USA Statutes : nevada
Title : Title 57 - INSURANCE
Chapter : CHAPTER 682B - DEPOSITS
The following deposits of
insurers when made through the Commissioner must be accepted and held by
him in trust, subject to the provisions of NRS 682B.010 to 682B.120 , inclusive:
1. Deposits required under this Code for authority to transact
insurance in this state.
2. Deposits of domestic insurers when made pursuant to the laws of
other states, provinces and countries as a requirement for authority to
transact insurance in such state, province or country.
3. Deposits in such additional amounts as are permitted to be made
under NRS 682B.080 .
(Added to NRS by 1971, 1629; A 1985, 609)
1. In addition to the deposits authorized by NRS 682B.010 , the Commissioner may by regulation require
as a condition of transacting the business of insurance in this state
that a special deposit be maintained in this state by an authorized
insurer who is subject to the provisions of chapter 680A of NRS or by an eligible insurer who is subject to
the provisions of chapter 685A of NRS.
2. A deposit pursuant to this section:
(a) Must be held for the sole benefit and protection of
policyholders residing in this state and any risk that is resident,
located or to be performed in this state that is the subject of
insurance; and
(b) Is subject to the provisions of NRS 682B.030 to 682B.120 , inclusive.
(Added to NRS by 1993, 2386)
1. Deposits made in this state under NRS 680A.140 and 680A.330 (retaliatory provision) shall be held in
trust for the respective purposes stated in those sections.
2. A deposit made in this state by a domestic insurer transacting
insurance in another state, province or country, and as required by the
laws of such other state, province or country, shall be held for the
protection of all the insurer’s policyholders or all its policyholders
and creditors or for such other purpose or purposes as may be specified
pursuant to such laws.
3. Deposits required under NRS 680A.330 (retaliatory provision) shall be held for
such purposes as are required by such section, and as specified by the
Commissioner’s order requiring such deposit to be made.
(Added to NRS by 1971, 1629)
1. All such deposits required under NRS 680A.140 for authority to transact insurance in this
state shall consist of good interest-bearing or dividend-paying
securities of kinds eligible for investment of the funds of domestic
insurers under NRS chapter 682A
(investments).
2. All other deposits of a domestic insurer held in this state
pursuant to the laws of another state, province or country shall be
comprised of securities of the kinds described in subsection 1, and of
such additional kind or kinds of securities required or permitted by the
laws of such state, province or country.
3. Deposits of foreign insurers made in this state under NRS
680A.330 (retaliatory provision)
shall consist of such assets as are required by the Commissioner pursuant
to such law.
4. Evidences of indebtedness secured by real property shall be
eligible for deposit only if the real property securing such indebtedness
is situated within the State of Nevada. The evidence of indebtedness so
deposited shall be accompanied by a certificate from a duly authorized
title insurer doing business in the county in which the real property is
situated, showing that the indebtedness is a first lien against such real
property, other than for real property taxes.
(Added to NRS by 1971, 1629)
1. Except as otherwise provided in NRS 682B.050 and 682B.055 , deposits made in this state pursuant to
this Code must be made through the Commissioner. The Account for the
Division of Insurance is hereby created in the State Agency Fund for
Bonds. All money received by the Commissioner must be deposited with the
State Treasurer to the credit of the Account. All claims against the
Account must be paid as other claims against the State are paid.
2. The State of Nevada is responsible for the safekeeping of all
securities or other assets deposited with the State Treasurer through the
Commissioner pursuant to this Code, and shall bear the costs of the
depository.
(Added to NRS by 1971, 1630; A 1985, 609, 935; 1991, 1625, 1820;
1993, 572, 573, 1914)
1. In lieu of a deposit made as provided in NRS 682B.040 , the Commissioner in his discretion may,
upon written request of the insurer and where of greater convenience to
the insurer, permit such deposit to be made with and held by the trust
department of an established bank or credit union located in Nevada if
both the bank or credit union and the custodial arrangements are approved
by the Commissioner.
2. All such custodial arrangements shall comply in substance with
the requirements of this Code as to like deposits through the
Commissioner, as to amount, purposes, maintenance, replenishment, release
and withdrawal, and as to the rights of the insurer therein.
3. The cost of any such custodianship shall be borne by the
insurer. The State of Nevada shall have no responsibility for the
safekeeping of any such deposit.
4. The Commissioner may at any time, in his discretion, terminate
any such custodial arrangement and require the deposit represented
thereby to be made as otherwise provided for under NRS 682B.010 to 682B.120 , inclusive.
(Added to NRS by 1971, 1630; A 1999, 1548 )
The Commissioner:
1. May allow an insurer to use securities as a deposit or as a
part of a deposit without delivering the securities to the Commissioner
under the conditions specified in regulations adopted pursuant to
subsection 1 of NRS 680A.140 .
2. Shall allow any successor organization to the State Industrial
Insurance System that was established by section 79 of chapter 642,
Statutes of Nevada 1981, at page 1449, to use the money held in trust by
the organization pursuant to NRS 616B.042 as a deposit or as a part of a deposit for
authority to transact industrial insurance without delivering that money
to the Commissioner.
(Added to NRS by 1985, 609; A 1999, 1832 )
1. Except as provided in NRS 682B.055 , an insurer shall assign to the Commissioner
and his successors in office in trust all securities being deposited with
or through him under NRS 682B.010 to
682B.120 , inclusive, which are not
negotiable by delivery. In lieu of such an assignment, the insurer may
give the Commissioner an irrevocable power of attorney authorizing him to
transfer the securities or any part thereof for any purpose within the
scope of NRS 682B.010 to 682B.120
, inclusive.
2. In the case of securities or assets held under custodial
arrangements pursuant to NRS 682B.050 , the custodian’s receipt therefor must be
delivered to the Commissioner in trust, if negotiable, or assigned to him
so that legal title to such securities or assets is vested in the
Commissioner and his successors in office.
3. The insurer shall convey to the Commissioner and his successors
in office in trust any real property being deposited under this Code.
4. Upon release to the insurer, or other person entitled thereto,
of any security or asset, the Commissioner shall reassign or transfer or
reconvey it to the insurer or person. In the case of power of attorney
given pursuant to subsection 1, the Commissioner shall deliver the power
of attorney, together with the securities covered thereby, to the insurer
or person entitled thereto.
(Added to NRS by 1971, 1631; A 1985, 609)
The Commissioner may, in his discretion,
prior to acceptance for deposit of any particular asset or security, or
at any time thereafter while so deposited, have the same appraised or
valued by competent appraisers. The reasonable costs of any such
appraisal or valuation shall be borne by the insurer.
(Added to NRS by 1971, 1631)
1. If assets deposited by an insurer under NRS 682B.010 to 682B.120 , inclusive, are subject to material
fluctuations in market value, the Commissioner may, in his discretion,
require the insurer to deposit and maintain on deposit additional assets
in an amount reasonably necessary to assure that the deposit at all times
has a market value of not less than the amount specified under the law by
which the deposit is required.
2. An insurer may otherwise at its option deposit assets in an
amount exceeding its deposit required or otherwise permitted under this
Code by not more than 20 percent of such required or permitted deposit,
or $20,000, whichever is the larger amount, for the purpose of absorbing
fluctuations in the value of assets deposited and to facilitate exchange
and substitution of such assets. During the solvency of the insurer, any
such excess shall be released to the insurer upon its request. During the
insolvency of the insurer, such excess deposit shall be released only as
provided in subsection 3 of NRS 682B.120 .
(Added to NRS by 1971, 1631)
So long as the
insurer remains solvent and is in compliance with this Code it may:
1. Demand, receive, sue for and recover the income from the assets
deposited;
2. Exchange and substitute assets of equivalent or greater fair
market value for the deposited assets; and
3. At any reasonable time inspect any such deposit.
(Added to NRS by 1971, 1632)
No judgment creditor or other
claimant of an insurer shall have the right to levy upon any of the
assets or securities held in this state as a deposit for the protection
of the insurer’s policyholders or policyholders and creditors. Levy upon
deposits made pursuant to NRS 680A.330 (retaliatory provision) shall be permitted
if so provided in the Commissioner’s order under which the deposit is
required.
(Added to NRS by 1971, 1632)
If for any reason the market
value of assets of an insurer held on deposit in this state falls below
the amount required under this Code, the insurer shall promptly deposit
other or additional assets eligible for deposit sufficient to cure the
deficiency. If the insurer has failed to cure the deficiency within 20
days after receipt of notice thereof by registered or certified mail from
the Commissioner, the Commissioner shall forthwith revoke the insurer’s
certificate of authority.
(Added to NRS by 1971, 1632)
1. Every deposit made in this state by an insurer pursuant to this
Code shall be held as long as there is outstanding any liability of the
insurer as to which the deposit was so required; or, if the deposit is
required under NRS 680A.330
(retaliatory provision), the deposit shall be held for so long as the
basis of such retaliation exists.
2. If the insurer has reinsured all its outstanding risks in
another insurer or insurers, the Commissioner may deliver to such
assuming insurer or its assigns, after the expiration of 1 year from the
effective date of such reinsurance, any assets or securities deposited
with him under this Code by the ceding insurer upon proof satisfactory to
him that:
(a) The assuming insurer has assumed and agreed to discharge all
liabilities of every kind due and to become due which the deposit was to
secure; and
(b) The assuming insurer has on deposit in this state, or with
public authority in another state, securities of quality, amount and
value not less than the deposit required of the ceding insurer under this
Code and which will reasonably subsist for the security of the
obligations of the ceding insurer so assumed.
3. If the insurer is subject to delinquency proceedings as defined
in NRS 696B.060 , upon the order of a
court of competent jurisdiction the Commissioner shall yield the
insurer’s assets held on deposit to the receiver, conservator,
rehabilitator or liquidator of the insurer, or to any other properly
designated officer or officers who succeed to the management and control
of the insurer’s assets.
(Added to NRS by 1971, 1632)
ALIEN INSURERS
1. An alien insurer may use Nevada as a state of entry to transact
insurance in the United States of America by making and maintaining in
this state a deposit of assets in trust with a bank, credit union or
trust company approved by the Commissioner.
2. The deposit, together with other trust deposits of the insurer
held in the United States of America for the same purpose, must be in an
amount not less than as required of an alien insurer under NRS 680A.140
, deposit requirement in general, and
must consist of United States money, public obligations of the government
or states or political subdivisions of the United States of America, and
obligations of corporations and institutions in the United States of
America, all as eligible for the investment of money of domestic insurers
under NRS 682A.060 , 682A.070 and 682A.080 .
3. Such a deposit may be referred to as “trusteed assets.”
(Added to NRS by 1971, 1633; A 1999, 1549 )
The deposit provided for in
NRS 682B.130 shall be for the
benefit, security and protection of the policyholders, or policyholders
and creditors, of the insurer in the United States of America, and shall
be maintained as long as there is outstanding in the United States of
America any liability of the insurer arising out of its insurance
transactions therein.
(Added to NRS by 1971, 1633)
1. The deposit referred to in NRS 682B.130 shall be made and maintained under a written
trust agreement between the insurer and the trustee, consistent with the
requirements of NRS 682B.130 to
682B.250 , inclusive, and shall be
authenticated in such form and manner as the Commissioner may designate
or approve.
2. The agreement shall not be effective until filed with and
approved by the Commissioner in writing. The Commissioner shall not
approve any trust agreement found by him not to be in compliance with
law, or the terms of which do not in fact provide reasonably adequate
protection for the insurer’s policyholders or policyholders and creditors
in the United States of America.
(Added to NRS by 1971, 1633)
A trust agreement may be
amended, but the amendment shall not be effective until filed with and
approved in writing by the Commissioner as being in compliance with NRS
682B.130 to 682B.250 , inclusive.
(Added to NRS by 1971, 1633)
The Commissioner may
withdraw his approval of any trust agreement or of any amendment thereof
if he finds upon hearing, after notice thereof to the insurer and the
trustee, that the requisites for such approval, as provided in NRS
682B.130 to 682B.250 , inclusive, have been found by him not to
exist or no longer to exist.
(Added to NRS by 1971, 1634)
Title to the trusteed assets is
vested in the trustee and its successors for the purposes of the trust
deposit, and the trust agreement shall so provide.
(Added to NRS by 1971, 1634)
The trustee shall keep the
trusteed assets separate from other assets and shall maintain a record
thereof sufficient to identify trusteed assets at all times.
(Added to NRS by 1971, 1634)
1. The trustee of trusteed assets shall from time to time file
with the Commissioner statements, in such forms as the Commissioner may
designate and request in writing, certifying the character of such assets
and the amounts and market value thereof.
2. If the trustee fails to file the statement within a reasonable
time after request therefor by the Commissioner, the Commissioner may
suspend or revoke the certificate of authority of the insurer.
(Added to NRS by 1971, 1634)
The Commissioner may examine
trusteed assets at any time in accordance with the same conditions and
procedures as govern examination of insurers in general under this Code.
(Added to NRS by 1971, 1634)
1. The trust agreement shall provide, in substance, that no
withdrawal of trusteed assets shall be made by the insurer or permitted
by the trustee without the written authorization or approval of the
Commissioner in advance thereof, except as follows:
(a) Any or all income, earnings, dividends or interest
accumulations of the trusteed assets may be paid over to the United
States manager of the insurer upon request of the insurer or the manager.
(b) For substitution, coincidentally with such withdrawal, of other
securities or assets of value at least equal in amount to those being
withdrawn, if:
(1) Such substituted securities or assets are likewise such
as are eligible for deposit under NRS 682B.130 ;
(2) Such withdrawal is requested in writing by the insurer’s
United States manager pursuant to general or specific written authority
previously given or delegated by the insurer’s board of directors or
other similar governing body; and
(3) A certified copy of such authority has been filed with
the trustee.
(c) For the purpose of making deposits required by law in any state
in which the insurer is or thereafter becomes an authorized insurer, for
the protection of the insurer’s policyholders or policyholders and
creditors in such state or in the United States of America, if such
withdrawal does not reduce the insurer’s deposit in this state to an
amount less than the minimum deposit required under NRS 680A.140 . The trustee shall transfer any assets so
withdrawn and in the amount so required to be deposited in the other
state directly to the depositary required to receive the deposit in the
other state, as certified in writing by the public officer having
supervision of insurance in the other state.
(d) For the purpose of transferring the trusteed assets to an
official conservator, rehabilitator or liquidator pursuant to the order
of a court of competent jurisdiction.
2. The Commissioner shall so authorize or approve withdrawal of
only such assets as are in excess of the amount of assets required to be
so held in trust under NRS 680A.140 ,
or as may otherwise be consistent with the provisions of NRS 682B.130
to 682B.250 , inclusive.
3. If at any time the insurer becomes insolvent, or if its assets
held in the United States of America are less in amount than the sum of
its liabilities in the United States of America arising from its
insurance transactions therein and the amount of the required deposit,
upon determination thereof the Commissioner shall in writing order the
trustee to suspend the right of the insurer or any other person to
withdraw assets as authorized under paragraphs (a), (b) and (c) of
subsection 1, and the trustee shall comply with such order until further
order of the Commissioner.
(Added to NRS by 1971, 1634)
A new trustee or new
trustees may be substituted for the original trustee of trusteed assets
for any proper cause. Any such substitution shall be subject to the
Commissioner’s approval.
(Added to NRS by 1971, 1635)
The provisions of NRS
682B.130 to 682B.250 , inclusive, applicable to a United States
manager shall, in the case of insurers domiciled in Mexico or Canada, be
deemed to refer to the president, vice president, secretary, treasurer or
other comparable officer of the insurer.
(Added to NRS by 1971, 1635)
NRS 682B.070 (appraisal) and 682B.100 (levy upon deposit) shall also apply to
trusteed assets of an alien insurer.
(Added to NRS by 1971, 1635)
