678.755 - Approval of private insurer and contract of insurance; regulations; reserve. - Nevada Statutes

678.755  Approval of private insurer and contract of insurance; regulations; reserve.

      1.  In determining whether a private insurer is acceptable to issue a contract for the insurance of deposits, the Commissioner and the Commissioner of Insurance must consider:

      (a) The value of the insurer’s capital.

      (b) The ratio of the insurer’s assets, including reinsurance, which are readily available to cover any losses incurred by depositors, to its insured deposits. This ratio must be adequate to reimburse depositors for any losses which they may incur and may not be less than the ratio maintained by the share insurance fund established under the Federal Credit Union Act of 1934, as amended, (12 U.S.C. §§ 1781 et seq.).

      (c) The qualifications of the directors, officers and managers of the insurance company.

      (d) The insurer’s articles of incorporation and its bylaws and all amendments thereto.

      (e) The insurer’s policies for investments.

      (f) The form of all insurance contracts entered into by the insurer, including contracts for reinsurance.

      (g) The insurer’s requirements for premiums or deposits.

      (h) The insurer’s policies for the management of risk.

      (i) Such other considerations as the Commissioner may provide by regulation which are necessary to carry out the provisions of this act.

      2.  The Commissioner and the Commissioner of Insurance shall not approve a contract of insurance unless the protection afforded thereby to the depositors is substantially equivalent to the protection afforded by the Federal Credit Union Act of 1934, as amended, (12 U.S.C. §§ 1781 et seq.) to the depositors.

      3.  After a private insurer obtains the approval of the Commissioner and the Commissioner of Insurance, the Commissioner, after consultation with the Commissioner of Insurance may, for cause, require the insurer to establish and maintain for such a time as the Commissioner may require, a reserve, in cash or United States treasury bills or notes, in an amount fixed by the Commissioner. If required, the reserve must be kept in an account approved by the Commissioner in a federally insured financial institution located in this state.

      (Added to NRS by 1985, 783; A 1987, 2019)