Nac: Chapter 693A - Corporate Powers And Procedures Of Domestic Stock And Mutual Insurers

Link to law: http://www.leg.state.nv.us/nac/NAC-693A.html
Published: 2015

[Rev. 1/10/2014 2:12:57 PM]

[NAC-693A Revised Date: 1-14]

CHAPTER 693A - CORPORATE POWERS AND

PROCEDURES OF DOMESTIC STOCK AND MUTUAL INSURERS

DOMESTIC STOCK INSURERS

693A.010         Application of provisions.

693A.110         “Participant” defined.

693A.115         Conversion of mutual into stock

insurer: Interpretation of certain statutory terms.

693A.120         Definitions.

693A.130         Proxies, consents and

authorizations.

693A.140         Equivalent information.

693A.150         Information to security holders.

693A.160         Proxy and information statements.

693A.170         Filing of solicitations.

693A.180         False or misleading statements.

693A.190         Undated or postdated proxies.

693A.210         Election contests.

693A.220         Solicitations: Filing of

information.

693A.230         Solicitations before furnishing of

proxy statements: Conditions.

693A.240         Solicitations before furnishing of

proxy statements: Filing.

693A.250         Annual reports.

PROXY AND INFORMATION STATEMENTS

693A.310         Proxy and information statements:

Required information.

693A.320         Revocability.

693A.330         Dissenters’ rights of appraisal.

693A.340         Identification of source.

693A.350         Certain interests.

693A.360         Voting securities.

693A.370         Nominees and directors.

693A.380         Remuneration and other transactions.

693A.390         Bonus, profit-sharing and other

remuneration plans.

693A.400         Pension and retirement plans.

693A.410         Options, warrants and rights.

693A.420         Authorization or issue of

securities.

693A.430         Mergers, consolidations and

acquisitions.

693A.440         Restatements of accounts.

693A.450         Other information.

693A.460         Amendments to charter and bylaws.

PROXIES

693A.510         Election contests.

ELECTION CONTESTS

693A.520         Insurer name and address.

693A.530         Contestant name and background.

693A.540         Interest of the contestant.

693A.550         Other information.

693A.560         Signature of statements.

MANAGEMENT AND AGENCY CONTRACTS OF CONTROLLED INSURERS

693A.600         Definitions.

693A.610         “Accredited state” defined.

693A.620         “Broker” defined.

693A.630         “Captive insurer” defined.

693A.640         “Control” and “controlled” defined.

693A.650         “Controlling broker” defined.

693A.660         “Controlled insurer” defined.

693A.670         Applicability.

693A.680         Written contract specifying

responsibilities of controlling broker and controlled insurer.

693A.690         Responsibilities of controlling

broker: Accounting to controlled insurer; remission of money to controlled

insurer; holding of money for controlled insurer; maintenance of records for

controlled insurer.

693A.700         Standards, rules, procedures, rates

and conditions of controlled insurer; rates of commissions, charges and other

fees of controlling broker.

693A.710         Conditions for payments of compensation

or commissions.

693A.720         Limit on writings of controlling

broker: Provision; notification.

693A.730         Reinsurance by controlled insurer;

contents of guidelines for underwriting.

693A.740         Audit committee: Establishment,

composition; duties.

693A.750         Required filing and reporting by

controlled insurer.

693A.760         Notice of relationship between

controlling broker and controlled insurer; statement required if business is

placed through broker who is not controlling broker.

693A.770         Procedure upon noncompliance with

certain provisions.

 

 

DOMESTIC STOCK INSURERS

      NAC 693A.010  Application of provisions. (NRS 679B.130, 693A.080)  The

provisions of NAC 693A.010 to 693A.560, inclusive, apply to each domestic stock

insurer which has any class of equity security held of record by 100 or more

persons, except:

     1.  If 95 percent or more of the equity

securities of the insurer are owned or controlled by a parent or an affiliated

insurer, and the remaining securities are held of record by fewer than 500

persons.

     2.  A domestic stock insurer which files with

the United States Securities and Exchange Commission forms of proxies, consents

and authorizations which comply with the requirements to the Securities

Exchange Act of 1934 as amended, (15 U.S.C. §§ 77a, et seq.), and applicable

regulations, is exempt from the provisions of NAC

693A.010 to 693A.560, inclusive, with respect

to any class of securities subject to the jurisdiction of the Securities and

Exchange Commission.

     [Comm’r of Insurance, M-4 § 1, eff. 5-13-72]—(NAC A 6-28-96)

      NAC 693A.110  “Participant” defined. (NRS 679B.130)

     1.  As used in NAC

693A.010 to 693A.560, inclusive, “participant”

means:

     (a) The insurer;

     (b) Any director of the insurer or nominee for

whose election as a director proxies are solicited; and

     (c) Any other person, acting alone or with one or

more other persons in organizing, directing or financing the solicitation.

     2.  “Participant” does not include:

     (a) A bank, broker or dealer who, in the ordinary course

of business, lends money or executes orders for the purchase or sale of

securities and who is not otherwise a participant;

     (b) Any person or organization retained or employed

by a participant to solicit security holders, or any person who merely transmits

material soliciting for proxies or performs ministerial or clerical duties;

     (c) Any person employed in the capacity of attorney

or accountant or as an advertising, public relations or financial adviser, and

whose activities are limited to the performance of his or her duties in the

course of that employment;

     (d) Any person regularly employed as an officer or

employee of the insurer or any of its subsidiaries or affiliates who is not

otherwise a participant; or

     (e) Any officer, director or regular employee of

any other participant who is not himself or herself a participant.

     [Comm’r of Insurance, M-4 § 10 subsec. 2, eff. 5-13-72]—(NAC

A 6-28-96)

      NAC 693A.115  Conversion of mutual into stock insurer: Interpretation of

certain statutory terms. (NRS 679B.130, 693A.530, 693A.655)  As used

in NRS 693A.400 to 693A.540, inclusive, the

Commissioner will interpret:

     1.  “Domestic stock insurer” to mean a

domestic stock insurance company or a stock holding company.

     2.  “Plan of conversion” to include, without

limitation, the plan of conversion and any amendments to the articles of

incorporation adopted by a resolution of the board of directors of the

converting mutual pursuant to subsection 1 of NRS 693A.440.

     (Added to NAC by Comm’r of Insurance by R081-07, eff. 4-17-2008)

      NAC 693A.120  Definitions. (NRS 679B.130)

     1.  The definitions and instructions set out

in Schedule SIS adopted by the National Association of Insurance Commissioners

are applicable for the purposes of NAC 693A.010 to

693A.560, inclusive.

     2.  As used in NAC

693A.010 to 693A.560, inclusive,

“solicitation” means:

     (a) Any request for a proxy, whether or not

accompanied by or included in a form of proxy;

     (b) Any request to execute, to refrain from

executing or to revoke a proxy; or

     (c) Furnishing a form of proxy or communicating

with security holders under circumstances reasonably calculated to result in

the procurement, withholding or revocation of a proxy.

     3.  “Solicitation” does not include:

     (a) Any solicitation by a person in respect to

securities of which the person is the beneficial owner;

     (b) Action by a broker or other person in respect

to securities carried in his or her name or in the name of his or her nominee

in forwarding to the beneficial owner of securities soliciting material

received from the insurer;

     (c) Impartially instructing a beneficial owner to

forward a proxy to the person, if any, to whom the beneficial owner desires to

give a proxy;

     (d) Impartially requesting instructions from the

beneficial owner with respect to the authority to be conferred by the proxy and

stating that a proxy will be given if the instructions are received by a

certain date;

     (e) Furnishing a form of proxy to a security holder

upon the unsolicited request of the security holder; and

     (f) The performance by any person of ministerial

acts on behalf of a person soliciting a proxy.

     [Comm’r of Insurance, M-4 § 4, eff. 5-13-72]—(NAC A 6-28-96)

      NAC 693A.130  Proxies, consents and authorizations. (NRS 679B.130)  A person

shall not solicit or permit the use of his or her name to solicit by mail or

otherwise, any proxy, consent or authorization in respect to any class of

equity security of the insurer which is held of record by 100 or more persons

in contravention of NAC 693A.010 to 693A.560, inclusive.

     [Comm’r of Insurance, M-4 § 2, eff. 5-13-72]—(NAC A 6-28-96)

      NAC 693A.140  Equivalent information. (NRS 679B.130, 693A.100)

     1.  Unless proxies, consents or

authorizations in respect of any class of equity security of a domestic insurer

are solicited by or on behalf of the management of the insurer from the holders

of record in accordance with NAC 693A.010 to 693A.560, inclusive, before any annual or other

meeting of the security holders, the insurer shall file with the Commissioner

of Insurance and transmit to all security holders of record information substantially

equivalent to that which would have been required to be transmitted if a

solicitation were made.

     2.  The insurer shall transmit a written

statement containing the information specified in subsection 4 of NAC 693A.150 to every security holder who is entitled

to vote in regard to any matter to be acted upon at the meeting and from whom a

proxy is not solicited on behalf of the management of the insurer. For a class

of securities which is in unregistered or bearer form, the statement need be

transmitted only to those security holders whose names and addresses are known

to the insurer.

     [Comm’r of Insurance, M-4 § 3, eff. 5-13-72]—(NAC A 6-28-96)

      NAC 693A.150  Information to security holders.

(NRS 679B.130, 693A.100)

     1.  No solicitation may be made unless each

person solicited is concurrently furnished, or has been previously furnished, a

written proxy statement containing the information specified in NAC 693A.320 to 693A.460,

inclusive.

     2.  If the solicitation is made on behalf of

the management of the insurer and relates to an annual meeting of security

holders at which directors are to be elected, each proxy statement furnished

pursuant to this section must be accompanied or preceded by an annual report in

preliminary or final form containing the financial statements referred to in

Schedule SIS under the heading “Financial Reporting to Stockholders,” for the

last fiscal year. The annual report to security holders may be in any form

deemed suitable by the management which conforms to the requirements of this

section.

     3.  Two copies of each report sent to the

security holders as required by this section must be mailed to the Commissioner

of Insurance not later than the date on which such report is first sent or

given to security holders, or the date on which preliminary copies of

solicitation material are filed with the Commissioner under subsection 1 of NAC 693A.170, whichever is later.

     4.  If no solicitation is being made by the

management of the insurer with respect to any annual or other meeting, the

insurer shall mail to each security holder of record, at least 20 days before

the meeting date, an information statement required by NAC

693A.140, containing the information called for by NAC

693A.330 and 693A.360 to 693A.460, inclusive, which would be applicable to any

matter to be acted upon if proxies were to be solicited in connection with the

meeting. If the information statement relates to an annual meeting at which

directors are to be elected, it must be accompanied by an annual report to

security holders in the form required by subsection 2 of this section.

     [Comm’r of Insurance, M-4 § 5, eff. 5-13-72]

      NAC 693A.160  Proxy and information statements.

(NRS 679B.130, 693A.100)

     1.  The form of proxy must:

     (a) Contain a statement in boldface type whether or

not the proxy is solicited on behalf of the management;

     (b) Provide a specifically designed blank space for

dating the proxy; and

     (c) Identify clearly and impartially each matter or

group of related matters intended to be acted upon, whether proposed by the

management or by security holders.

Ê No reference

need be made to proposals for which discretionary authority is conferred by

subsection 3 of this section.

     2.  (a) Means must be provided in the

proxy for the person solicited to specify by ballot a choice between approval

or disapproval of each matter or group of related matters referred to, other

than elections to office. A proxy may confer discretionary authority with

respect to matters for which a choice is not specified if the form of proxy

states in boldface type how it is intended to vote the shares or authorization

represented by the proxy in each case.

     (b) A form of proxy which provides both for

elections to office and for action on other specified matters must be prepared

so as to provide, by a box or otherwise, means by which the security holder may

withhold authority to vote for elections to office. Any such form of proxy

which is executed by the security holder in a manner which does not withhold

authority to vote for elections to office may be deemed to grant such authority

if the form of proxy so states in boldface type.

     3.  A proxy may confer discretionary

authority with respect to other matters which may come before the meeting, if

the persons on whose behalf the solicitation is made are not aware a reasonable

time before the solicitation is made that any other matters are to be presented

for action at the meeting, and a specific statement to that effect is made in

the proxy statement or in the form of proxy.

     4.  The proxy statement or form of proxy must

provide, subject to reasonable conditions specified on the statement or form,

that:

     (a) The proxy will be voted; and

     (b) Where the person solicited specified by means

of a ballot provided to the person pursuant to subsection 2 of this section a

choice with respect to any matter to be acted upon, the vote will be in

accordance with the specifications so made.

     5.  The information included in the proxy

statement or information statement must be clearly presented and the statements

made must be divided into groups according to subject matter, with appropriate

headings. All printed proxy statements or information statements must be

clearly and legibly presented.

     [Comm’r of Insurance, M-4 § 6, eff. 5-13-72]

      NAC 693A.170  Filing of solicitations. (NRS 679B.130, 693A.100)

     1.  Two preliminary copies of the information

statement or the proxy statement and form of proxy and any other soliciting

material to be furnished to security holders must be filed with the

Commissioner at least 10 days before the date on which definitive copies of the

material are first sent or given to security holders. The Commissioner may

authorize a later cutoff date for filing upon a showing of good cause therefor.

     2.  Two preliminary copies of any additional

soliciting material relating to the same meeting or subject matter to be

furnished to security holders after the proxy statements must be filed with the

Commissioner at least 2 days, exclusive of Saturdays, Sundays or holidays,

before the date on which copies of this material are first sent or given to

security holders. The Commissioner of Insurance may authorize a later cutoff

date for filing upon a showing of good cause therefor.

     3.  Two copies of the information statement

or the proxy statement, form of proxy and all other soliciting material, in the

form in which this material is furnished to security holders, must be filed

with the Commissioner not later than the date on which the material is first

sent or given to the security holders.

     4.  Where any information statement or proxy

statement, form of proxy or other material filed pursuant to NAC 693A.010 to 693A.560,

inclusive, is amended or revised, two of the copies must be marked to show

clearly such changes.

     5.  Copies of replies to inquiries from

security holders requesting further information and copies of communications

which do no more than request that forms of proxy previously solicited be

signed and returned need not be filed pursuant to this section.

     6.  Copies of soliciting material in the form

of speeches, press releases and radio or television scripts may be filed with

the Commissioner before use or publication. Definitive copies must be filed

with the Commissioner as required by subsection 3 of this section not later

than the date on which the material is used or published. The provisions of

subsections 1 and 2 of this section and NAC 693A.240

apply to any reprints or reproductions of all or any part of such material.

     [Comm’r of Insurance, M-4 § 7, eff. 5-13-72]—(NAC A 6-28-96)

      NAC 693A.180  False or misleading statements. (NRS 679B.130, 693A.100)  No proxy

statement, form of proxy, notice of meeting, information statement or other

written or oral communication which is subject to NAC

693A.010 to 693A.560, inclusive, may contain

any statement which, at the time and in the light of the circumstances under

which it is made:

     1.  Is false or misleading with respect to

any material fact; or

     2.  Omits to state any material fact

necessary to:

     (a) Make the statements therein not false or

misleading; or

     (b) Correct any statement in any earlier

communication with respect to the same meeting or subject matter if that

statement has become false or misleading.

     [Comm’r of Insurance, M-4 § 8, eff. 5-13-72]—(NAC A 6-28-96)

      NAC 693A.190  Undated or postdated proxies. (NRS 679B.130)  No

person making a solicitation subject to NAC 693A.010

to 693A.560, inclusive, may solicit any undated or

postdated proxy, or any proxy which provides that it will be deemed to be dated

after the date on which it is signed by the security holder.

     [Comm’r of Insurance, M-4 § 9, eff. 5-13-72]—(NAC A 6-28-96)

      NAC 693A.210  Election contests. (NRS 679B.130)  NAC 693A.210 to 693A.250,

inclusive, apply to any solicitation subject to NAC

693A.010 to 693A.560, inclusive, by any person

or group for the purpose of opposing another solicitation subject to NAC 693A.010 to 693A.560,

inclusive, made by another person or group regarding the election or removal of

directors at any annual or special meeting of security holders.

     [Comm’r of Insurance, M-4 § 10 subsec. 1, eff. 5-13-72]—(NAC

A 6-28-96)

      NAC 693A.220  Solicitations: Filing of information. (NRS 679B.130,

693A.100)

     1.  No solicitation subject to NAC 693A.210 to 693A.250,

inclusive, may be made by any person other than the management of an insurer

unless at least 5 business days prior thereto, or a shorter period authorized

by the Commissioner of Insurance upon a showing of good cause, there has been

filed with the Commissioner by or on behalf of each participant in the

solicitation, a statement in duplicate containing the information specified by NAC 693A.520 to 693A.560,

inclusive, and a copy of any material proposed to be distributed to security

holders in furtherance of the solicitation. Where preliminary copies of any

material are filed, distribution to security holders must be deferred until the

Commissioner’s comments have been received and complied with.

     2.  Within 5 business days after a

solicitation subject to this section is made by the management of an insurer,

or a longer period authorized by the Commissioner upon a showing of good cause,

there must be filed with the Commissioner by or on behalf of each participant

in the solicitation, other than the insurer, and by or on behalf of each person

nominated by the management to be a director, a statement in duplicate

containing the information required by NAC 693A.520

to 693A.560, inclusive.

     3.  If any solicitation on behalf of

management or any other person has been made or if proxy material is ready for

distribution before a solicitation subject to NAC

693A.210 to 693A.250, inclusive, in opposition

thereto, a statement in duplicate containing the information specified in NAC 693A.520 to 693A.560,

inclusive, must be filed with the Commissioner by or on behalf of each

participant other than the insurer in the prior solicitation. The information

must be filed as soon as reasonably practicable after the commencement of the

opposing solicitation.

     4.  If, after the filing of the statements

required by subsections 1, 2 and 3 of this section, additional persons become

participants in a solicitation subject to this section, there must be filed

with the Commissioner by or on behalf of each such person, a statement in

duplicate containing the information specified by NAC

693A.520 to 693A.560, inclusive, within 3

business days after the person becomes a participant, unless the Commissioner

authorizes a later cutoff date for filing upon a showing of good cause.

     5.  If any material change occurs in the

facts reported in any statement filed by or on behalf of any participant, an

appropriate amendment to the statement must be filed promptly with the

Commissioner.

     6.  Each statement and amendment thereto

filed pursuant to this section is part of the public files of the Commissioner.

     [Comm’r of Insurance, M-4 § 10 subsec. 3, eff. 5-13-72]

      NAC 693A.230  Solicitations before furnishing of proxy statements: Conditions. (NRS 679B.130,

693A.100)  A

solicitation subject to NAC 693A.210 to 693A.250, inclusive, may be made before furnishing

security holders a written proxy statement containing the information specified

in NAC 693A.310 to 693A.460,

inclusive, concerning the solicitation if:

     1.  The statements required by NAC 693A.220 are filed by or on behalf of each

participant in the solicitation;

     2.  No form of proxy is furnished to security

holders before the written proxy statement required by subsection 1 of NAC 693A.150 is furnished. This subsection does not

apply if a proxy statement then meeting the requirements of NAC 693A.310 to 693A.460,

inclusive, has been furnished to security holders;

     3.  The information required for the

statements required by subsections 2 and 3 of NAC

693A.220 to be filed by each participant, or an appropriate summary

thereof, are included in each communication sent or given to security holders

in connection with the solicitation; and

     4.  A written proxy statement containing the

information specified in NAC 693A.310 to 693A.460, inclusive, with respect to a solicitation

is sent or given to security holders as soon as possible.

     [Comm’r of Insurance, M-4 § 10 subsec. 4, eff. 5-13-72]

      NAC 693A.240  Solicitations before furnishing of proxy statements: Filing. (NRS 679B.130,

693A.100)  Two

copies of any soliciting material proposed to be sent or given to security

holders before the furnishing of the written proxy statement required by

subsection 1 of NAC 693A.150 must be filed with

the Commissioner in preliminary form at least 5 business days before the date

on which definitive copies of such material are first sent or given to security

holders, or a shorter period authorized by the Commissioner upon a showing of

good cause therefor.

     [Comm’r of Insurance, M-4 § 10 subsec. 5, eff. 5-13-72]

      NAC 693A.250  Annual reports. (NRS 679B.130)  Two

copies of any portion of the annual report referred to in subsection 2 of NAC 693A.150 which comments upon or refers to any

solicitation subject to this section, or to any participant in any such

solicitation, other than the solicitation by the management, must be filed with

the Commissioner of Insurance, as proxy material subject to NAC 693A.010 to 693A.560,

inclusive. This portion of the report must be filed with the Commissioner in

preliminary form at least 5 business days before the date on which copies of

the report are first sent or given to security holders.

     [Comm’r of Insurance, M-4 § 10 subsec. 6, eff. 5-13-72]—(NAC

A 6-28-96)

PROXY AND INFORMATION STATEMENTS

      NAC 693A.310  Proxy and information statements: Required information. (NRS 679B.130)  The

statements and other information set forth in NAC

693A.320 to 693A.460, inclusive, are required

for proxy statements and statements of information.

     (Comm’r of Insurance, M-4, supplied in codification)

      NAC 693A.320  Revocability. (NRS 679B.130)  Each

statement must state whether or not the person giving the proxy has the power

to revoke it. If the right to revoke the proxy before it is exercised is

limited or is subject to compliance with any formal procedure, a brief

description of the limitation or procedure must be included.

     [Comm’r of Insurance, Schedule A item 1, eff. 5-13-72]

      NAC 693A.330  Dissenters’ rights of appraisal.

(NRS 679B.130)  A brief

outline of the rights of appraisal or similar rights of dissenting holders of

security with respect to any matter to be acted upon must be included,

indicating any statutory procedure required to be followed by security holders

in order to perfect their rights. Where such rights may be exercised only

within a limited time after the date of the adoption of a proposal, the filing

of a charter amendment, or other similar act, the statement must state whether

the person solicited will be notified of the end of the period in which the

rights must be exercised.

     [Comm’r of Insurance, Schedule A item 2, eff. 5-13-72]

      NAC 693A.340  Identification of source. (NRS 679B.130)

     1.  If the solicitation is made by the

management of the insurer, a statement to that effect, including the name of

any director of the insurer who has informed the management in writing that he

or she intends to oppose any action intended to be taken by the management and

setting forth the action which he or she intends to oppose.

     2.  If the solicitation is made by persons

other than the management of the insurer, the names and addresses of the

persons by whom and on whose behalf it is made and the names and addresses of

the persons by whom the cost of the solicitation has been or will be borne,

directly or indirectly.

     3.  If the solicitation is to be made by

specially engaged employees or paid solicitors, a statement of:

     (a) The material features of any contract or

arrangement for such solicitation and the names of the parties; and

     (b) The cost or anticipated cost of the

solicitation.

     [Comm’r of Insurance, Schedule A item 3, eff. 5-13-72]

      NAC 693A.350  Certain interests. (NRS 679B.130)  A brief

description of any substantial interest, direct or indirect, in the form of

security holdings or otherwise, held by any director, nominee for election as

director, officer and, if the solicitation is made other than on behalf of

management, each person on whose behalf the solicitation is made. The

description is required unless no matters other than elections to office are to

be acted upon.

     [Comm’r of Insurance, Schedule A item 4, eff. 5-13-72]

      NAC 693A.360  Voting securities. (NRS 679B.130)

     1.  A statement for each class of voting

securities of the insurer which are entitled to be voted at the meeting,

showing the number of shares outstanding and the number of votes to which each

class is entitled.

     2.  The date on which the record list of

security holders entitled to vote at the meeting will be determined. If the

right to vote is not limited to security holders of record on that date, a

statement of the conditions under which other security holders may be entitled

to vote.

     3.  If action is to be taken with respect to

the election of directors, and if the persons solicited have cumulative voting

rights, a statement that they have such rights and the conditions precedent to

the exercise thereof.

     [Comm’r of Insurance, Schedule A item 5, eff. 5-13-72]

      NAC 693A.370  Nominees and directors. (NRS 679B.130)  If

action is to be taken with respect to the election of directors, the following

information must be furnished. With respect to each person nominated for

election as a director and each other person whose term of office as a director

will continue after the meeting:

     1.  The name of each person, when the

person’s term of office or the term of office for which he or she is a nominee

will expire, and all other positions and offices with the insurer which the

person holds, whether he or she is a nominee for election as director at the

meeting.

     2.  The present principal occupation or

employment and the name and principal business of any corporation or other

organization in which the employment is carried on. Similar information as to

all of the person’s principal occupations or employments during the last 5

years must be furnished unless the person is now a director and was elected to

his or her present term of office by a vote of security holders at a meeting

for which proxies were solicited under NAC 693A.010

to 693A.560, inclusive.

     3.  If the person is or has previously been a

director of the insurer, the information must include the period or periods

during which he or she has served as such.

     4.  The information must state, as of the

most recent practicable date, the approximate amount of each class of equity

securities of the insurer or any of its parents, subsidiaries or affiliates,

other than directors’ qualifying shares, beneficially owned directly or

indirectly by him or her. If he or she is not the beneficial owner of any securities,

a statement made to that effect. The information must be arranged in tabular

form to the extent possible.

     [Comm’r of Insurance, Schedule A item 6, eff. 5-13-72]—(NAC

A 6-28-96)

      NAC 693A.380  Remuneration and other transactions. (NRS 679B.130)

     1.  The information reported or required in

Item 1 of Schedule SIS* under the hearing “Information Regarding Management and

Directors” must be furnished if action is to be taken with respect to:

     (a) The election of directors;

     (b) Any remuneration plan, contract or arrangement

in which any director, nominee for election as a director, or officer of the

insurer will participate;

     (c) Any pension or retirement plan in which any

such person will participate; or

     (d) The granting or extension to any such person of

any options, warrants or rights to purchase any securities, other than warrants

or rights issued to security holders, as such, on a pro rata basis.

     2.  If the solicitation is made on behalf of

persons other than the management, the information to be furnished is that

required by Item 1-A of Schedule SIS.

     * A copy of this schedule may be obtained from the

Commissioner of Insurance.

     [Comm’r of Insurance, Schedule A item 7, eff. 5-13-72]

      NAC 693A.390  Bonus, profit-sharing and other remuneration plans. (NRS 679B.130)  If

action is to be taken with respect to any bonus, profit-sharing or other

remuneration plan of the insurer, the following information is required:

     1.  A brief description of the material

features of the plan, each class of persons who will participate therein, the

approximate number of persons in each class and the basis of participation.

     2.  The amounts which would have been

distributable under the plan during the last calendar year to:

     (a) Each person named in NAC

693A.380;

     (b) Directors and officers as a group; and

     (c) All other employees as a group,

Ê if the plan

had been in effect during that year.

     3.  If the plan to be acted upon may be

amended, other than by a vote of security holders, in a manner which would materially

increase the cost thereof to the insurer or materially alter the allocation of

the benefits between the groups specified in subsection 2 of this section, the

nature of such amendments must be specified.

     [Comm’r of Insurance, Schedule A item 8, eff. 5-13-72]

      NAC 693A.400  Pension and retirement plans. (NRS 679B.130)

     1.  If action is to be taken with respect to

any pension or retirement plan of the insurer, the following information is

required:

     (a) A brief description of the material features of

the plan, each class of persons who will participate therein, the approximate

number of persons in each such class, and the basis of participation.

     (b) A statement of:

          (1) The approximate total amount necessary to

fund the plan with respect to past services, the period over which such amount

is to be paid, and the estimated annual payments necessary to pay the total

amount over that period;

          (2) The estimated annual payments to be made

with respect to current services; and

          (3) The amount of annual payments to be made

for the benefit of:

               (I) Each person named in NAC 693A.380;

               (II) Directors and officers as a group;

and

               (III) Employees as a group.

     2.  If the plan to be acted upon may be

amended, other than by a vote of security holders, in a manner which would

materially increase the cost thereof to the insurer or materially alter the

allocation of the benefits between the groups specified in paragraph (b)

subparagraph (3) of this section, the nature of the amendments must be

specified.

     [Comm’r of Insurance, Schedule A item 9, eff. 5-13-72]

      NAC 693A.410  Options, warrants and rights. (NRS 679B.130)  If

action is to be taken with respect to the granting or extension of any

warrants, including options or other rights, to purchase securities of the

insurer or any subsidiary or affiliate, other than warrants issued to all

security holders on a pro rata basis, the following information is required:

     1.  The title and amount of securities called

for or to be called for, the prices, expiration dates and other material

conditions upon which the warrants may be exercised, the consideration received

or to be received by the insurer, subsidiary or affiliate for the granting or

extension of the warrants and the market value of the securities called for or

to be called for by the warrants, as of the latest practicable date.

     2.  If the amount is known, a separate

statement of the total amount of securities called for or to be called for by

warrants received or to be received by the following persons, naming each

person:

     (a) Each person named in NAC

693A.380; and

     (b) Each other person who will be entitled to

acquire 5 percent or more of the securities called for or to be called for by

such warrants.

     3.  If the amount is known, a separate

statement of the total amount of securities called for or to be called for by

such warrants, received or to be received by all directors and officers of the

company as a group and all employees, without naming the members of each group.

     [Comm’r of Insurance, Schedule A item 10, eff. 5-13-72]

      NAC 693A.420  Authorization or issue of securities. (NRS 679B.130)

     1.  If action is to be taken with respect to

the authorization or issuance of any securities of the insurer, the title, amount

and description of the securities to be authorized or issued must be furnished.

     2.  If the securities are other than

additional shares of common stock of a class outstanding, a brief summary of

dividend, voting, liquidation, preemptive and conversion rights, redemption and

sinking fund provisions, interest rate and date of maturity must be furnished

if applicable.

     3.  If the securities to be authorized or

issued are other than additional shares of common stock of a class outstanding,

the Commissioner of Insurance may require financial statements comparable to

those contained in the annual report.

     [Comm’r of Insurance, Schedule A item 11, eff. 5-13-72]

      NAC 693A.430  Mergers, consolidations and acquisitions. (NRS 679B.130)

     1.  If action is to be taken with respect to

a merger, consolidation, acquisition or similar matter, the following

information outlined briefly must be furnished:

     (a) The rights of appraisal or similar rights of

dissenters with respect to any matters to be acted upon, and any procedure

required to be followed by dissenting security holders in order to perfect such

rights.

     (b) The material features of the plan or agreement.

     (c) The business done by the company to be acquired

or whose assets are being acquired.

     (d) If available, the high and low sales prices for

each quarterly period within 2 years.

     (e) The percentage of outstanding shares which must

approve the transaction before it may be consummated.

     2.  For each company involved in a merger,

consolidation or acquisition, the following financial statements must be

furnished:

     (a) A comparative balance sheet as of the close of

the last 2 fiscal years.

     (b) A comparative statement of operating income and

expenses for each of the last 2 fiscal years and, as a continuation of each

statement, a statement of earnings per share after related taxes and cash

dividends paid per share.

     (c) A pro forma combined balance sheet and income

and expenses statement for the last fiscal year giving effect to the necessary

adjustments with respect to the resulting company.

     [Comm’r of Insurance, Schedule A item 12, eff. 5-13-72]

      NAC 693A.440  Restatements of accounts. (NRS 679B.130)  If

action is to be taken with respect to the restatement of an asset, capital or

surplus account of the insurer, the following information must be furnished:

     1.  The nature of the restatement and the

date on which it is to become effective.

     2.  A brief outline of the reasons for the

restatement and for the selection of the particular effective date.

     3.  The name and amount of each account

affected by the restatement and the effect of the restatement thereon.

     [Comm’r of Insurance, Schedule A item 13, eff. 5-13-72]

      NAC 693A.450  Other information. (NRS 679B.130)  If

action is to be taken with respect to any matter which is not required to be

submitted to a vote of security holders, the statement must state the nature of

the matter, the reason for submitting it to a vote of security holders and what

action is intended to be taken by the management in the event of a negative

vote on the matter by the security holders.

     [Comm’r of Insurance, Schedule A item 14, eff. 5-13-72]

      NAC 693A.460  Amendments to charter and bylaws.

(NRS 679B.130)  If

action is to be taken with respect to any amendment of the insurer’s charter,

bylaws or other documents as to which information is not required by NAC 693A.010 to 693A.560,

inclusive, the statement must show the reasons for, and general effect of, the

amendment and the vote needed for its approval.

     [Comm’r of Insurance, Schedule A item 15, eff. 5-13-72]—(NAC

A 6-28-96)

PROXIES

      NAC 693A.510  Election contests. (NRS 679B.130, 693A.100)  The

information set forth in NAC 693A.520 to 693A.560, inclusive, is required for statements filed

by or on behalf of a participant other than the insurer, as part of a proxy

solicitation for an election contest.

     (Comm’r of Insurance, M-4, supplied in codification)

ELECTION CONTESTS

      NAC 693A.520  Insurer name and address. (NRS 679B.130)  The

report required by NAC 693A.510 must contain the

name and address of the insurer.

     [Comm’r of Insurance, Schedule B item 1, eff. 5-13-72]

      NAC 693A.530  Contestant name and background. (NRS 679B.130)  A report

required by NAC 693A.210 to 693A.250, inclusive, must contain the following

information about the contestant:

     1.  Name and business address.

     2.  Present principal occupation or

employment and the name, principal business and address of any corporation or

other organization in which employment is carried on.

     3.  Residence address of the contestant.

     4.  Information as to all material

occupations, positions, offices or employments during the last 10 years, giving

starting and ending dates of each and the name, principal business and address

of any business corporation or other business organization in which each occupation,

position, office or employment was carried on.

     5.  Whether or not the contestant is or has

been a participant in any other proxy contest involving this company or other

companies within the past 10 years. If so, the identity of the principals, the

subject matter and relationship to the parties and the outcome.

     6.  Whether or not, during the past 10 years,

the contestant has been convicted in a criminal proceeding (excluding traffic

violations or similar misdemeanors) and, if so, the dates, nature of conviction,

name and location of court, and penalty imposed or other disposition of the

case. A negative report of the information required by this subsection need not

be included in the proxy statement or other proxy soliciting material.

     [Comm’r of Insurance, Schedule B item 2, eff. 5-13-72]

      NAC 693A.540  Interest of the contestant. (NRS 679B.130)  The

contestant shall include as part of his or her statement the following

information:

     1.  The amount of each class of securities of

the insurer owned beneficially, directly or indirectly.

     2.  The amount of each class of securities of

the insurer owned of record but not beneficially.

     3.  With respect to all securities of the

insurer purchased or sold within the past 2 years, the dates on which they were

purchased or sold and the amount purchased or sold on each such date.

     4.  If any part of the purchase price or

market value of any of the securities specified in subsection 3 is represented by

money borrowed or otherwise obtained for the purpose of acquiring or holding

such securities, a statement of the amount of the indebtedness as of the latest

practicable date. If the money was borrowed or obtained otherwise than pursuant

to a margin account or bank loan in the regular course of business of a bank,

broker or dealer, a brief description of the transaction, and the names of the

parties.

     5.  Whether or not the contestant is a party

to any contracts, arrangements or understandings with any person with respect

to any securities of the insurer, including but not limited to joint ventures,

loan or option arrangements, puts or calls, guarantees against losses or

guarantees of profits, division of losses or profits, or the giving or

withholding of proxies. If so, the names of persons with whom the contracts,

arrangements of understandings exist and the details thereof.

     6.  A statement of the amount of securities

of the insurer owned beneficially, directly or indirectly, by each of the

associates of the contestant and the name and address of each associate.

     7.  A statement of the amount of each class

of securities of any parent, subsidiary or affiliate of the insurer which the

contestant owns beneficially, directly or indirectly.

     [Comm’r of Insurance, Schedule B item 3, eff. 5-13-72]

      NAC 693A.550  Other information. (NRS 679B.130)

     1.  A statement of the time and circumstances

under which each contestant became a participant in the solicitation and the

nature and extent of his or her activities as a participant.

     2.  A brief description of, and where

practicable a statement of the approximate amount of, any material interest,

direct or indirect, of the contestant and of each of his or her associates in

any material transactions since the beginning of the company’s last fiscal

year, or in any material proposed transactions, to which the company or any of

its subsidiaries or affiliates was or is to be a party.

     3.  A statement showing whether or not the

contestant or any of his or her associates have any arrangement or

understanding with any person:

     (a) With respect to any future employment by the

insurer or its subsidiaries or affiliates; or

     (b) With respect to any future transactions to

which the insurer or any of its subsidiaries or affiliates will or may be a

party,

Ê and if so, a

description of the arrangement or understanding and the names of the parties

thereto.

     [Comm’r of Insurance, Schedule B item 4, eff. 5-13-72]

      NAC 693A.560  Signature of statements. (NRS 679B.130)  The

statement must be dated and signed in substantially the following manner:

 

I certify that all the information

contained in this statement is true, complete and correct, to the best of my

knowledge and belief.

 

.................................................................                      ...........................................................

                                     (Date)                                                         (Signature

of participant or

                                                                                                         authorized

representative)

 

     [Comm’r of Insurance, Schedule B item 5, eff. 5-13-72]

MANAGEMENT AND AGENCY CONTRACTS OF CONTROLLED INSURERS

      NAC 693A.600  Definitions. (NRS 679B.130, 693A.110)  As used

in NAC 693A.600 to 693A.770,

inclusive, unless the context otherwise requires, the words and terms defined

in NAC 693A.610 to 693A.660,

inclusive, have the meanings ascribed to them in those sections.

     (Added to NAC by Comm’r of Insurance, eff. 6-28-96)

      NAC 693A.610  “Accredited state” defined. (NRS 679B.130, 693A.110)  “Accredited

state” means a state in which the agency which regulates insurance in that

state has qualified as meeting the minimum financial regulatory standards

established by the National Association of Insurance Commissioners.

     (Added to NAC by Comm’r of Insurance, eff. 6-28-96)

      NAC 693A.620  “Broker” defined. (NRS 679B.130, 693A.110)  “Broker”

has the meaning ascribed to it in NRS

683A.321.

     (Added to NAC by Comm’r of Insurance, eff. 6-28-96; A

by R054-12, 11-1-2012)

      NAC 693A.630  “Captive insurer” defined. (NRS 679B.130, 693A.110)  “Captive

insurer” means an insurance company which is owned by:

     1.  A parent organization and whose exclusive

purpose is to insure risks of the parent organization and any affiliated

companies of the parent organization; or

     2.  More than one insured and whose exclusive

purpose is to insure risks of the insureds and members of the insureds, if any,

and any affiliates of the insureds or the members of the insureds.

     (Added to NAC by Comm’r of Insurance, eff. 6-28-96)

      NAC 693A.640  “Control” and “controlled” defined. (NRS 679B.130,

693A.110)  “Control”

or “controlled” means the possession, directly or indirectly, of the power to

direct or cause the direction of the management and policies of a controlled

insurer, whether through the ownership of voting securities, by contract other

than a commercial contract for goods or nonmanagement services or otherwise, unless

the power is the result of an official position with or corporate office held

by the controlled insurer, if the person possessing that power placed, in a

calendar year, an aggregate amount of gross written premiums on business with

the controlled insurer that is equal to or greater than 5 percent of the assets

of the controlled insurer that were reported in the controlled insurer’s annual

statement filed with the Commissioner as of March 1 preceding.

     (Added to NAC by Comm’r of Insurance, eff. 6-28-96)

      NAC 693A.650  “Controlling broker” defined. (NRS 679B.130, 693A.110)  “Controlling

broker” means a broker who controls an insurer.

     (Added to NAC by Comm’r of Insurance, eff. 6-28-96)

      NAC 693A.660  “Controlled insurer” defined. (NRS 679B.130, 693A.110)  “Controlled

insurer” means a licensed insurer which is domiciled in this State or an

insurer which is domiciled in a state that is not an accredited state and which

is controlled by a broker. The term does not include:

     1.  Risk retention groups covered by 15

U.S.C. § 3902, 42 U.S.C. § 9673 and chapter

695E of NRS;

     2.  Residual market pools;

     3.  Joint underwriting authorities or

associations; and

     4.  Captive insurers.

     (Added to NAC by Comm’r of Insurance, eff. 6-28-96)

      NAC 693A.670  Applicability. (NRS 679B.130, 693A.110)  The

provisions of NAC 693A.600 to 693A.770, inclusive, do not apply if:

     1.  A controlling broker:

     (a) Places insurance only with a controlled

insurer, or only with the controlled insurer and an affiliate of the controlled

insurer, and receives no compensation based upon the amount of premiums written

in connection with that insurance; and

     (b) Accepts insurance only from other nonaffiliated

brokers and not directly from insureds; and

     2.  The controlled insurer, except for

insurance business written through a residual market plan, accepts insurance

business only from a controlling broker or a broker that is a subsidiary of the

controlled insurer.

     (Added to NAC by Comm’r of Insurance, eff. 6-28-96)

      NAC 693A.680  Written contract specifying responsibilities of controlling

broker and controlled insurer. (NRS 679B.130, 693A.110)

     1.  A controlled insurer shall not accept

insurance business from a controlling broker and a controlling broker shall not

place insurance with a controlled insurer unless there is a written contract,

which has been approved by the board of directors of the controlled insurer,

between the controlling broker and the controlled insurer that specifies the

responsibilities of each party.

     2.  Such a contract must contain a provision

that allows a controlled insurer, upon written notice to a controlling broker,

to terminate the contract for cause. The controlled insurer shall not accept

insurance business from the controlling broker during the pendency of any

dispute regarding the cause for the termination of the contract.

     3.  A controlling broker shall not assign, in

whole or in part, a contract entered into pursuant to subsection 1.

     (Added to NAC by Comm’r of Insurance, eff. 6-28-96)

      NAC 693A.690  Responsibilities of controlling broker: Accounting to controlled

insurer; remission of money to controlled insurer; holding of money for

controlled insurer; maintenance of records for controlled insurer. (NRS 679B.130,

693A.110)

     1.  A controlling broker shall provide an

accounting to a controlled insurer that sets forth all material transactions

executed by the controlling broker that affect the controlled insurer,

including information necessary to identify and explain all commissions,

charges and other fees already received by the controlling broker or still

owing by the controlled insurer to the controlling broker.

     2.  A controlling broker shall remit all money

due under the terms of a contract entered into with a controlled insurer to the

controlled insurer at least once each month on a date agreed to by the parties.

Premiums or installments thereof must be remitted to the controlled insurer no

later than 90 days after the effective date of any policy of insurance placed

with the controlled insurer pursuant to the contract.

     3.  Except as otherwise provided in this

subsection, all money collected by a controlling broker for a controlled

insurer must be held by the controlling broker in a fiduciary capacity, in one

or more bank accounts established for the controlled insurer in banks that are

members of the Federal Reserve System. A controlling broker which is not

required to be licensed in this State shall hold money for the controlled

insurer in compliance with the requirements of the controlling broker’s

domiciliary jurisdiction.

     4.  A controlling broker shall maintain

records of all insurance business written for a controlled insurer separate

from all other records of the controlling broker.

     (Added to NAC by Comm’r of Insurance, eff. 6-28-96)

      NAC 693A.700  Standards, rules, procedures, rates and conditions of controlled

insurer; rates of commissions, charges and other fees of controlling broker. (NRS 679B.130,

693A.110)

     1.  A controlled insurer shall provide to the

controlling broker its underwriting standards, rules, procedures and manuals

setting forth the rates to be charged and the conditions for the acceptance or

rejection of risks. The controlling broker shall adhere to the standards,

rules, procedures, rates and conditions of the controlled insurer. The

standards, rules, procedures, rates and conditions of the controlled insurer

must be the same as those the insurer applies to comparable business placed

with the controlled insurer by a broker other than the controlling broker.

     2.  The contract between the controlling broker

and the controlled insurer must specify the rates and terms of the controlling

broker’s commissions, charges or other fees and the purposes for those

commissions, charges and fees. The rates of the commissions, charges and other

fees must not be greater than those applicable to comparable business placed

with the controlled insurer by brokers other than the controlling broker.

     3.  As used in this section, “comparable

business” includes insurance of the same lines, insurance of the same kinds,

risks of the same kinds, limits on policies of insurance that are similar and

business of a similar quality to the business between the controlling broker

and the controlled insurer.

     (Added to NAC by Comm’r of Insurance, eff. 6-28-96)

      NAC 693A.710  Conditions for payments of compensation or commissions. (NRS 679B.130,

693A.110)

     1.  If a contract between a controlling

broker and a controlled insurer provides that the controlling broker is to be

compensated for insurance business placed with the controlled insurer

contingent upon the controlled insurer making a profit on that business, the

compensation may not be determined or paid:

     (a) If the insurance is liability insurance, for at

least 5 years after the premiums on the insurance are earned.

     (b) If the insurance is other than liability

insurance, for at least 1 year after the premiums are earned on the insurance.

     2.  Any commissions owed to a controlling

broker may not be paid until the adequacy of the controlled insurer’s reserves

on remaining claims has been independently verified pursuant to subsection 1 of

NAC 693A.750.

     (Added to NAC by Comm’r of Insurance, eff. 6-28-96)

      NAC 693A.720  Limit on writings of controlling broker: Provision; notification. (NRS 679B.130,

693A.110)

     1.  A contract between a controlling broker

and a controlled insurer must provide a limit on the controlling broker’s

writings that is within the limit on the controlled insurer’s total writings. A

different limit for each line or subline of insurance may be established in the

contract.

     2.  A controlled insurer shall notify the

controlling broker when the broker is approaching the limit established

pursuant to subsection 1. The controlled insurer shall not accept insurance

business from the controlling broker if the broker has reached the limit. The

controlling broker shall not place insurance business with the controlled

insurer if the broker has been notified by the controlled insurer that he or

she has reached his or her limit.

     (Added to NAC by Comm’r of Insurance, eff. 6-28-96)

      NAC 693A.730  Reinsurance by controlled insurer; contents of guidelines for

underwriting. (NRS 679B.130, 693A.110)  Except

as otherwise provided in this section, a controlling broker may negotiate for

but shall not require a controlled insurer to reinsure business that the

controlling broker places with the controlled insurer. The controlling broker

may require the controlled insurer to enter into contracts for facultative

reinsurance pursuant to obligatory facultative agreements if the written

contract between the controlling broker and the controlled insurer contains

guidelines for underwriting. If the reinsurance has been ceded and assumed, the

guidelines for underwriting must include a list of reinsurers with whom

obligatory facultative agreements are in effect, the coverages and amounts or

percentages that may be reinsured and a schedule of commissions.

     (Added to NAC by Comm’r of Insurance, eff. 6-28-96)

      NAC 693A.740  Audit committee: Establishment, composition; duties. (NRS 679B.130,

693A.110)

     1.  The board of directors of a controlled

insurer shall establish an audit committee composed of directors who are not

officers, employees or direct stockholders of the controlled insurer.

     2.  The audit committee shall meet annually

with the chief executive officer of the controlled insurer, the independent

certified public accountants of the controlled insurer, and an independent

casualty actuary or other professional who is an independent specialist on

reserves for losses and who is acceptable to the Commissioner, to review and

determine if the controlled insurer’s reserves for losses are adequate. The

audit committee shall report the results of the determination to the board of

directors.

     (Added to NAC by Comm’r of Insurance, eff. 6-28-96)

      NAC 693A.750  Required filing and reporting by controlled insurer. (NRS 679B.130,

693A.110)

     1.  In addition to any other required

certification of reserves for losses, a controlled insurer shall, on April 1 of

each year, file with the Commissioner an opinion of an independent actuary or

other independent specialist on reserves for losses who is acceptable to the

Commissioner, a report of loss ratios for each line of insurance written which

attests to the adequacy of reserves established for losses incurred and

outstanding as of December 31, preceding, including the losses incurred but not

reported on insurance business placed with the controlled insurer by his or her

controlling broker.

     2.  The controlled insurer shall report

annually to the Commissioner the amount of commissions paid to the controlling

broker, the percentage which the amount represents of the net premiums written,

and comparable amounts and percentages paid to noncontrolling brokers for

placements of the same kinds of insurance.

     (Added to NAC by Comm’r of Insurance, eff. 6-28-96)

      NAC 693A.760  Notice of relationship between controlling broker and controlled

insurer; statement required if business is placed through broker who is not

controlling broker. (NRS 679B.130, 693A.110)

     1.  A controlling broker, before the

effective date of a policy of insurance, shall deliver written notice to the

prospective insured that discloses the relationship between the controlling

broker and the controlled insurer.

     2.  If a controlling broker places insurance

business through a broker who is not a controlling broker, the controlling

broker shall retain in his or her records a signed statement from the other broker

indicating that the other broker is aware of the relationship between the

controlling broker and the controlled insurer and will notify the insured of

the relationship.

     (Added to NAC by Comm’r of Insurance, eff. 6-28-96)

      NAC 693A.770  Procedure upon noncompliance with certain provisions. (NRS 679B.130,

693A.110)

     1.  If the Commissioner believes that a

controlling broker has not complied with a provision of NAC

693A.600 to 693A.770, inclusive, or any order

issued pursuant to those sections, the Commissioner may:

     (a) After giving notice and an opportunity to be

heard pursuant to NRS 679B.310

to 679B.370, inclusive, order

the controlling broker to cease placing insurance business with a controlled

insurer.

     (b) Invoke the aid of the courts to enjoin an

existing or threatened violation of a provision of NAC

693A.600 to 693A.770, inclusive, or to enforce

an order made pursuant to paragraph (a).

     2.  If an order for liquidation or

rehabilitation of the controlled insurer has been entered pursuant to chapter 696B of NRS and the

Commissioner, acting as domiciliary receiver, believes that the controlling

broker has not complied with a provision of NAC

693A.600 to 693A.770, inclusive, or any order

issued pursuant to those sections, and the controlled insurer suffered a loss

or damage therefrom, the receiver may, on behalf of the controlled insurer and

pursuant to NRS 696B.290,

maintain a civil action to recover compensatory damages or obtain other

appropriate relief against the controlling broker.

     3.  This section does not affect:

     (a) The right of the Commissioner to impose any

other penalties provided for in title 57 of NRS; or

     (b) The rights of policyholders, claimants,

creditors or other third parties to maintain any civil action against a

controlling broker.

     (Added to NAC by Comm’r of Insurance, eff. 6-28-96)
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