Published: 2015
Key Benefits:
[Rev. 8/27/2018 12:30:07 PM]
[NAC-692C Revised Date: 8-18]
CHAPTER 692C - INSURANCE: HOLDING COMPANIES
692C.010 “Commissioner” defined.
692C.015 Severability.
692C.020 Form for filing statement relating to acquisition or merger; notification to Commissioner of change in information.
692C.030 Forms for filing registration statement; amendment to form if change in information.
692C.035 Filing registration statement or similar report on behalf of affiliated insurer; filing consolidated statement or report.
692C.040 Form for notice of intent to enter into transaction.
692C.045 Potential competitive impact of proposed merger or acquisition: Required notice and form; additional information.
692C.050 Additional information relating to acquisitions, mergers, registration and transactions.
692C.055 Form for filing annual report of enterprise risk; amendment to form if change in information; “principal of a registered insurer” interpreted.
692C.060 Agreement between registered insurer and affiliate for sharing cost of services or for management services.
692C.070 Authority to organize or acquire subsidiary.
NAC 692C.010 “Commissioner” defined. As used in this chapter, unless the context otherwise requires, “Commissioner” means the Commissioner of Insurance.
(Supplied in codification)
NAC 692C.015 Severability. (NRS 679B.130, 692C.120) If any provision of this chapter or the application thereof to any person or circumstance is held invalid, such invalidity does not affect the provisions or application of this chapter that can be given effect without the invalid provision or application, and to this end the provisions of this chapter are declared to be severable.
(Added to NAC by Comm’r of Insurance by R026-02, eff. 5-31-2002)
NAC 692C.020 Form for filing statement relating to acquisition or merger; notification to Commissioner of change in information. (NRS 679B.130, 692C.120, 692C.180)
1. A person required to file a statement with the Commissioner pursuant to NRS 692C.180 shall furnish the required information on the form provided by the Commissioner entitled “Form A - Statement Regarding the Acquisition of Control of or Merger with a Domestic Insurer.”
2. If the subject of the proposed acquisition is deemed to be a domestic insurer pursuant to subsection 5 of NRS 692C.180 solely because it controls a domestic insurer:
(a) The names of the domestic insurers must be shown on the cover page of Form A in substantially the following form:
........................................................ , a subsidiary of ............................................................... .
(domestic insurer) (subject of proposed acquisition)
(b) For the purposes of Form A, the term “insurer” means the subject of the proposed acquisition and its subsidiary.
3. The person may attach any exhibit to the form if the exhibit is clearly marked to indicate the matter to which it refers.
4. If there is any change in the information provided on the form filed with the Commissioner before the Commissioner approves or disapproves the merger or other acquisition of control, the person shall immediately notify the Commissioner of that change.
5. Form A must be completed in accordance with the current version of the Insurance Holding Company System Reporting Instructions of the National Association of Insurance Commissioners and the instructions provided by the Commissioner. A copy of Form A and the general instructions for Form A may be obtained at http://doi.nv.gov.
(Added to NAC by Comm’r of Insurance, eff. 4-25-96; A by R026-02, 5-31-2002; R078-16, 12-21-2016)
NAC 692C.030 Forms for filing registration statement; amendment to form if change in information. (NRS 679B.130, 692C.120, 692C.270, 692C.310, 692C.320)
1. Except as otherwise provided in NAC 692C.035, an insurer required to file a registration statement with the Commissioner pursuant to NRS 692C.270 shall furnish the required information on the forms provided by the Commissioner entitled “Form B - Insurance Holding Company System Annual Registration Statement” and “Form C - Summary of Registration Statement.” A domestic insurer shall file Form B and Form C with the Commissioner not later than June 30 of each year. An insurer shall file Form C with the agency that regulates insurance in each state in which the insurer is authorized to do business, if the information is requested by that agency.
2. The insurer may attach any exhibit to the form if the exhibit is clearly marked to indicate the matter to which it refers.
3. If there is any change in the information provided on Form B, the insurer shall file an amendment to that form within 15 days after the month in which the change occurred. The insurer shall file the amendment on that form by completing only those items which were affected by the change and by including, at the top of the first page of the form, “Amendment No. ........ (number of amendment) to Form B for ........ (year)” and the day and month on which the change occurred.
4. Form B and Form C must be completed in accordance with the current version of the Insurance Holding Company System Reporting Instructions of the National Association of Insurance Commissioners and the instructions provided by the Commissioner. A copy of Form B and Form C and the general instructions for Form B and Form C may be obtained at http://doi.nv.gov.
(Added to NAC by Comm’r of Insurance, eff. 4-25-96; A by R026-02, 5-31-2002; R078-16, 12-21-2016)
NAC 692C.035 Filing registration statement or similar report on behalf of affiliated insurer; filing consolidated statement or report. (NRS 679B.130, 692C.120, 692C.270, 692C.310, 692C.320)
1. Except as otherwise provided in subsection 4:
(a) An authorized insurer may file a registration statement on behalf of any affiliated insurer that is required to register pursuant to NRS 692C.260 to 692C.350, inclusive. A registration statement may include information not required pursuant to chapter 692C of NRS regarding any insurer in the insurance holding company system even if the insurer is not authorized to do business in this State. Except as otherwise provided in paragraph (b), the registration statement must be filed on Form B, as set forth in NAC 692C.030.
(b) In lieu of filing a registration statement on Form B, an authorized insurer may file a copy of the registration statement or similar report that it is required to file in its state of domicile if:
(1) The statement or report includes information that is substantially similar to the information required to be furnished on Form B; and
(2) The authorized insurer is the principal insurance company in the insurance holding company system.
2. The question of whether an authorized insurer is the principal insurance company in an insurance holding company system is a question of fact, and an authorized insurer filing a registration statement or report in lieu of Form B on behalf of an affiliated insurer shall set forth a brief statement of facts which substantiates the authorized insurer’s claim that it is the principal insurer in the insurance holding company system.
3. After obtaining the approval of the Commissioner, an unauthorized insurer may file a registration statement or report in accordance with the provisions of subsections 1 and 2.
4. An affiliated insurer is not required to obtain the approval of the Commissioner before filing a consolidated statement or report or taking any other action that may be allowed by the Commissioner pursuant to NRS 692C.310 or 692C.320. The Commissioner may, however, require each affiliated insurer to provide any required information on an individual basis if the Commissioner determines it is necessary in the interest of clarity, ease of administration or the public good.
(Added to NAC by Comm’r of Insurance by R078-16, eff. 12-21-2016)
NAC 692C.040 Form for notice of intent to enter into transaction. (NRS 679B.130, 692C.120, 692C.363)
1. An insurer required to give notice to the Commissioner of its intention to enter into any transaction set forth in NRS 692C.363 shall furnish the required information on the form provided by the Commissioner entitled “Form D - Prior Notice of a Transaction.” The insurer may attach any exhibit to the form if the exhibit is clearly marked to indicate the matter to which it refers.
2. Form D must be completed in accordance with the current version of the Insurance Holding Company System Reporting Instructions of the National Association of Insurance Commissioners and the instructions provided by the Commissioner. A copy of Form D and the general instructions for Form D may be obtained at http://doi.nv.gov.
(Added to NAC by Comm’r of Insurance, eff. 4-25-96; A by R026-02, 5-31-2002; R078-16, 12-21-2016)
NAC 692C.045 Potential competitive impact of proposed merger or acquisition: Required notice and form; additional information. (NRS 679B.130, 692C.120, 692C.254)
1. An insurer shall give notice to the Commissioner of the potential competitive impact of a proposed merger or acquisition by a non-domiciliary insurer doing business in this state or by a domestic insurer on the form provided by the Commissioner entitled “Form E - Pre-Acquisition Notification Form Regarding the Potential Competitive Impact of a Proposed Merger or Acquisition by a Non-Domiciliary Insurer Doing Business in this State or by a Domestic Insurer.”
2. Form E must be completed in accordance with the current version of the Insurance Holding Company System Reporting Instructions of the National Association of Insurance Commissioners and the instructions provided by the Commissioner. A copy of Form E and the general instructions for Form E may be obtained at http://doi.nv.gov.
3. In addition to the information required by Form E, the Commissioner may require an insurer to submit the opinion of an expert concerning the potential competitive impact of the proposed merger or acquisition.
(Added to NAC by Comm’r of Insurance by R026-02, eff. 5-31-2002; A by R078-16, 12-21-2016)
NAC 692C.050 Additional information relating to acquisitions, mergers, registration and transactions. (NRS 679B.130, 692C.120) After receiving any form specified in NAC 692C.020 to 692C.045, inclusive, the Commissioner may request additional information if it is necessary to clarify any information included on the form.
(Added to NAC by Comm’r of Insurance, eff. 4-25-96; A by R026-02, 5-31-2002)
NAC 692C.055 Form for filing annual report of enterprise risk; amendment to form if change in information; “principal of a registered insurer” interpreted. (NRS 679B.130, 692C.120, 692C.290)
1. The principal of a registered insurer that is required to file an annual report of enterprise risk with the Commissioner pursuant to NRS 692C.290 shall furnish the required information on the form provided by the Commissioner entitled “Form F - Enterprise Risk Report.” The principal shall file Form F with the Commissioner not later than June 30 of each year.
2. The insurer may attach any exhibit to the form if the exhibit is clearly marked to indicate the matter to which it refers.
3. If there is any change in the information provided on Form F, the insurer shall file an amendment to that form within 15 days after the end of the month in which the change occurred. The insurer shall file the amendment on that form by completing only those items which were affected by the change and by including, at the top of the first page of the form, “Amendment No. ........ (number of amendment) to Form F for ........ (year)” and the day and month on which the change occurred.
4. Form F must be completed in accordance with the current version of the Insurance Holding Company System Reporting Instructions of the National Association of Insurance Commissioners and the instructions provided by the Commissioner. A copy of Form F and the general instructions for Form F may be obtained at http://doi.nv.gov.
5. For the purposes of this section and NRS 692C.290, the Commissioner interprets the term “principal of a registered insurer” to mean a person who controls a registered insurer and is not controlled by any other person.
(Added to NAC by Comm’r of Insurance by R078-16, eff. 12-21-2016)
NAC 692C.060 Agreement between registered insurer and affiliate for sharing cost of services or for management services. (NRS 679B.130, 692C.120, 692C.360) Any agreement between a registered insurer and an affiliate for sharing the cost of services or for management services must, to the extent applicable:
1. Identify the person providing the services and the nature of those services;
2. Set forth the methods to allocate each cost;
3. Require:
(a) Timely settlement, not less frequently than quarterly; and
(b) Compliance with the requirements set forth in the Accounting Practices and Procedures Manual published by the National Association of Insurance Commissioners, as adopted by reference in NAC 679B.033;
4. Prohibit any advancement of money by the insurer to the affiliate, except to pay for services defined in the agreement;
5. State that the insurer will:
(a) Maintain oversight for any functions performed for the insurer by the affiliate; and
(b) Monitor services at least annually for quality assurance;
6. Define books and records of the insurer to include, without limitation, all books and records developed or maintained under or related to the agreement;
7. Specify that all books and records of the insurer are and remain the property of the insurer and are subject to the control of the insurer;
8. State that all money and invested assets of the insurer are the exclusive property of the insurer, are held for the benefit of the insurer and are subject to the control of the insurer;
9. Include standards for the termination of the agreement with and without cause;
10. Include provisions for the indemnification of the insurer in the event of gross negligence or willful misconduct on the part of the affiliate providing the services;
11. Specify that, if the insurer is placed in receivership or seized by the Commissioner pursuant to chapter 696B of NRS:
(a) All of the rights of the insurer under the agreement extend to the receiver or Commissioner; and
(b) All relevant books and records will immediately be made available to the receiver or the Commissioner, and must be turned over to the receiver or Commissioner immediately upon the receiver’s or Commissioner’s request;
12. Specify that the affiliate has no automatic right to terminate the agreement if the insurer is placed in receivership pursuant to chapter 696B of NRS; and
13. Specify that the affiliate will continue to maintain any systems, programs or other infrastructure related to the agreement, notwithstanding a seizure of the insurer by the Commissioner pursuant to chapter 696B of NRS, and will make them available to the receiver while the affiliate continues to receive timely payment for services rendered.
(Added to NAC by Comm’r of Insurance by R078-16, eff. 12-21-2016)
NAC 692C.070 Authority to organize or acquire subsidiary. (NRS 679B.130, 692C.120, 692C.130) Except as otherwise provided by specific statute, the authority to organize or acquire one or more subsidiaries conferred on a domestic insurer by NRS 692C.130 is in addition to any authority to invest in a subsidiary conferred on a domestic insurer by any other provision of title 57 of NRS.
(Added to NAC by Comm’r of Insurance by R078-16, eff. 12-21-2016)
