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
NRS 679B.130, 680A.205
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