[Rev. 6/29/2024 4:57:45 PM--2023]
ADMINISTRATION
NRS 682B.010 Authorized deposits.
NRS 682B.015 Additional deposit.
NRS 682B.020 Purpose of deposit.
NRS 682B.030 Securities eligible for deposit.
NRS 682B.040 Deposits through Commissioner required; exceptions; Account for the Division of Insurance; responsibilities of State.
NRS 682B.050 Custodial arrangements.
NRS 682B.055 Use of securities as deposit without delivery to Commissioner.
NRS 682B.060 Assignment, transfer and conveyance of assets; release.
NRS 682B.070 Appraisal.
NRS 682B.080 Excess deposits.
NRS 682B.090 Rights of insurer during solvency.
NRS 682B.100 Levy upon deposit.
NRS 682B.110 Deficiency of deposit.
NRS 682B.120 Duration and release of deposit.
ALIEN INSURERS
NRS 682B.130 Deposit of assets in trust.
NRS 682B.140 Purpose and duration.
NRS 682B.150 Trust agreement: Approval.
NRS 682B.160 Trust agreement: Amendment.
NRS 682B.170 Withdrawal of approval.
NRS 682B.180 Title to assets.
NRS 682B.190 Assets kept separate.
NRS 682B.200 Statement of trustee: Filing; disciplinary action for failure to file timely.
NRS 682B.210 Examination of assets.
NRS 682B.220 Withdrawal of assets.
NRS 682B.230 Substitution of trustee.
NRS 682B.240 Mexican and Canadian insurers.
NRS 682B.250 Applicability of other provisions.
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ADMINISTRATION
NRS 682B.010 Authorized deposits. The following deposits of insurers when made through the Commissioner must be accepted and held by the Commissioner in trust, subject to the provisions of NRS 682B.010 to 682B.120, inclusive:
1. Deposits required under this Code for authority to transact insurance in this state.
2. Deposits of domestic insurers when made pursuant to the laws of other states, provinces and countries as a requirement for authority to transact insurance in such state, province or country.
3. Deposits in such additional amounts as are permitted to be made under NRS 682B.080.
(Added to NRS by 1971, 1629; A 1985, 609)
NRS 682B.015 Additional deposit.
1. In addition to the deposits authorized by NRS 682B.010, the Commissioner may by regulation require as a condition of transacting the business of insurance in this state that a special deposit be maintained in this state by an authorized insurer who is subject to the provisions of chapter 680A of NRS or by an eligible insurer who is subject to the provisions of chapter 685A of NRS.
2. A deposit pursuant to this section:
(a) Must be held for the sole benefit and protection of policyholders residing in this state and any risk that is resident, located or to be performed in this state that is the subject of insurance; and
(b) Is subject to the provisions of NRS 682B.030 to 682B.120, inclusive.
(Added to NRS by 1993, 2386)
NRS 682B.020 Purpose of deposit.
1. Deposits made in this state under NRS 680A.140 and 680A.330 (retaliatory provision) shall be held in trust for the respective purposes stated in those sections.
2. A deposit made in this state by a domestic insurer transacting insurance in another state, province or country, and as required by the laws of such other state, province or country, shall be held for the protection of all the insurer’s policyholders or all its policyholders and creditors or for such other purpose or purposes as may be specified pursuant to such laws.
3. Deposits required under NRS 680A.330 (retaliatory provision) shall be held for such purposes as are required by such section, and as specified by the Commissioner’s order requiring such deposit to be made.
(Added to NRS by 1971, 1629)
NRS 682B.030 Securities eligible for deposit.
1. All such deposits required under NRS 680A.140 for authority to transact insurance in this state shall consist of good interest-bearing or dividend-paying securities of kinds eligible for investment of the funds of domestic insurers under NRS chapter 682A (investments).
2. All other deposits of a domestic insurer held in this state pursuant to the laws of another state, province or country shall be comprised of securities of the kinds described in subsection 1, and of such additional kind or kinds of securities required or permitted by the laws of such state, province or country.
3. Deposits of foreign insurers made in this state under NRS 680A.330 (retaliatory provision) shall consist of such assets as are required by the Commissioner pursuant to such law.
4. Evidences of indebtedness secured by real property shall be eligible for deposit only if the real property securing such indebtedness is situated within the State of Nevada. The evidence of indebtedness so deposited shall be accompanied by a certificate from a duly authorized title insurer doing business in the county in which the real property is situated, showing that the indebtedness is a first lien against such real property, other than for real property taxes.
(Added to NRS by 1971, 1629)
NRS 682B.040 Deposits through Commissioner required; exceptions; Account for the Division of Insurance; responsibilities of State.
1. Except as otherwise provided in NRS 682B.050 and 682B.055, deposits made in this state pursuant to this Code must be made through the Commissioner. The Account for the Division of Insurance is hereby created in the State Agency Fund for Bonds. All money received by the Commissioner must be deposited with the State Treasurer to the credit of the Account. All claims against the Account must be paid as other claims against the State are paid.
2. The State of Nevada is responsible for the safekeeping of all securities or other assets deposited with the State Treasurer through the Commissioner pursuant to this Code, and shall bear the costs of the depository.
(Added to NRS by 1971, 1630; A 1985, 609, 935; 1991, 1625, 1820; 1993, 572, 573, 1914)
NRS 682B.050 Custodial arrangements.
1. In lieu of a deposit made as provided in NRS 682B.040, the Commissioner in his or her discretion may, upon written request of the insurer and where of greater convenience to the insurer, permit such deposit to be made with and held by the trust department of an established bank or credit union located in Nevada if both the bank or credit union and the custodial arrangements are approved by the Commissioner.
2. All such custodial arrangements shall comply in substance with the requirements of this Code as to like deposits through the Commissioner, as to amount, purposes, maintenance, replenishment, release and withdrawal, and as to the rights of the insurer therein.
3. The cost of any such custodianship shall be borne by the insurer. The State of Nevada shall have no responsibility for the safekeeping of any such deposit.
4. The Commissioner may at any time, in his or her discretion, terminate any such custodial arrangement and require the deposit represented thereby to be made as otherwise provided for under NRS 682B.010 to 682B.120, inclusive.
(Added to NRS by 1971, 1630; A 1999, 1548)
NRS 682B.055 Use of securities as deposit without delivery to Commissioner. The Commissioner:
1. May allow an insurer to use securities as a deposit or as a part of a deposit without delivering the securities to the Commissioner under the conditions specified in regulations adopted pursuant to subsection 1 of NRS 680A.140.
2. Shall allow any successor organization to the State Industrial Insurance System that was established by section 79 of chapter 642, Statutes of Nevada 1981, at page 1449, to use the money held in trust by the organization pursuant to NRS 616B.042 as a deposit or as a part of a deposit for authority to transact industrial insurance without delivering that money to the Commissioner.
(Added to NRS by 1985, 609; A 1999, 1832)
NRS 682B.060 Assignment, transfer and conveyance of assets; release.
1. Except as provided in NRS 682B.055, an insurer shall assign to the Commissioner and the successors in office of the Commissioner in trust all securities being deposited with or through the Commissioner under NRS 682B.010 to 682B.120, inclusive, which are not negotiable by delivery. In lieu of such an assignment, the insurer may give the Commissioner an irrevocable power of attorney authorizing the Commissioner to transfer the securities or any part thereof for any purpose within the scope of NRS 682B.010 to 682B.120, inclusive.
2. In the case of securities or assets held under custodial arrangements pursuant to NRS 682B.050, the custodian’s receipt therefor must be delivered to the Commissioner in trust, if negotiable, or assigned to the Commissioner so that legal title to such securities or assets is vested in the Commissioner and the successors in office of the Commissioner.
3. The insurer shall convey to the Commissioner and the successors in office of the Commissioner in trust any real property being deposited under this Code.
4. Upon release to the insurer, or other person entitled thereto, of any security or asset, the Commissioner shall reassign or transfer or reconvey it to the insurer or person. In the case of power of attorney given pursuant to subsection 1, the Commissioner shall deliver the power of attorney, together with the securities covered thereby, to the insurer or person entitled thereto.
(Added to NRS by 1971, 1631; A 1985, 609)
NRS 682B.070 Appraisal. The Commissioner may, in his or her discretion, prior to acceptance for deposit of any particular asset or security, or at any time thereafter while so deposited, have the same appraised or valued by competent appraisers. The reasonable costs of any such appraisal or valuation shall be borne by the insurer.
(Added to NRS by 1971, 1631)
1. If assets deposited by an insurer under NRS 682B.010 to 682B.120, inclusive, are subject to material fluctuations in market value, the Commissioner may, in his or her discretion, require the insurer to deposit and maintain on deposit additional assets in an amount reasonably necessary to assure that the deposit at all times has a market value of not less than the amount specified under the law by which the deposit is required.
2. An insurer may otherwise at its option deposit assets in an amount exceeding its deposit required or otherwise permitted under this Code by not more than 20 percent of such required or permitted deposit, or $20,000, whichever is the larger amount, for the purpose of absorbing fluctuations in the value of assets deposited and to facilitate exchange and substitution of such assets. During the solvency of the insurer, any such excess shall be released to the insurer upon its request. During the insolvency of the insurer, such excess deposit shall be released only as provided in subsection 3 of NRS 682B.120.
(Added to NRS by 1971, 1631)
NRS 682B.090 Rights of insurer during solvency. So long as the insurer remains solvent and is in compliance with this Code it may:
1. Demand, receive, sue for and recover the income from the assets deposited;
2. Exchange and substitute assets of equivalent or greater fair market value for the deposited assets; and
3. At any reasonable time inspect any such deposit.
(Added to NRS by 1971, 1632)
NRS 682B.100 Levy upon deposit. No judgment creditor or other claimant of an insurer shall have the right to levy upon any of the assets or securities held in this state as a deposit for the protection of the insurer’s policyholders or policyholders and creditors. Levy upon deposits made pursuant to NRS 680A.330 (retaliatory provision) shall be permitted if so provided in the Commissioner’s order under which the deposit is required.
(Added to NRS by 1971, 1632)
NRS 682B.110 Deficiency of deposit. If for any reason the market value of assets of an insurer held on deposit in this state falls below the amount required under this Code, the insurer shall promptly deposit other or additional assets eligible for deposit sufficient to cure the deficiency. If the insurer has failed to cure the deficiency within 20 days after receipt of notice thereof by registered or certified mail from the Commissioner, the Commissioner shall forthwith revoke the insurer’s certificate of authority.
(Added to NRS by 1971, 1632)
NRS 682B.120 Duration and release of deposit.
1. Every deposit made in this state by an insurer pursuant to this Code shall be held as long as there is outstanding any liability of the insurer as to which the deposit was so required; or, if the deposit is required under NRS 680A.330 (retaliatory provision), the deposit shall be held for so long as the basis of such retaliation exists.
2. If the insurer has reinsured all its outstanding risks in another insurer or insurers, the Commissioner may deliver to such assuming insurer or its assigns, after the expiration of 1 year from the effective date of such reinsurance, any assets or securities deposited with the Commissioner under this Code by the ceding insurer upon proof satisfactory to the Commissioner that:
(a) The assuming insurer has assumed and agreed to discharge all liabilities of every kind due and to become due which the deposit was to secure; and
(b) The assuming insurer has on deposit in this state, or with public authority in another state, securities of quality, amount and value not less than the deposit required of the ceding insurer under this Code and which will reasonably subsist for the security of the obligations of the ceding insurer so assumed.
3. If the insurer is subject to delinquency proceedings as defined in NRS 696B.060, upon the order of a court of competent jurisdiction the Commissioner shall yield the insurer’s assets held on deposit to the receiver, conservator, rehabilitator or liquidator of the insurer, or to any other properly designated officer or officers who succeed to the management and control of the insurer’s assets.
(Added to NRS by 1971, 1632)
ALIEN INSURERS
NRS 682B.130 Deposit of assets in trust.
1. An alien insurer may use Nevada as a state of entry to transact insurance in the United States of America by making and maintaining in this state a deposit of assets in trust with a bank, credit union or trust company approved by the Commissioner.
2. The deposit, together with other trust deposits of the insurer held in the United States of America for the same purpose, must be in an amount not less than as required of an alien insurer under NRS 680A.140, deposit requirement in general, and must consist of United States money, public obligations of the government or states or political subdivisions of the United States of America, and obligations of corporations and institutions in the United States of America, all as eligible for the investment of money of domestic insurers under NRS 682A.400 to 682A.468, inclusive.
3. Such a deposit may be referred to as “trusteed assets.”
(Added to NRS by 1971, 1633; A 1999, 1549; 2015, 3464)
NRS 682B.140 Purpose and duration. The deposit provided for in NRS 682B.130 shall be for the benefit, security and protection of the policyholders, or policyholders and creditors, of the insurer in the United States of America, and shall be maintained as long as there is outstanding in the United States of America any liability of the insurer arising out of its insurance transactions therein.
(Added to NRS by 1971, 1633)
NRS 682B.150 Trust agreement: Approval.
1. The deposit referred to in NRS 682B.130 shall be made and maintained under a written trust agreement between the insurer and the trustee, consistent with the requirements of NRS 682B.130 to 682B.250, inclusive, and shall be authenticated in such form and manner as the Commissioner may designate or approve.
2. The agreement shall not be effective until filed with and approved by the Commissioner in writing. The Commissioner shall not approve any trust agreement found by the Commissioner not to be in compliance with law, or the terms of which do not in fact provide reasonably adequate protection for the insurer’s policyholders or policyholders and creditors in the United States of America.
(Added to NRS by 1971, 1633)
NRS 682B.160 Trust agreement: Amendment. A trust agreement may be amended, but the amendment shall not be effective until filed with and approved in writing by the Commissioner as being in compliance with NRS 682B.130 to 682B.250, inclusive.
(Added to NRS by 1971, 1633)
NRS 682B.170 Withdrawal of approval. The Commissioner may withdraw approval of any trust agreement or of any amendment thereof if the Commissioner finds upon hearing, after notice thereof to the insurer and the trustee, that the requisites for such approval, as provided in NRS 682B.130 to 682B.250, inclusive, have been found by the Commissioner not to exist or no longer to exist.
(Added to NRS by 1971, 1634)
NRS 682B.180 Title to assets. Title to the trusteed assets is vested in the trustee and its successors for the purposes of the trust deposit, and the trust agreement shall so provide.
(Added to NRS by 1971, 1634)
NRS 682B.190 Assets kept separate. The trustee shall keep the trusteed assets separate from other assets and shall maintain a record thereof sufficient to identify trusteed assets at all times.
(Added to NRS by 1971, 1634)
NRS 682B.200 Statement of trustee: Filing; disciplinary action for failure to file timely.
1. The trustee of trusteed assets shall from time to time file with the Commissioner statements, in such forms as the Commissioner may designate and request in writing, certifying the character of such assets and the amounts and market value thereof.
2. If the trustee fails to file the statement within a reasonable time after request therefor by the Commissioner, the Commissioner may suspend or revoke the certificate of authority of the insurer.
(Added to NRS by 1971, 1634)
NRS 682B.210 Examination of assets. The Commissioner may examine trusteed assets at any time in accordance with the same conditions and procedures as govern examination of insurers in general under this Code.
(Added to NRS by 1971, 1634)
NRS 682B.220 Withdrawal of assets.
1. The trust agreement shall provide, in substance, that no withdrawal of trusteed assets shall be made by the insurer or permitted by the trustee without the written authorization or approval of the Commissioner in advance thereof, except as follows:
(a) Any or all income, earnings, dividends or interest accumulations of the trusteed assets may be paid over to the United States manager of the insurer upon request of the insurer or the manager.
(b) For substitution, coincidentally with such withdrawal, of other securities or assets of value at least equal in amount to those being withdrawn, if:
(1) Such substituted securities or assets are likewise such as are eligible for deposit under NRS 682B.130;
(2) Such withdrawal is requested in writing by the insurer’s United States manager pursuant to general or specific written authority previously given or delegated by the insurer’s board of directors or other similar governing body; and
(3) A certified copy of such authority has been filed with the trustee.
(c) For the purpose of making deposits required by law in any state in which the insurer is or thereafter becomes an authorized insurer, for the protection of the insurer’s policyholders or policyholders and creditors in such state or in the United States of America, if such withdrawal does not reduce the insurer’s deposit in this state to an amount less than the minimum deposit required under NRS 680A.140. The trustee shall transfer any assets so withdrawn and in the amount so required to be deposited in the other state directly to the depositary required to receive the deposit in the other state, as certified in writing by the public officer having supervision of insurance in the other state.
(d) For the purpose of transferring the trusteed assets to an official conservator, rehabilitator or liquidator pursuant to the order of a court of competent jurisdiction.
2. The Commissioner shall so authorize or approve withdrawal of only such assets as are in excess of the amount of assets required to be so held in trust under NRS 680A.140, or as may otherwise be consistent with the provisions of NRS 682B.130 to 682B.250, inclusive.
3. If at any time the insurer becomes insolvent, or if its assets held in the United States of America are less in amount than the sum of its liabilities in the United States of America arising from its insurance transactions therein and the amount of the required deposit, upon determination thereof the Commissioner shall in writing order the trustee to suspend the right of the insurer or any other person to withdraw assets as authorized under paragraphs (a), (b) and (c) of subsection 1, and the trustee shall comply with such order until further order of the Commissioner.
(Added to NRS by 1971, 1634)
NRS 682B.230 Substitution of trustee. A new trustee or new trustees may be substituted for the original trustee of trusteed assets for any proper cause. Any such substitution shall be subject to the Commissioner’s approval.
(Added to NRS by 1971, 1635)
NRS 682B.240 Mexican and Canadian insurers. The provisions of NRS 682B.130 to 682B.250, inclusive, applicable to a United States manager shall, in the case of insurers domiciled in Mexico or Canada, be deemed to refer to the president, vice president, secretary, treasurer or other comparable officer of the insurer.
(Added to NRS by 1971, 1635)
NRS 682B.250 Applicability of other provisions. NRS 682B.070 (appraisal) and 682B.100 (levy upon deposit) shall also apply to trusteed assets of an alien insurer.
(Added to NRS by 1971, 1635)