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:
(a) The certified insurer violates any provision of NAC 681A.400 to 681A.520, inclusive; or
(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

Nev. Admin. Code § 681A.480
Added to NAC by Comm'r of Insurance by R079-16A, eff. 11/2/2016
NRS 679B.130, 681A.130, 681A.1551, 681A.1552, 681A.1554, 681A.1555

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