USA Statutes : nevada
Title : Title 57 - INSURANCE
Chapter : CHAPTER 680A - AUTHORIZATION OF INSURERS AND GENERAL REQUIREMENTS
As used in this Code, unless the
context otherwise requires, the words and terms defined in NRS 680A.020
to 680A.050 , inclusive, shall have the meanings ascribed
to them in NRS 680A.020 to 680A.050
(Added to NRS by 1971, 1576)
“Charter” means certificate of
incorporation, articles of incorporation, articles of agreement, articles
of association, charter granted by legislative act, or other basic
constituent document of a corporation, or the power of attorney of the
attorney-in-fact of a reciprocal insurer.
(Added to NRS by 1971, 1576)
A “mutual” insurer is an
incorporated insurer without capital stock and the governing body of
which is elected by its policyholders. This definition shall not be
deemed to exclude as “mutual” insurers certain foreign insurers found by
the Commissioner to be organized on the mutual plan under the laws of
their states of domicile, but having temporary share capital or providing
for election of the insurer’s governing body on a reasonable basis.
(Added to NRS by 1971, 1576)
A “reciprocal” insurer
is an unincorporated aggregation of subscribers operating individually
and collectively through an attorney-in-fact common to all such persons
to provide reciprocal insurance among themselves.
(Added to NRS by 1971, 1576)
A “stock” insurer is an
incorporated insurer with its capital divided into shares and owned by
(Added to NRS by 1971, 1576)
1. A person shall not act as an insurer and an insurer shall not
transact insurance in this State by mail or otherwise, except as
authorized by a certificate of authority issued by the Commissioner and
then in full force, and except as to such transactions as are expressly
otherwise provided in this Code.
2. A domestic insurer and a foreign insurer from offices or by
personnel or facilities located in this State shall not solicit insurance
applications or otherwise transact insurance in another state or country
unless it holds a subsisting certificate of authority granted to it by
the Commissioner authorizing it to transact the same kind or kinds of
insurance in this State.
3. Any officer, director, agent, representative or employee of any
insurer who willfully authorizes, negotiates, makes or issues any
insurance contract in violation of this section is guilty of a
(Added to NRS by 1971, 1576; A 1983, 684; 1985, 348)
A certificate of authority is not required of an insurer with
respect to any of the following:
1. Investigation, settlement or litigation of claims under its
policies lawfully written in this State, or liquidation of assets and
liabilities of the insurer, other than collection of new premiums, all as
resulting from its former authorized operations in this State.
2. Except as otherwise provided in subsection 2 of NRS 680A.060
, transactions thereunder after
issuance of a policy covering only subjects of insurance that are not
resident, located or expressly to be performed in this State at the time
of issuance, and lawfully solicited, written and delivered outside this
3. Prosecution or defense of suits at law, except that no insurer
unlawfully transacting insurance in this State without a certificate of
authority may institute or maintain, other than defend, any action at law
or in equity in any court of this State, either directly or through an
assignee or successor in interest, to enforce any right, claim or demand
arising out of such an insurance transaction until the insurer, assignee
or successor has obtained a certificate of authority. This provision does
not apply to any suit or action by the receiver, rehabilitator or
liquidator of such an insurer, assignee or successor under laws similar
to those contained in chapter 696B of NRS.
4. Transactions pursuant to surplus lines coverages lawfully
written under chapter 685A of NRS.
5. A suit, action or proceeding for the enforcement or defense of
its rights relative to its investments in this State.
6. Reinsurance, except as to a domestic reinsurer or the
reinsurance of a domestic insurer, unless the reinsurance is authorized
pursuant to subsection 1 of NRS 681A.110 .
7. Transactions in this State involving group life insurance,
group health or blanket health insurance, or group annuities where the
master policy or contract of such groups was lawfully solicited, issued
and delivered pursuant to the laws of a state in which the insurer was
authorized to transact insurance, to a group organized for purposes other
than the procurement of insurance or to a group approved pursuant to NRS
688B.030 or 689B.026 , and where the policyholder is domiciled or
otherwise has a bona fide situs.
8. The issuance of annuities by an affiliate of an authorized
insurer if the affiliate:
(a) Is approved by the Commissioner;
(b) Is organized as a nonprofit educational corporation;
(c) Issues annuities only to nonprofit institutions of education
and research; and
(d) Reports and pays any premium tax on the annuities required
pursuant to chapter 680B of NRS.
9. Transactions, other than for workers’ compensation insurance or
for industrial insurance provided pursuant to chapters 616A to 617 , inclusive, of
NRS, involving the procurement of excess liability insurance above
underlying liability coverage or self-insured retention of at least
$25,000,000, if procured from an unauthorized alien or foreign insurer
who does not solicit, negotiate or enter into such transactions in this
State by any means, and if procured by a person:
(a) Whose total annual premiums for property and casualty
insurance, not including workers’ compensation or industrial insurance,
is $1,000,000 or more; and
(b) Who employs 250 or more full-time employees.
Ê A person who procures insurance in accordance with this subsection
shall report and pay any premium tax on the insurance required pursuant
to NRS 680B.040 .
(Added to NRS by 1971, 1581; A 1985, 1058; 1987, 484, 642; 1989,
599; 1991, 861; 1997, 286; 1999, 400 )
To qualify for and hold authority to transact insurance in
this State, an insurer must be otherwise in compliance with this Code and
with its charter powers, and must be an incorporated stock or mutual
insurer, or a reciprocal insurer, of the same general type as may be
formed as a domestic insurer under this Code, except that:
1. No foreign insurer may be authorized to transact insurance in
this State which does not maintain reserves as required by chapter 681B
of NRS (assets and liabilities), as
applicable to the kind or kinds of insurance transacted by such insurer,
wherever transacted in the United States of America, or which transacts
business anywhere in the United States of America on the assessment plan,
or stipulated premium plan, or any similar plan.
2. No insurer may be authorized to transact a kind of insurance in
this State unless duly authorized or qualified to transact such insurance
in the state or country of its domicile.
3. No insurer may be authorized to transact in this State any kind
of insurance which is not within the definitions as set forth in NRS
681A.010 to 681A.080 , inclusive (kinds of insurance).
4. No such authority may be granted or continued to any insurer
while in arrears to the State for fees, licenses, taxes, assessments,
fines or penalties accrued on business previously transacted in this
Ê In addition to the other requirements set forth in this section, an
insurer who proposes to transact in this State insurance that protects a
policyholder from liability arising out of the ownership, maintenance or
use of a motor vehicle must demonstrate to the satisfaction of the
Department of Motor Vehicles that the insurer is able to comply with the
provisions of NRS 485.314 .
(Added to NRS by 1971, 1577; A 1997, 1086; 2001, 2634 )
1. No foreign insurer which is directly or indirectly owned or
controlled in whole or substantial part by any government or governmental
agency shall be authorized to transact insurance in Nevada. Membership in
a mutual insurer, or subscribership in a reciprocal insurer, or ownership
of stock of an insurer by the Alien Property Custodian or similar officer
of the United States of America, or ownership of stock or other security
which does not have voting rights with respect to the management of the
insurer, or supervision of an insurer by public authority, shall not be
deemed to be an ownership or control of the insurer for the purposes of
2. The Commissioner shall not grant or continue authority to
transact insurance in this state to any insurer or proposed insurer:
(a) Of which any director, officer or other individual materially
part of the management is found by him after investigation or upon
reliable information to be incompetent, or dishonest, or untrustworthy,
or of unfavorable business repute;
(b) Of which the managers are so lacking in insurance company
managerial experience in operations of the kind proposed in this state as
to make such operation, currently or prospectively, hazardous to or
contrary to the best interests of the insurance-buying or investing
public of this state;
(c) Which he has good reason to believe is affiliated directly or
indirectly through ownership, control, management, reinsurance
transactions or other business relations with any person or persons of
unfavorable business repute; or
(d) Whose business operations are or have been marked, to the
injury of insurers, stockholders, policyholders, creditors or the public,
by illegality, or by manipulation of assets, or of accounts, or of
reinsurance, or by bad faith.
(Added to NRS by 1971, 1578)
1. Except as otherwise provided in subsection 3, an insurer which
is not authorized to transact insurance in this State may not transact
reinsurance with a domestic insurer in this State, by mail or otherwise,
unless he holds a certificate of authority as a reinsurer in accordance
with the provisions of NRS 680A.010
to 680A.150 , inclusive, 680A.160
to 680A.290 , inclusive, 680A.320 and 680A.330 .
2. To qualify for authority only to transact reinsurance, an
insurer must meet the same requirements for capital and surplus as are
imposed on an insurer which is authorized to transact insurance in this
3. This section does not apply to the joint reinsurance of title
insurance risks or to reciprocal insurance authorized pursuant to chapter
694B of NRS.
(Added to NRS by 1987, 642)
1. No insurer shall be formed or authorized to transact insurance
in this state which has or uses a name which is the same as or
deceptively similar to that of another insurer already so authorized,
without the written consent of such other insurer.
2. No life insurer shall be so authorized which has or uses a name
deceptively similar to that of another insurer, other than a predecessor
in interest, authorized to transact insurance in this state within the
preceding 10 years if life insurance policies originally issued by such
other insurer are still outstanding in this state.
3. No insurer shall be formed or authorized to transact insurance
which has or uses a name the same as or deceptively similar to that of
any foreign insurer not so authorized if such foreign insurer has within
the next preceding 12 months signified its intention to secure an
incorporation in this state under such name, or to do business as a
foreign insurer in this state under such name, by filing notice of such
intention with the Commissioner, unless the written consent to the use of
such name or deceptively similar name has been given by such foreign
4. No insurer shall be so authorized which has or uses a name
which tends to deceive or mislead as to the type of organization of the
5. In case of conflict of names between two insurers, or a
conflict otherwise prohibited under this section, the Commissioner may
permit (or shall require as a condition to the issuance of an original
certificate of authority to an applicant insurer) the insurer to use in
this state such supplementation or modification of its name or such
business name as may reasonably be necessary to avoid the conflict.
6. Except as provided in subsection 5, an insurer shall conduct
its business in this state in its own corporate (if incorporated) or
proper (if a reciprocal insurer) name.
(Added to NRS by 1971, 1579)
An insurer which
otherwise qualifies therefor may be authorized to transact any one kind
or any combination of kinds of insurance as defined in NRS 681A.010
to 681A.080 , inclusive (kinds of insurance), except:
1. A life insurer may grant annuities and may be authorized to
transact in addition only health insurance; but the Commissioner may, if
the insurer otherwise qualifies therefor, continue so to authorize any
life insurer which immediately prior to January 1, 1972, was lawfully
authorized to transact in this state a kind or kinds of insurance in
addition to life and health insurances and annuity business.
2. A reciprocal insurer shall not transact life insurance.
(Added to NRS by 1971, 1579)
1. Except as provided in subsections 2 and 5, to qualify for
authority to transact any one kind of insurance as defined in NRS
681A.010 to 681A.080 , inclusive, or combinations of kinds of
insurance as shown below, an insurer shall possess and thereafter
maintain unimpaired paid-in capital stock, if a stock insurer, or
unimpaired basic surplus, if a mutual or a reciprocal insurer, and free
surplus not less than 100 percent of the minimum required capital stock
or minimum required basic surplus, and when first so authorized shall
possess initial free surplus, all in amounts not less than as determined
from the following table:
FOREIGN MUTUAL RECIPROCAL
Kind or Required Initial
Required Initial Required Initial
Kinds of Capital Free
Basic Free Basic Free
Insurance Stock Surplus
Surplus Surplus Surplus Surplus
Life........................ 500,000 1,000,000 500,000
1,000,000 N/A N/A
line...................... 500,000 1,000,000 500,000
1,000,000 500,000 1,000,000
Title...................... 500,000 750,000
N/A N/A N/A N/A
Guarantee......... 10,000,000 40,000,000 N/A
N/A N/A N/A
2. At the discretion of the Commissioner, a domestic insurer
holding a valid certificate of authority to transact insurance in this
state immediately prior to January 1, 1992, may, if otherwise qualified
therefor, continue to be so authorized while possessing the amount of
paid-in capital stock, if a stock insurer, or surplus, if a mutual
insurer, required by the laws of this state for such authority
immediately before January 1, 1992, for a period not to exceed 2 years.
On or before January 1, 1994, the insurer shall meet the requirements of
subsection 1. The Commissioner shall not grant such an insurer authority
to transact any other or additional kinds of insurance unless it then
fully complies with the requirements as to capital and surplus, as
applied to all kinds of insurance which it then proposes to transact, as
provided by this section for like foreign insurers applying for original
certificates of authority pursuant to this Code.
3. Capital and surplus requirements are based upon all the kinds
of insurance transacted by the insurer in any and all areas in which it
operates or proposes to operate, whether or not only a portion of such
kinds are to be transacted in this state.
4. As to surplus required for qualification to transact one or
more kinds of insurance and thereafter to be maintained, domestic mutual
insurers are governed by chapter 693A of
NRS and domestic reciprocal insurers are governed by chapter 694B of NRS.
5. An insurer who transacts financial guaranty insurance in this
state must transact only one kind of insurance and possess and maintain
the minimum capital and surplus requirements pursuant to subsection 1.
(Added to NRS by 1971, 1579; A 1991, 2026)
Without additional capital or additional surplus,
an authorized insurer is also authorized:
1. If a life insurer, to grant annuities.
2. If a health insurer, to insure against congenital defects, as
defined in NRS 681A.020 .
(Added to NRS by 1971, 1581)
1. The Commissioner shall not authorize an insurer to transact
insurance in this state, other than an alien insurer or a title insurer,
unless it makes and thereafter continuously maintains on deposit in this
state, through the Commissioner, cash or securities eligible for such
deposit under the laws of this state of a fair market value not less than
its minimum required capital stock (if a stock insurer) or minimum
required basic surplus (if a mutual or reciprocal insurer), for the
protection of the insurer’s policyholders or of its policyholders and
creditors in the United States of America. The Commissioner may adopt
regulations which allow the use of securities as a deposit without
delivery of the securities to the Commissioner.
2. The Commissioner shall not so authorize a title insurer unless
it so deposits and maintains such cash or securities of fair market value
not less than its minimum required capital stock as a guaranty fund for
the security and protection of the holders of, or beneficiaries under,
the title insurance contracts issued by the insurer.
3. The Commissioner shall not so authorize an alien insurer unless
it so makes and thereafter continuously maintains such a deposit,
representing money in excess of all the insurer’s liabilities under
insurance contracts in force in the United States of America, of a fair
market value of not less than that required under subsection 1, as to a
like foreign insurer. The deposit must be held in trust for the
protection of all the insurer’s policyholders, or policyholders and
creditors, in the United States of America.
4. In lieu of such a deposit made or maintained in this state, the
Commissioner shall accept the certificate in proper form of the public
officer having general supervision of insurers in any other state to the
effect that a deposit of like quality and amount, or part thereof, by an
insurer is being maintained for like purposes in public custody or
control pursuant to the laws of that state, if the Commissioner is
satisfied as to the like quality and amount of the deposit.
5. All such deposits in this state are subject to the applicable
provisions of chapter 682B of NRS.
(Added to NRS by 1971, 1581; A 1985, 607)
for an original certificate of authority an insurer shall file with the
Commissioner its written application therefor on forms as prescribed and
furnished by the Commissioner, accompanied by the applicable fees
specified in NRS 680B.010 , stating
under the oath of the president or vice president or other chief officer
and the secretary of the insurer, or of the attorney-in-fact if a
reciprocal insurer, the insurer’s name, location of its home office, or
principal office in the United States if an alien insurer, the kinds of
insurance to be transacted, date of organization or incorporation, form
of organization, state or country of domicile, and such additional
information as the Commissioner may reasonably require, together with the
following documents, as applicable:
1. If a corporation, a copy of its charter or certificate or
articles of incorporation, together with all amendments thereto, or as
restated and amended under the laws of its state or country of domicile,
currently certified by the public officer with whom the originals are on
file in that state or country.
2. If a domestic incorporated insurer or a mutual insurer, a copy
of its bylaws, certified by the insurer’s corporate secretary.
3. If a reciprocal insurer, a copy of the power of attorney of its
attorney-in-fact, certified by the attorney-in-fact; and if a domestic
reciprocal insurer, the declaration provided for in NRS 694B.060 .
4. A complete copy of its financial statement as of not earlier
than the December 31 next preceding in form as customarily used in the
United States by like insurers, sworn to by at least two executive
officers of the insurer or certified by the public insurance supervisory
officer of the insurer’s state of domicile, or of entry into the United
States if an alien insurer.
5. A copy of the report of last examination made of the insurer
within not more than 5 years next preceding, certified by the public
insurance supervisory officer of the insurer’s state of domicile, or of
entry into the United States if an alien insurer.
6. The appointment of the Commissioner pursuant to NRS 680A.250
as its attorney to receive service of
7. If a foreign or alien insurer, a certificate of the public
insurance supervisory officer of its state or country of domicile showing
that it is authorized or qualified for authority to transact in such
state or country the kinds of insurance proposed to be transacted in this
8. If a foreign insurer, a certificate as to a deposit if it is to
be tendered pursuant to NRS 680A.140 .
9. A copy of the insurer’s rate book and of each form of policy
currently proposed to be issued in this state, and of the form of
10. If an alien insurer, a copy of the appointment and authority
of its United States manager, certified by its officer having custody of
11. Designation by the insurer of its officer or representative
authorized to appoint and remove its agents in this state.
(Added to NRS by 1971, 1581; A 1989, 2175; 1995, 1753)
An insurer which has transacted insurance in this state without a
certificate of authority must not be granted a certificate of authority
unless it pays the tax imposed by NRS 680B.027 and the penalties provided by NRS 685B.190
for the 5 years immediately preceding
the date upon which it applies for a certificate of authority.
(Added to NRS by 1985, 606; A 1995, 1612)
1. If upon completion of its application the Commissioner finds
that the insurer has met the requirements therefor under this Code, he
may issue to the insurer a proper certificate of authority; if he does
not so find, the Commissioner shall issue his order refusing such
2. The certificate, if issued, shall state the insurer’s name,
home office address, state or country of organization, and the kinds of
insurance the insurer is authorized to transact throughout Nevada. At the
insurer’s request, the Commissioner may issue a certificate of authority
limited to particular types of insurance or coverages within a kind of
insurance as defined in NRS 681A.010
to 681A.080 , inclusive (kinds of
3. Although issued and delivered to the insurer, the certificate
of authority at all times shall be the property of the State of Nevada.
Upon any expiration, suspension or termination thereof the insurer shall
promptly deliver the certificate to the Commissioner.
(Added to NRS by 1971, 1583)
application therefor by the insurer and due cause shown, the Commissioner
may amend the certificate of authority of an insurer as required by
change of name or to show any change in the kinds of insurance the
insurer may thereafter transact and is qualified to transact in this
state. The insurer shall accompany such request with the fee for
amendment as specified in NRS 680B.010 (fee schedule).
(Added to NRS by 1971, 1583)
A foreign insurer with a certificate of
authority to transact insurance in this state may become a domestic
insurer by complying with the requirements of this Code for forming a
domestic insurer of the same type. After complying with those
requirements, the insurer has the same rights and obligations as other
(Added to NRS by 1983, 683)
1. If a domestic insurer transfers its domicile to another state,
it ceases to be a domestic insurer.
2. The Commissioner shall issue to such an insurer a certificate
of authority to transact insurance as a foreign insurer if:
(a) The insurer qualifies as a foreign insurer; and
(b) Such certification is in the best interest of the policyholders
of this state.
(Added to NRS by 1983, 683)
1. The Commissioner may require a domestic insurer which converts
to a foreign insurer or a foreign insurer which converts to a domestic
(a) Obtain new licenses for its agents;
(b) Make new appointments of agents; or
(c) Apply for any other new license, certificate or authorization.
Ê Any license, appointment or authorization which the Commissioner does
not require an insurer to renew continues in effect after the conversion.
2. All policies of an insurer remain in effect when it transfers
its domicile into or out of this state. The Commissioner may require that
the insurer endorse the policies with its new name or location.
3. Every insurer which transfers its domicile into or out of this
state shall notify the Commissioner at least 30 days before the transfer.
Such an insurer shall file new forms for its policies and any other
documents required by the Commissioner with the Commissioner on or before
the effective date of the transfer. The insurer may use existing forms if
approved by and under the conditions imposed by the Commissioner.
(Added to NRS by 1983, 683)
1. A certificate of authority continues in force as long as the
insurer is entitled thereto under this Code, and until suspended or
revoked by the Commissioner or terminated at the insurer’s request, if,
each year, the insurer:
(a) Pays on or before March 1 the continuation fee provided in NRS
(b) Files its annual statement for the next preceding calendar year
as required by NRS 680A.270 ; and
(c) Pays, if required, the premium taxes for the preceding calendar
2. If not so continued by the insurer, its certificate of
authority expires at midnight on the May 31 next following such failure
of the insurer to continue it in force, unless earlier revoked for
failure to pay taxes as provided in NRS 680A.190 . The Commissioner shall promptly notify the
insurer of the occurrence of any failure resulting in the impending
expiration of its certificate of authority.
3. The Commissioner may, upon the insurer’s request made within 3
months after expiration, reinstate a certificate of authority which the
insurer has inadvertently permitted to expire, after the insurer has
fully cured all its failures which resulted in the expiration, and upon
payment by the insurer of the fee for reinstatement specified in
subsection 1 of NRS 680B.010 .
Otherwise, the insurer may be granted another certificate of authority
only after filing an application therefor and meeting all other
requirements for an original certificate of authority in this state.
(Added to NRS by 1971, 1583; A 1987, 643; 1997, 3017)
1. The Commissioner shall refuse to continue or shall suspend or
revoke an insurer’s certificate of authority:
(a) If such action is required by any provision of this Code;
(b) If it is a foreign insurer and it no longer meets the
requirements for a certificate of authority, on account of deficiency of
capital or surplus or otherwise;
(c) If it is a domestic insurer and it has failed to cure an
impairment of capital or surplus within the time allowed therefor by the
Commissioner under this Code or is otherwise no longer qualified for the
certificate of authority;
(d) If the insurer’s certificate of authority to transact insurance
therein is suspended or revoked by its state of domicile, or state of
entry into the United States of America if an alien insurer;
(e) For failure of the insurer to pay taxes on its premiums if
required by this Code; or
(f) For failure of the insurer to furnish information to the
Commissioner relating to medical malpractice insurance issued by the
insurer in this State or any other state.
2. Except in case of insolvency, impairment of required capital or
surplus, or suspension or revocation by another state, the Commissioner
shall give the insurer at least 20 days’ notice in advance of any such
refusal, suspension or revocation under this section, and of the
particulars of the reasons therefor. If the insurer requests a hearing
thereon within those 20 days, the Commissioner’s proposed action is
automatically stayed until his order is made after the hearing.
(Added to NRS by 1971, 1584; A 1975, 1304; 1987, 643)
1. Except as otherwise provided in NRS 616B.472 , the Commissioner may refuse to continue or
may suspend, limit or revoke an insurer’s certificate of authority if he
finds after a hearing thereon, or upon waiver of hearing by the insurer,
that the insurer has:
(a) Violated or failed to comply with any lawful order of the
(b) Conducted his business in an unsuitable manner;
(c) Willfully violated or willfully failed to comply with any
lawful regulation of the Commissioner; or
(d) Violated any provision of this Code other than one for
violation of which suspension or revocation is mandatory.
Ê In lieu of such a suspension or revocation, the Commissioner may levy
upon the insurer, and the insurer shall pay forthwith, an administrative
fine of not more than $2,000 for each act or violation.
2. Except as otherwise provided in chapter 696B of NRS, the Commissioner shall suspend or revoke
an insurer’s certificate of authority on any of the following grounds if
he finds after a hearing thereon that the insurer:
(a) Is in unsound condition, is being fraudulently conducted, or is
in such a condition or is using such methods and practices in the conduct
of its business as to render its further transaction of insurance in this
State currently or prospectively hazardous or injurious to policyholders
or to the public.
(b) With such frequency as to indicate its general business
practice in this State:
(1) Has without just cause failed to pay, or delayed payment
of, claims arising under its policies, whether the claims are in favor of
an insured or in favor of a third person with respect to the liability of
an insured to the third person; or
(2) Without just cause compels insureds or claimants to
accept less than the amount due them or to employ attorneys or to bring
suit against the insurer or such an insured to secure full payment or
settlement of such claims.
(c) Refuses to be examined, or its directors, officers, employees
or representatives refuse to submit to examination relative to its
affairs, or to produce its books, papers, records, contracts,
correspondence or other documents for examination by the Commissioner
when required, or refuse to perform any legal obligation relative to the
(d) Except as otherwise provided in NRS 681A.110 , has reinsured all its risks in their
entirety in another insurer.
(e) Has failed to pay any final judgment rendered against it in
this State upon any policy, bond, recognizance or undertaking as issued
or guaranteed by it, within 30 days after the judgment became final or
within 30 days after dismissal of an appeal before final determination,
whichever date is the later.
3. The Commissioner may, without advance notice or a hearing
thereon, immediately suspend the certificate of authority of any insurer
as to which proceedings for receivership, conservatorship, rehabilitation
or other delinquency proceedings have been commenced in any state by the
public officer who supervises insurance for that state.
4. No proceeding to suspend, limit or revoke a certificate of
authority pursuant to this section may be maintained unless it is
commenced by the giving of notice to the insurer within 5 years after the
occurrence of the charged act or omission. This limitation does not apply
if the Commissioner finds fraudulent or willful evasion of taxes.
(Added to NRS by 1971, 1584; A 1983, 431; 1991, 808; 1995, 1613,
1754; 1997, 530; 1999, 1734 )
1. The Commissioner may adopt regulations to define when an
insurer is considered to be in a hazardous financial condition and to set
forth the standards to be considered by the Commissioner in determining
whether the continued operation of an insurer transacting business in
this state may be considered to be hazardous to its policyholders or
creditors or to the general public.
2. If the Commissioner determines after a hearing that any insurer
is in a hazardous financial condition, he may, instead of suspending or
revoking the insurer’s certificate of authority, limit the insurer’s
certificate of authority as he deems reasonably necessary to correct,
eliminate or remedy any conduct, condition or ground that is deemed to be
a cause of the hazardous financial condition.
3. An order or decision of the Commissioner under this section is
subject to review in accordance with NRS 679B.310 to 679B.370 , inclusive, at the request of any party to
the proceedings whose interests are substantially affected.
(Added to NRS by 1995, 1752)
1. All suspensions, limitations or revocations of, or refusals to
continue, an insurer’s certificate of authority must be by the
Commissioner’s order given to the insurer.
2. Upon issuance of the order, the Commissioner shall forthwith
give notice thereof to the insurer’s agents in this state, of record in
the Division, and shall also suspend, limit or revoke the authority of
such agents to represent the insurer.
(Added to NRS by 1971, 1585; A 1991, 1621; 1993, 1904)
1. Suspension of an insurer’s certificate of authority must be for
such period as the Commissioner specifies in the order of suspension, but
not to exceed 1 year. During the suspension period the Commissioner may
rescind or shorten the suspension by his further order.
2. During the suspension period the insurer shall not solicit or
write any new business in this state, but must file its annual statement,
pay fees, licenses and taxes as required under this Code, and may service
its business already in force in this state, as if the certificate of
authority had continued in full force.
3. Upon expiration of the suspension period, if within such period
the certificate of authority has not terminated, the insurer’s
certificate of authority is automatically reinstated unless the
Commissioner finds that the causes of the suspension, being other than a
past event, are continuing, or that the insurer is otherwise not in
compliance with the requirements of this Code, and of which the
Commissioner shall give the insurer notice not less than 30 days in
advance of expiration of the suspension period.
4. Upon reinstatement of the insurer’s certificate of authority,
the authority of its agents in this state to represent the insurer is
also reinstated. The Commissioner shall promptly notify the insurer and
its agents in this state, of record in the Division, of such
(Added to NRS by 1971, 1586; A 1991, 1621; 1993, 1904)
The general corporation laws of this state do not apply to
foreign insurers holding certificates of authority to transact insurance
in this state, except as otherwise provided in NRS 80.190 .
(Added to NRS by 1971, 1586; A 1971, 1933; 1987, 1063; 1989, 627;
1. A property insurer or multiple line insurer authorized to
transact insurance in Nevada shall have the right to issue property
insurance policies under its own name and under additional “titles” or
under additional “titles” duly registered by the insurer with the
2. The Commissioner shall, upon the insurer’s request, furnish to
the insurer the form required for such registration, and the insurer
shall pay the fee for registration as specified in NRS 680B.010 (fee schedule). Registered titles shall be
shown on the insurer’s certificate of authority and shall remain in
effect for so long as the insurer’s certificate of authority is in
effect, subject to earlier termination of the registration at the
3. All business transacted by the insurer under additional titles
shall be included in business and transactions of the insurer to be shown
by its annual statement filed with the Commissioner, for all purposes
under this Code.
(Added to NRS by 1971, 1586)
1. Before the Commissioner may authorize it to transact insurance
in this state, each insurer must appoint the Commissioner, and his
successors in office, as its attorney to receive service of legal process
issued against the insurer in this state. The appointment must be made on
a form as designated and furnished by the Commissioner, and must be
accompanied by a copy of a resolution of the board of directors or like
governing body of the insurer, if an incorporated insurer, showing that
those officers who executed the appointment were authorized to do so on
behalf of the insurer.
2. The appointment must be irrevocable, must bind the insurer and
any successor in interest to the assets or liabilities of the insurer,
and must remain in effect as long as there is in force any contract of
the insurer in this state or any obligation of the insurer arising out of
its transactions in this state.
3. Service of such process against a foreign or alien insurer must
be made only by service thereof upon the Commissioner.
4. Service of such process against a domestic insurer may be made
as provided in this section, or in any other manner provided by Nevada
Rules of Civil Procedure.
5. At the time of application for a certificate of authority the
insurer shall file the appointment with the Commissioner, together with a
designation of the person to whom process against it served upon the
Commissioner is to be forwarded. The insurer shall provide written notice
to the Commissioner of any change of such a designation by a new filing.
(Added to NRS by 1971, 1587; A 1985, 607)
1. Service of process against an insurer for whom the Commissioner
is attorney must be made by delivering to and leaving with the
Commissioner, his deputy, or a person in apparent charge of his office
during the Commissioner’s absence, two copies of the process, together
with the fee therefor as specified in NRS 680B.010 , taxable as costs in the action.
2. Upon such service the Commissioner shall forthwith mail by
certified mail one of the copies of such process, with the date and time
of service of the same on the Commissioner noted thereon, to the person
currently designated by the insurer to receive the copy as provided in
NRS 680A.250 . Service of process is
complete when the copy has been so mailed.
3. Process served in the manner provided by this section for all
purposes constitutes valid and binding personal service upon the insurer
within this state. If summons is served under this section, the time
within which the insurer is required to appear must be extended an
additional 10 days beyond that otherwise allowed by Nevada Rules of Civil
4. The Commissioner shall keep a record of the day of service upon
him of all legal process.
5. For the purposes of this section, “process” includes only a
summons or the initial documents served in an action. The Commissioner is
not required to serve any documents after the initial service of process.
(Added to NRS by 1971, 1587; A 1985, 608)
1. Except as otherwise provided in subsection 5, every:
(a) Domestic insurer;
(b) Fraternal benefit society authorized to do business in this
State pursuant to chapter 695A of NRS; and
(c) Corporation subject to the provisions of chapter 695B of NRS,
Ê shall file with the Commissioner, on or before June 1 of each year, a
financial statement as of December 31 of the preceding calendar year that
is certified by a certified public accountant who is not an employee of
the insurer. The Commissioner may request a financial statement from a
foreign or alien insurer.
2. If a certified public accountant finds any violation of the
laws of this State during any audit he conducts pursuant to subsection 1,
he shall, if the Commissioner has adopted regulations pursuant to
subsection 6 pertaining to the reporting of a violation found during an
audit, report the violation in accordance with those regulations.
3. An insurer who does not file a report pursuant to subsection 1
on or before June 1 of each year is subject to the penalty imposed
pursuant to NRS 680A.280 .
4. A statement filed with the Commissioner must not be a
consolidated report with any other subsidiary, affiliate or parent
5. The provisions of this section do not apply to a domestic
(a) Is not licensed or authorized to do business in any state other
than Nevada; or
(b) Is exempted from the requirements of this section by order of
the Commissioner for good cause shown.
6. The Commissioner may adopt reasonable regulations relating to
annual audited financial reports to administer the provisions of this
(Added to NRS by 1991, 2026; A 1995, 1755)
1. Each authorized insurer shall annually on or before March 1, or
within any reasonable extension of time therefor which the Commissioner
for good cause may have granted on or before that date, file with the
Commissioner a full and true statement of its financial condition,
transactions and affairs as of December 31 preceding. The statement must
(a) In the general form and context of, and require information as
called for by, an annual statement as is currently in general and
customary use in the United States for the type of insurer and kinds of
insurance to be reported upon, with any useful or necessary modification
or adaptation thereof, supplemented by additional information required by
(b) Prepared in accordance with:
(1) The Annual Statement Instructions for the type of
insurer to be reported on as adopted by the National Association of
Insurance Commissioners for the year in which the insurer files the
(2) The Accounting Practices and Procedures Manual adopted
by the National Association of Insurance Commissioners and effective on
January 1, 2001, and as amended by the National Association of Insurance
Commissioners after that date; and
(c) Verified by the oath of the insurer’s president or vice
president and secretary or actuary, as applicable, or, in the absence of
the foregoing, by two other principal officers, or if a reciprocal
insurer, by the oath of the attorney-in-fact, or its like officers if a
2. The statement of an alien insurer must be verified by its
United States manager or other officer who is authorized to do so, and
may relate only to the insurer’s transactions and affairs in the United
States unless the Commissioner requires otherwise. If the Commissioner
requires a statement as to the insurer’s affairs throughout the world,
the insurer shall file the statement with the Commissioner as soon as
3. The Commissioner may refuse to continue, or may suspend or
revoke, the certificate of authority of any insurer failing to file its
annual statement when due.
4. At the time of filing, the insurer shall pay the fee for filing
its annual statement as prescribed by NRS 680B.010 .
5. The Commissioner may adopt regulations requiring each domestic,
foreign and alien insurer which is authorized to transact insurance in
this state to file the insurer’s annual statement with the National
Association of Insurance Commissioners or its successor organization.
6. All ratios of financial analyses and synopses of examinations
concerning insurers that are submitted to the Division by the National
Association of Insurance Commissioners’ Insurance Regulatory Information
System are confidential and may not be disclosed by the Division.
(Added to NRS by 1971, 1588; A 1995, 1755; 2003, 3279 )
1. Any insurer failing, without just cause beyond the reasonable
control of the insurer, to file its annual statement as required in NRS
680A.270 shall be required to pay a
penalty of $100 for each day’s delay, but not to exceed $3,000 in
aggregate amount, to be recovered in the name of the State of Nevada by
the Attorney General.
2. Any director, officer, agent or employee of any insurer who
subscribes to, makes or concurs in making or publishing, any annual or
other statement required by law, knowing the same to contain any material
statement which is false, is guilty of a gross misdemeanor.
(Added to NRS by 1971, 1588)
1. Every insurer except life insurers shall, if requested by the
Commissioner, submit an annual report to the Commissioner on September
15, concerning its loss prevention and control programs, and on new
conclusions it has reached as to the loss implications of its statistics,
underwriting, claims files and operations.
2. Based on the reports of subsection 1, as well as other
available information, the Commissioner shall prepare each year a report
on the loss prevention programs of insurers with recommendations for more
effective loss prevention activity.
(Added to NRS by 1971, 1588; A 1971, 1933)
1. Except as provided in NRS 680A.310 , no authorized insurer may make, write,
place, renew or cause to be made, placed or renewed, any policy or
duplicate policy of insurance of any kind upon persons, property or risks
resident, located or to be performed in this State, except through its
duly appointed and licensed agents resident in this State, any one of
whom shall countersign the policy.
2. Where two or more insurers jointly issue a single policy, the
policy may be countersigned, on behalf of all insurers appearing thereon,
by a licensed agent resident in this State of any one insurer.
3. In any case where it is necessary to execute an emergency bond
and a commissioned agent authorized to execute the bond is not present, a
manager or other employee of the insurer having authority under a power
of attorney may execute the bond in order to produce a valid contract
between the insurer and the obligee. The bond must subsequently be
countersigned by a resident commissioned agent, who shall make and retain
an adequate office record of the transaction.
4. Nothing contained in this section prevents exercise of the free
and unlimited right to negotiate contracts by licensed nonresident agents
or brokers outside this State, if the policies, endorsements or evidence
of those contracts covering properties or insurable interests in this
State are countersigned by a resident agent of this State. Every such
policy or contract must be countersigned by a resident agent.
5. On business produced by a licensed nonresident agent or broker,
which is countersigned by a resident commissioned agent of this State,
there must be a division of the usual commission between the licensed
nonresident producing agent or broker and the resident countersigning
commissioned agent which must produce for the latter a commission of at
least 5 percent of the premium. No commission or fee is required as to
policies with an annual premium of $250 or less. The insurer issuing any
policy or bond is responsible for payment to the countersigning agent of
the fee or commission for the countersignature. Where the licensed
nonresident agent or broker or the insurer assuming the risk desires the
resident commissioned agent to render additional services during the life
of a policy, the compensation to the countersigning commissioned resident
agent is a matter of contract between the parties in interest.
6. An insurer may use an endorsement to the policy for the sole
purpose of countersigning the policy, as required in this section, only
(a) The endorsement is attached to the policy to which it applies;
(b) The policy insures persons or property in this State and one or
more other states.
(Added to NRS by 1971, 1589; A 1981, 704)
NRS 680A.300 does
not apply to any of the following:
1. Life insurance and annuities.
2. Health insurance.
3. Policies covering property in transit while in the possession
or custody of any common carrier, or the rolling stock or other property
of any common carrier employed by it in the operation and maintenance of
its plant and business as a common carrier of freight or passengers, or
4. Reinsurance or retrocessions made by or for authorized insurers.
5. Bid bonds issued in connection with any public or private
6. A policy issued to a risk retention group, as defined in NRS
695E.110 , or to a member of a risk
(Added to NRS by 1971, 1589; A 1987, 1333)
1. For the purposes of this section:
(a) An “affiliated person” is a person controlled by any
combination of the insurer, the parent corporation, a subsidiary or the
principal stockholders or officers or directors of any of the foregoing.
(b) “Depository institution” has the meaning ascribed to it in
section 3 of the Federal Deposit Insurance Act, 12 U.S.C. § 1813(c)(1).
(c) “Financial holding company” means a bank holding company that
satisfies the requirements of section 4(l)(1) of the Bank Holding Company
Act of 1956, 12 U.S.C. § 1841(l)(1).
(d) “Health facility” has the meaning ascribed to it in NRS
(e) A “subsidiary” is a person of which either the insurer and the
parent corporation or the insurer or the parent corporation holds
2. No insurer may engage directly or indirectly in any transaction
or agreement with its parent corporation, a financial holding company, a
depository institution, or any subsidiary or affiliated person which will
result or tend to result in:
(a) Substitution contrary to the interest of the insurer and
through any method of any asset of the insurer with an asset or assets of
inferior quality or lower fair market value;
(b) Deception as to the true operating results of the insurer;
(c) Deception as to the true financial condition of the insurer;
(d) Allocation to the insurer of a proportion of the expense of
combined facilities or operations which is unfair and unfavorable to the
(e) Unfair or excessive charges against the insurer for services,
facilities, supplies or reinsurance;
(f) Unfair and inadequate charges by the insurer for reinsurance,
services, facilities or supplies furnished by the insurer to others;
(g) Payment by the insurer for services, facilities, supplies or
reinsurance not reasonably needed by the insurer;
(h) Depletion of the insurer’s surplus, through payment of
dividends or other distribution or withdrawal, below the amount thereof
reasonably required for conduct of the insurer’s business and maintenance
of growth with safety to policyholders; or
(i) Payment by the insurer for services or products for which the
health facility has charged less than fair market value, unless the
reduced charge is reflected in the form of reduced premiums. In
determining what constitutes fair market value, consideration must be
given to reasonable agreements for the preferential provision of health
care, in accordance with regulations adopted by the Commissioner. An
insurer which pays less than fair market value for services or products
in a transaction which is subject to the provisions of this paragraph
shall annually file a certification with the Commissioner that the
reduced payment has been reflected in the form of reduced premiums,
together with documentation supporting the certification.
3. In all transactions between the insurer and its parent
corporation, or involving the insurer and any subsidiary or affiliated
person, full recognition must be given to the paramount duty and
obligation of the insurer to protect the interests of policyholders, both
existing and future.
4. If a health facility is a parent, subsidiary or affiliate of an
insurer or of a parent or facility of an insurer, and the insurer
purchases medical or any other services or products from the health
facility, the health facility may not:
(a) Attempt artificially to reduce or increase its margin of profit
by altering the charges to the insurer.
(b) Alter its true operating results or financial condition through
charges to the insurer for services or products.
Ê This subsection does not prohibit activities authorized pursuant to
paragraph (i) of subsection 2.
5. If a health facility is found, after notice and a hearing, to
have violated the provisions of subsection 4, the Commissioner may impose
an administrative fine of not more than $5,000 for each violation.
(Added to NRS by 1971, 1590; A 1987, 884; 1989, 599; 2001, 2183
1. When, by or pursuant to the laws of any other state or foreign
country or province, any taxes, licenses and other fees in the aggregate,
and any fines, penalties, deposit requirements or other material
requirements, obligations, prohibitions or restrictions are or would be
imposed upon Nevada insurers doing business or that might seek to do
business in such state, country or province, or upon the agents or
representatives of such insurers or upon brokers or adjusters, which are
in excess of such taxes, licenses and other fees in the aggregate, or
which are in excess of the fines, penalties, deposit requirements or
other requirements, obligations, prohibitions or restrictions directly
imposed upon similar insurers, or upon the agents or representatives of
such insurers, or upon brokers, or upon adjusters, of such other state,
country or province under the statutes of this state, so long as such
laws of such other state, country or province continue in force or are so
applied, the same taxes, licenses and other fees in the aggregate, or
fines, penalties or deposit requirements or other material requirements,
obligations, prohibitions or restrictions of whatever kind must be
imposed by the Commissioner or the Department of Taxation upon the
insurers, or upon the agents or representatives of such insurers, or upon
brokers, of such other state, country or province doing business or
seeking to do business in Nevada. Any tax, license or other fee or other
obligation imposed by any city, county or other political subdivision or
agency of such other state, country or province on Nevada insurers or
their agents, representatives or adjusters shall be deemed to be imposed
by such state, country or province within the meaning of this section.
2. This section does not apply to:
(a) Personal income taxes;
(b) Ad valorem taxes on real or personal property; or
(c) Special purpose obligations or assessments imposed by another
state in connection with particular kinds of insurance other than
Ê except that deductions, from premium taxes or other taxes otherwise
payable, allowed on account of real or personal property taxes paid must
be taken into consideration by the Commissioner and the Executive
Director of the Department of Taxation in determining the propriety and
extent of retaliatory action under this section.
3. For the purposes of this section the domicile of an alien
insurer, other than insurers formed under the laws of Canada or a
province thereof, is that state designated by the insurer in writing
filed with the Commissioner at the time of admission to this state or
within 6 months after January 1, 1972, whichever date is the later, and
may be any one of the following states:
(a) That in which the insurer was first authorized to transact
(b) That in which is located the insurer’s principal place of
business in the United States of America; or
(c) That in which is held the largest deposit of trusteed assets of
the insurer for the protection of its policyholders in the United States
Ê If the insurer makes no such designation, its domicile shall be deemed
to be that state in which is located its principal place of business in
the United States of America.
4. The domicile of a Canadian insurer is the province of Canada in
which its head office is located.
(Added to NRS by 1971, 1590; A 1993, 1905)