2023 Nevada Revised Statutes › Chapter 692C - Holding Companies › NRS 692C.378 - Group-wide supervision of internationally active insurance groups: Determination or acknowledgment of group-wide supervisor; change of group-wide supervisor; powers of Commissioner when acting as group-wide supervisor; agreements; regulations; reimbursement of Commissioner by insurer.

1. The Commissioner may act as the group-wide supervisor for an internationally active insurance group in accordance with the provisions of this section. The Commissioner may acknowledge another regulatory official as the group-wide supervisor of an internationally active insurance group if the internationally active insurance group:
(a) Does not have substantial insurance operations in the United States;
(b) Has substantial insurance operations in the United States, but not in this State; or
(c) Has substantial insurance operations in the United States and this State, but the Commissioner has determined pursuant to the factors set forth in subsections 3 and 8 that the other regulatory official is the appropriate group-wide supervisor.
2. An insurance holding company system that does not otherwise qualify as an internationally active insurance group may request that the Commissioner make a determination or acknowledgment of a group-wide supervisor pursuant to this section.
3. In cooperation with other state, federal and international regulatory agencies, the Commissioner shall identify a single group-wide supervisor for each internationally active insurance group. The Commissioner may determine that the Commissioner is the appropriate group-wide supervisor for an internationally active insurance group which conducts substantial insurance operations that are concentrated in this State. The Commissioner may acknowledge that a regulatory official from another jurisdiction is the appropriate group-wide supervisor for an internationally active insurance group. The Commissioner shall consider the following factors when making a determination or acknowledgment under this subsection:
(a) The place of domicile of the insurers within the internationally active insurance group that hold the largest share of the group’s written premiums, assets or liabilities;
(b) The place of domicile of the top-tiered insurer or insurers in the insurance holding company system of the internationally active insurance group;
(c) The location of the executive offices or largest operational offices of the internationally active insurance group;
(d) Whether another regulatory official is acting or is seeking to act as the group-wide supervisor under a regulatory system that the Commissioner determines to be:
(1) Substantially similar to the system of regulation provided under the laws of this State; or
(2) Otherwise sufficient in terms of providing for group-wide supervision, enterprise risk analysis and cooperation with other regulatory officials; and
(e) Whether another regulatory official acting or seeking to act as the group-wide supervisor provides the Commissioner with reasonably reciprocal recognition and cooperation.
However, a person identified under this section as the group-wide supervisor may determine that it is appropriate to acknowledge another person to serve as the group-wide supervisor. The acknowledgment of the group-wide supervisor must be made after consideration of the factors listed in paragraphs (a) to (e), inclusive, and must be made in cooperation with and subject to the acknowledgment of other regulatory officials involved with supervision of members of the internationally active insurance group and in consultation with the internationally active insurance group.
4. Notwithstanding any other provision of law and except as otherwise provided in this subsection, when another regulatory official is acting as the group-wide supervisor of an internationally active insurance group, the Commissioner shall acknowledge that regulatory official as the group-wide supervisor. However, if a material change in the internationally active insurance group results in:
(a) The internationally active insurance group’s insurers domiciled in this State holding the largest share of the group’s premiums, assets or liabilities; or
(b) This State being the place of domicile of the top-tiered insurer or insurers in the insurance holding company system of the internationally active insurance group,
the Commissioner shall make a determination or acknowledgment as to the appropriate group-wide supervisor for such an internationally active insurance group pursuant to subsection 3.
5. Pursuant to NRS 692C.410, the Commissioner may collect from any insurer registered pursuant to NRS 692C.260 all information necessary to determine whether the Commissioner may act as the group-wide supervisor of an internationally active insurance group or if the Commissioner may acknowledge another regulatory official to act as the group-wide supervisor. Before issuing a determination that the Commissioner act as the group-wide supervisor of an internationally active insurance group, the Commissioner shall notify the insurer registered pursuant to NRS 692C.410 and the ultimate controlling person within the internationally active insurance group. The Commissioner shall allow the internationally active insurance group not less than 30 days to provide the Commissioner with additional information pertinent to the pending determination.
6. If the Commissioner is the group-wide supervisor for an internationally active insurance group, the Commissioner may:
(a) Assess the enterprise risks within the internationally active insurance group to ensure that:
(1) The material financial condition and liquidity risks to the members of the internationally active insurance group that are engaged in the business of insurance are identified by management; and
(2) Reasonable and effective mitigation measures are in place;
(b) Request, from any member of the internationally active insurance group, any information necessary and appropriate to assess enterprise risk, including, without limitation, information about the members of the internationally active insurance group relating to:
(1) Governance, risk assessment and management;
(2) Capital adequacy; and
(3) Material intercompany transactions;
(c) Coordinate and, through the authority of the regulatory officials of the jurisdictions where members of the internationally active insurance group are domiciled, compel development and implementation of reasonable measures designed to ensure that the internationally active insurance group is able to timely recognize and mitigate enterprise risks to members of the internationally active insurance group that are engaged in the business of insurance;
(d) Communicate with other state, federal and international regulatory agencies for members within the internationally active insurance group and share relevant information subject to the confidentiality provisions of NRS 692C.420, including, without limitation, through supervisory colleges as defined in NRS 692C.359;
(e) Enter into agreements with or obtain documentation from any insurer registered under NRS 692C.410, any member of the internationally active insurance group and any other state, federal and international regulatory agencies for members of the internationally active insurance group which provide the basis for or otherwise clarify the role of the Commissioner as group-wide supervisor, including, without limitation, provisions for resolving disputes with other regulatory officials; and
(f) Engage in such other group-wide supervision activities consistent with the provisions of this subsection as considered necessary by the Commissioner.
7. Any agreement entered into or document obtained pursuant to paragraph (e) of subsection 6 must not serve as evidence in any proceeding that any insurer or person within an insurance holding company system not domiciled or incorporated in this State is doing business in this State or is otherwise subject to jurisdiction in this State.
8. If the Commissioner acknowledges that another regulatory official from a jurisdiction that is not accredited by the National Association of Insurance Commissioners is a group-wide supervisor, the Commissioner may reasonably cooperate, through supervisory colleges as defined in NRS 692C.359 or otherwise, with activities undertaken by the group-wide supervisor if:
(a) The Commissioner’s cooperation complies with the laws of this State; and
(b) The regulatory official acknowledged as the group-wide supervisor also recognizes and cooperates with the Commissioner’s activities as a group-wide supervisor for other internationally active insurance groups where applicable.
If such recognition and cooperation is not reasonably reciprocal, the Commissioner may refuse recognition and cooperation.
9. The Commissioner may enter into agreements with or obtain documentation from any insurer registered under NRS 692C.410, any affiliate of such an insurer and other state, federal and international regulatory agencies for members of an internationally active insurance group that provide the basis for or otherwise clarify a regulatory official’s role as group-wide supervisor.
10. The Commissioner may adopt regulations necessary for the administration of this section.
11. A registered insurer subject to this section shall be liable for and pay the reasonable expenses of the Commissioner for the administration of this section, including the engagement of attorneys, actuaries and any other professionals and all reasonable travel expenses.
(Added to NRS by 2017, 69)