NRS 694B.135 Unearned premium reserve.

279 words·~1 min read·/nv/chapter-694b-reciprocal-insurers/694b-135·

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

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 less to run and pro rata on those for longer periods, except that, as to marine and transportation insurance, the entire amount of premiums on trip risks not terminated shall be deemed unearned.

2. If, at any time, the amount of the unearned premium reserve maintained by a reciprocal insurer pursuant to subsection 1 is less than $100,000, the reciprocal insurer shall maintain cash or securities acceptable to the Commissioner in an amount that, when added to the amount of the unearned premium reserve maintained pursuant to subsection 1, equals not less than $100,000.

3. The amount of the bond filed with the Commissioner pursuant to NRS 694B.100 must be included as part of the unearned premium reserve maintained by a reciprocal insurer pursuant to subsection 1.

4. For the purposes of subsection 1, net written premiums is determined by subtracting from the sum of the amount of all premium payments made by the subscribers and the premiums due from subscribers:

(a)Any amount specifically provided for in the agreements of the subscribers for expenses, including, without limitation, reinsurance costs; and

(b)The amount of any fees paid to the attorney of the reciprocal insurer, only if the power of attorney agreement with the attorney of the reciprocal insurer contains an explicit provision requiring the attorney to refund any unearned subscribers’ fees on a pro-rata basis for any policy that is cancelled.