NRS 694C.300 Authorized and prohibited types of insurance.

546 words·~2 min read·/nv/chapter-694c-captive-insurers/694c-300·

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

1. Except as otherwise provided in this section, a captive insurer licensed pursuant to this chapter may transact any form of insurance described in NRS 681A.020 to 681A.080 , inclusive.

2. A captive insurer licensed pursuant to this chapter:

(a)Shall not directly provide personal motor vehicle insurance coverage, or any component thereof.

(b)Shall not accept or cede reinsurance, except as otherwise provided in NRS 694C.350 .

(c)May provide excess workers’ compensation insurance to its parent and affiliated companies, unless otherwise prohibited by the laws of the state in which the insurance is transacted.

(d)May reinsure workers’ compensation insurance provided pursuant to a program of self-funded insurance of its parent and affiliated companies if:

(1)The parent or affiliated company which is providing the self-funded insurance is certified as a self-insured employer by the Commissioner, if the insurance is being transacted in this State; or

(2)The program of self-funded insurance is otherwise qualified pursuant to, or in compliance with, the laws of the state in which the insurance is transacted.

3. A pure captive insurer shall not insure any risks other than those of its parent and affiliated companies or controlled unaffiliated businesses.

4. Except as otherwise provided in this subsection, an association captive insurer shall not insure any risks other than those of the member organizations of its association and the affiliated companies of the member organizations. An association captive insurer may insure the risks of individual homeowners who combine into an association for the purpose of procuring homeowners’ insurance or the risks of individual units’ owners in a common-interest community so long as the association captive insurer is owned by the association created by the homeowners or the unit-owners’ association of the common-interest community, as applicable.

5. A state-chartered risk retention group shall not insure any risks other than those of the members of its association.

6. An agency captive insurer shall not insure any risks other than those of the policies that are placed by or through the insurance agency or brokerage that owns the captive insurer.

7. A rental captive insurer shall not insure any risks other than those of the policyholders or associations that have entered into agreements with the rental captive insurer for the insurance of those risks. Such agreements must be in a form which has been approved by the Commissioner.

8. A sponsored captive insurer shall not insure any risks other than those of its participants. A sponsored captive insurer may insure the risks of individual homeowners, including, without limitation, units’ owners in a common-interest community, who elect to become a participant of a protected cell of a sponsored captive insurer.

9. As used in this section:

(a)“Common-interest community” has the meaning ascribed to it in NRS 116.021 .

(b)“Excess workers’ compensation insurance” means insurance in excess of the specified per-incident or aggregate limit, if any, established by:

(1)The Commissioner, if the insurance is being transacted in this State; or

(2)The chief regulatory officer for insurance in the state in which the insurance is being transacted.

(c)“Unit-owners’ association” has the meaning ascribed to it in NRS 116.011 .

(d)“Unit’s owner” has the meaning ascribed to it in NRS 116.095 .