NRS 694C.350 Reinsurance; credit for reserves on risks or portions of risks in certain circumstances; plan for workers’ compensation deemed reinsurance in certain circumstances.

267 words·~1 min read·/nv/chapter-694c-captive-insurers/694c-350·

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

1. A captive insurer may provide reinsurance on risks ceded by any other insurer.

2. A captive insurer may take credit for reserves on risks or portions of risks ceded to a reinsurer that is in compliance with NRS 681A.140 to 681A.240 , inclusive. A captive insurer shall not take credit for reserves on risks or portions of risks ceded to a reinsurer if the reinsurer is not in compliance with NRS 681A.140 to 681A.240 , inclusive.

3. The Commissioner may authorize a captive insurer to take credit for reserves on risks or portions of risks ceded to a pool, an exchange or an association acting as a reinsurer. The Commissioner may require such documents, financial information or other evidence as the Commissioner determines necessary to show that the pool, exchange or association will be able to provide adequate security for its financial obligations. The Commissioner may deny authorization or impose any limitations on the activities of a reinsurance pool, exchange or association that, in the judgment of the Commissioner, are necessary and proper to provide adequate security for the ceding captive insurer and for the protection and benefit of the general public.

4. For the purposes of this chapter, insurance provided by a captive insurer of any plan for workers’ compensation of its parent and affiliated companies which is certified or otherwise qualified in the state in which the insurance is provided as a self-insurance plan shall be deemed to be reinsurance.