Transfers to unauthorized insurer.
1. Except as otherwise provided in subsection 2, an authorized insurer issuing credit insurance may not enter into any agreement whereby the authorized insurer transfers, by reinsurance or otherwise, to an unauthorized insurer, as they relate to credit insurance written or issued in this state:
(a) A substantial portion of the risk of loss under the credit insurance written by the authorized insurer in this state;
(b) All of one or more kinds, lines, types or classes of credit insurance;
(c) All of the credit insurance produced through one or more agents, agencies or creditors;
(d) All of the credit insurance written or issued in a designated geographical area; or
(e) All of the credit insurance under a policy of group insurance.
2. An authorized insurer may make the transfers listed in subsection 1 to an unauthorized insurer if the unauthorized insurer:
(a) Maintains security on deposit with the Commissioner in an amount which when added to the actual capital and surplus of the insurer is equal to the capital and surplus required of an authorized stock insurer pursuant to NRS 680A.120. The security may consist only of the following:
(1) Cash.
(2) General obligations of, or obligations guaranteed by, the Federal Government, this state or any of its political subdivisions. These obligations must be valued at the lower of market value or par value.
(3) Any other type of security that would be acceptable if posted by a domestic or foreign insurer.
(b) Files an annual statement with the Commissioner pursuant to NRS 680A.270.
(c) Maintains reserves on its credit insurance business pursuant to NRS 681B.050.
(d) Values its assets and liabilities pursuant to NRS 681B.010 to 681B.040, inclusive.
(e) Agrees to examinations conducted by the Commissioner pursuant to NRS 679B.230.
(f) Complies with the standards adopted by the Commissioner pursuant to NRS 679A.150.
(g) Does not hold, issue or have an arrangement for holding or issuing any of its stock for which dividends are paid based on:
(1) The experience of a specific risk of all of one or more kinds, lines, types or classes of insurance;
(2) All of the business produced through one or more agents, agencies or creditors;
(3) All of the business written in a designated geographical area; or
(4) All of the business written for one or more forms of insurance.
Last modified: February 27, 2006