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.
Last modified: February 27, 2006