NRS 694C.310 Meetings of board of directors; additional requirements to transact insurance; review by Commissioner of qualifications of manager.

433 words·~2 min read·/nv/chapter-694c-captive-insurers/694c-310·

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

1. The board of directors of a captive insurer shall meet at least once each year in this State. The captive insurer shall:

(a)Maintain its principal place of business in this State; and

(b)Appoint a resident of this State as a registered agent to accept service of process and otherwise act on behalf of the captive insurer in this State. If the registered agent cannot be located with reasonable diligence for the purpose of serving a notice or demand on the captive insurer, the notice or demand may be served on the Secretary of State who shall be deemed to be the agent for the captive insurer.

2. A captive insurer shall not transact insurance in this State unless:

(a)The captive insurer has made adequate arrangements with:

(1)A state-chartered bank, a state-chartered credit union or a thrift company licensed pursuant to chapter 677 of NRS that is located in this State; or

(2)A federally chartered bank or federally chartered credit union that has a branch which is located in this State,

Ê that is authorized pursuant to state or federal law to transfer money.

(b)If the captive insurer employs or has entered into a contract with a natural person or business organization to manage the affairs of the captive insurer, the natural person or business organization meets the standards described in paragraph

(b)of subsection 4 of NRS 694C.210 to the satisfaction of the Commissioner.

(c)The captive insurer employs or has entered into a contract with a qualified and experienced certified public accountant who is approved by the Commissioner or a firm of certified public accountants that is nationally recognized.

(d)The captive insurer employs or has entered into a contract with qualified, experienced actuaries who are approved by the Commissioner to perform reviews and evaluations of the operations of the captive insurer.

(e)The captive insurer employs or has entered into a contract with an attorney who is licensed to practice law in this State and who meets the standards of competence and experience in matters concerning the regulation of insurance in this State established by the Commissioner by regulation.

3. The Commissioner may periodically review the qualifications of a natural person or business organization described in paragraph

(b)of subsection 2 and, if appropriate:

(a)Disqualify the manager pursuant to the authority of the Commissioner under NRS 679B.125 ; or

(b)Suspend or revoke the license of the captive insurer pursuant to NRS 694C.270 .