Nevada Administrative Code

NAC 681A.202 “Actuarial method” defined. (NRS 679B.130, 681A.130, 681A.145) “Actuarial method” means the methodology used to determine the required level of primary security set forth in NAC 681A.234 pursuant to the “Requirements for Principle-Based Reserves for Life Products” in…

NAC 681A.204 “Affiliate” defined. (NRS 679B.130, 681A.130, 681A.145) “Affiliate” has the meaning ascribed to it in NRS 692C.030. (Added to NAC by Comm’r of Insurance by R187-22, eff. 12-29-2022)

NAC 681A.206 “Attained-age-based yearly renewable term life insurance policy” defined. (NRS 679B.130, 681A.130, 681A.145) “Attained-age-based yearly renewable term life insurance policy” means a yearly renewable term life insurance policy in which the premium rates on both the in…

NAC 681A.208 “Authorized control level” defined. (NRS 679B.130, 681A.130, 681A.145) “Authorized control level” has the meaning ascribed to it in NAC 681B.405. (Added to NAC by Comm’r of Insurance by R187-22, eff. 12-29-2022)

NAC 681A.210 “Company action level” defined. (NRS 679B.130, 681A.130, 681A.145) “Company action level” has the meaning ascribed to it in NAC 681B.410. (Added to NAC by Comm’r of Insurance by R187-22, eff. 12-29-2022)

NAC 681A.212 “Covered policy” defined. (NRS 679B.130, 681A.130, 681A.145) “Covered policy” means: 1. A life insurance policy with guaranteed non-level gross premiums or guaranteed non-level benefits other than a flexible premium universal life insurance policy; or 2. A flexible p…

NAC 681A.214 “CSO” defined. (NRS 679B.130, 681A.130, 681A.145) “CSO” has the meaning ascribed to it in NAC 688A.375. (Added to NAC by Comm’r of Insurance by R187-22, eff. 12-29-2022)

NAC 681A.216 “Mandatory control level” defined. (NRS 679B.130, 681A.130, 681A.145) “Mandatory control level” has the meaning ascribed to it in NAC 681B.445. (Added to NAC by Comm’r of Insurance by R187-22, eff. 12-29-2022)

NAC 681A.218 “Other security” defined. (NRS 679B.130, 681A.130, 681A.145) “Other security” means a security, other than a primary security, which has been approved by the Commissioner. (Added to NAC by Comm’r of Insurance by R187-22, eff. 12-29-2022)

NAC 681A.220 “Primary security” defined. (NRS 679B.130, 681A.130, 681A.145) 1. “Primary security” means: (a) Cash; (b) Except as otherwise provided in subsection 2, securities listed by the Securities Valuation Office of the National Association of Insurance Commissioners; and (c…

NAC 681A.222 “Regulatory action level” defined. (NRS 679B.130, 681A.130, 681A.145) “Regulatory action level” has the meaning ascribed to it in NAC 681B.460. (Added to NAC by Comm’r of Insurance by R187-22, eff. 12-29-2022)

NAC 681A.224 “Secondary guarantee period” defined. (NRS 679B.130, 681A.130, 681A.145) “Secondary guarantee period” means the period for which a policy is guaranteed to remain in force subject only to a secondary guarantee. (Added to NAC by Comm’r of Insurance by R187-22, eff. 12-…

NAC 681A.226 “Ultimate 1980 CSO Mortality Table” defined. (NRS 679B.130, 681A.130, 681A.145) “Ultimate 1980 CSO Mortality Table” has the meaning ascribed to it in NAC 688A.385. (Added to NAC by Comm’r of Insurance by R187-22, eff. 12-29-2022)

NAC 681A.228 “Valuation Manual” defined. (NRS 679B.130, 681A.130, 681A.145) “Valuation Manual” has the meaning ascribed to it in NRS 681B.0071. (Added to NAC by Comm’r of Insurance by R187-22, eff. 12-29-2022)

NAC 681A.230 Purpose. (NRS 679B.130, 681A.130, 681A.145) The purposes of NAC 681A.220 to 681A.240, inclusive, are to: 1. Establish uniform standards governing reserve financing arrangements pertaining to life insurance policies that contain guaranteed non-level gross premiums or …

NAC 681A.232 Applicability. (NRS 679B.130, 681A.130, 681A.145) 1. The provisions of NAC 681A.220 to 681A.240, inclusive, apply to all reinsurance treaties that cede liabilities pertaining to a covered policy issued by a life insurance company domiciled in this State. 2. The provi…

NAC 681A.234 Actuarial Method: Determination and use for covered policy; reduction, adjustment and aggregation of level of primary security; determination of credit for ceded reserves; conditions and limitations on calculating security. (NRS 679B.130, 681A.130, 681A.145) 1. Excep…

NAC 681A.236 Requirements for covered policy to obtain credit for reinsurance; opportunity for remediation. (NRS 679B.130, 681A.130, 681A.145) 1. Except as otherwise provided in subsection 3 or in subsection 2 of NAC 681A.232, credit for reinsurance is authorized for ceded liabil…

NAC 681A.238 Prohibition against avoidance. (NRS 679B.130, 681A.130, 681A.145) An insurer that holds a covered policy subject to the provisions of NAC 681A.220 to 681A.240, inclusive, may not take any action or series of actions or enter into any transaction or arrangement or ser…

NAC 681A.240 Severability. (NRS 679B.130, 681A.130, 681A.145) If any of the provisions of NAC 681A.220 to 681A.240, inclusive, or any application thereof to any person, thing or circumstance, is held invalid, it is intended that the invalidity not affect the remaining provisions …

NAC 681A.250 Definitions. (NRS 679B.130, 681A.130) As used in NAC 681A.250 to 681A.380, inclusive, unless the context otherwise requires, the words and terms defined in NAC 681A.260 to 681A.280, inclusive, have the meanings ascribed to them in those sections. (Added to NAC by Com…

NAC 681A.260 “Beneficiary” defined. (NRS 679B.130, 681A.130) “Beneficiary” includes any successor of the named beneficiary by operation of law, including, without limitation, any receiver, conservator, rehabilitator or liquidator. (Added to NAC by Comm’r of Insurance, eff. 6-28-9…

NAC 681A.265 “Financial statement” defined. (NRS 679B.130, 681A.130) “Financial statement” means a quarterly, annual or other financial statement required to be filed pursuant to state law. (Added to NAC by Comm’r of Insurance by R027-02, eff. 5-31-2002)

NAC 681A.270 “Grantor” defined. (NRS 679B.130, 681A.130) “Grantor” means the entity that has established a trust for the sole benefit of the beneficiary. When established in conjunction with a reinsurance agreement, the grantor is the unlicensed, unaccredited assuming insurer. (A…

NAC 681A.280 “Obligation” defined. (NRS 679B.130, 681A.130) “Obligation” includes: 1. Reinsured losses and allocated loss expenses paid by the ceding company, but not recovered from the assuming insurer; 2. Reserves for reinsured losses reported and outstanding; 3. Reserves for r…

NAC 681A.290 Requirements of trust agreement for reduction from liability; insolvency of grantor of trust. (NRS 679B.130, 681A.130) 1. A trust agreement established for the purposes of NRS 681A.240 must provide for the creation of a trust account for the deposit of assets. 2. A t…

NAC 681A.300 Authorized acts that may be included in trust agreement. (NRS 679B.130, 681A.130) 1. A trust agreement may authorize: (a) The trustee to resign by delivering written notice to the beneficiary and grantor. Except as otherwise provided in subsection 2, a resignation is…

NAC 681A.310 Establishment of trust agreement in conjunction with reinsurance agreement: Acceptable use of trust account by ceding insurer under certain circumstances; contents of reinsurance agreement. (NRS 679B.130, 681A.130) 1. If a trust agreement is established in conjunctio…

NAC 681A.320 Reinsurance agreement entered into in conjunction with trust agreement and establishment of trust account: Acceptable conditions. (NRS 679B.130, 681A.130) A reinsurance agreement entered into in conjunction with a trust agreement and the establishment of a trust acco…

NAC 681A.325 Reinsurance agreement entered into in conjunction with trust agreement and establishment of trust account: Stipulation of value and types of assets deposited in trust account. (NRS 679B.130, 681A.130) 1. A reinsurance agreement entered into in conjunction with a trus…

NAC 681A.330 Use of trust agreement for reduction of liability for reinsurance. (NRS 679B.130, 681A.130) A trust agreement may be used to reduce any liability for reinsurance ceded to an unauthorized assuming insurer in financial statements required to be filed with the Division,…

NAC 681A.335 Exhaustion of specific security required before presentation of claim for payment from trust account. (NRS 679B.130, 681A.130) A specific security provided to a ceding insurer by an assuming insurer in accordance with NRS 681A.240 must be applied, until exhausted, fo…

NAC 681A.340 Requirements of letter of credit; adoption by reference of certain publications; availability of publications. (NRS 679B.130, 681A.130) 1. A letter of credit issued for the purposes of NRS 681A.240 must stipulate that: (a) To obtain money the beneficiary need only dr…

NAC 681A.350 Acceptable provisions of reinsurance agreement. (NRS 679B.130, 681A.130) 1. A reinsurance agreement, in conjunction with which a letter of credit is obtained, may contain provisions which: (a) Require the assuming insurer to provide letters of credit to the ceding in…

NAC 681A.360 Letter of credit obtained in conjunction with reinsurance agreement: Requirement that parties enter into trust agreement under certain circumstances. (NRS 679B.130, 681A.130) If a letter of credit is obtained in conjunction with a reinsurance agreement covering risks…

NAC 681A.370 Authority of ceding insurer to take credit for unencumbered assets. (NRS 679B.130, 681A.130) A ceding insurer may take credit for unencumbered assets withheld by the ceding insurer in the United States which are subject to withdrawal solely by the ceding insurer and …

NAC 681A.375 Requirements for ceding insurer to be granted credit or allowed asset or reduction from liability: Provisions of reinsurance agreement. (NRS 679B.130, 681A.130) Credit will not be granted, or an asset or reduction from liability allowed, to a ceding insurer for reins…

NAC 681A.380 Applicability of requirements before and after June 28, 1996. (NRS 679B.130, 681A.130) 1. All new and renewal reinsurance transactions entered into after June 28, 1996, must conform to the requirements of chapter 681A of NRS and the provisions of NAC 681A.250 to 681A…

NAC 681A.400 Definitions. (NRS 679B.130, 681A.130) As used in NAC 681A.400 to 681A.520, inclusive, unless the context otherwise requires, the words and terms defined in NAC 681A.410 and 681A.420 have the meanings ascribed to them in those sections. (Added to NAC by Comm’r of Insu…

NAC 681A.410 “Certified reinsurer” defined. (NRS 679B.130, 681A.130) “Certified reinsurer” means an assuming insurer that is certified as a reinsurer by the Commissioner pursuant to NAC 681A.450. (Added to NAC by Comm’r of Insurance by R079-16, eff. 11-2-2016)

NAC 681A.420 “Qualified jurisdiction” defined. (NRS 679B.130, 681A.130) “Qualified jurisdiction” means a jurisdiction which is recognized by the Commissioner as qualified pursuant to NAC 681A.490. (Added to NAC by Comm’r of Insurance by R079-16, eff. 11-2-2016)

NAC 681A.430 “Reinsurance supervisory system” interpreted. (NRS 679B.130, 681A.130) As used in NRS 681A.1553, the Commissioner interprets the term “reinsurance supervisory system” to mean a system for regulatory oversight performed by the domiciliary jurisdiction of an assuming i…

NAC 681A.435 Confidentiality of information. (NRS 679B.130, 681A.130) Except as otherwise provided in NRS 239.0115, all information submitted by a certified reinsurer pursuant to NAC 681A.400 to 681A.520, inclusive, which is not otherwise public information, must be kept confiden…

NAC 681A.440 Financial statement credit for ceded insurance or reinsurance obligation: Authorization to claim; requirements concerning security; circumstances under which reinsurer may defer posting security. (NRS 679B.130, 681A.130, 681A.1555) 1. The Commissioner will allow a ce…

NAC 681A.450 Certification: Notice of application on Internet website of Commissioner; requirements and eligibility; written notice of approval and rating. (NRS 679B.130, 681A.130, 681A.1551, 681A.1552, 681A.1554, 681A.1555) 1. The Commissioner will post notice on the Internet we…

NAC 681A.460 Assignment of ratings by Commissioner; factors for making determination; adjustment of required security; periodic reporting requirements for certified reinsurers; reevaluation of rating; application of upgraded or downgraded rating to reinsurance contracts. (NRS 679…

NAC 681A.480 Modification, suspension or revocation of certification; effect of revocation on ability to claim financial statement credit. (NRS 679B.130, 681A.130, 681A.1551, 681A.1552, 681A.1554, 681A.1555) 1. The Commissioner may modify, suspend or revoke the certification of a…