Eligibility for certificate of authority: Ownership; management.
1. No foreign insurer which is directly or indirectly owned or controlled in whole or substantial part by any government or governmental agency shall be authorized to transact insurance in Nevada. Membership in a mutual insurer, or subscribership in a reciprocal insurer, or ownership of stock of an insurer by the Alien Property Custodian or similar officer of the United States of America, or ownership of stock or other security which does not have voting rights with respect to the management of the insurer, or supervision of an insurer by public authority, shall not be deemed to be an ownership or control of the insurer for the purposes of this subsection.
2. The Commissioner shall not grant or continue authority to transact insurance in this state to any insurer or proposed insurer:
(a) Of which any director, officer or other individual materially part of the management is found by him after investigation or upon reliable information to be incompetent, or dishonest, or untrustworthy, or of unfavorable business repute;
(b) Of which the managers are so lacking in insurance company managerial experience in operations of the kind proposed in this state as to make such operation, currently or prospectively, hazardous to or contrary to the best interests of the insurance-buying or investing public of this state;
(c) Which he has good reason to believe is affiliated directly or indirectly through ownership, control, management, reinsurance transactions or other business relations with any person or persons of unfavorable business repute; or
(d) Whose business operations are or have been marked, to the injury of insurers, stockholders, policyholders, creditors or the public, by illegality, or by manipulation of assets, or of accounts, or of reinsurance, or by bad faith.
Last modified: February 27, 2006