reglab/statecodes huggingface dataset:
2023 Nevada Revised Statutes › Chapter 681A - Kinds of Insurance; Limits on Risk; Reinsurance › NRS 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.
(Added to NRS by 1995, 1759; A 2013, 3353)
2023 Nevada Revised Statutes › Chapter 681A - Kinds of Insurance; Limits on Risk; Reinsurance › NRS 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.
(Added to NRS by 1995, 1759)
2023 Nevada Revised Statutes › Chapter 681A - Kinds of Insurance; Limits on Risk; Reinsurance › NRS 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.
(Added to NRS by 1995, 1760)
2023 Nevada Revised Statutes › Chapter 681A - Kinds of Insurance; Limits on Risk; Reinsurance › NRS 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.
(Added to NRS by 1995, 1760)
2023 Nevada Revised Statutes › Chapter 681A - Kinds of Insurance; Limits on Risk; Reinsurance › NRS 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.
(Added to NRS by 1995, 1760)
2023 Nevada Revised Statutes › Chapter 681A - Kinds of Insurance; Limits on Risk; Reinsurance › NRS 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.
(Added to NRS by 1995, 1760)
2023 Nevada Revised Statutes › Chapter 681A - Kinds of Insurance; Limits on Risk; Reinsurance › NRS 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.
(Added to NRS by 1995, 1761)
2023 Nevada Revised Statutes › Chapter 681A - Kinds of Insurance; Limits on Risk; Reinsurance › NRS 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.
(Added to NRS by 1995, 1761)
2023 Nevada Revised Statutes › Chapter 681A - Kinds of Insurance; Limits on Risk; Reinsurance › NRS 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.
(Added to NRS by 1995, 1761; A 2003, 3286; 2021, 2958)
2023 Nevada Revised Statutes › Chapter 681A - Kinds of Insurance; Limits on Risk; Reinsurance › NRS 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.
(Added to NRS by 1995, 1761; A 1997, 3022; 2009, 1770)
2023 Nevada Revised Statutes › Chapter 681A - Kinds of Insurance; Limits on Risk; Reinsurance › NRS 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.
(Added to NRS by 1995, 1761; A 2007, 2156)
2023 Nevada Revised Statutes › Chapter 681A - Kinds of Insurance; Limits on Risk; Reinsurance › NRS 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.
(Added to NRS by 1995, 1762; A 1999, 1546)
2023 Nevada Revised Statutes › Chapter 681A - Kinds of Insurance; Limits on Risk; Reinsurance › NRS 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.
(Added to NRS by 1995, 1762)
2023 Nevada Revised Statutes › Chapter 681A - Kinds of Insurance; Limits on Risk; Reinsurance › NRS 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.
(Added to NRS by 1995, 1763)
2023 Nevada Revised Statutes › Chapter 681A - Kinds of Insurance; Limits on Risk; Reinsurance › NRS 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.
(Added to NRS by 1995, 1763; A 1999, 1546)
2023 Nevada Revised Statutes › Chapter 681A - Kinds of Insurance; Limits on Risk; Reinsurance › NRS 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.
(Added to NRS by 1995, 1763)
2023 Nevada Revised Statutes › Chapter 681A - Kinds of Insurance; Limits on Risk; Reinsurance › NRS 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.
(Added to NRS by 1995, 1764)
2023 Nevada Revised Statutes › Chapter 681A - Kinds of Insurance; Limits on Risk; Reinsurance › NRS 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.
(Added to NRS by 1995, 1764)
2023 Nevada Revised Statutes › Chapter 681A - Kinds of Insurance; Limits on Risk; Reinsurance › NRS 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.
(Added to NRS by 1995, 1764)
2023 Nevada Revised Statutes › Chapter 681A - Kinds of Insurance; Limits on Risk; Reinsurance › NRS 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.
(Added to NRS by 1995, 1765; A 1997, 3022)
2023 Nevada Revised Statutes › Chapter 681A - Kinds of Insurance; Limits on Risk; Reinsurance › NRS 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.
(Added to NRS by 1995, 1766)
2023 Nevada Revised Statutes › Chapter 681A - Kinds of Insurance; Limits on Risk; Reinsurance › NRS 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.
(Added to NRS by 1995, 1766)
2023 Nevada Revised Statutes › Chapter 681A - Kinds of Insurance; Limits on Risk; Reinsurance › NRS 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,
the receiver may bring a civil action for the recovery of damages or for any other appropriate sanctions on behalf of the insurer.
(Added to NRS by 1995, 1766; A 1997, 3023)
2023 Nevada Revised Statutes › Chapter 681A - Kinds of Insurance; Limits on Risk; Reinsurance › NRS 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.
(Added to NRS by 1995, 1767)
2023 Nevada Revised Statutes › Chapter 681B - Assets and Liabilities › NRS 681B.0023 - "Accident and health insurance" defined.

"Accident and health insurance" means a contract that incorporates morbidity risk and provides protection against economic loss resulting from accident, sickness or medical conditions, and as may further be specified in the
Valuation Manual
.
(Added to NRS by 2015, 3390)
2023 Nevada Revised Statutes › Chapter 681B - Assets and Liabilities › NRS 681B.0025 - "Applicable company" defined.

"Applicable company" means an insurer that:
1. Has written, issued or reinsured life insurance, accident and health insurance or deposit-type contracts in this State and has at least one such policy in force or on claim; or
2. Has written, issued or reinsured life insurance, accident and health insurance or deposit-type contracts in any state and is required to hold a certificate of authority to write life insurance, accident and health insurance or deposit-type contracts in this State.
(Added to NRS by 2015, 3390)
2023 Nevada Revised Statutes › Chapter 681B - Assets and Liabilities › NRS 681B.0052 - "Policyholder behavior" defined.

"Policyholder behavior" includes any action a policyholder, contract holder or any other person with the right to elect options, such as a certificate holder, may take pursuant to a policy or contract subject to this chapter, including, without limitation, lapse, withdrawal, transfer, deposit, premium payment, loan, annuitization or benefit elections prescribed by the policy or contract. The term does not include events of mortality or morbidity that result in benefits prescribed in their essential aspects by the terms of the policy or contract.
(Added to NRS by 2015, 3390)
2023 Nevada Revised Statutes › Chapter 681B - Assets and Liabilities › NRS 681B.0055 - "Principle-based valuation" defined.

"Principle-based valuation" means a reserve valuation that uses one or more methods or one or more assumptions determined by the insurer and is required to comply with NRS 681B.360, 681B.370 and 681B.380, and as may further be specified in the
Valuation Manual
.
(Added to NRS by 2015, 3391)
2023 Nevada Revised Statutes › Chapter 681B - Assets and Liabilities › NRS 681B.0059 - "Qualified actuary" defined.

"Qualified actuary" means a natural person who:
1. Is qualified to sign the applicable statement of actuarial opinion in accordance with the standards that are established by the American Academy of Actuaries, or its successor organization, to determine the qualification of an actuary to sign such a statement; and
2. Meets the applicable requirements set forth in the
Valuation Manual
.
(Added to NRS by 2015, 3391)
2023 Nevada Revised Statutes › Chapter 681B - Assets and Liabilities › NRS 681B.020 - Assets not allowed.

1. In addition to assets impliedly excluded by the provisions of NRS 681B.010, the following expressly may not be allowed as assets in any determination of the financial condition of an insurer:
(a) Goodwill, trade names and other like intangible assets.
(b) Advances to officers, other than policy loans, whether secured or not, and advances to employees, agents and other persons on personal security only.
(c) Stock of such insurer, owned by it, or any equity therein or loans secured thereby, or any proportionate interest in such stock acquired or held through the ownership by such insurer of an interest in another firm, corporation or business unit.
(d) Furniture, fixtures, furnishings, safes, vehicles, libraries, stationery, literature and supplies, other than data processing, recordkeeping and accounting systems authorized under subsection 13 of NRS 681B.010, except such personal property as the insurer is permitted to hold pursuant to chapter 682A of NRS, or which is reasonably necessary for the maintenance and operation of real property lawfully acquired and held by the insurer other than real property used by it for home office, branch office and similar purposes.
(e) The amount, if any, by which the aggregate book value of investments as carried in the ledger assets of the insurer exceeds the aggregate value thereof as determined under this Code.
2. If any successor organization to the State Industrial Insurance System that was established by section 79 of chapter 642, Statutes of Nevada 1981, at page 1449, wishes to transact in this state property or casualty insurance other than industrial insurance, the money required to be held in trust by that organization pursuant to NRS 616B.042 may not be allowed as assets of the successor organization in determining its financial condition to transact such insurance.
(Added to NRS by 1971, 1608; A 1999, 1831; 2015, 3399)
2023 Nevada Revised Statutes › Chapter 681B - Assets and Liabilities › NRS 681B.030 - Disallowance of asset arranged to deceive; disciplinary action.

1. The Commissioner shall disallow as an asset or as a credit against liabilities any reinsurance found by the Commissioner after a hearing thereon to have been arranged for the purpose principally of deception as to the ceding insurer’s financial condition as of the date of any financial statement of the insurer. Without limiting the general purport of the foregoing provision, reinsurance of any substantial part of the insurer’s outstanding risks contracted for in fact within 4 months prior to the date of any such financial statement and cancelled in fact within 4 months after the date of such statement, or reinsurance under which the reinsurer bears no substantial insurance risk or chance of net loss to itself, shall prima facie be deemed to have been arranged principally for the purpose of deception.
2. The Commissioner shall disallow as an asset any deposit, funds or other assets of the insurer found by the Commissioner after a hearing thereon:
(a) Not to be in good faith the property of the insurer;
(b) Not freely subject to withdrawal or liquidation by the insurer at any time for the payment or discharge of claims or other obligations arising under its policies; and
(c) To be resulting from arrangements made principally for the purpose of deception as to the insurer’s financial condition as at the date of any financial statement of the insurer.
3. The Commissioner may suspend or revoke the certificate of authority of any insurer which has knowingly been a party to any such deception or attempted deception.
(Added to NRS by 1971, 1609)
2023 Nevada Revised Statutes › Chapter 681B - Assets and Liabilities › NRS 681B.040 - Liabilities.

In any determination of the financial condition of an insurer, capital stock and liabilities to be charged against its assets shall include:
1. The amount of its capital stock outstanding, if any.
2. The amount, estimated to be consistent with the provisions of this Code, necessary to pay all of its unpaid losses and claims incurred on or prior to the date of the statement, whether reported or unreported, together with the expenses of adjustment or settlement thereof.
3. With reference to life insurance policies and annuity contracts, and disability and accidental death benefits in or supplemental thereto:
(a) The amount of reserves on life insurance policies and annuity contracts in force, valued according to the tables of mortality, rates of interest and methods adopted pursuant to this Code which are applicable thereto.
(b) Reserves for disability benefits, for both active and disabled lives.
(c) Reserves for accidental death benefits.
(d) Any additional reserves which may be required by the Commissioner consistent with applicable customary and general practice in insurance accounting.
4. As to health insurance policies, the reserves required under NRS 681B.080.
5. With reference to insurance other than specified in subsections 3 and 4, and other than title insurance, the amount of the unearned premium reserves computed in accordance with NRS 681B.060 and 681B.070.
6. Taxes, expenses and other obligations due or accrued at the date of the statement.
(Added to NRS by 1971, 1609)
2023 Nevada Revised Statutes › Chapter 681B - Assets and Liabilities › NRS 681B.050 - Reserves for losses from casualty insurance; regulations.

1. As to casualty insurance transacted by it, each insurer shall maintain at all times reserves in an amount estimated in the aggregate to provide for payment of all losses and claims incurred, whether reported or unreported, which are unpaid and for which the insurer may be liable and to provide for the expenses of adjustment or settlement of losses and claims. The reserves must be computed in accordance with regulations adopted from time to time by the Commissioner upon reasonable consideration of the ascertained experience and the character of such kind of business for the purpose of adequately protecting the insured and the solvency of the insurer.
2. Whenever the loss and loss expense experience of the insurer show that reserves, calculated in accordance with those regulations, are inadequate, the Commissioner may require the insurer to maintain additional reserves.
3. The Commissioner may, by regulation, prescribe the manner and form of reporting pertinent information concerning the reserves provided for in this section.
(Added to NRS by 1971, 1610; A 1981, 105; 2007, 3316)
2023 Nevada Revised Statutes › Chapter 681B - Assets and Liabilities › NRS 681B.060 - Reserve for unearned premiums; exception.

1. As to property, casualty and surety insurance the insurer shall maintain as a liability an unearned premium reserve on all policies in force.
2. Except as provided in NRS 681B.070 as to marine and transportation risks, the unearned premium reserve shall be equal to the unearned portion of gross premiums in force (after deduction of applicable reinsurance in solvent insurers) computed on an annual, monthly or more frequently pro rata basis.
(Added to NRS by 1971, 1611)
2023 Nevada Revised Statutes › Chapter 681B - Assets and Liabilities › NRS 681B.070 - Reserve for unearned premiums for marine and transportation insurance.

As to marine and transportation insurance, the entire amount of premiums on trip risks not terminated shall be deemed unearned; and the Commissioner may require the insurer to carry a reserve equal to 100 percent of premiums on trip risks written during the month ended as of the date of statement.
(Added to NRS by 1971, 1611)
2023 Nevada Revised Statutes › Chapter 681B - Assets and Liabilities › NRS 681B.080 - Reserves for policies of health insurance.

For all health insurance policies the insurer shall maintain an active life reserve which shall place a sound value on its liabilities under such policies and be not less than the reserve according to appropriate standards set forth in regulations issued by the Commissioner and, in no event, less in the aggregate than the pro rata gross unearned premiums for such policies.
(Added to NRS by 1971, 1611)
2023 Nevada Revised Statutes › Chapter 681B - Assets and Liabilities › NRS 681B.100 - Contingency reserves for insurance of repayment of debt secured by mortgage.

1. Casualty or surety insurers insuring real property mortgage lenders against loss by reason of nonpayment of the mortgage indebtedness by the borrower shall maintain a contingency reserve for the protection of policyholders against the effects of adverse economic cycles.
2. The insurer shall contribute to such contingency reserve 50 percent of net premiums (gross premiums less premiums returned to policyholders) written on such insurance remaining after establishment of the unearned premium reserve.
3. Subject to the Commissioner’s approval, the contingency reserve shall be available for payment of losses only when the insurer’s incurred losses in any 1 calendar year exceed the rate formula expected losses by 10 percent of the related earned premiums.
(Added to NRS by 1971, 1612)
2023 Nevada Revised Statutes › Chapter 681B - Assets and Liabilities › NRS 681B.105 - Valuation of bonds.

1. Except as otherwise provided in subsection 5, all bonds or other evidences of debt having a fixed term and rate of interest held by an insurer may, if amply secured and not in default as to principal or interest, be valued as follows:
(a) If purchased at par, at the par value.
(b) If purchased above or below par, on the basis of the purchase price adjusted so as to bring the value to par at maturity and so as to yield in the meantime the effective rate of interest at which the purchase was made or, in lieu of that method, according to an accepted method of valuation that is approved by the Commissioner.
2. The purchase price must not be taken at a higher figure than the actual market value at the time of purchase, plus actual brokerage, transfer, postage or express charges paid in the acquisition of such securities.
3. Unless otherwise provided by a valuation established or approved by the Commissioner, the security must not be carried at above the call price for the entire issue during any period within which the security may be so called.
4. The Commissioner has full discretion in determining the method of calculating values pursuant to this section.
5. A valuation determined pursuant to this section must not be inconsistent with any applicable valuation or method then currently formulated or approved by the NAIC.
(Added to NRS by 1971, 1616; A 2003, 3287; 2015, 3411)
2023 Nevada Revised Statutes › Chapter 681B - Assets and Liabilities › NRS 681B.106 - Valuation of other securities.

1. Except as otherwise provided in subsection 4, securities, other than those specified in NRS 681B.105, held by an insurer must be valued, in the discretion of the Commissioner, at their market value, or at their appraised value, or at prices determined by the Commissioner as representing their fair market value.
2. Preferred or guaranteed stocks or shares while paying full dividends may be carried at a fixed value in lieu of market value, at the discretion of the Commissioner and in accordance with a method of computation approved by the Commissioner.
3. The stock of a subsidiary of an insurer must be valued on the basis of the value of only those assets of the subsidiary as would constitute lawful investments of the insurer if acquired or held directly by the insurer.
4. A valuation determined pursuant to this section must not be inconsistent with any applicable valuation or method then currently formulated or approved by the NAIC.
(Added to NRS by 1971, 1616; A 2003, 3287; 2015, 3412)
2023 Nevada Revised Statutes › Chapter 681B - Assets and Liabilities › NRS 681B.108 - Valuation of property.

1. Real property acquired pursuant to a mortgage loan or contract for sale, in the absence of a recent appraisal deemed by the Commissioner to be reliable, must not be valued at an amount greater than the unpaid principal of the defaulted loan or contract plus interest due and accrued at the date of acquisition, together with any taxes and expenses paid or incurred in connection with the acquisition, and the cost of improvements thereafter made by the insurer and any amounts thereafter paid by the insurer on assessments levied for improvements in connection with the property.
2. Other real property held by an insurer must not be valued at an amount in excess of the lesser of the fair value as determined by recent appraisal or the actual cost, plus capitalized improvements, less normal depreciation. If valuation is based on an appraisal more than 3 years old, the Commissioner may, at his or her discretion, call for and require a new appraisal in order to determine fair value.
(Added to NRS by 1971, 1617; A 1995, 1772)
2023 Nevada Revised Statutes › Chapter 681B - Assets and Liabilities › NRS 681B.109 - Valuation of purchase money mortgages.

Purchase money mortgages on real property referred to in subsection 1 of NRS 681B.108 shall be valued in an amount not exceeding the acquisition cost of the real property covered thereby or 90 percent of the fair value of such real property, whichever is less.
(Added to NRS by 1971, 1617)
PROVISIONS GOVERNING POLICIES AND CONTRACTS NOT SUBJECT TO PROVISIONS OF THE
VALUATION MANUAL
2023 Nevada Revised Statutes › Chapter 681B - Assets and Liabilities › NRS 681B.110 - Valuation and calculation of reserves; acceptance of valuation by another state or jurisdiction; applicability.

1. The Commissioner shall, in the manner provided by NRS 681B.110 to 681B.150, inclusive, annually value, or cause to be valued, the reserve liabilities (hereinafter called reserves) for all outstanding life insurance policies and annuity and pure endowment contracts of every life insurer doing business in this state, issued on or after January 1, 1972, and before the operative date of the
Valuation Manual
, except that in the case of an alien insurer, the valuation must be limited to its United States business.
2. The Commissioner may:
(a) Use any method, including group methods and the net level premium method, in the calculation of the reserves.
(b) Use approximate averages for fractions of a year or other period to calculate the reserves.
(c) In lieu of the valuation of the reserves required of any foreign or alien company, accept any valuation made, or caused to be made, by an insurance supervisory officer of any other state or jurisdiction if the valuation by the insurance supervisory officer complies with the minimum standard required by NRS 681B.110 to 681B.150, inclusive.
3. The provisions set forth in NRS 681B.110 to 681B.155, inclusive, apply to all policies and contracts, as appropriate, issued on or after January 1, 1972, and before the operative date of the
Valuation Manual
. The provisions set forth in NRS 681B.300, 681B.320, 681B.360, 681B.370 and 681B.380 do not apply to any such policies and contracts.
4. The minimum standard for the valuation of policies and contracts issued before January 1, 1972, must be that provided by the laws in effect immediately preceding that date.
5. Except as otherwise provided in NRS 681B.310, the provisions of this section apply only to, or in connection with, policies and contracts issued on or after January 1, 1972, and before the operative date of the
Valuation Manual
.
(Added to NRS by 1971, 1612; A 1983, 938; 2015, 3400)
2023 Nevada Revised Statutes › Chapter 681B - Assets and Liabilities › NRS 681B.140 - Calculation of reserves on higher or lower standards; rate of interest; applicability.

1. Reserves for any category of policies, contracts or benefits as established by the Commissioner, issued on or after January 1, 1972, may be calculated, at the option of the insurer, according to any standards which produce greater aggregate reserves for the category than those calculated according to the minimum standards provided by subsections 2 and 3 of NRS 681B.120 and 681B.125, but the rate or rates of interest used for policies and contracts other than the annuity and pure endowment contracts must not be higher than the corresponding rate or rates of interest used in calculating any nonforfeiture benefits provided for in such policies.
2. Any insurer which has adopted a standard of valuation producing greater aggregate reserves as described in subsection 1 may, with the approval of the Commissioner, adopt a lower standard of valuation, but not lower than the minimum described in subsection 1.
3. The minimum standard for the valuation of policies and contracts issued before January 1, 1972, must be that provided by the laws in effect immediately preceding that date.
4. Except as otherwise provided in NRS 681B.310, the provisions of this section apply only to, or in connection with, policies and contracts issued on or after January 1, 1972, and before the operative date of the
Valuation Manual
.
(Added to NRS by 1971, 1615; A 1977, 687; 1983, 945; 1995, 1772; 2015, 3410)
2023 Nevada Revised Statutes › Chapter 681B - Assets and Liabilities › NRS 681B.145 - Reserves for plan of life insurance; applicability.

1. For any plan of life insurance which provides for the determination of a future premium, the amounts of which are to be determined by the insurer based on estimates of future experience, or for any plan of life insurance or annuity which is of such a nature that the minimum reserves cannot be determined by the methods described in NRS 681B.130 and 681B.150, the reserves which are held under the plan must be:
(a) Appropriate in relation to the benefits and the pattern of premiums for the plan; and
(b) Computed by a method which is consistent with the principles of standard valuation contained in this chapter.
2. The minimum standard for the valuation of policies and contracts issued before January 1, 1972, must be that provided by the laws in effect immediately preceding that date.
3. Except as otherwise provided in NRS 681B.310, the provisions of this section apply only to, or in connection with, policies and contracts issued on or after January 1, 1972, and before the operative date of the
Valuation Manual
.
(Added to NRS by 1983, 938; A 2015, 3410)