Nev. Admin. Code § 681A.480 - Modification, suspension or revocation of certification; effect of revocation on ability to claim financial statement credit
1. The
Commissioner may modify, suspend or revoke the certification of a certified
reinsurer if:
(b) The Commissioner determines that
financial or operating results of the certified reinsurer or documented
significant delays in payment by the certified reinsurer indicate that the
certified reinsurer is unable or unwilling to meet its contractual
obligations.
2. Except
as otherwise provided in this subsection, if the Commissioner revokes the
certification as a reinsurer issued to an assuming insurer, a ceding insurer
may not claim a financial statement credit for an insurance or reinsurance
obligation ceded to the assuming insurer unless the assuming insurer posts
security in accordance with
NRS
681A.240. If the assuming insurer maintains a
trust fund in accordance with
NRS
681A.180, the Commissioner may allow a ceding
insurer to claim an additional credit equal to the ceding insurer's pro rata
share in such a fund, reduced by an amount appropriate to reflect the risk of
uncollectibility and anticipated expenses of administering the trust. The
Commissioner will allow a financial statement credit for a ceding insurer that
has ceded an insurance or reinsurance obligation to an assuming insurer which
had its certification as a certified reinsurer revoked for a period of 3 months
after the revocation for all reinsurance ceded to that certified reinsurer
unless the reinsurance is found by the Commissioner to be at a high risk of
uncollectibility.
Notes
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