Insurer prohibited from entering into separate transactions with affiliate with intent to avoid review; review of transactions by Commissioner; insurer to notify Commissioner of large investment in corporation.
1. A domestic insurer may not intentionally enter into transactions which are part of a plan or series of like transactions with affiliates if the purpose of those separate transactions is to avoid the threshold provided in NRS 692C.363 and thus avoid the review that would otherwise occur. If the Commissioner determines that such separate transactions were entered into over any 12-month period for that purpose, he may exercise his authority pursuant to NRS 692C.410 to 692C.490, inclusive.
2. The Commissioner, in reviewing transactions pursuant to this section and NRS 692C.363, shall consider whether the transactions comply with the standards set forth in NRS 692C.360 and 692C.370 and whether the transactions may adversely affect the interests of policyholders.
3. A domestic insurer shall notify the Commissioner within 30 days after it makes an investment in any corporation if the total investment in that corporation by it and its affiliates exceeds 10 percent of the corporation’s voting securities.
Last modified: February 27, 2006