Nev. Admin. Code § 680A.224 - Actions that may be taken by Commissioner if insurer determined to be in hazardous financial condition; exception

1. If the Commissioner determines that the continued operation of an insurer licensed to transact the business of insurance in this State may be hazardous to the policyholders or creditors of the insurer or the general public, the Commissioner will, if appropriate:
(a) Issue an order requiring the insurer to:
(1) Purchase reinsurance to reduce the total amount of present or future liability for policy benefits.
(2) Reduce, suspend or limit the volume of business being accepted or renewed by the insurer.
(3) Reduce the insurer's expenses relating to general insurance and commission by methods specified by the Commissioner.
(4) Increase its capital and surplus.
(5) Suspend or limit its declaration and payment of dividends to the stockholders or policyholders of the insurer.
(6) File reports, in a form acceptable to the Commissioner, concerning the market value of the assets of the insurer.
(7) Limit or withdraw from any of its investments, or discontinue any part of its practices relating to investments, to the extent deemed necessary by the Commissioner.
(8) Document the adequacy of its premium rates in relation to the risks insured by the insurer.
(9) File with the Commissioner, in addition to its regular annual statements, interim financial reports. The interim reports must be on the appropriate form adopted by the National Association of Insurance Commissioners, or in a format approved by the Commissioner.
(10) Correct any corporate governance practices of the insurer which are deemed deficient by the Commissioner and adopt and use corporate governance practices acceptable to the Commissioner.
(11) Provide a business plan to the Commissioner.
(12) Unless prohibited by title 57 of NRS, adjust rates for a product, other than a contract for life insurance, written by the insurer that the Commissioner considers necessary to improve the financial condition of the insurer.
(b) Take any other action deemed appropriate by the Commissioner.
2. The provisions of subsection 1 do not apply to a foreign insurer holding a certificate of authority to transact insurance in this State, except as otherwise provided in NRS 680A.190 to 680A.220, inclusive.

Notes

Nev. Admin. Code § 680A.224
Added to NAC by Comm'r of Insurance, eff. 5-23-96; A by R030-12, 9-14-2012

NRS 679B.130, 680A.205

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