Property insurance” defined.

1. “Property insurance” is insurance on real or personal property of every kind and of every interest therein against loss or damage from any and all hazards or causes, and against loss consequential upon such loss or damage, other than noncontractual legal liability for any such loss or damage. 2. Property insurance does not include title insurance, as defined in NRS 681A.080 .

Nev. Rev. Stat. § 681A.062 “Reciprocal jurisdiction” defined.

“Reciprocal jurisdiction” means a jurisdiction, as designated by the Commissioner pursuant to NRS 681A.2135, which is one of the following: 1. A non-United States jurisdiction that is subject to an in-force covered agreement with the United States, each within its legal authority, or, in the case of a covered agreement between the United States and the European Union, is a member state of the European Union; 2. A United States jurisdiction that meets the requirements for accreditation under the NAIC financial standards and accreditation program; or 3. A qualified jurisdiction, as determined by the Commissioner pursuant to NRS 681A.1553 , which is not otherwise described in subsections 1 and 2 and which the Commissioner determines meets certain additional requirements, consistent with the terms and conditions of in-force covered agreements, including, without limitation, that the qualified jurisdiction: (a) Provides that an insurer which has its head office or is domiciled in such qualified jurisdiction shall receive credit for reinsurance ceded to a United States domiciled assuming insurer in the same manner as credit for reinsurance is received for reinsurance assumed by insurers domiciled in such qualified jurisdiction; (b) Does not require a United States-domiciled assuming insurer to establish or maintain a local presence as a condition for entering into a reinsurance agreement with any ceding insurer subject to regulation by the non-United States jurisdiction or as a condition to allow the ceding insurer to recognize credit for such reinsurance; (c) Recognizes the United States’s state regulatory approach to group supervision and group capital, by providing written confirmation by a competent regulatory authority, in the qualified jurisdiction, that insurers and insurance groups that are domiciled or maintain their headquarters in this State or another jurisdiction accredited by the NAIC shall be subject only to worldwide prudential insurance group supervision including, without limitation, worldwide group governance, solvency and capital, and reporting, as applicable, by the Commissioner or the commissioner of the domiciliary state and will not be subject to group supervision at the level of the worldwide parent undertaking of the insurance or reinsurance group by the qualified jurisdiction; and (d) Provides written confirmation by a competent regulatory authority in such qualified jurisdiction that information regarding insurers and their parent, subsidiary, or affiliated entities, if applicable, will be provided to the Commissioner in accordance with a memorandum of understanding or similar document between the Commissioner and the qualified jurisdiction, including, without limitation, the International Association of Insurance Supervisors Multilateral Memorandum of Understanding or other multilateral memoranda of understanding coordinated by the NAIC.

Nev. Rev. Stat. § 681A.068 “Solvent scheme of arrangement” defined.

“Solvent scheme of arrangement” means a foreign or alien statutory or regulatory compromise procedure subject to requisite majority creditor approval and judicial sanction in the assuming insurer’s home jurisdiction either to finally commute liabilities of duly noticed classed members or creditors of a solvent debtor, or to reorganize or restructure the debts and obligations of a solvent debtor on a final basis, and which may be subject to judicial recognition and enforcement of the arrangement by a governing authority outside the ceding insurer’s home jurisdiction.

Nev. Rev. Stat. § 681A.070 “Surety insurance” defined.

“Surety insurance” includes: 1. Fidelity insurance, which is insurance guaranteeing the fidelity of persons holding positions of public or private trust. 2. Insurance guaranteeing the performance of contracts, other than insurance policies, and guaranteeing and executing bonds, undertakings and contracts of suretyship. 3. Insurance indemnifying banks, bankers, brokers, financial or moneyed corporations or associations against loss, resulting from any cause, of bills of exchange, notes, bonds, securities, evidences of debt, deeds, mortgages, warehouse receipts or other valuable papers, documents, money, precious metals and articles made therefrom, jewelry, watches, gems, precious and semiprecious stones, including any loss while the same are being transported in armored motor vehicles, or by messenger, but not including any other risks of transportation or navigation, and also insurance against loss or damage to such an insured’s premises or to the insured’s furnishings, fixtures, equipment, safes and vaults therein, caused by burglary, robbery, theft, vandalism or malicious mischief, or any attempt thereat. 4. Financial guaranty insurance, which is insurance or bonding that guarantees the payment of the principal and interest on a security if the issuer of the security defaults in the payment of the principal or interest. Financial guaranty insurance does not include coverage for items described in subsection 3.

Nev. Rev. Stat. § 681A.080 “Title insurance” defined.

“Title insurance” means insuring, guaranteeing or indemnifying owners of property or holders of liens, encumbrances or security interests on the property, and others interested therein, against loss or damage suffered by reason of: 1. Liens, encumbrances, security interests and defects in, or the unmarketability of, the title to the property; or 2. Invalidity or unenforceability of liens, encumbrances or security interests on the property, Ê and any other activity substantially equivalent to these activities.

Nev. Rev. Stat. § 681A.090 Multiple line insurers.

A multiple line insurer may transact: 1. Any two or more kinds of insurance, as defined in NRS 681A.020 , 681A.030 , 681A.050 , 681A.060 , 681A.070 and 681A.080 (casualty, health, marine and transportation, property, surety and title insurance), but a title insurer must be a stock insurer. 2. Life insurance if so authorized pursuant to subsection 1 of NRS 680A.110 (combinations of insuring powers).

Nev. Rev. Stat. § 681A.095 Insurance against legal liability for exemplary or punitive damages.

An insurer may insure against legal liability for exemplary or punitive damages that do not arise from a wrongful act of the insured committed with the intent to cause injury to another.

Nev. Rev. Stat. § 681A.100 Amount of risk that insurer may retain; method for determining risk; applicability.

1. Except as otherwise provided for domestic mutual insurers in NRS 692B.200 , an insurer shall not retain any risk on any one subject of insurance, whether located or to be performed in this state or elsewhere, in an amount exceeding 10 percent of its surplus to policyholders. 2. A “subject of insurance” for the purposes of this section, as to insurance against fire and hazard other than windstorm, earthquake and other catastrophic hazards, includes all properties insured by the same insurer which are customarily considered by underwriters to be subject to loss or damage from the same fire or the same occurrence of any other hazard insured against. 3. Reinsurance ceded as authorized by NRS 681A.110 must be deducted in determining the risk retained, except that as to surety risks, reinsurance must be allowed as a deduction only if the reinsurance is with an insurer authorized to transact that insurance in this state, and is in such form as to enable the obligee or beneficiary to maintain an action thereon against the reinsured jointly with the reinsurer, and upon recovering judgment against the reinsured, to have recovery against the reinsurer for payment to the extent to which it may be liable under the reinsurance and in discharge thereof. As to surety risks, deduction must also be made of the amount assumed by any authorized cosurety and the value of any security deposited, pledged or held subject to the surety’s consent and for the surety’s protection. 4. As to alien insurers, this section relates only to risks and surplus to policyholders of the insurer’s branch in the United States. 5. “Surplus to policyholders” for the purposes of this section, in addition to the insurer’s capital and surplus, includes any voluntary reserves which are not required pursuant to law, and must be determined from the last sworn statement of the insurer on file with the Commissioner, or by the last report of examination of the insurer, whichever is the more recent at time of assumption of risk. 6. This section does not apply to life or health insurance, annuities, title insurance, insurance of wet marine and transportation risks, workers’ compensation insurance, financial guaranty insurance, or to any policy or type of coverage as to which the maximum possible loss to the insurer is not readily ascertainable on issuance of the policy.

Nev. Rev. Stat. § 681A.110 Reinsurance authorized for all or part of risk; requirements for reinsurance with unauthorized insurer.

An insurer may reinsure all or any part of an individual risk or of a particular class of risks in any other insurer or, with the approval of the Commissioner, all its risks in an authorized insurer, or may accept such reinsurance from any other insurer. No domestic insurer may reinsure with an insurer which is not authorized to transact insurance or reinsurance unless: 1. The domestic insurer has the Commissioner’s written approval; or 2. The insurer accepting the reinsurance meets the requirements for credit provided in NRS 681A.150 to 681A.190 , inclusive.

Nev. Rev. Stat. § 681A.120 Cancellation or material changes in treaties or arrangements for reinsurance: Written notice to Commissioner by insurer required.

An insurer shall promptly inform the Commissioner in writing of the cancellation or any other material change in any of its treaties or arrangements for reinsurance.

Nev. Rev. Stat. § 681A.130 Regulations.

The Commissioner may adopt regulations to carry out the provisions of NRS 681A.110 to 681A.560, inclusive.

Nev. Rev. Stat. § 681A.140 “Qualified financial institution in the United States” defined.

As used in NRS 681A.140 to 681A.240, inclusive, “qualified financial institution in the United States” means an institution that: 1. Is organized, or in the case of a branch or agency of a foreign banking organization in the United States licensed, under the laws of the United States or any state thereof and has been granted authority to operate with fiduciary powers; 2. Is regulated, supervised and examined by federal or state authorities having regulatory authority over banks and trust companies; 3. Is determined: (a) By the Commissioner to meet the standards of financial condition and standing prescribed by the Commissioner; or (b) By the National Association of Insurance Commissioners to meet the standards of financial condition and standing prescribed by the National Association of Insurance Commissioners; and 4. Is determined by the Commissioner to be otherwise acceptable.

Nev. Rev. Stat. § 681A.145 Regulations governing arrangements for reinsurance relating to life and health insurance and annuity products.

1. The Commissioner may adopt regulations applicable to arrangements for reinsurance relating to: (a) Life insurance policies with guaranteed non-level gross premiums or guaranteed non-level benefits; (b) Universal life insurance policies with provisions resulting in the ability of a policyholder to keep a policy in force over a secondary guarantee period; (c) Variable annuities with guaranteed death or living benefits; (d) Policies for long-term care insurance; or (e) Such other life and health insurance and annuity products as to which the National Association of Insurance Commissioners adopts model regulatory requirements with respect to credit for reinsurance. 2. A regulation adopted pursuant to this section may require the ceding insurer, in calculating the amounts or forms of security required to be held pursuant to regulations adopted pursuant to this section, to use the Valuation Manual , as defined in NRS 681B.0071 , which is in effect on the date as of which the calculation is made, to the extent applicable. 3. A regulation adopted pursuant to this section must not apply to a cession to an assuming insurer that: (a) Meets the conditions set forth in NRS 681A.211 to 681A.2165 , inclusive, in this State or is operating in accordance with provisions substantially equivalent to NRS 681A.211 to 681A.217 , inclusive, in five or more other states; (b) Is certified in this State or, if this State has not adopted regulations which provide for an assuming insurer to satisfy the requirements of NRS 681A.155 for credit to be allowed, certified in a minimum of five other states; or (c) Maintains at least $250,000,000 in capital and surplus when determined in accordance with the Accounting Practices and Procedures Manual adopted by the National Association of Insurance Commissioners, as amended, excluding the impact of any permitted or prescribed practices, and: (1) Is licensed in at least 26 states; or (2) Is licensed in at least 10 states, and licensed or accredited in at least 35 states.

Nev. Rev. Stat. § 681A.150 Requirements for taking certain credit.

1. No credit may be taken as an asset or as a deduction from liability on account of reinsurance unless the reinsurer is authorized to transact insurance or reinsurance in this state pursuant to the requirements of NRS 681A.110 , 681A.155 to 681A.190 , inclusive, 681A.211 to 681A.217 , inclusive, or 681A.220 . If the reinsurer is authorized pursuant to NRS 681A.180 or 681A.190 , the requirements of NRS 681A.200 must also be met. If the reinsurer is authorized pursuant to NRS 681A.170 , 681A.180 or 681A.190 , the requirements of NRS 681A.210 must also be met. 2. Credit shall be allowed for the cases of authorization pursuant to NRS 681A.110 to 681A.160 , inclusive, or 681A.170 only with respect to cessions of those kinds or classes of business for which the assuming insurer is licensed or otherwise permitted to write or assume in its state of domicile or, in the case of a United States branch of an alien assuming insurer, in the state through which it is entered and licensed to transact insurance or reinsurance.

Nev. Rev. Stat. § 681A.155 Reinsurance ceded to assuming certified reinsurer.

Credit must be allowed when the reinsurance is ceded to an assuming insurer that has been certified by the Commissioner as a reinsurer in this State and secures its obligations in accordance with the requirements of this chapter.

Nev. Rev. Stat. § 681A.160 Reinsurance ceded to assuming accredited reinsurer in Nevada; suspension or revocation of accreditation or certification of reinsurer.

1. Except as otherwise provided in subsection 2, credit must be allowed if reinsurance is ceded to an assuming insurer which is accredited as a reinsurer in this state. An accredited reinsurer is one which satisfies all of the following conditions: (a) Files with the Commissioner a properly executed Form AR-1, provided on the Internet website of the Division, as evidence of its submission to this state’s jurisdiction. (b) Submits to this state’s authority to examine its books and records. (c) Files with the Commissioner a certified copy of a certificate of authority or other evidence approved by the Commissioner indicating that it is licensed to transact insurance or reinsurance in at least one state, or in the case of a branch in the United States of an alien assuming insurer is entered through and licensed to transact insurance or reinsurance in at least one state. (d) Files annually with the Commissioner a copy of its annual statement filed with the Division of its state of domicile or entry and a copy of its most recent audited financial statement. (e) Demonstrates to the satisfaction of the Commissioner that it has adequate financial capacity to meet its reinsurance obligations and is otherwise qualified to assume reinsurance from domestic insurers. An assuming insurer is deemed to meet this requirement as of the time of its application if it maintains a surplus as regards policyholders in an amount which is: (1) Not less than $20,000,000 and whose accreditation has not been denied by the Commissioner within 90 days after its submission; or (2) Less than $20,000,000 and whose accreditation has been approved by the Commissioner. (f) Pays all applicable fees, including, without limitation, all applicable fees required pursuant to NRS 680C.110 . 2. If an accredited or certified reinsurer ceases to meet the requirements for accreditation or certification, the Commissioner may suspend or revoke the reinsurer’s accreditation or certification. Before suspending or revoking the reinsurer’s accreditation or certification, the Commissioner must give the reinsurer notice and opportunity for a hearing. 3. The suspension or revocation of an accreditation or certification may not take effect until after the Commissioner’s order on hearing unless: (a) The reinsurer waives its right to a hearing; (b) The Commissioner’s order is based upon regulatory action taken by the reinsurer’s domiciliary jurisdiction or the voluntary surrender or termination of the reinsurer’s eligibility to transact insurance or reinsurance business in its domiciliary jurisdiction or in the primary certifying state of the reinsurer; or (c) The Commissioner finds that an emergency requires immediate action and a court of competent jurisdiction has not stayed the Commissioner’s action. 4. During the period in which a reinsurer’s accreditation or certification is suspended, no reinsurance contract issued or renewed after the effective date of the suspension qualifies for credit except to the extent that the reinsurer’s obligations under the contract are secured pursuant to NRS 681A.240 . If the reinsurer’s accreditation or certification is revoked, no credit for reinsurance may be granted after the effective date of the revocation except to the extent that the reinsurer’s obligations under the contract are secured pursuant to NRS 681A.240 .

Nev. Rev. Stat. § 681A.170 Reinsurance ceded to assuming alien insurer.

1. Except as otherwise provided in subsection 2, credit must be allowed if reinsurance is ceded to an assuming insurer which is domiciled and licensed in, or in the case of a branch in the United States of an alien assuming insurer is entered through, a state which employs standards regarding credit for reinsurance substantially similar to those applicable under this chapter and the assuming insurer or branch in the United States of an alien assuming insurer: (a) Maintains a surplus as regards policyholders in an amount not less than $20,000,000; (b) Submits to the authority of this state to examine its books and records; and (c) Files with the Commissioner a properly executed Form AR-1, provided on the Internet website of the Division, as evidence of its submission to this State’s jurisdiction. 2. The requirement of paragraph (a) of subsection 1 does not apply to reinsurance ceded and assumed pursuant to pooling among insurers affiliated with the same holding company.

Nev. Rev. Stat. § 681A.180 Reinsurance ceded to assuming insurer which maintains trust fund for payment of valid claims.

1. Credit must be allowed if reinsurance is ceded to an assuming insurer which maintains a trust fund in a qualified financial institution in the United States for the payment of the valid claims of its policyholders and ceding insurers in the United States, their assigns and successors in interest. The assuming insurer shall: (a) Report annually to the Commissioner information substantially the same as that required to be reported on the National Association of Insurance Commissioners’ form of annual statement by licensed insurers to enable the Commissioner to determine the sufficiency of the trust fund; and (b) Submit to the authority of the Commissioner to examine its books and records. 2. In the case of a single assuming insurer: (a) The trust must consist of an account in trust equal to the assuming insurer’s liabilities attributable to business written in the United States and the assuming insurer shall maintain a surplus in trust of not less than $20,000,000. (b) Three years after the assuming insurer has permanently discontinued underwriting new business secured by the trust, the commissioner of insurance of the state with principal regulatory authority over the trust may, at any time, authorize a reduction in the required trustee surplus, but only after finding, based on the assessment of the risk, that the new required surplus level is adequate for the protection of ceding insurers, policyholders and claimants in the United States in light of a reasonably adverse loss development. The risk assessment may involve an actuarial review, including an independent analysis of reserves and cash flows, and must consider all material risk factors, including, as applicable, the lines of business involved, the stability of the incurred loss estimates and the effect of the surplus requirements on the assuming insurer’s liquidity or solvency. The minimum required trustee surplus may not be reduced to an amount less than 30 percent of the assuming insurer’s liabilities attributable to reinsurance ceded by ceding insurers domiciled in the United States and covered by the trust. 3. In the case of a group of incorporated and individual unincorporated underwriters: (a) The trust must consist of an account in trust equal to the group’s liabilities attributable to business written in the United States. (b) The group shall: (1) Maintain a surplus in trust of which $100,000,000 must be held jointly for the benefit of ceding insurers in the United States to any member of the group; and (2) Make available to the Commissioner an annual certification of the solvency of each underwriter by the group’s domiciliary regulator and its independent public accountants. (c) The incorporated members of the group: (1) Shall not engage in any business other than underwriting as a member of the group; and (2) Must be subject to the same level of regulation and solvency control by the applicable regulatory agency of the state in which the group is domiciled as the individual unincorporated members of the group. 4. Credit for reinsurance must not be granted unless the form of the trust and any amendments to the trust have been approved by the commissioner of insurance of the state in which the trust is domiciled or the commissioner of insurance of another state that, under the terms of the trust instrument, has accepted responsibility for regulatory authority over the trust. The form of the trust and any amendments to the trust must also be filed with each state in which the ceding insurer beneficiaries are domiciled or located. The trust instrument must provide that: (a) Contested claims become valid and enforceable from money held in the trust to the extent such claims remain unsatisfied within 30 days after the entry of the final order of any court of competent jurisdiction in the United States; (b) Legal title to the assets of the trust must be vested in the trustees for the benefit of the grantor’s ceding insurers in the United States, their assigns and successors in interest; (c) The trust is subject to examination as determined by the Commissioner; (d) The trust must remain in effect for as long as the assuming insurers or any member or former member of a group of insurers has outstanding obligations due under the agreements for reinsurance subject to the trust; and (e) Not later than February 28 of each year, the trustees of the trust shall report to the Commissioner in writing setting forth the balance of the trust and listing the trust’s investments at the end of the preceding year and shall certify the date of termination of the trust or certify that the trust will not expire before the next following December 31.

Nev. Rev. Stat. § 681A.190 Reinsurance ceded to group of incorporated insurers under common administration.

1. Credit must be allowed if reinsurance is ceded to a group of incorporated insurers under common administration which: (a) Does not engage in any business other than underwriting as a member of the group; (b) Is subject to the same amount of regulation and solvency control by the group’s domiciliary regulator as are the unincorporated members of the group; (c) Reports annually to the Commissioner the information required by subsection 1 of NRS 681A.180 ; (d) Has continuously transacted insurance outside the United States for at least 3 years immediately before making an application for accreditation; (e) Submits to this state’s authority to examine its books and records and bears the expense of the examination; (f) Has aggregate policyholders’ surplus of $10,000,000,000; and (g) Maintains a trust pursuant to subsection 2. 2. The trust must be in an amount equal to the group’s several liabilities attributable to business ceded by ceding insurers in the United States to any member of the group pursuant to contracts of reinsurance issued in the name of the group, and the group shall maintain a joint surplus in trust of which $100,000,000 must be held jointly for the benefit of ceding insurers in the United States to any member of the group as additional security for any such liabilities. 3. Each member of the group shall, within 90 days after the date its financial statements must be filed with the group’s domiciliary regulator, make available to the Commissioner an annual certification of the member’s solvency by the member’s domiciliary regulator and its independent public accountant.

Nev. Rev. Stat. § 681A.200 Requirements for establishment or amendment of certain trusts.

1. A trust for the purposes of NRS 681A.180 or 681A.190 , and any amendment to the trust, must be established or amended in a form approved by: (a) The Commissioner; and (b) The commissioner of insurance or other appropriate person of: (1) The state in which the trust is domiciled; or (2) Any other state that, pursuant to the trust instrument, accepts regulatory authority over the trust. 2. The form of the trust and any amendment to the trust must be filed with the commissioner of insurance or other appropriate person of each state in which the policyholders of the ceding insurer who are the beneficiaries of the trust are domiciled. 3. The trust instrument must provide that contested claims become valid, enforceable and payable from money held in the trust fund to the extent that the contested claims remain unsatisfied, within 30 days after the entry of the final order of any court of competent jurisdiction in the United States. The trust must vest legal title to its assets in the trustees of the trust for its policyholders and ceding insurers in the United States, their assigns and successors in interest. The trust and the assuming insurer are subject to examination as determined by the Commissioner. The trust must remain in effect for as long as the assuming insurer or any member or former member of the group of insurers has outstanding obligations due under the agreements for reinsurance subject to the trust. 4. Not later than February 28 of each year the trustees of the trust shall report to the Commissioner in writing setting forth the balance of the trust and listing the trust’s investments at the end of the preceding year and shall certify the date of termination of the trust, if so planned, or certify that the trust will not expire before the next following December 31.

Nev. Rev. Stat. § 681A.210 Requirements when assuming insurer is not licensed or accredited to transact insurance or reinsurance in this State.

1. Except as otherwise provided in subsection 2, if the assuming insurer is not licensed or accredited to transact insurance or reinsurance in this State, the credit permitted by NRS 681A.170 or 681A.180 must not be allowed unless the assuming insurer agrees in the agreements for reinsurance: (a) That in the event of the failure of the assuming insurer to perform its obligations under the terms of the agreement, the assuming insurer, at the request of the ceding insurer, will submit to the jurisdiction of any court of competent jurisdiction in any state of the United States, will comply with all requirements necessary to give the court jurisdiction, and will abide by the final decision of the court or of any appellate court in the event of an appeal; (b) To designate the Commissioner or a designated attorney as its true and lawful attorney upon whom may be served any lawful process in an action, suit or proceeding instituted by or on behalf of the ceding company; and (c) To comply with the conditions set forth in subsection 5 of NRS 681A.180 . 2. This section does not conflict with or override the obligation of the parties to an agreement for reinsurance to arbitrate their disputes if such an obligation is created in the agreement.

Nev. Rev. Stat. § 681A.211 Credit for reinsurance ceded by domestic insurer to assuming insurer: Requirements for allowance.

The Commissioner must allow credit for reinsurance ceded by a domestic insurer to an assuming insurer that is licensed to write reinsurance and meets each of the conditions set forth below: 1. The assuming insurer must have its head office or be domiciled in, as applicable, and be licensed in a reciprocal jurisdiction. 2. The assuming insurer must have and maintain, on an ongoing basis, minimum capital and surplus, or its equivalent, calculated according to the methodology of its domiciliary jurisdiction on at least an annual basis as of the preceding December 31 or at the annual date otherwise statutorily reported to the reciprocal jurisdiction, and confirmed as set forth in NRS 681A.2125 , in the following amounts: (a) Not less than $250,000,000; or (b) If the assuming insurer is an association, including, without limitation, incorporated and individual unincorporated underwriters, which has and maintains, on an ongoing basis, minimum capital and surplus equivalents, net of liabilities, in the reciprocal jurisdiction where the assuming insurer has its head office or is domiciled, as applicable, and is also licensed, which are calculated according to the methodology applicable in its domiciliary jurisdiction: (1) Minimum capital and surplus equivalents, net of liabilities, or own funds which are equivalent, of at least $250,000,000; and (2) A central fund with a balance of the equivalent of at least $250,000,000. 3. The assuming insurer must have and maintain on an ongoing basis a minimum solvency or capital ratio, as applicable, as follows: (a) If the assuming insurer has its head office or is domiciled in a reciprocal jurisdiction which meets the requirements of subsection 1 of NRS 681A.062 , the ratio specified in the applicable covered agreement; (b) If the assuming insurer is domiciled in a reciprocal jurisdiction which meets the requirements of subsection 2 of NRS 681A.062 , a risk-based capital ratio of 300 percent of the authorized control level, calculated in accordance with the formula developed by the NAIC; or (c) If the assuming insurer is domiciled in a reciprocal jurisdiction which meets the requirements of subsection 3 of NRS 681A.062 , after consultation with the reciprocal jurisdiction and considering any applicable recommendations published by the NAIC, such solvency or capital ratio as the Commissioner determines to be an effective measure of solvency. 4. The assuming insurer must agree to and provide adequate assurance to the Commissioner, in the form of a properly executed Certificate of Reinsurer Domiciled In Reciprocal Jurisdiction Form RJ-1, of each of the following requirements: (a) The assuming insurer must agree to provide prompt written notice and explanation to the Commissioner if it falls below the minimum requirements set forth in subsection 2 or 3, or if any regulatory action is taken against it for serious noncompliance with applicable law. (b) The assuming insurer must consent in writing to the jurisdiction of the courts of this State and to the appointment of the Commissioner as agent for service of process. The Commissioner may also require that such consent for service of process be provided to the Commissioner and included in each reinsurance agreement under the Commissioner’s jurisdiction. Nothing in this paragraph limits, or in any way alters, the capacity of parties to a reinsurance agreement to agree to alternative dispute resolution mechanisms, except to the extent such agreements are unenforceable under applicable insolvency or delinquency laws. (c) The assuming insurer must consent in writing to pay all final judgments, wherever enforcement is sought, obtained by a ceding insurer or its legal successor, that have been declared enforceable in the jurisdiction where the judgment was obtained. (d) Each reinsurance agreement must include a provision requiring the assuming insurer to provide security in an amount equal to 100 percent of the assuming insurer’s liabilities attributable to reinsurance ceded pursuant to that agreement if the assuming insurer resists enforcement of a final judgment that is enforceable under the law of the jurisdiction in which it was obtained or a properly enforceable arbitration award, whether obtained by the ceding insurer or by its legal successor on behalf of its resolution estate, if applicable. (e) The assuming insurer must confirm that it is not presently participating in any solvent scheme of arrangement which involves this State’s ceding insurers, and agree to notify the ceding insurer and the Commissioner and to provide security in an amount equal to 100 percent of the assuming insurer’s liabilities to the ceding insurer consistent with the terms of the scheme, should the assuming insurer enter into such a solvent scheme of arrangement. The security must be in a form consistent with the provisions of NRS 681A.1551 to 681A.1557 , inclusive, and NRS 681A.240 , as specified by the Commissioner by regulation. (f) The assuming insurer must agree in writing to meet the applicable information filing requirements as set forth in NRS 681A.2115 .

Nev. Rev. Stat. § 681A.212 Practice of prompt payment of claims required to be maintained by assuming insurer; criteria evidencing lack of prompt payment.

The assuming insurer must maintain a practice of prompt payment of claims under reinsurance agreements. The lack of prompt payment will be evidenced if any of the following criteria is met: 1. More than 15 percent of the reinsurance recoverables from the assuming insurer are overdue and in dispute as reported to the Commissioner; 2. More than 15 percent of the assuming insurer’s ceding insurers or reinsurers have overdue reinsurance recoverable on paid losses of 90 days or more which are not in dispute and which exceed for each ceding insurer $100,000, unless otherwise specified in an applicable covered agreement; or 3. The aggregate amount of reinsurance recoverable on paid losses which are not in dispute, but are overdue by 90 days or more, exceeds $50,000,000, unless otherwise specified in an applicable covered agreement.

Nev. Rev. Stat. § 681A.213 List of reciprocal jurisdictions.

1. The Commissioner shall timely create and publish a list of reciprocal jurisdictions. 2. The Commissioner’s list: (a) Must include, without limitation, any reciprocal jurisdiction which meets the requirements of subsection 1 or 2 of NRS 681A.062 ; (b) May include, without limitation, any other reciprocal jurisdiction which is included on an applicable list of reciprocal jurisdictions published by the NAIC; and (c) May include, without limitation, a reciprocal jurisdiction that does not appear on an applicable list of reciprocal jurisdictions published by the NAIC if the Commissioner has approved the reciprocal jurisdiction pursuant to applicable law or in accordance with applicable criteria published by the NAIC. 3. The Commissioner may remove a jurisdiction from the list of reciprocal jurisdictions upon a determination that the jurisdiction no longer meets one or more of the requirements of a reciprocal jurisdiction, as provided by applicable law or in accordance with an applicable process published by the NAIC, except that the Commissioner must not remove from the list a reciprocal jurisdiction which meets the requirements of subsection 1 or 2 of NRS 681A.062 . Upon removal of a reciprocal jurisdiction from the Commissioner’s list, credit for reinsurance ceded to an assuming insurer which has its home office or is domiciled in that jurisdiction must be allowed if otherwise allowed pursuant to NRS 681A.110 to 681A.240 , inclusive.

Nev. Rev. Stat. § 681A.214 Revocation or suspension of eligibility of assuming insurer; effect on credit.

1. If the Commissioner determines that an assuming insurer no longer meets one or more of the requirements under NRS 681A.211 to 681A.2155 , inclusive, the Commissioner may revoke or suspend the eligibility of the assuming insurer for recognition under this section. 2. While an assuming insurer’s eligibility is suspended, no reinsurance agreement issued, amended or renewed after the effective date of the suspension qualifies for credit except to the extent that the assuming insurer’s obligations under the contract are secured in accordance with NRS 681A.240 . 3. If an assuming insurer’s eligibility is revoked, no credit for reinsurance may be granted after the effective date of the revocation with respect to any reinsurance agreements entered into by the assuming insurer, including reinsurance agreements entered into prior to the date of revocation, except to the extent that the assuming insurer’s obligations under the contract are secured in a form acceptable to the Commissioner and consistent with the provisions of NRS 681A.240 .

Nev. Rev. Stat. § 681A.216 Limitations on agreements regarding security or other terms.

Nothing in NRS 681A.211 to 681A.2165, inclusive, limits or in any way alters the capacity of a party to a reinsurance agreement to agree on requirements for security or other terms in that reinsurance agreement, except as expressly prohibited by NRS 681A.110 to 681A.240, inclusive, or other applicable law.

Nev. Rev. Stat. § 681A.217 Conditions under which credit allowed when assuming insurer does not meet certain requirements.

If the assuming insurer does not meet the requirements of NRS 681A.110, 681A.160, 681A.170 and NRS 681A.211 to 681A.2165, inclusive, credit permitted by NRS 681A.155 to 681A.1557, inclusive, NRS 681A.180 or 681A.190 must not be allowed unless the assuming insurer has agreed to the following conditions set forth in the trust agreement: 1. Notwithstanding any provision to the contrary in the trust instrument, if the trust fund consists of an amount that is less than the amount required pursuant to NRS 681A.180 or 681A.190 , or if the grantor of the trust fund is declared to be insolvent or placed into receivership, rehabilitation, liquidation or a similar proceeding in accordance with the laws of the grantor’s state or country of domicile, the trustee of the trust fund must comply with an order of the commissioner of insurance or other appropriate person with regulatory authority over the trust fund in that state or country or a court of competent jurisdiction requiring the trustee to transfer to that commissioner or person all the assets of the trust fund; 2. The assets of the trust fund must be distributed by and claims filed with and valued by the commissioner of insurance or other appropriate person with regulatory authority over the trust fund in accordance with the laws of the state in which the trust fund is domiciled that are applicable to the liquidation of domestic insurers in that state; 3. If the commissioner of insurance or other appropriate person with regulatory authority over the trust fund determines that the assets of the trust fund or any portion of the trust fund are not required to satisfy any claim of any ceding insurer of the grantor of the trust fund in the United States, the assets must be returned by that commissioner or person to the trustee of the trust fund for distribution in accordance with the trust agreement; and 4. The grantor of the trust must waive any right that: (a) Is otherwise available to the grantor under the laws of the United States; and (b) Is inconsistent with the provisions of this section.

Nev. Rev. Stat. § 681A.220 Limitation on credit allowed when assuming insurer does not meet certain requirements.

Credit must be allowed if reinsurance is ceded to an assuming insurer not meeting the requirements of NRS 681A.110, 681A.150 to 681A.190, inclusive, and NRS 681A.211 to 681A.217, inclusive, but only with respect to the insurance of risks located in jurisdictions where such reinsurance is required by applicable law or regulation of that jurisdiction.

Nev. Rev. Stat. § 681A.230 Ceding insurer to be allowed credit if reinsurance lawfully ceded to qualified assuming insurer; domiciliary liquidator of insolvent ceding insurer to give notice to assuming insurer of any claim against ceding insurer.

1. Credit must be allowed as an asset or as a deduction from liability to any ceding insurer for reinsurance lawfully ceded to an assuming insurer qualified therefor pursuant to NRS 681A.110 and 681A.150 to 681A.190 , inclusive, but no such credit may be allowed unless the contract for reinsurance provides in substance that, in the event of the insolvency of the ceding insurer, the reinsurance is payable pursuant to a contract reinsured by the assuming insurer on the basis of reported claims allowed in any liquidation proceedings, subject to court approval, without diminution because of the insolvency of the ceding insurer. Except as otherwise provided in NRS 686C.223 , those payments must be made directly to the ceding insurer or to its domiciliary liquidator unless: (a) The contract of reinsurance or other written contract specifically designates another payee of the payments in the event of the insolvency of the ceding insurer; or (b) The assuming insurer, with the consent of the persons directly insured, has assumed the obligations from the policies issued by the ceding insurer as direct obligations of the assuming insurer, and in substitution for the obligations of the ceding insurer, to the payees under those policies. 2. The domiciliary liquidator of an insolvent ceding insurer shall give written notice to the assuming insurer of the pendency of any claim against the ceding insurer on any contract reinsured within a reasonable time after such a claim is filed in the liquidation proceeding. During the pendency of the claim, the assuming insurer may investigate the claim and, at its own expense, interpose in the proceeding in which the claim is to be adjudicated any defense that the assuming insurer deems available to the ceding insurer or its liquidator.

Nev. Rev. Stat. § 681A.235 Management of concentration risk by ceding insurer.

1. A ceding insurer shall take steps to manage its reinsurance recoverables proportionate to its own book of business. A domestic ceding insurer shall notify the Commissioner within 30 days after reinsurance recoverables from any single assuming insurer, or group of affiliated assuming insurers, exceeds 50 percent of the domestic ceding insurer’s last reported surplus to policyholders, or after it is determined that reinsurance recoverables from any single assuming insurer, or group of affiliated assuming insurers, is likely to exceed this limit. The notification must demonstrate that the exposure is safely managed by the domestic ceding insurer. 2. A ceding insurer shall take steps to diversify its reinsurance program. A domestic ceding insurer shall notify the Commissioner within 30 days after ceding to any single assuming insurer, or group of affiliated assuming insurers, more than 20 percent of the ceding insurer’s gross written premium in the preceding calendar year, or after it has determined that the reinsurance ceded to any single assuming insurer, or group of affiliated assuming insurers, is likely to exceed this limit. The notification must demonstrate that the exposure is safely managed by the domestic ceding insurer.

Nev. Rev. Stat. § 681A.240 Requirements for reduction from liability when assuming insurer does not meet certain requirements concerning risk-based capital.

A reduction from liability for the reinsurance ceded by a domestic insurer to an assuming insurer not meeting the requirements of NRS 681A.110 or the regulations of the Commissioner concerning risk-based capital must be allowed in an amount not exceeding the liabilities carried by the ceding insurer and the reduction must be in the amount of assets held by or on behalf of the ceding insurer, including assets held in trust for the ceding insurer, under a contract of reinsurance with the assuming insurer as security for the payment of obligations thereunder, if the security is held in the United States subject to withdrawal solely by, and under the exclusive control of, the ceding insurer, or, in the case of a trust, held in a qualified financial institution in the United States. The security may be in any of the following forms: 1. Cash. 2. Securities listed by the Securities Valuation Office of the National Association of Insurance Commissioners and qualifying as admitted assets. 3. Irrevocable, unconditional letters of credit, each issued or confirmed by a qualified financial institution in the United States whose letters of credit are acceptable to the Commissioner, no later than December 31 of the year for which filing is made, and in the possession of the ceding company on or before the date of filing its annual statement. A letter of credit meeting applicable standards of acceptability of its issuer as of the date of its issuance or confirmation, notwithstanding the issuing or confirming institution’s subsequent failure to meet applicable standards of acceptability, continues to be acceptable as security until its expiration, extension, renewal, modification or amendment, whichever first occurs. 4. Any other form of security acceptable to the Commissioner.

Nev. Rev. Stat. § 681A.250 Definitions.

As used in NRS 681A.250 to 681A.580, inclusive, unless the context otherwise requires, the words and terms defined in NRS 681A.260 to 681A.410, inclusive, have the meanings ascribed to them in those sections.

Nev. Rev. Stat. § 681A.260 “Actuary” defined.

“Actuary” means a person who is a member in good standing of the American Academy of Actuaries or its successor organization.

Nev. Rev. Stat. § 681A.270 “Automatic agreement” defined.

“Automatic agreement” means an agreement between a reinsured and reinsurer whereby the ceding company is obligated to cede certain risks as provided in the agreement and the reinsurer is obligated to accept.

Nev. Rev. Stat. § 681A.280 “Broker for reinsurance” defined.

“Broker for reinsurance” means a person who negotiates a contract of reinsurance between a reinsured and reinsurer on behalf of the reinsured and who receives a commission for placement and other services rendered. The term does not include the ceding insurer.

Nev. Rev. Stat. § 681A.290 “Cede” defined.

“Cede” means to pass on to another insurer, who is designated the reinsurer, all or part of the insurance written by an insurer with the object of reducing the possible liability of the ceding insurer.

Nev. Rev. Stat. § 681A.300 “Cession” defined.

“Cession” means the unit of insurance passed to a reinsurer by a primary company which issued a policy to the original insured.

Nev. Rev. Stat. § 681A.310 “Controlling person” defined.

“Controlling person” means a person who directly or indirectly has the power to direct, or cause to be directed, the management, control or activities of an intermediary.

Nev. Rev. Stat. § 681A.320 “Facultative” defined.

A submission is “facultative” if both the primary insurer and the reinsurer have the choice to accept or reject the submission.

Nev. Rev. Stat. § 681A.340 “Licensed producer” defined.

“Licensed producer” means an agent, broker or intermediary licensed pursuant to this title.

Nev. Rev. Stat. § 681A.350 “Manager for reinsurance” defined.

“Manager for reinsurance” means a person who has authority to bind or manage all or part of the assumed reinsurance of a reinsurer and acts as an agent for the reinsurer whether known as a manager or other similar term. The term includes the manager of a separate division, department or underwriting office who acts as an agent for a reinsurer. For the purposes of NRS 681A.250 to 681A.580, inclusive, the following persons are not managers with respect to a reinsurer: 1. An employee of the reinsurer; 2. A manager of a branch of an alien reinsurer located in the United States; 3. An underwriting manager who, pursuant to a contract, manages all or part of the reinsurance of the reinsurer, is under common control with the reinsurer within the meaning of chapter 692C of NRS, and whose compensation is not based on the volume of premiums written; or 4. The manager of a group, association, pool or organization of insurers who engage in joint underwriting or joint reinsurance and who are subject to examination by the commissioner of the state in which the principal business office of the manager is located.

Nev. Rev. Stat. § 681A.360 “Reinsured” defined.

“Reinsured” means an insurer that has placed risks with a reinsurer in the process of buying reinsurance. The term includes a ceding insurer.

Nev. Rev. Stat. § 681A.370 “Reinsurer” defined.

“Reinsurer” means a person licensed in this state as an insurer with the authority to assume the liability of another by reinsurance.

Nev. Rev. Stat. § 681A.380 “Retrocession” defined.

“Retrocession” means a transaction whereby a reinsurer cedes to another reinsurer all or part of the reinsurance it has previously assumed.

Nev. Rev. Stat. § 681A.400 “Syndicate” defined.

“Syndicate” means a joint underwriting operation of insurance or reinsurance in which the participants assume a predetermined and fixed interest in the insurance written and the members share equally in the premiums.

Nev. Rev. Stat. § 681A.410 “Violation” defined.

“Violation” by an intermediary, insurer or reinsurer for whom the intermediary was acting means failure to comply substantially with the provisions of NRS 681A.250 to 681A.580, inclusive.

Nev. Rev. Stat. § 681A.420 Limitations and requirements.

1. A person shall not act as a broker for reinsurance for a domestic insurer or reinsurer unless the person is: (a) A licensed producer in this state; or (b) Licensed as a nonresident intermediary for reinsurance in this state. 2. A person shall not act as a broker for reinsurance for a foreign or alien insurer or reinsurer if the person maintains an office, directly or as a member or employee of a firm or association or as an officer, director or employee of a corporation in this state, unless the person is: (a) A licensed producer in this state; or (b) Licensed as a nonresident intermediary for reinsurance in this state. 3. A person shall not act as a manager for reinsurance for a domestic insurer or reinsurer unless the person is: (a) A licensed producer in this state; or (b) Licensed as a nonresident manager for reinsurance in this state. 4. A person shall not act as a manager for reinsurance for any foreign or alien insurer or reinsurer if the person maintains an office, directly or as a member or employee of a firm or association or as an officer, director or employee of a corporation in this state, unless the person is: (a) A licensed producer in this state; or (b) Licensed as a nonresident manager for reinsurance in this state. 5. A manager for reinsurance shall: (a) File a bond which complies with NRS 679B.175 and is in an amount that is acceptable to the Commissioner for the protection of the reinsurer; and (b) Maintain a policy covering errors and omissions in an amount that is acceptable to the Commissioner.

Nev. Rev. Stat. § 681A.430 License to act as intermediary.

1. The Commissioner may issue a license to act as an intermediary to any person who has complied with the requirements of NRS 681A.250 to 681A.580 , inclusive, and who submits a written application for a license to act as an intermediary, the appropriate fee set forth in NRS 680B.010 and, in addition to any other fee or charge, all applicable fees required pursuant to NRS 680C.110 . A license issued to a firm or association authorizes all the members of the firm or association and any designated employees to act as intermediaries. All those persons must be named in the application and any supplements thereto. A license issued to a corporation authorizes all of the officers and any designated employees and directors of the corporation to act as intermediaries on behalf of the corporation. All those persons must be named in the application and in any supplements thereto. 2. If an applicant for a license to act as an intermediary is a nonresident, the applicant shall: (a) Designate the Commissioner as agent for service of process; (b) Furnish the Commissioner with the name and address of a resident of Nevada upon whom notices or orders of the Commissioner or process affecting the nonresident reinsurance intermediary may be served; and (c) Promptly notify the Commissioner in writing of every change in the applicant’s designated agent for service of process. The change is not effective until acknowledged by the Commissioner.

Nev. Rev. Stat. § 681A.440 Circumstances under which Commissioner is authorized to refuse to issue license.

1. The Commissioner may refuse to issue a license to act as an intermediary if, in the judgment of the Commissioner: (a) The applicant, anyone named on the application, or any member, principal, officer or director of the applicant, is not trustworthy to act as an intermediary; (b) Any controlling person of the applicant is not trustworthy to act as an intermediary; (c) The applicant, a person named on the application, any member, principal, officer or director of the applicant or any controlling person of the applicant has given cause for the revocation or suspension of a license to act as an intermediary; or (d) The applicant, a person named on the application, any member, principal, officer or director of the applicant or any controlling person of the applicant has failed to comply with any prerequisite for the issuance of a license to act as an intermediary. 2. Upon receipt of a written request, the Commissioner shall furnish a summary of the basis for his or her refusal to issue a license to act as an intermediary. Except as otherwise provided in NRS 239.0115 , the summary is confidential.

Nev. Rev. Stat. § 681A.450 Licensed attorney acting as intermediary.

When acting in his or her professional capacity, an attorney at law who is licensed in this state need not be licensed as an intermediary.

Nev. Rev. Stat. § 681A.460 Brokers: Transactions with insurer; termination; duties.

1. A transaction between a broker for reinsurance and the insurer he or she represents may only be entered into by written agreement. The agreement must specify the responsibilities of each party. 2. The insurer may terminate the authority of the broker for reinsurance at any time. 3. The broker for reinsurance shall: (a) Render accounts to the insurer accurately detailing all material transactions, including information necessary to support all commissions, charges and other fees received by or owing to the broker for reinsurance; and (b) Remit all money due to the insurer within 30 days after receipt. 4. All money collected for the account of the insurer must be held by the broker for reinsurance in a fiduciary capacity in a bank or credit union which is a qualified financial institution. 5. The broker for reinsurance shall comply with the written standards established by the insurer for the cession or retrocession of all risks. 6. The broker for reinsurance shall disclose to the insurer any relationship with any reinsurer to which insurance will be ceded or retroceded.

Nev. Rev. Stat. § 681A.470 Brokers: Maintenance of records of transactions; access to accounts and records by insurer.

1. For 10 years after expiration of each contract of reinsurance transacted by the broker for reinsurance, he or she shall keep a complete record for each transaction, including evidence of: (a) The type of contract, limits, underwriting restrictions, classes or risks and territory; (b) The period of coverage, including effective and expiration dates and the provisions concerning cancellation and notice of cancellation; (c) The requirements for reporting and settling balances; (d) The rate used to compute the reinsurance premium; (e) The names and addresses of assuming reinsurers; (f) The rates of all commissions for reinsurance, including the commissions on any retrocessions handled by the broker for reinsurance; (g) Any related correspondence and memoranda; (h) Proof of placement; (i) Details regarding retrocessions handled by the broker for reinsurance, including the identity of retrocessionaires and the percentage of each contract assumed or ceded; (j) Financial records, including accounts of premium and loss; and (k) If the broker for reinsurance procures a contract of reinsurance on behalf of a licensed ceding insurer: (1) Directly from any assuming reinsurer, written evidence that the assuming reinsurer has agreed to assume the risk; or (2) Through a representative of the assuming reinsurer, other than an employee, written evidence that the reinsurer has delegated binding authority to the representative. 2. A broker for reinsurance shall allow an insurer to have access to and to copy and audit all accounts and records maintained by him or her related to its contract.

Nev. Rev. Stat. § 681A.480 Brokers: Conditions for employment; annual statement of financial condition.

1. An insurer shall not engage the services of any person to act as a broker for reinsurance on its behalf unless the person is licensed pursuant to NRS 681A.430 . 2. An insurer may not employ a person who is employed by a broker for reinsurance with whom it transacts business, unless the broker for reinsurance is under common control with the insurer within the meaning of chapter 692C of NRS. 3. The insurer shall annually obtain a copy of statements of the financial condition of each broker for reinsurance with which it transacts business.

Nev. Rev. Stat. § 681A.490 Managers: Transactions with reinsurer; termination; duties.

1. Transactions between a manager for reinsurance and the reinsurer he or she represents must only be entered into pursuant to a written contract which specifies the responsibilities of each party and is approved by the board of directors of the reinsurer. At least 30 days before a reinsurer assumes or cedes insurance, a copy of the contract must be filed with the Commissioner for approval. 2. The reinsurer may terminate the contract for cause upon written notice to the manager for reinsurance and the reinsurer may suspend the authority of the manager for reinsurance to assume or cede insurance during the pendency of any dispute regarding the cause for termination. 3. The manager for reinsurance shall: (a) Render accounts to the reinsurer accurately detailing all material transactions, including information necessary to support all commissions, charges and other fees received by or owing to him or her; and (b) Remit all money due pursuant to the contract to the reinsurer monthly. 4. All money collected for the account of the reinsurer must be held by the manager for reinsurance, in a fiduciary capacity, in a bank or credit union which is a qualified financial institution. The manager for reinsurance may retain no more than the total of 3 months’ estimated payments on claims and allocated expenses of adjusting losses. The manager for reinsurance shall maintain a separate account in a bank or credit union for each reinsurer that he or she represents. 5. The contract must not be assigned in whole or in part by the manager for reinsurance.

Nev. Rev. Stat. § 681A.500 Managers: Compliance with certain standards established by insurer; required provisions in contract; relationship with reinsurer.

1. A manager for reinsurance shall comply with the written underwriting and rating standards established by the insurer he or she represents for the acceptance, rejection or cession of all risks. 2. The contract must set forth the rates, terms and purposes of commissions, charges and other fees which the manager for reinsurance may levy against the reinsurer. 3. The manager for reinsurance shall annually provide the reinsurer with a statement of the financial condition of the manager for reinsurance prepared by an independent certified public accountant. 4. The reinsurer shall conduct a review of underwriting and the handling of claims by the manager for reinsurance at the location of the operations of the manager for reinsurance at least twice each calendar year. 5. The manager for reinsurance shall disclose to the reinsurer any relationship the manager for reinsurance has with an insurer before ceding or assuming insurance to or from the insurer pursuant to the contract. 6. The acts of the manager for reinsurance shall be deemed to be the acts of the reinsurer on whose behalf the manager for reinsurance is acting.

Nev. Rev. Stat. § 681A.510 Managers: Requirements for settlement of claims; ownership of claims files; termination of authority to settle claims.

1. If a contract between a manager for reinsurance and the reinsurer he or she represents permits the manager for reinsurance to settle claims on behalf of the reinsurer: (a) All claims must be reported to the reinsurer in a timely manner; and (b) A copy of the claim file must be sent to the reinsurer at its request or as soon as it becomes known that the claim: (1) Potentially exceeds the amount determined by the Commissioner or the limit set by the reinsurer, whichever is the lesser amount; (2) Involves a dispute over coverage; (3) May exceed the authority of the manager for reinsurance to settle claims; (4) Has been open for more than 6 months; or (5) Is closed by payment of the lesser of an amount set by the Commissioner or an amount set by the reinsurer. 2. All claims files are the joint property of the reinsurer and the manager for reinsurance. Upon an order of liquidation of the reinsurer, the files become the sole property of the reinsurer or its estate. The reinsurer or its estate shall allow the manager for reinsurance to have reasonable access to and to copy the files on a timely basis. 3. The reinsurer may terminate any authority to make settlements granted to the manager for reinsurance for cause upon written notice to him or her or upon the termination of the contract. The reinsurer may suspend the authority of the manager for reinsurance to make settlements during the pendency of the dispute regarding the cause of termination.

Nev. Rev. Stat. § 681A.520 Managers: Sharing of interim profits.

If a contract between a manager for reinsurance and the reinsurer he or she represents provides for a sharing of interim profits by the manager for reinsurance, the interim profits must not be paid until 1 year after the end of each underwriting period for property insurance and 5 years after the end of each underwriting period for casualty insurance, and not until the adequacy of reserves on remaining claims has been verified pursuant to NRS 681A.550.

Nev. Rev. Stat. § 681A.530 Managers: Maintenance of records of transactions; access to accounts and records by reinsurer.

1. For at least 10 years after expiration of each contract of reinsurance transacted by a manager for reinsurance, the manager for reinsurance shall keep a complete record for each transaction, including evidence of: (a) The type of contract, limits, underwriting restrictions, classes or risks and territory; (b) The period of coverage, including effective and expiration dates, provisions concerning cancellation and notice of cancellation, and disposition of outstanding reserves on covered risks; (c) The requirements for reporting and settling balances; (d) The rate used to compute the reinsurance premium; (e) The names and addresses of reinsurers; (f) The rates of all commissions for reinsurance, including the commissions on any retrocessions handled by the manager for reinsurance; (g) Any related correspondence and memoranda; (h) Proof of placement; (i) Any details regarding retrocessions handled by the manager for reinsurance, including the identity of retrocessionaires and percentage of each contract assumed or ceded; (j) Financial records, including accounts of premium and loss; and (k) If the manager for reinsurance places a contract of reinsurance on behalf of a ceding insurer: (1) Directly from any assuming reinsurer, written evidence that the assuming reinsurer has agreed to assume the risk; or (2) Through a representative of the assuming reinsurer, other than an employee, written evidence that the reinsurer has delegated binding authority to the representative. 2. The manager for reinsurance shall allow a reinsurer to have access and to copy all accounts and records maintained by the manager for reinsurance related to its business in a form usable by the reinsurer.

Nev. Rev. Stat. § 681A.540 Managers: Prohibited acts.

A manager for reinsurance shall not: 1. Except as otherwise provided in this section, cede retrocessions on behalf of the reinsurer. A manager for reinsurance may cede facultative retrocessions pursuant to facultative agreements if the contract with the reinsurer contains guidelines for underwriting the retrocessions. The guidelines must include a list of reinsurers with which automatic agreements are in effect, and for each reinsurer, the coverages and amounts or percentages that may be reinsured, and commission schedules. 2. Commit the reinsurer to participate in syndicates for reinsurance. 3. Appoint any producer without verifying that the producer is licensed to transact the type of reinsurance for which the producer is appointed. 4. Without approval of the reinsurer, pay or commit the reinsurer to pay a claim, net of retrocessions, that exceeds the lesser of an amount specified by the reinsurer or 1 percent of the policyholder’s surplus of the reinsurer as of December 31 of the last complete calendar year. 5. Collect any payment from a retrocessionaire or commit the reinsurer to any settlement of a claim with a retrocessionaire, without the approval of the reinsurer. If approval is given, the manager for reinsurance shall promptly forward a report to the reinsurer. 6. Employ a person who is employed by the reinsurer unless the manager for reinsurance is under common control with the reinsurer within the meaning of chapter 692C of NRS. 7. Appoint another person to act as a manager for reinsurance.

Nev. Rev. Stat. § 681A.550 Managers: Conditions for employment; annual statement of financial condition; reserves for losses; retrocessional contracts; notice of termination; prohibition against serving on board of directors of reinsurer.

1. A reinsurer shall not engage the services of any person to act as a manager for reinsurance on its behalf unless the person is licensed as required by NRS 681A.430 . 2. A reinsurer shall annually obtain a copy of statements of the financial condition of each manager for reinsurance whom the reinsurer has engaged. The statements must be prepared by an independent certified public accountant in a form approved by the Commissioner. 3. If a manager for reinsurance establishes reserves for losses, the reinsurer shall annually obtain the opinion of an actuary attesting to the adequacy of reserves established for losses incurred and outstanding on the business produced by the manager for reinsurance. The opinion of the actuary must be in addition to any other required certification. 4. An officer of the reinsurer must have authority to bind a reinsurer for all retrocessional contracts and for participation in syndicates for reinsurance. The officer must not be affiliated with the manager for reinsurance. 5. At least 30 days before termination of a contract with a manager for reinsurance, the reinsurer shall provide written notification of the termination to the Commissioner. 6. Except as otherwise provided in chapter 692C of NRS, a reinsurer shall not appoint to its board of directors any officer, director, employee, controlling shareholder or subproducer of its manager for reinsurance.

Nev. Rev. Stat. § 681A.560 Examination of intermediary by Commissioner.

1. An intermediary is subject to examination by the Commissioner. The intermediary shall allow the Commissioner to have access to all of the books, bank accounts and records of the intermediary in a form usable to the Commissioner. 2. A manager for reinsurance may be examined as if he or she were the reinsurer.

Nev. Rev. Stat. § 681A.570 Actions that may be taken against intermediary who fails to comply with laws.

1. If the Commissioner believes that the reinsurance intermediary or any other person has not materially complied with NRS 681A.250 to 681A.560 , inclusive, or any regulation adopted or order issued pursuant thereto, the Commissioner may, after a hearing conducted in accordance with NRS 679B.310 to 679B.370 , inclusive, order: (a) For each separate violation, the payment of a penalty in an amount not exceeding $5,000; and (b) The revocation or suspension of the license of the reinsurance intermediary. 2. If the Commissioner finds that the material noncompliance of the reinsurance intermediary has caused the insurer or reinsurer any loss or damage, the Commissioner may initiate a civil action against the intermediary on behalf of the insurer or reinsurer and the policyholders and creditors of the insurer or reinsurer to recover compensatory damages or other appropriate relief for the benefit of the insurer or reinsurer and the policyholders and creditors. 3. If an order of rehabilitation or liquidation of the insurer has been entered and the receiver appointed by that order determines that: (a) The reinsurance intermediary or any other person has not materially complied with NRS 681A.250 to 681A.560 , inclusive, or any regulation adopted or order issued pursuant thereto; and (b) The insurer has suffered any loss or damage as a result of that noncompliance, Ê the receiver may bring a civil action for the recovery of damages or for any other appropriate sanctions on behalf of the insurer.

Nev. Rev. Stat. § 681A.580 Rights of relevant parties not limited or expanded.

NRS 681A.250 to 681A.580, inclusive, do not limit or restrict the rights of policyholders, claimants, creditors or other third parties or confer any rights on such persons.

Nev. Rev. Stat. § 681A.1551 Certified reinsurer: Eligibility.

To be eligible for certification, an assuming insurer must: 1. Be domiciled and licensed to transact insurance or reinsurance in a qualified jurisdiction, as determined by the Commissioner pursuant to NRS 681A.1553 ; 2. Maintain minimum capital and surplus, or its equivalent, in an amount to be determined by the Commissioner; 3. Maintain financial strength ratings from two or more rating agencies deemed acceptable by the Commissioner; 4. Agree to submit to the jurisdiction of this State, appoint the Commissioner as its agent for service of process in this State and agree to provide security for 100 percent of the assuming insurer’s liabilities attributable to reinsurance ceded by ceding insurers in the United States for use if the assuming insurer resists enforcement of a final judgment rendered by any court of competent jurisdiction in the United States; 5. Agree to meet applicable information filing requirements as determined by the Commissioner, both with respect to an initial application for certification and on an ongoing basis; and 6. Satisfy any other requirements for certification deemed relevant by the Commissioner.

Nev. Rev. Stat. § 681A.1552 Certified reinsurer: Additional eligibility requirements for associations.

An association that includes incorporated and individual unincorporated underwriters may be a certified reinsurer. In addition to satisfying the requirements of NRS 681A.1551, to be eligible for certification: 1. The association must satisfy its minimum capital and surplus requirements through the capital and surplus equivalents, net of liabilities, of the association and its members, which must include a joint central fund that may be applied to any unsatisfied obligation of the association or any of its members, in an amount determined by the Commissioner to provide adequate protection; 2. The incorporated members of the association must not engage in any business other than underwriting as a member of the association and are subject to the same level of regulation and solvency control by the association’s domiciliary regulator as are the unincorporated members; and 3. Within 90 days after its financial statements are due to be filed with the association’s domiciliary regulator, the association must provide to the Commissioner an annual certification by the association’s domiciliary regulator of the solvency of each underwriter member or, if a certification is unavailable, financial statements prepared by independent public accountants of each underwriter member.

Nev. Rev. Stat. § 681A.1553 Certified reinsurer: Qualified jurisdictions.

1. The Commissioner shall create and publish a list of qualified jurisdictions, pursuant to which an assuming insurer licensed and domiciled in such jurisdiction is eligible to be considered for certification by the Commissioner as a certified reinsurer. 2. In order to determine whether the domiciliary jurisdiction of an alien assuming insurer is eligible to be recognized as a qualified jurisdiction, the Commissioner shall evaluate the appropriateness and effectiveness of the reinsurance supervisory system of the jurisdiction, both initially and on an ongoing basis, and consider the rights, benefits and extent of reciprocal recognition afforded by the alien jurisdiction to reinsurers licensed and domiciled in the United States. A qualified jurisdiction must agree to share information and cooperate with the Commissioner with respect to all certified reinsurers domiciled within that jurisdiction. A jurisdiction may not be recognized as a qualified jurisdiction if the Commissioner has determined that the jurisdiction does not adequately and promptly enforce final judgments rendered by a court of competent jurisdiction in the United States. Additional factors may be considered at the discretion of the Commissioner. 3. The Commissioner may consider the list of qualified jurisdictions maintained by the National Association of Insurance Commissioners in determining qualified jurisdictions. 4. Any jurisdictions that meet the requirements for accreditation pursuant to the National Association of Insurance Commissioners’ financial standards and accreditation program must be recognized as qualified jurisdictions. 5. If a certified reinsurer’s domiciliary jurisdiction ceases to be a qualified jurisdiction, the Commissioner may suspend or revoke the reinsurer’s certification.

Nev. Rev. Stat. § 681A.1554 Certified reinsurer: Ratings by Commissioner; publication of ratings; regulations.

The Commissioner shall: 1. Assign a rating to each certified reinsurer, giving due consideration to the financial strength ratings which have been assigned to certified reinsurers by rating agencies that the Commissioner deems acceptable pursuant to regulations adopted by the Commissioner; and 2. Publish a list of all certified reinsurers and the ratings that he or she has assigned to those certified reinsurers.

Nev. Rev. Stat. § 681A.1555 Certified reinsurer: Required security.

1. For a domestic ceding insurer to qualify for full financial statement credit for reinsurance ceded to a certified reinsurer, the certified reinsurer shall maintain security in a form acceptable to the Commissioner and consistent with the provisions of NRS 681A.240 or, in a multi-beneficiary trust, pursuant to NRS 681A.180 and 681A.190 , except as otherwise provided in NRS 681A.155 to 681A.1557 , inclusive. 2. If a certified reinsurer maintains a trust to fully secure its obligations subject to NRS 681A.180 and 681A.190 , and chooses to secure its obligations incurred as a certified reinsurer in the form of a multi-beneficiary trust, the certified reinsurer shall maintain separate trust accounts for its obligations incurred under reinsurance agreements issued or renewed as a certified reinsurer with reduced security as permitted by this section or comparable laws of other jurisdictions in the United States and for its obligations subject to NRS 681A.180 and 681A.190 . It is a condition of the grant of certification pursuant to NRS 681A.155 to 681A.1557 , inclusive, that the certified reinsurer shall have bound itself, by the language of the trust and agreement with the commissioner of insurance of the state with principal regulatory authority over each trust account, to fund, upon termination of any such trust account, out of the remaining surplus of such trust any deficiency of any other such trust account. 3. The minimum trusteed surplus requirements provided in NRS 681A.180 and 681A.190 are not applicable with respect to a multi-beneficiary trust maintained by a certified reinsurer for the purpose of securing obligations incurred pursuant to NRS 681A.155 to 681A.1557 , inclusive, except that the trust shall maintain a minimum trusteed surplus of $10,000,000. 4. With respect to obligations incurred by a certified reinsurer pursuant to NRS 681A.155 to 681A.1557 , inclusive, if the security is insufficient, the Commissioner shall reduce the allowable credit by an amount proportionate to the deficiency and may impose further reductions in allowable credit upon finding that there is a material risk that the certified reinsurer’s obligations will not be paid in full when due. 5. For the purposes of NRS 681A.155 to 681A.1557 , inclusive, a certified reinsurer whose certification has been terminated for any reason shall be treated as a certified reinsurer required to secure 100 percent of its obligations. 6. If the Commissioner continues to assign a higher rating as permitted by other provisions of NRS 681A.150 to 681A.190 , inclusive, this requirement does not apply to a certified reinsurer in inactive status or to a reinsurer whose certification has been suspended. 7. A certified reinsurer shall secure obligations assumed from ceding insurers in the United States under this section at a level consistent with the rating of the certified reinsurer, as specified in regulations adopted by the Commissioner. 8. As used in this section, “terminated” means the revocation, suspension, voluntary surrender or inactive status of a reinsurer’s certification.

Nev. Rev. Stat. § 681A.1556 Certified reinsurer: Applicant certified in certain jurisdictions may be deemed by Commissioner to be certified in Nevada.

If an applicant for certification has been certified as a reinsurer in a National Association of Insurance Commissioners accredited jurisdiction, the Commissioner has the discretion to defer to that jurisdiction’s certification, and has the discretion to defer to the rating assigned by that jurisdiction, and such assuming insurer shall be considered to be certified in this State.

Nev. Rev. Stat. § 681A.1557 Certified reinsurer: Inactive status.

A certified reinsurer that ceases to assume new business in this State may request to maintain its certification in inactive status to continue to qualify for a reduction in security for its in-force business. An inactive certified reinsurer must continue to comply with all applicable requirements of NRS 681A.150 to 681A.190, inclusive, and the Commissioner shall assign a rating that takes into account, if relevant, the reasons why the reinsurer is not assuming new business.

Nev. Rev. Stat. § 681A.2115 Documentation required to be provided by assuming insurer.

The assuming insurer or its legal successor must provide, if requested by the Commissioner, on behalf of itself and any legal predecessors, the following documentation to the Commissioner: 1. For the 2 years preceding entry into the reinsurance agreement and on an annual basis thereafter, the assuming insurer’s annual audited financial statements, in accordance with the applicable law of the jurisdiction of its head office or domiciliary jurisdiction, as applicable, including, without limitation, the external audit report; 2. For the 2 years preceding entry into the reinsurance agreement, the solvency and financial condition report or actuarial opinion, if filed with the assuming insurer’s supervisor; 3. Prior to entry into the reinsurance agreement and not more than semiannually thereafter, an updated list of all disputed and overdue reinsurance claims outstanding for 90 days or more, regarding reinsurance assumed from ceding insurers domiciled in the United States; and 4. Before entry into the reinsurance agreement and not more than semiannually thereafter, information regarding the assuming insurer’s assumed reinsurance by ceding insurer, ceded reinsurance by the assuming insurer, and reinsurance recoverable on paid and unpaid losses by the assuming insurer to allow for the evaluation of the criteria set forth in NRS 681A.212 .

Nev. Rev. Stat. § 681A.2125 Confirmation to Commissioner of compliance by assuming insurer with certain requirements related to minimum capital and surplus and minimum solvency or capital ratio.

The assuming insurer’s supervisory authority must confirm to the Commissioner on an annual basis, as of the preceding December 31 or at the annual date otherwise statutorily reported to the reciprocal jurisdiction, that the assuming insurer complies with the requirements set forth in subsections 2 and 3 of NRS 681A.211. Nothing in this section precludes an assuming insurer from providing the Commissioner with information on a voluntary basis.

Nev. Rev. Stat. § 681A.2135 List of assuming insurers to which cessions are required to be granted credit.

1. The Commissioner shall timely create and publish a list of assuming insurers that have satisfied the conditions set forth in this section and to which cessions must be granted credit in accordance with this section. The Commissioner may add an assuming insurer to the list if a NAIC accredited jurisdiction has added the assuming insurer to a list of such assuming insurers or if, upon initial eligibility, the assuming insurer submits the information to the Commissioner as required under subsection 4 of NRS 681A.211 and complies with any additional requirements that the Commissioner may impose by regulation, except to the extent that the regulations conflict with an applicable covered agreement. 2. If a NAIC accredited jurisdiction has determined that the conditions set forth in NRS 681A.211 to 681A.2125 , inclusive, have been met, the Commissioner may defer to that jurisdiction’s determination and add the applicable assuming insurer to the list of assuming insurers to which cessions must be granted credit in accordance with this section. The Commissioner may accept financial documentation filed with another NAIC accredited jurisdiction or with the NAIC for the purpose of satisfying the requirements set forth in NRS 681A.211 to 681A.2125 . 3. When requesting that the Commissioner defer to another NAIC accredited jurisdiction’s determination, an assuming insurer must submit a properly executed Form RJ-1 and additional information as the Commissioner may require. If another state has received such a request, notified other states through the NAIC and provided relevant information with respect to the determination of eligibility, the Commissioner may accept such notice and information for the purpose of this section.

Nev. Rev. Stat. § 681A.2145 Procedure for denying statement credit or imposing requirement to post security.

Before denying statement credit or imposing a requirement to post security with respect to NRS 681A.214 or adopting any similar requirement that will have substantially the same regulatory impact as security, the Commissioner: 1. Shall notify the ceding insurer, the assuming insurer and the assuming insurer’s supervisory authority that the assuming insurer no longer satisfies one of the conditions set forth in NRS 681A.211 to 681A.2125 , inclusive; 2. Shall provide the assuming insurer with 30 days from the notice provided pursuant to subsection 1 to submit a plan to remedy the defect, and 90 days from the notice provided pursuant to subsection 1 to remedy the defect, except in exceptional circumstances determined by the Commissioner in which a shorter period is necessary for policyholder and other consumer protection; 3. After the expiration of 90 days or less, as specified in subsection 2, if the Commissioner determines that no or insufficient action was taken by the assuming insurer, may impose additional requirements upon the assuming insurer as determined by the Commissioner to be appropriate; and 4. Shall, if applicable, provide a written explanation to the assuming insurer of any additional requirements imposed pursuant to subsection 3.

Nev. Rev. Stat. § 681A.2155 Order for assuming insurer to post security during rehabilitation, liquidation or conservation.

If subject to a legal process of rehabilitation, liquidation or conservation, as applicable, the ceding insurer, or its representative, may seek and, if determined appropriate by the court in which the proceedings are pending, may obtain an order requiring that the assuming insurer post security for all outstanding ceded liabilities.

Nev. Rev. Stat. § 681A.2165 Applicability of certain provisions.

1. Credit may be taken under NRS 681A.211 to 681A.2165 , inclusive, only for reinsurance agreements entered into, amended, or renewed on or after October 1, 2021, and only with respect to losses incurred and reserves reported on or after the later of: (a) The date on which the assuming insurer has met all eligibility requirements pursuant to NRS 681A.211 to 681A.2125 , inclusive; or (b) The effective date of the new reinsurance agreement, amendment, or renewal. 2. The provisions of this section do not alter or impair a ceding insurer’s right to take credit for reinsurance, to the extent that credit is not available under NRS 681A.211 to 681A.2165 , inclusive, as long as the reinsurance qualifies for credit under any other applicable provision of NRS 681A.110 to 681A.240 , inclusive. 3. Nothing in NRS 681A.211 to 681A.2165 , inclusive, authorize an assuming insurer to withdraw or reduce the security provided under any reinsurance agreement except as permitted by the terms of the agreement. 4. Nothing in NRS 681A.211 to 681A.2165 , inclusive, limit, or in any way alter, the capacity of a party to any reinsurance agreement to renegotiate the agreement.
Source: NV Statutes (Official Site)URL: https://www.leg.state.nv.us/nrs/NRS-681A.htmlFetched: 10/4/2026