210 Neb. Admin. Code, ch. 24, § 018 - Transactions subject to prior notice - Notice filing

018.01 An insurer required to give notice of a proposed transaction pursuant to § 44-2133(2) of the Act shall furnish the required information on Form D, hereby made a part of these regulations.

018.02 Agreements for cost sharing services and management services shall at a minimum and as applicable:

018.02A Identify the person providing services and the nature of such services;

018.02B Set forth the methods to allocate costs;

018.02C Require timely settlement, not less frequently than on a quarterly basis, and compliance with the requirements in the Accounting Practices and Procedures Manual;

018.02D Prohibit advancement of funds by the insurer to the affiliate except to pay for services defined in the agreement;

018.02E State that the insurer will maintain oversight for functions provided to the insurer by the affiliate and that the insurer will monitor services annually for quality assurance;

018.02F Define books and records of the insurer to include all books and records developed or maintained under or related to the agreement;

018.02G Specify that all books and records of the insurer are and remain the property of the insurer and are subject to control of the insurer;

018.02H State that all funds and invested assets of the insurer are the exclusive property of the insurer, held for the benefit of the insurer and are subject to the control of the insurer;

018.02I Include standards for termination of the agreement with and without cause;

018.02J Include provisions for indemnification of the insurer in the event of gross negligence or willful misconduct on the part of the affiliate providing the services;

018.02K Specify that, if the insurer is placed in receivership or seized by the director under the Nebraska Insurers Supervision, Rehabilitation, and Liquidation Act:

(a) all of the rights of the insurer under the agreement extend to the receiver or director; and

(b) all books and records will immediately be made available to the receiver or the director, and shall be turned over to the receiver or director immediately upon the receiver or the director's request;

018.02L Specify that the affiliate has no automatic right to terminate the agreement if the insurer is placed in receivership pursuant to the Nebraska Insurers Supervision, Rehabilitation, and Liquidation Act; and

018.02M Specify that the affiliate will continue to maintain any systems, programs, or other infrastructure notwithstanding a seizure by the commissioner under the Nebraska Insurers Supervision, Rehabilitation, and Liquidation Act, and will make them available to the receiver, for so long as the affiliate continues to receive timely payment for services rendered.

Notes

210 Neb. Admin. Code, ch. 24, § 018