NRS 692C.294 Group capital calculation: Exemptions from filing requirements; grounds for termination of exemption.

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A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

1. When an insurance holding company system has previously filed the annual group capital calculation at least once, the lead state commissioner has the discretion to exempt the ultimate controlling person from filing the annual group capital calculation if the lead state commissioner makes a determination based upon that filing that the insurance holding company system meets all of the following criteria:

(a)Has annual direct written and unaffiliated assumed premiums, including, without limitation, international direct and assumed premiums, but excluding premiums reinsured with the Federal Crop Insurance Corporation and National Flood Insurance Program, of less than $1,000,000,000;

(b)Has no insurers within its holding company structure that are domiciled outside of the United States or one of its territories;

(c)Has no banking, depository or other financial entity that is subject to an identified regulatory capital framework within its holding company structure;

(d)The holding company system attests that there are no material changes in the transactions between insurers and non-insurers in the group that have occurred since the last filing of the annual group capital calculation; and

(e)The non-insurers within the holding company system do not pose a material financial risk to the insurer’s ability to honor policyholder obligations.

2. When an insurance holding company system has previously filed the annual group capital calculation at least once, the lead state commissioner has the discretion to accept in lieu of the group capital calculation a limited group capital filing if the insurance holding company system has annual direct written and unaffiliated assumed premiums, including, without limitation, international direct and assumed premiums, but excluding premiums reinsured with the Federal Crop Insurance Corporation and National Flood Insurance Program, of less than $1,000,000,000, and the insurance holding company system:

(a)Has no insurers within its holding company structure that are domiciled outside of the United States or one of its territories;

(b)Does not include a banking, depository or other financial entity that is subject to an identified regulatory capital framework; and

(c)Attests that there are no material changes in transactions between insurers and non-insurers in the group that have occurred since the last filing of the report to the lead state commissioner and the non-insurers within the holding company system do not pose a material financial risk to the insurers’ ability to honor policyholder obligations.

3. For an insurance holding company that has previously met an exemption with respect to the group capital calculation pursuant to subsection 1 or 2, the lead state commissioner may require at any time the ultimate controlling person to file an annual group capital calculation, completed in accordance with the NAIC Group Capital Calculation Instructions, if any of the following criteria are met:

(a)Any insurer within the insurance holding company system is not in compliance with risk-based capital requirements pursuant to NRS 681B.550 and any regulations adopted pursuant thereto, or a similar standard for a non-United States insurer;

(b)Any insurer within the insurance holding company system meets one or more of the standards of an insurer deemed to be in hazardous financial condition pursuant to NRS 680A.205 and any regulations adopted pursuant thereto; or

(c)Any insurer within the insurance holding company system otherwise exhibits qualities of a troubled insurer as determined by the lead state commissioner based on unique circumstances including, without limitation, the type and volume of business written, ownership and organizational structure, federal agency requests, and international supervisor requests.