Senate Bill No. 11–Committee on Commerce and Labor

 

CHAPTER..........

 

AN ACT relating to insurance; revising provisions governing extraordinary dividends or distributions of certain insurers; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

    Section 1. NRS 692C.380 is hereby amended to read as

 follows:

    692C.380  For purposes of NRS 692C.360 to 692C.400,

 inclusive, an extraordinary dividend or distribution includes any

 dividend or distribution of cash or other property, whose fair

 market value together with that of other dividends or distributions

 made within the preceding 12 months exceeds the greater of:

    1.  Ten percent of the insurer’s surplus as regards policyholders

 as of December 31 next preceding the dividend or distribution; or

    2.  The net gain from operations of the insurer, if the insurer is a

 life insurer, or the net income, not including [unrealized] realized

 capital gains if the insurer is not a life insurer, for the 12-month

 period ending December 31 next preceding the dividend or

 distribution,

but does not include pro rata distributions of any class of the

 insurer’s own securities.

    Sec. 2.  This act becomes effective upon passage and approval.

 

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