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2023 Nevada Revised Statutes › Chapter 681A - Kinds of Insurance; Limits on Risk; Reinsurance › NRS 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.
(Added to NRS by 2021, 2948)
2023 Nevada Revised Statutes › Chapter 681A - Kinds of Insurance; Limits on Risk; Reinsurance › NRS 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.
(Added to NRS by 2021, 2949)
2023 Nevada Revised Statutes › Chapter 681A - Kinds of Insurance; Limits on Risk; Reinsurance › NRS 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.
(Added to NRS by 1971, 1604; A 1991, 2030)
2023 Nevada Revised Statutes › Chapter 681A - Kinds of Insurance; Limits on Risk; Reinsurance › NRS 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,
and any other activity substantially equivalent to these activities.
(Added to NRS by 1971, 1605; A 1977, 984)
2023 Nevada Revised Statutes › Chapter 681A - Kinds of Insurance; Limits on Risk; Reinsurance › NRS 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).
(Added to NRS by 1971, 1605)
2023 Nevada Revised Statutes › Chapter 681A - Kinds of Insurance; Limits on Risk; Reinsurance › NRS 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.
(Added to NRS by 1995, 2671)
2023 Nevada Revised Statutes › Chapter 681A - Kinds of Insurance; Limits on Risk; Reinsurance › NRS 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.
(Added to NRS by 1971, 1605; A 1977, 620; 1993, 2385; 1995, 1767)
2023 Nevada Revised Statutes › Chapter 681A - Kinds of Insurance; Limits on Risk; Reinsurance › NRS 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.
(Added to NRS by 1971, 1606; A 1983, 432; 1987, 648; 1991, 254; 1993, 2386; 1995, 1767)
2023 Nevada Revised Statutes › Chapter 681A - Kinds of Insurance; Limits on Risk; Reinsurance › NRS 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.
(Added to NRS by 1995, 1759)
2023 Nevada Revised Statutes › Chapter 681A - Kinds of Insurance; Limits on Risk; Reinsurance › NRS 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.
(Added to NRS by 1995, 1756; A 2013, 3351; 2015, 3385; 2017, 2336)
2023 Nevada Revised Statutes › Chapter 681A - Kinds of Insurance; Limits on Risk; Reinsurance › NRS 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.
(Added to NRS by 2017, 2335; A 2021, 2955)
2023 Nevada Revised Statutes › Chapter 681A - Kinds of Insurance; Limits on Risk; Reinsurance › NRS 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.
(Added to NRS by 1995, 1756; A 2015, 3385; 2021, 2955)
2023 Nevada Revised Statutes › Chapter 681A - Kinds of Insurance; Limits on Risk; Reinsurance › NRS 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.
(Added to NRS by 2015, 3381)
2023 Nevada Revised Statutes › Chapter 681A - Kinds of Insurance; Limits on Risk; Reinsurance › NRS 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.
(Added to NRS by 2015, 3381)
2023 Nevada Revised Statutes › Chapter 681A - Kinds of Insurance; Limits on Risk; Reinsurance › NRS 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.
(Added to NRS by 2015, 3382)
2023 Nevada Revised Statutes › Chapter 681A - Kinds of Insurance; Limits on Risk; Reinsurance › NRS 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.
(Added to NRS by 2015, 3382)
2023 Nevada Revised Statutes › Chapter 681A - Kinds of Insurance; Limits on Risk; Reinsurance › NRS 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.
(Added to NRS by 2015, 3383)
2023 Nevada Revised Statutes › Chapter 681A - Kinds of Insurance; Limits on Risk; Reinsurance › NRS 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.
(Added to NRS by 2015, 3384)
2023 Nevada Revised Statutes › Chapter 681A - Kinds of Insurance; Limits on Risk; Reinsurance › NRS 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.
(Added to NRS by 2015, 3384)
2023 Nevada Revised Statutes › Chapter 681A - Kinds of Insurance; Limits on Risk; Reinsurance › NRS 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.
(Added to NRS by 1995, 1757; A 2015, 3386)
2023 Nevada Revised Statutes › Chapter 681A - Kinds of Insurance; Limits on Risk; Reinsurance › NRS 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.
(Added to NRS by 1995, 1757; A 2003, 3285)
2023 Nevada Revised Statutes › Chapter 681A - Kinds of Insurance; Limits on Risk; Reinsurance › NRS 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.
(Added to NRS by 1995, 1758; A 2003, 3285)
2023 Nevada Revised Statutes › Chapter 681A - Kinds of Insurance; Limits on Risk; Reinsurance › NRS 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.
(Added to NRS by 1995, 1758; A 2003, 3286; 2015, 3389)
2023 Nevada Revised Statutes › Chapter 681A - Kinds of Insurance; Limits on Risk; Reinsurance › NRS 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.
(Added to NRS by 2021, 2951)
2023 Nevada Revised Statutes › Chapter 681A - Kinds of Insurance; Limits on Risk; Reinsurance › NRS 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.
(Added to NRS by 2021, 2951)
2023 Nevada Revised Statutes › Chapter 681A - Kinds of Insurance; Limits on Risk; Reinsurance › NRS 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.
(Added to NRS by 2021, 2951)
2023 Nevada Revised Statutes › Chapter 681A - Kinds of Insurance; Limits on Risk; Reinsurance › NRS 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.
(Added to NRS by 2021, 2951)
2023 Nevada Revised Statutes › Chapter 681A - Kinds of Insurance; Limits on Risk; Reinsurance › NRS 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.
(Added to NRS by 2021, 2952)
2023 Nevada Revised Statutes › Chapter 681A - Kinds of Insurance; Limits on Risk; Reinsurance › NRS 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.
(Added to NRS by 2021, 2952)
2023 Nevada Revised Statutes › Chapter 681A - Kinds of Insurance; Limits on Risk; Reinsurance › NRS 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.
(Added to NRS by 2021, 2953)
2023 Nevada Revised Statutes › Chapter 681A - Kinds of Insurance; Limits on Risk; Reinsurance › NRS 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.
(Added to NRS by 2021, 2953)
2023 Nevada Revised Statutes › Chapter 681A - Kinds of Insurance; Limits on Risk; Reinsurance › NRS 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.
(Added to NRS by 2021, 2953)
2023 Nevada Revised Statutes › Chapter 681A - Kinds of Insurance; Limits on Risk; Reinsurance › NRS 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.
(Added to NRS by 2021, 2953)
2023 Nevada Revised Statutes › Chapter 681A - Kinds of Insurance; Limits on Risk; Reinsurance › NRS 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.
(Added to NRS by 2021, 2954)
2023 Nevada Revised Statutes › Chapter 681A - Kinds of Insurance; Limits on Risk; Reinsurance › NRS 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.
(Added to NRS by 1995, 1758; A 2015, 3389; 2021, 2958)
2023 Nevada Revised Statutes › Chapter 681A - Kinds of Insurance; Limits on Risk; Reinsurance › NRS 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.
(Added to NRS by 1995, 1759; A 1997, 3021; 2001, 1025; 2015, 3389)
2023 Nevada Revised Statutes › Chapter 681A - Kinds of Insurance; Limits on Risk; Reinsurance › NRS 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.
(Added to NRS by 2015, 3384)