Title 57

NRS 694B.040 Name; suits. A reciprocal insurer shall: 1. Have and use a business name. The name shall include the word “reciprocal,” or “interinsurer,” or “interinsurance,” or “exchange,” or “underwriters,” or “underwriting,” or “association.” 2. Sue and be sued in its own name. …

NRS 694B.050 Attorney. 1. “Attorney,” as used in this chapter, refers to the attorney-in-fact of a reciprocal insurer. The attorney may be an individual, firm or corporation. 2. The attorney of a foreign reciprocal insurer, which insurer is duly authorized to transact insurance i…

NRS 694B.060 Organization of reciprocal insurer. 1. Twenty-five or more persons domiciled in this state may organize a domestic reciprocal insurer and make application to the Commissioner for a certificate of authority to transact insurance. 2. The proposed attorney shall fulfill…

NRS 694B.070 Certificate of authority; disciplinary action for noncompliance. 1. The certificate of authority of a reciprocal insurer shall be issued to its attorney in the name of the insurer. 2. The Commissioner may refuse, suspend or revoke the certificate of authority, in add…

NRS 694B.080 Power of attorney. 1. The rights and powers of the attorney of a reciprocal insurer shall be as provided in the power of attorney given it by the subscribers. 2. The power of attorney must set forth: (a) The powers of the attorney; (b) If a domestic insurer, that the…

NRS 694B.090 Modifications. Modifications of the terms of the subscribers’ agreement or of the power of attorney of a domestic reciprocal insurer shall be made jointly by the attorney and the subscribers’ advisory committee. No such modification shall be effective retroactively, …

NRS 694B.100 Attorney’s bond. 1. Concurrently with the filing of the declaration provided for in NRS 694B.060, the attorney of a domestic reciprocal insurer shall file with the Commissioner a bond in favor of this state for the benefit of all persons damaged as a result of breach…

NRS 694B.110 Deposit in lieu of bond. In lieu of the bond required under NRS 694B.100, the attorney may maintain on deposit through the Commissioner, a like amount in cash or in market value of United States Government bonds, subject to the same conditions as the bond. (Added to …

NRS 694B.120 Action on bond. An action on the attorney’s bond or to recover against any such deposit made in lieu thereof may be brought by one or more subscribers suffering loss through a violation of its conditions, or by a receiver or liquidator of the insurer. Amounts recover…

NRS 694B.130 Service of process; judgment. 1. Legal process shall be served upon a domestic reciprocal insurer by serving the insurer’s attorney at his or her principal offices or by serving the Commissioner as the insurer’s process agent under NRS 680A.250 and 680A.260. 2. Any j…

NRS 694B.135 Unearned premium reserve. 1. Except as otherwise provided in subsection 2, a reciprocal insurer shall at all times maintain an unearned premium reserve equal to not less than 50 percent of the net written premiums of the subscribers on policies that have 1 year or le…

NRS 694B.140 Contributions to insurer. 1. The attorney or other parties may advance to a domestic reciprocal insurer upon reasonable terms such funds as it may require from time to time in its operations. Sums so advanced shall not be treated as a liability of the insurer, and, e…

NRS 694B.150 Financial condition: Method of determining. In determining the financial condition of a reciprocal insurer the Commissioner shall apply the following rules: 1. The Commissioner shall charge as liabilities the same reserves as are required of incorporated insurers iss…

NRS 694B.160 Persons eligible to be subscribers. 1. Individuals, partnerships and corporations of this state may make application, enter into an agreement for and hold policies or contracts in or with and be a subscriber of any domestic, foreign or alien reciprocal insurer. Any c…

NRS 694B.170 Subscribers’ advisory committee. 1. The advisory committee of a domestic reciprocal insurer exercising the subscribers’ rights shall be selected under such rules as the subscribers adopt. 2. Not less than two-thirds of such committee shall be subscribers other than t…

NRS 694B.180 Subscribers’ liability. 1. The liability of each subscriber, other than as to a nonassessable policy, for the obligations of the reciprocal insurer shall be an individual, several and proportionate liability, and not joint. 2. Except as to a nonassessable policy, eac…

NRS 694B.190 Subscribers’ liability on judgment. 1. No action shall lie against any subscriber upon any obligation claimed against the insurer until a final judgment has been obtained against the insurer and remains unsatisfied for 30 days. 2. Any such judgment shall be binding u…

NRS 694B.200 Assessments. 1. Assessments may from time to time be levied upon subscribers of a domestic reciprocal insurer liable therefor under the terms of their policies by: (a) The attorney upon approval in advance by the subscribers’ advisory committee and the Commissioner; …

NRS 694B.210 Time limit for assessments. Every subscriber of a domestic reciprocal insurer having contingent liability shall be liable for, and shall pay his or her share of any assessment, as computed and limited in accordance with this chapter, if: 1. While the policy of the su…

NRS 694B.220 Aggregate liability. No one policy or subscriber to such policy, shall be assessed or charged with an aggregate of contingent liability as to obligations incurred by a domestic reciprocal insurer in any 1 calendar year, in excess of the amount provided for in the pow…

NRS 694B.230 Nonassessable policies. 1. If a reciprocal insurer has a surplus of assets over all liabilities at least equal to the minimum capital stock and surplus required to be maintained by a domestic stock insurer authorized to transact like kinds of insurance, upon applicat…

NRS 694B.240 Subscribers’ share in assets upon liquidation. Upon the liquidation of a domestic reciprocal insurer, its assets remaining after the discharge of its indebtedness and policy obligations, the return of any contributions of the attorney or other persons to its surplus,…

NRS 694B.250 Merger or conversion. 1. A domestic reciprocal insurer upon the affirmative vote of not less than two-thirds of its subscribers who vote on such merger pursuant to due notice and the approval of the Commissioner of the terms therefor may merge with another reciprocal…

NRS 694B.260 Impaired reciprocal insurer. 1. Subject to the limitation set forth in the power of attorney or policy, if the assets of a domestic reciprocal insurer are at any time insufficient to discharge its liabilities, other than any liability on account of funds contributed …