Nrs: Chapter 680A - Authorization Of Insurers And General Requirements

Link to law: https://www.leg.state.nv.us/NRS/NRS-680A.html
Published: 2015

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[Rev. 2/11/2015 11:49:22

AM--2014R2]

CHAPTER 680A - AUTHORIZATION OF INSURERS

AND GENERAL REQUIREMENTS

NRS 680A.010        Definitions.



NRS 680A.020        “Charter”

defined.

NRS 680A.030        “Mutual”

insurer defined.

NRS 680A.040        “Reciprocal”

insurer defined.

NRS 680A.050        “Stock”

insurer defined.

NRS 680A.060        Certificate

of authority required; penalty.

NRS 680A.070        Exceptions

to requirement of certificate of authority.

NRS 680A.080        Eligibility

for certificate of authority: General requirements.

NRS 680A.090        Eligibility

for certificate of authority: Ownership; management.

NRS 680A.095        Certificate

of authority required to transact reinsurance; eligibility for certificate;

exceptions.

NRS 680A.100        Name

of insurer.

NRS 680A.110        Combinations

of insuring powers.

NRS 680A.120        Required

capital.

NRS 680A.130        Combinations

of insurance for which additional capital not required.

NRS 680A.140        Required

deposit; deposit in other state.

NRS 680A.150        Application

for certificate of authority.

NRS 680A.155        Payment

of taxes and penalties by certain applicants.

NRS 680A.160        Issuance

or refusal of certificate; contents and ownership of certificate.

NRS 680A.170        Amended

certificate of authority.

NRS 680A.173        Transfer

of insurer’s domicile: Foreign insurer may become domestic insurer.

NRS 680A.175        Transfer

of insurer’s domicile: Termination of status as domestic insurer; qualification

as foreign insurer.

NRS 680A.177        Transfer

of insurer’s domicile: Duties of insurer; effect on policies.

NRS 680A.180        Continuance,

expiration and reinstatement of certificate of authority.

NRS 680A.190        Suspension

or revocation of certificate of authority: Mandatory grounds.

NRS 680A.200        Suspension,

limitation or revocation of certificate of authority: Grounds; notice.

NRS 680A.205        Determination

of hazardous financial condition of insurer: Regulations; hearing; disciplinary

actions; review of order.

NRS 680A.210        Order

and notice of suspension, limitation or revocation of certificate; effect on

agents’ authority.

NRS 680A.220        Duration

of suspension; insurer’s obligations during suspension period; reinstatement.

NRS 680A.230        Applicability

of general corporation laws to foreign insurers.

NRS 680A.240        Additional

titles.

NRS 680A.250        Commissioner

agent for service of process for certain insurers.

NRS 680A.260        Method

of serving process; extension of time to appear; record.

NRS 680A.265        Filing

of annual financial statement; reporting of violation of law found during

audit; penalty for failure to file statement; consolidation of statements

prohibited; regulations.

NRS 680A.270        Filing

of annual statement by authorized insurers; fee; regulations; confidentiality

of certain information.

NRS 680A.280        Penalties

for late or false annual statements.

NRS 680A.290        Loss

prevention reports and programs.

NRS 680A.300        Agent;

countersignature.

NRS 680A.310        Exceptions

to requirements for countersignature by agent.

NRS 680A.320        Transaction

with parent corporation, financial holding company, depository institution,

subsidiary or affiliated person.

NRS 680A.330        Retaliatory

provision.

_________

_________

 

      NRS 680A.010  Definitions.  As

used in this Code, unless the context otherwise requires, the words and terms

defined in NRS 680A.020 to 680A.050,

inclusive, shall have the meanings ascribed to them in NRS

680A.020 to 680A.050, inclusive.

      (Added to NRS by 1971, 1576)

      NRS 680A.020  “Charter” defined.  “Charter”

means certificate of incorporation, articles of incorporation, articles of

agreement, articles of association, charter granted by legislative act, or

other basic constituent document of a corporation, or the power of attorney of

the attorney-in-fact of a reciprocal insurer.

      (Added to NRS by 1971, 1576)

      NRS 680A.030  “Mutual” insurer defined.  A

“mutual” insurer is an incorporated insurer without capital stock and the

governing body of which is elected by its policyholders. This definition shall

not be deemed to exclude as “mutual” insurers certain foreign insurers found by

the Commissioner to be organized on the mutual plan under the laws of their

states of domicile, but having temporary share capital or providing for

election of the insurer’s governing body on a reasonable basis.

      (Added to NRS by 1971, 1576)

      NRS 680A.040  “Reciprocal” insurer defined.  A

“reciprocal” insurer is an unincorporated aggregation of subscribers operating

individually and collectively through an attorney-in-fact common to all such

persons to provide reciprocal insurance among themselves.

      (Added to NRS by 1971, 1576)

      NRS 680A.050  “Stock” insurer defined.  A

“stock” insurer is an incorporated insurer with its capital divided into shares

and owned by its stockholders.

      (Added to NRS by 1971, 1576)

      NRS 680A.060  Certificate of authority required; penalty.

      1.  A person shall not act as an insurer

and an insurer shall not transact insurance in this State by mail or otherwise,

except as authorized by a certificate of authority issued by the Commissioner

and then in full force, and except as to such transactions as are expressly

otherwise provided in this Code.

      2.  A domestic insurer and a foreign

insurer from offices or by personnel or facilities located in this State shall

not solicit insurance applications or otherwise transact insurance in another

state or country unless it holds a subsisting certificate of authority granted

to it by the Commissioner authorizing it to transact the same kind or kinds of

insurance in this State.

      3.  Any officer, director, agent,

representative or employee of any insurer who willfully authorizes, negotiates,

makes or issues any insurance contract in violation of this section is guilty

of a misdemeanor.

      (Added to NRS by 1971, 1576; A 1983, 684; 1985, 348)

      NRS 680A.070  Exceptions to requirement of certificate of authority.  A certificate of authority is not required of

an insurer with respect to any of the following:

      1.  Investigation, settlement or litigation

of claims under its policies lawfully written in this State, or liquidation of

assets and liabilities of the insurer, other than collection of new premiums,

all as resulting from its former authorized operations in this State.

      2.  Except as otherwise provided in

subsection 2 of NRS 680A.060, transactions

thereunder after issuance of a policy covering only subjects of insurance that

are not resident, located or expressly to be performed in this State at the

time of issuance, and lawfully solicited, written and delivered outside this

State.

      3.  Prosecution or defense of suits at law,

except that no insurer unlawfully transacting insurance in this State without a

certificate of authority may institute or maintain, other than defend, any

action at law or in equity in any court of this State, either directly or

through an assignee or successor in interest, to enforce any right, claim or

demand arising out of such an insurance transaction until the insurer, assignee

or successor has obtained a certificate of authority. This provision does not

apply to any suit or action by the receiver, rehabilitator or liquidator of

such an insurer, assignee or successor under laws similar to those contained in

chapter 696B of NRS.

      4.  Transactions pursuant to surplus lines

coverages lawfully written under chapter 685A

of NRS.

      5.  A suit, action or proceeding for the

enforcement or defense of its rights relative to its investments in this State.

      6.  Reinsurance, except as to a domestic

reinsurer or the reinsurance of a domestic insurer, unless the reinsurance is

authorized pursuant to subsection 1 of NRS

681A.110.

      7.  Transactions in this State involving

group life insurance, group health or blanket health insurance, or group

annuities where the master policy or contract of such groups was lawfully

solicited, issued and delivered pursuant to the laws of a state in which the

insurer was authorized to transact insurance, to a group organized for purposes

other than the procurement of insurance or to a group approved pursuant to NRS 688B.030 or 689B.026, and where the policyholder is

domiciled or otherwise has a bona fide situs.

      8.  The issuance of annuities by an

affiliate of an authorized insurer if the affiliate:

      (a) Is approved by the Commissioner;

      (b) Is organized as a nonprofit educational

corporation;

      (c) Issues annuities only to nonprofit

institutions of education and research; and

      (d) Reports and pays any premium tax on the

annuities required pursuant to chapter 680B

of NRS.

      9.  Transactions, other than for workers’

compensation insurance or for industrial insurance provided pursuant to chapters 616A to 617,

inclusive, of NRS, involving the procurement of excess liability insurance

above underlying liability coverage or self-insured retention of at least

$25,000,000, if procured from an unauthorized alien or foreign insurer who does

not solicit, negotiate or enter into such transactions in this State by any

means, and if procured by a person:

      (a) Whose total annual premiums for property and

casualty insurance, not including workers’ compensation or industrial

insurance, is $1,000,000 or more; and

      (b) Who employs 250 or more full-time employees.

Ê A person who

procures insurance in accordance with this subsection shall report and pay any

premium tax on the insurance required pursuant to NRS 680B.040.

      (Added to NRS by 1971, 1581; A 1985, 1058; 1987, 484, 642; 1989, 599; 1991, 861; 1997, 286; 1999, 400)

      NRS 680A.080  Eligibility for certificate of authority: General requirements.  To qualify for and hold authority to transact

insurance in this State, an insurer must be otherwise in compliance with this

Code and with its charter powers, and must be an incorporated stock or mutual

insurer, or a reciprocal insurer, of the same general type as may be formed as

a domestic insurer under this Code, except that:

      1.  No foreign insurer may be authorized to

transact insurance in this State which does not maintain reserves as required

by chapter 681B of NRS (assets and

liabilities), as applicable to the kind or kinds of insurance transacted by

such insurer, wherever transacted in the United States of America, or which

transacts business anywhere in the United States of America on the assessment

plan, or stipulated premium plan, or any similar plan.

      2.  No insurer may be authorized to

transact a kind of insurance in this State unless duly authorized or qualified

to transact such insurance in the state or country of its domicile.

      3.  No insurer may be authorized to

transact in this State any kind of insurance which is not within the

definitions as set forth in NRS 681A.010

to 681A.080, inclusive (kinds of

insurance).

      4.  No such authority may be granted or

continued to any insurer while in arrears to the State for fees, licenses,

taxes, assessments, fines or penalties accrued on business previously

transacted in this State.

Ê In addition

to the other requirements set forth in this section, an insurer who proposes to

transact in this State insurance that protects a policyholder from liability

arising out of the ownership, maintenance or use of a motor vehicle must

demonstrate to the satisfaction of the Department of Motor Vehicles that the

insurer is able to comply with the provisions of NRS 485.314.

      (Added to NRS by 1971, 1577; A 1997, 1086; 2001, 2634)

      NRS 680A.090  Eligibility for certificate of authority: Ownership; management.

      1.  No foreign insurer which is directly or

indirectly owned or controlled in whole or substantial part by any government

or governmental agency shall be authorized to transact insurance in Nevada.

Membership in a mutual insurer, or subscribership in a reciprocal insurer, or

ownership of stock of an insurer by the Alien Property Custodian or similar

officer of the United States of America, or ownership of stock or other

security which does not have voting rights with respect to the management of

the insurer, or supervision of an insurer by public authority, shall not be

deemed to be an ownership or control of the insurer for the purposes of this

subsection.

      2.  The Commissioner shall not grant or

continue authority to transact insurance in this state to any insurer or

proposed insurer:

      (a) Of which any director, officer or other

individual materially part of the management is found by the Commissioner after

investigation or upon reliable information to be incompetent, or dishonest, or

untrustworthy, or of unfavorable business repute;

      (b) Of which the managers are so lacking in

insurance company managerial experience in operations of the kind proposed in

this state as to make such operation, currently or prospectively, hazardous to

or contrary to the best interests of the insurance-buying or investing public

of this state;

      (c) Which the Commissioner has good reason to

believe is affiliated directly or indirectly through ownership, control,

management, reinsurance transactions or other business relations with any

person or persons of unfavorable business repute; or

      (d) Whose business operations are or have been

marked, to the injury of insurers, stockholders, policyholders, creditors or

the public, by illegality, or by manipulation of assets, or of accounts, or of

reinsurance, or by bad faith.

      (Added to NRS by 1971, 1578)

      NRS 680A.095  Certificate of authority required to transact reinsurance;

eligibility for certificate; exceptions.

      1.  Except as otherwise provided in

subsection 3, an insurer which is not authorized to transact insurance in this

State may not transact reinsurance with a domestic insurer in this State, by

mail or otherwise, unless the insurer holds a certificate of authority as a

reinsurer in accordance with the provisions of NRS

680A.010 to 680A.150, inclusive, 680A.160 to 680A.290,

inclusive, 680A.320 and 680A.330.

      2.  To qualify for authority only to

transact reinsurance, an insurer must meet the same requirements for capital

and surplus as are imposed on an insurer which is authorized to transact

insurance in this State.

      3.  This section does not apply to the

joint reinsurance of title insurance risks or to reciprocal insurance

authorized pursuant to chapter 694B of NRS.

      (Added to NRS by 1987, 642)

      NRS 680A.100  Name of insurer.

      1.  No insurer shall be formed or

authorized to transact insurance in this state which has or uses a name which

is the same as or deceptively similar to that of another insurer already so

authorized, without the written consent of such other insurer.

      2.  No life insurer shall be so authorized

which has or uses a name deceptively similar to that of another insurer, other

than a predecessor in interest, authorized to transact insurance in this state

within the preceding 10 years if life insurance policies originally issued by

such other insurer are still outstanding in this state.

      3.  No insurer shall be formed or

authorized to transact insurance which has or uses a name the same as or

deceptively similar to that of any foreign insurer not so authorized if such

foreign insurer has within the next preceding 12 months signified its intention

to secure an incorporation in this state under such name, or to do business as

a foreign insurer in this state under such name, by filing notice of such

intention with the Commissioner, unless the written consent to the use of such

name or deceptively similar name has been given by such foreign insurer.

      4.  No insurer shall be so authorized which

has or uses a name which tends to deceive or mislead as to the type of

organization of the insurer.

      5.  In case of conflict of names between

two insurers, or a conflict otherwise prohibited under this section, the

Commissioner may permit (or shall require as a condition to the issuance of an

original certificate of authority to an applicant insurer) the insurer to use

in this state such supplementation or modification of its name or such business

name as may reasonably be necessary to avoid the conflict.

      6.  Except as provided in subsection 5, an

insurer shall conduct its business in this state in its own corporate (if

incorporated) or proper (if a reciprocal insurer) name.

      (Added to NRS by 1971, 1579)

      NRS 680A.110  Combinations of insuring powers.  An

insurer which otherwise qualifies therefor may be authorized to transact any

one kind or any combination of kinds of insurance as defined in NRS 681A.010 to 681A.080, inclusive (kinds of

insurance), except:

      1.  A life insurer may grant annuities and

may be authorized to transact in addition only health insurance; but the

Commissioner may, if the insurer otherwise qualifies therefor, continue so to

authorize any life insurer which immediately prior to January 1, 1972, was

lawfully authorized to transact in this state a kind or kinds of insurance in

addition to life and health insurances and annuity business.

      2.  A reciprocal insurer shall not transact

life insurance.

      (Added to NRS by 1971, 1579)

      NRS 680A.120  Required capital.

      1.  Except as provided in subsections 2 and

5, to qualify for authority to transact any one kind of insurance as defined in

NRS 681A.010 to 681A.080, inclusive, or combinations of

kinds of insurance as shown below, an insurer shall possess and thereafter

maintain unimpaired paid-in capital stock, if a stock insurer, or unimpaired

basic surplus, if a mutual or a reciprocal insurer, and free surplus not less

than 100 percent of the minimum required capital stock or minimum required

basic surplus, and when first so authorized shall possess initial free surplus,

all in amounts not less than as determined from the following table:

 

                                                                        FOREIGN

MUTUAL              RECIPROCAL

                             STOCK

INSURERS                 INSURERS                        INSURERS

                            Minimum                              Minimum                          Minimum

Kind or                 Required            Initial          Required        Initial          Required        Initial

Kinds of                 Capital               Free              Basic            Free              Basic            Free

Insurance                Stock             Surplus          Surplus        Surplus          Surplus        Surplus

 

Life........................ 500,000        1,000,000       500,000      1,000,000           N/A             N/A

Health, Property,

Casualty, Surety,

Marine &

Transportation

Multiple

  line.................... 500,000        1,000,000       500,000      1,000,000       500,000      1,000,000

Title....................... 500,000           750,000           N/A             N/A               N/A             N/A

Financial

Guarantee......... 10,000,000      40,000,000           N/A             N/A               N/A             N/A

 

      2.  At the discretion of the Commissioner,

a domestic insurer holding a valid certificate of authority to transact

insurance in this state immediately prior to January 1, 1992, may, if otherwise

qualified therefor, continue to be so authorized while possessing the amount of

paid-in capital stock, if a stock insurer, or surplus, if a mutual insurer, required

by the laws of this state for such authority immediately before January 1,

1992, for a period not to exceed 2 years. On or before January 1, 1994, the

insurer shall meet the requirements of subsection 1. The Commissioner shall not

grant such an insurer authority to transact any other or additional kinds of

insurance unless it then fully complies with the requirements as to capital and

surplus, as applied to all kinds of insurance which it then proposes to

transact, as provided by this section for like foreign insurers applying for

original certificates of authority pursuant to this Code.

      3.  Capital and surplus requirements are

based upon all the kinds of insurance transacted by the insurer in any and all

areas in which it operates or proposes to operate, whether or not only a

portion of such kinds are to be transacted in this state.

      4.  As to surplus required for

qualification to transact one or more kinds of insurance and thereafter to be

maintained, domestic mutual insurers are governed by chapter 693A of NRS and domestic reciprocal

insurers are governed by chapter 694B of

NRS.

      5.  An insurer who transacts financial

guaranty insurance in this state must transact only one kind of insurance and

possess and maintain the minimum capital and surplus requirements pursuant to

subsection 1.

      (Added to NRS by 1971, 1579; A 1991, 2026)

      NRS 680A.130  Combinations of insurance for which additional capital not

required.  Without additional

capital or additional surplus, an authorized insurer is also authorized:

      1.  If a life insurer, to grant annuities.

      2.  If a health insurer, to insure against

congenital defects, as defined in NRS

681A.020.

      (Added to NRS by 1971, 1581)

      NRS 680A.140  Required deposit; deposit in other state.

      1.  The Commissioner shall not authorize an

insurer to transact insurance in this state, other than an alien insurer or a

title insurer, unless it makes and thereafter continuously maintains on deposit

in this state, through the Commissioner, cash or securities eligible for such

deposit under the laws of this state of a fair market value not less than its

minimum required capital stock (if a stock insurer) or minimum required basic

surplus (if a mutual or reciprocal insurer), for the protection of the

insurer’s policyholders or of its policyholders and creditors in the United

States of America. The Commissioner may adopt regulations which allow the use

of securities as a deposit without delivery of the securities to the

Commissioner.

      2.  The Commissioner shall not so authorize

a title insurer unless it so deposits and maintains such cash or securities of

fair market value not less than its minimum required capital stock as a

guaranty fund for the security and protection of the holders of, or

beneficiaries under, the title insurance contracts issued by the insurer.

      3.  The Commissioner shall not so authorize

an alien insurer unless it so makes and thereafter continuously maintains such

a deposit, representing money in excess of all the insurer’s liabilities under

insurance contracts in force in the United States of America, of a fair market

value of not less than that required under subsection 1, as to a like foreign

insurer. The deposit must be held in trust for the protection of all the

insurer’s policyholders, or policyholders and creditors, in the United States

of America.

      4.  In lieu of such a deposit made or

maintained in this state, the Commissioner shall accept the certificate in

proper form of the public officer having general supervision of insurers in any

other state to the effect that a deposit of like quality and amount, or part

thereof, by an insurer is being maintained for like purposes in public custody

or control pursuant to the laws of that state, if the Commissioner is satisfied

as to the like quality and amount of the deposit.

      5.  All such deposits in this state are

subject to the applicable provisions of chapter

682B of NRS.

      (Added to NRS by 1971, 1581; A 1985, 607)

      NRS 680A.150  Application for certificate of authority.  To apply for an original certificate of

authority an insurer shall file with the Commissioner its written application

therefor on forms as prescribed and furnished by the Commissioner, accompanied

by the applicable fees specified in NRS

680B.010 and, in addition to any other fee or charge, all applicable fees

required pursuant to NRS 680C.110,

stating under the oath of the president or vice president or other chief

officer and the secretary of the insurer, or of the attorney-in-fact if a

reciprocal insurer, the insurer’s name, location of its home office, or

principal office in the United States if an alien insurer, the kinds of

insurance to be transacted, date of organization or incorporation, form of

organization, state or country of domicile, and such additional information as

the Commissioner may reasonably require, together with the following documents,

as applicable:

      1.  If a corporation, a copy of its charter

or certificate or articles of incorporation, together with all amendments

thereto, or as restated and amended under the laws of its state or country of

domicile, currently certified by the public officer with whom the originals are

on file in that state or country.

      2.  If a domestic incorporated insurer or a

mutual insurer, a copy of its bylaws, certified by the insurer’s corporate

secretary.

      3.  If a reciprocal insurer, a copy of the

power of attorney of its attorney-in-fact, certified by the attorney-in-fact;

and if a domestic reciprocal insurer, the declaration provided for in NRS 694B.060.

      4.  A complete copy of its financial

statement as of not earlier than the December 31 next preceding in form as

customarily used in the United States by like insurers, sworn to by at least

two executive officers of the insurer or certified by the public insurance

supervisory officer of the insurer’s state of domicile, or of entry into the

United States if an alien insurer.

      5.  A copy of the report of last

examination made of the insurer within not more than 5 years next preceding,

certified by the public insurance supervisory officer of the insurer’s state of

domicile, or of entry into the United States if an alien insurer.

      6.  The appointment of the Commissioner

pursuant to NRS 680A.250 as its attorney to

receive service of legal process.

      7.  If a foreign or alien insurer, a

certificate of the public insurance supervisory officer of its state or country

of domicile showing that it is authorized or qualified for authority to

transact in such state or country the kinds of insurance proposed to be

transacted in this state.

      8.  If a foreign insurer, a certificate as

to a deposit if it is to be tendered pursuant to NRS

680A.140.

      9.  A copy of the insurer’s rate book and

of each form of policy currently proposed to be issued in this state, and of the

form of application therefor.

      10.  If an alien insurer, a copy of the

appointment and authority of its United States manager, certified by its

officer having custody of its records.

      11.  Designation by the insurer of its

officer or representative authorized to appoint and remove its agents in this

state.

      (Added to NRS by 1971, 1581; A 1989, 2175; 1995, 1753; 2009, 1764)

      NRS 680A.155  Payment of taxes and penalties by certain applicants.  An insurer which has transacted insurance in

this state without a certificate of authority must not be granted a certificate

of authority unless it pays the tax imposed by NRS 680B.027 and the penalties provided

by NRS 685B.190 for the 5 years

immediately preceding the date upon which it applies for a certificate of

authority.

      (Added to NRS by 1985, 606; A 1995, 1612)

      NRS 680A.160  Issuance or refusal of certificate; contents and ownership of

certificate.

      1.  If upon completion of its application

the Commissioner finds that the insurer has met the requirements therefor under

this Code, the Commissioner may issue to the insurer a proper certificate of

authority; if the Commissioner does not so find, the Commissioner shall issue

an order refusing such certificate.

      2.  The certificate, if issued, shall state

the insurer’s name, home office address, state or country of organization, and

the kinds of insurance the insurer is authorized to transact throughout Nevada.

At the insurer’s request, the Commissioner may issue a certificate of authority

limited to particular types of insurance or coverages within a kind of

insurance as defined in NRS 681A.010

to 681A.080, inclusive (kinds of

insurance).

      3.  Although issued and delivered to the

insurer, the certificate of authority at all times shall be the property of the

State of Nevada. Upon any expiration, suspension or termination thereof the

insurer shall promptly deliver the certificate to the Commissioner.

      (Added to NRS by 1971, 1583)

      NRS 680A.170  Amended certificate of authority.  Upon

written application therefor by the insurer and due cause shown, the

Commissioner may amend the certificate of authority of an insurer as required

by change of name or to show any change in the kinds of insurance the insurer

may thereafter transact and is qualified to transact in this state. The insurer

shall accompany such request with the fee for amendment as specified in NRS 680B.010 (fee schedule).

      (Added to NRS by 1971, 1583)

      NRS 680A.173  Transfer of insurer’s domicile: Foreign insurer may become

domestic insurer.  A foreign

insurer with a certificate of authority to transact insurance in this state may

become a domestic insurer by complying with the requirements of this Code for

forming a domestic insurer of the same type. After complying with those

requirements, the insurer has the same rights and obligations as other domestic

insurers.

      (Added to NRS by 1983, 683)

      NRS 680A.175  Transfer of insurer’s domicile: Termination of status as

domestic insurer; qualification as foreign insurer.

      1.  If a domestic insurer transfers its

domicile to another state, it ceases to be a domestic insurer.

      2.  The Commissioner shall issue to such an

insurer a certificate of authority to transact insurance as a foreign insurer

if:

      (a) The insurer qualifies as a foreign insurer;

and

      (b) Such certification is in the best interest of

the policyholders of this state.

      (Added to NRS by 1983, 683)

      NRS 680A.177  Transfer of insurer’s domicile: Duties of insurer; effect on

policies.

      1.  The Commissioner may require a domestic

insurer which converts to a foreign insurer or a foreign insurer which converts

to a domestic insurer to:

      (a) Obtain new licenses for its agents;

      (b) Make new appointments of agents; or

      (c) Apply for any other new license, certificate

or authorization.

Ê Any license,

appointment or authorization which the Commissioner does not require an insurer

to renew continues in effect after the conversion.

      2.  All policies of an insurer remain in

effect when it transfers its domicile into or out of this state. The

Commissioner may require that the insurer endorse the policies with its new

name or location.

      3.  Every insurer which transfers its

domicile into or out of this state shall notify the Commissioner at least 30

days before the transfer. Such an insurer shall file new forms for its policies

and any other documents required by the Commissioner with the Commissioner on

or before the effective date of the transfer. The insurer may use existing

forms if approved by and under the conditions imposed by the Commissioner.

      (Added to NRS by 1983, 683)

      NRS 680A.180  Continuance, expiration and reinstatement of certificate of

authority.

      1.  A certificate of authority continues in

force as long as the insurer is entitled thereto under this Code, and until

suspended or revoked by the Commissioner or terminated at the insurer’s

request, if, each year, the insurer:

      (a) Pays on or before March 1 the continuation

fee provided in NRS 680B.010 and, in

addition to any other fee or charge, all applicable fees required pursuant to NRS 680C.110;

      (b) Files its annual statement for the next

preceding calendar year as required by NRS 680A.270;

and

      (c) Pays, if required, the premium taxes for the

preceding calendar year.

      2.  If not so continued by the insurer, its

certificate of authority expires at midnight on the May 31 next following such

failure of the insurer to continue it in force, unless earlier revoked for

failure to pay taxes as provided in NRS 680A.190.

The Commissioner shall promptly notify the insurer of the occurrence of any

failure resulting in the impending expiration of its certificate of authority.

      3.  The Commissioner may, upon the

insurer’s request made within 3 months after expiration, reinstate a

certificate of authority which the insurer has inadvertently permitted to

expire, after the insurer has fully cured all its failures which resulted in

the expiration, and upon payment by the insurer of the fee for reinstatement

specified in subsection 1 of NRS 680B.010.

Otherwise, the insurer may be granted another certificate of authority only

after filing an application therefor and meeting all other requirements for an

original certificate of authority in this state.

      (Added to NRS by 1971, 1583; A 1987, 643; 1997, 3017; 2009, 1765)

      NRS 680A.190  Suspension or revocation of certificate of authority: Mandatory

grounds.

      1.  The Commissioner shall refuse to

continue or shall suspend or revoke an insurer’s certificate of authority:

      (a) If such action is required by any provision

of this Code;

      (b) If it is a foreign insurer and it no longer

meets the requirements for a certificate of authority, on account of deficiency

of capital or surplus or otherwise;

      (c) If it is a domestic insurer and it has failed

to cure an impairment of capital or surplus within the time allowed therefor by

the Commissioner under this Code or is otherwise no longer qualified for the

certificate of authority;

      (d) If the insurer’s certificate of authority to

transact insurance therein is suspended or revoked by its state of domicile, or

state of entry into the United States of America if an alien insurer;

      (e) For failure of the insurer to pay taxes on

its premiums if required by this Code; or

      (f) For failure of the insurer to furnish

information to the Commissioner relating to medical malpractice insurance

issued by the insurer in this State or any other state.

      2.  Except in case of insolvency,

impairment of required capital or surplus, or suspension or revocation by

another state, the Commissioner shall give the insurer at least 20 days’ notice

in advance of any such refusal, suspension or revocation under this section,

and of the particulars of the reasons therefor. If the insurer requests a

hearing thereon within those 20 days, the Commissioner’s proposed action is

automatically stayed until an order by the Commissioner is made after the

hearing.

      (Added to NRS by 1971, 1584; A 1975, 1304; 1987, 643)

      NRS 680A.200  Suspension, limitation or revocation of certificate of

authority: Grounds; notice.

      1.  Except as otherwise provided in NRS 616B.472, the Commissioner may refuse

to continue or may suspend, limit or revoke an insurer’s certificate of

authority if the Commissioner finds after a hearing thereon, or upon waiver of

hearing by the insurer, that the insurer has:

      (a) Violated or failed to comply with any lawful

order of the Commissioner;

      (b) Conducted business in an unsuitable manner;

      (c) Willfully violated or willfully failed to

comply with any lawful regulation of the Commissioner; or

      (d) Violated any provision of this Code other

than one for violation of which suspension or revocation is mandatory.

Ê In lieu of

such a suspension or revocation, the Commissioner may levy upon the insurer,

and the insurer shall pay forthwith, an administrative fine of not more than

$2,000 for each act or violation.

      2.  Except as otherwise provided in chapter 696B of NRS, the Commissioner shall

suspend or revoke an insurer’s certificate of authority on any of the following

grounds if the Commissioner finds after a hearing thereon that the insurer:

      (a) Is in unsound condition, is being

fraudulently conducted, or is in such a condition or is using such methods and

practices in the conduct of its business as to render its further transaction

of insurance in this State currently or prospectively hazardous or injurious to

policyholders or to the public.

      (b) With such frequency as to indicate its

general business practice in this State:

             (1) Has without just cause failed to pay,

or delayed payment of, claims arising under its policies, whether the claims are

in favor of an insured or in favor of a third person with respect to the

liability of an insured to the third person; or

             (2) Without just cause compels insureds or

claimants to accept less than the amount due them or to employ attorneys or to

bring suit against the insurer or such an insured to secure full payment or

settlement of such claims.

      (c) Refuses to be examined, or its directors,

officers, employees or representatives refuse to submit to examination relative

to its affairs, or to produce its books, papers, records, contracts,

correspondence or other documents for examination by the Commissioner when

required, or refuse to perform any legal obligation relative to the

examination.

      (d) Except as otherwise provided in NRS 681A.110, has reinsured all its

risks in their entirety in another insurer.

      (e) Has failed to pay any final judgment rendered

against it in this State upon any policy, bond, recognizance or undertaking as

issued or guaranteed by it, within 30 days after the judgment became final or

within 30 days after dismissal of an appeal before final determination,

whichever date is the later.

      3.  The Commissioner may, without advance

notice or a hearing thereon, immediately suspend the certificate of authority

of any insurer as to which proceedings for receivership, conservatorship,

rehabilitation or other delinquency proceedings have been commenced in any

state by the public officer who supervises insurance for that state.

      4.  No proceeding to suspend, limit or

revoke a certificate of authority pursuant to this section may be maintained

unless it is commenced by the giving of notice to the insurer within 5 years

after the occurrence of the charged act or omission. This limitation does not

apply if the Commissioner finds fraudulent or willful evasion of taxes.

      (Added to NRS by 1971, 1584; A 1983, 431; 1991, 808; 1995, 1613, 1754; 1997, 530; 1999, 1734)

      NRS 680A.205  Determination of hazardous financial condition of insurer:

Regulations; hearing; disciplinary actions; review of order.

      1.  The Commissioner may adopt regulations

to define when an insurer is considered to be in a hazardous financial

condition and to set forth the standards to be considered by the Commissioner

in determining whether the continued operation of an insurer transacting

business in this state may be considered to be hazardous to its policyholders

or creditors or to the general public.

      2.  If the Commissioner determines after a

hearing that any insurer is in a hazardous financial condition, the

Commissioner may, instead of suspending or revoking the insurer’s certificate

of authority, limit the insurer’s certificate of authority as the Commissioner

deems reasonably necessary to correct, eliminate or remedy any conduct,

condition or ground that is deemed to be a cause of the hazardous financial

condition.

      3.  An order or decision of the

Commissioner under this section is subject to review in accordance with NRS 679B.310 to 679B.370, inclusive, at the request of

any party to the proceedings whose interests are substantially affected.

      (Added to NRS by 1995, 1752)

      NRS 680A.210  Order and notice of suspension, limitation or revocation of

certificate; effect on agents’ authority.

      1.  All suspensions, limitations or

revocations of, or refusals to continue, an insurer’s certificate of authority

must be by the Commissioner’s order given to the insurer.

      2.  Upon issuance of the order, the

Commissioner shall forthwith give notice thereof to the insurer’s agents in

this state, of record in the Division, and shall also suspend, limit or revoke

the authority of such agents to represent the insurer.

      (Added to NRS by 1971, 1585; A 1991, 1621; 1993, 1904)

      NRS 680A.220  Duration of suspension; insurer’s obligations during suspension

period; reinstatement.

      1.  Suspension of an insurer’s certificate

of authority must be for such period as the Commissioner specifies in the order

of suspension, but not to exceed 1 year. During the suspension period the

Commissioner may rescind or shorten the suspension by further order.

      2.  During the suspension period the

insurer shall not solicit or write any new business in this state, but must

file its annual statement, pay fees, licenses and taxes as required under this

Code, and may service its business already in force in this state, as if the

certificate of authority had continued in full force.

      3.  Upon expiration of the suspension

period, if within such period the certificate of authority has not terminated,

the insurer’s certificate of authority is automatically reinstated unless the

Commissioner finds that the causes of the suspension, being other than a past

event, are continuing, or that the insurer is otherwise not in compliance with

the requirements of this Code, and of which the Commissioner shall give the

insurer notice not less than 30 days in advance of expiration of the suspension

period.

      4.  Upon reinstatement of the insurer’s

certificate of authority, the authority of its agents in this state to

represent the insurer is also reinstated. The Commissioner shall promptly

notify the insurer and its agents in this state, of record in the Division, of

such reinstatement.

      (Added to NRS by 1971, 1586; A 1991, 1621; 1993, 1904)

      NRS 680A.230  Applicability of general corporation laws to foreign insurers.  The general corporation laws of this state do

not apply to foreign insurers holding certificates of authority to transact

insurance in this state, except as otherwise provided in NRS 80.190.

      (Added to NRS by 1971, 1586; A 1971, 1933; 1987, 1063; 1989, 627; 1991, 1318)

      NRS 680A.240  Additional titles.

      1.  A property insurer or multiple line

insurer authorized to transact insurance in Nevada shall have the right to

issue property insurance policies under its own name and under additional

“titles” or under additional “titles” duly registered by the insurer with the

Commissioner.

      2.  The Commissioner shall, upon the

insurer’s request, furnish to the insurer the form required for such registration,

and the insurer shall pay the fee for registration as specified in NRS 680B.010 (fee schedule). Registered

titles shall be shown on the insurer’s certificate of authority and shall

remain in effect for so long as the insurer’s certificate of authority is in

effect, subject to earlier termination of the registration at the insurer’s

request.

      3.  All business transacted by the insurer

under additional titles shall be included in business and transactions of the

insurer to be shown by its annual statement filed with the Commissioner, for

all purposes under this Code.

      (Added to NRS by 1971, 1586)

      NRS 680A.250  Commissioner agent for service of process for certain insurers.

      1.  Before the Commissioner may authorize

it to transact insurance in this state, each insurer must appoint the

Commissioner, and the Commissioner’s successors in office, as its attorney to

receive service of legal process issued against the insurer in this state. The

appointment must be made on a form as designated and furnished by the

Commissioner, and must be accompanied by a copy of a resolution of the board of

directors or like governing body of the insurer, if an incorporated insurer,

showing that those officers who executed the appointment were authorized to do

so on behalf of the insurer.

      2.  The appointment must be irrevocable,

must bind the insurer and any successor in interest to the assets or

liabilities of the insurer, and must remain in effect as long as there is in

force any contract of the insurer in this state or any obligation of the

insurer arising out of its transactions in this state.

      3.  Service of such process against a

foreign or alien insurer must be made only by service thereof upon the Commissioner.

      4.  Service of such process against a

domestic insurer may be made as provided in this section, or in any other

manner provided by Nevada Rules of Civil Procedure.

      5.  At the time of application for a

certificate of authority the insurer shall file the appointment with the

Commissioner, together with a designation of the person to whom process against

it served upon the Commissioner is to be forwarded. The insurer shall provide

written notice to the Commissioner of any change of such a designation by a new

filing.

      (Added to NRS by 1971, 1587; A 1985, 607)

      NRS 680A.260  Method of serving process; extension of time to appear; record.

      1.  Service of process against an insurer

for whom the Commissioner is attorney must be made by delivering to and leaving

with the Commissioner, the Commissioner’s deputy, or a person in apparent

charge of the office of the Commissioner during the Commissioner’s absence, two

copies of the process, together with the fee therefor as specified in NRS 680B.010, taxable as costs in the

action.

      2.  Upon such service the Commissioner

shall forthwith mail by certified mail one of the copies of such process, with

the date and time of service of the same on the Commissioner noted thereon, to

the person currently designated by the insurer to receive the copy as provided

in NRS 680A.250. Service of process is complete

when the copy has been so mailed.

      3.  Process served in the manner provided

by this section for all purposes constitutes valid and binding personal service

upon the insurer within this state. If summons is served under this section,

the time within which the insurer is required to appear must be extended an

additional 10 days beyond that otherwise allowed by Nevada Rules of Civil

Procedure.

      4.  The Commissioner shall keep a record of

the day of service upon him or her of all legal process.

      5.  For the purposes of this section,

“process” includes only a summons or the initial documents served in an action.

The Commissioner is not required to serve any documents after the initial

service of process.

      (Added to NRS by 1971, 1587; A 1985, 608)

      NRS 680A.265  Filing of annual financial statement; reporting of violation of

law found during audit; penalty for failure to file statement; consolidation of

statements prohibited; regulations.

      1.  Except as otherwise provided in

subsection 5, every:

      (a) Domestic insurer;

      (b) Fraternal benefit society authorized to do

business in this State pursuant to chapter 695A

of NRS; and

      (c) Corporation subject to the provisions of chapter 695B of NRS,

Ê shall file

with the Commissioner, on or before June 1 of each year, a financial statement

as of December 31 of the preceding calendar year that is certified by a

certified public accountant who is not an employee of the insurer. The

Commissioner may request a financial statement from a foreign or alien insurer.

      2.  If a certified public accountant finds

any violation of the laws of this State during any audit he or she conducts

pursuant to subsection 1, the certified public accountant shall, if the

Commissioner has adopted regulations pursuant to subsection 6 pertaining to the

reporting of a violation found during an audit, report the violation in

accordance with those regulations.

      3.  An insurer who does not file a report

pursuant to subsection 1 on or before June 1 of each year is subject to the

penalty imposed pursuant to NRS 680A.280.

      4.  A statement filed with the Commissioner

must not be a consolidated report with any other subsidiary, affiliate or

parent company.

      5.  The provisions of this section do not

apply to a domestic insurer who:

      (a) Is not licensed or authorized to do business

in any state other than Nevada; or

      (b) Is exempted from the requirements of this

section by order of the Commissioner for good cause shown.

      6.  The Commissioner may adopt reasonable

regulations relating to annual audited financial reports to administer the

provisions of this section.

      (Added to NRS by 1991, 2026; A 1995, 1755)

      NRS 680A.270  Filing of annual statement by authorized insurers; fee;

regulations; confidentiality of certain information.

      1.  Each authorized insurer shall annually

on or before March 1, or within any reasonable extension of time therefor which

the Commissioner for good cause may have granted on or before that date, file

with the Commissioner a full and true statement of its financial condition,

transactions and affairs as of December 31 preceding. The statement must be:

      (a) In the general form and context of, and

require information as called for by, an annual statement as is currently in

general and customary use in the United States for the type of insurer and

kinds of insurance to be reported upon, with any useful or necessary

modification or adaptation thereof, supplemented by additional information

required by the Commissioner;

      (b) Prepared in accordance with:

             (1) The Annual Statement Instructions

for the type of insurer to be reported on as adopted by the National Association

of Insurance Commissioners for the year in which the insurer files the

statement; and

             (2) The Accounting Practices and

Procedures Manual adopted by the National Association of Insurance

Commissioners and effective on January 1, 2001, and as amended by the National

Association of Insurance Commissioners after that date; and

      (c) Verified by the oath of the insurer’s

president or vice president and secretary or actuary, as applicable, or, in the

absence of the foregoing, by two other principal officers, or if a reciprocal

insurer, by the oath of the attorney-in-fact, or its like officers if a

corporation.

      2.  The statement of an alien insurer must

be verified by its United States manager or other officer who is authorized to

do so, and may relate only to the insurer’s transactions and affairs in the

United States unless the Commissioner requires otherwise. If the Commissioner

requires a statement as to the insurer’s affairs throughout the world, the

insurer shall file the statement with the Commissioner as soon as reasonably

possible.

      3.  The Commissioner may refuse to

continue, or may suspend or revoke, the certificate of authority of any insurer

failing to file its annual statement when due.

      4.  At the time of filing, the insurer

shall pay the fee for filing its annual statement as prescribed by NRS 680B.010.

      5.  The Commissioner may adopt regulations

requiring each domestic, foreign and alien insurer which is authorized to transact

insurance in this state to file the insurer’s annual statement with the

National Association of Insurance Commissioners or its successor organization.

      6.  Except as otherwise provided in NRS 239.0115, all ratios of financial

analyses and synopses of examinations concerning insurers that are submitted to

the Division by the National Association of Insurance Commissioners’ Insurance

Regulatory Information System are confidential and may not be disclosed by the

Division.

      (Added to NRS by 1971, 1588; A 1995, 1755; 2003, 3279; 2007, 2155)

      NRS 680A.280  Penalties for late or false annual statements.

      1.  Any insurer failing, without just cause

beyond the reasonable control of the insurer, to file its annual statement as

required in NRS 680A.270 shall be required to pay

a penalty of $100 for each day’s delay, but not to exceed $3,000 in aggregate

amount, to be recovered in the name of the State of Nevada by the Attorney

General.

      2.  Any director, officer, agent or

employee of any insurer who subscribes to, makes or concurs in making or

publishing, any annual or other statement required by law, knowing the same to

contain any material statement which is false, is guilty of a gross

misdemeanor.

      (Added to NRS by 1971, 1588)

      NRS 680A.290  Loss prevention reports and programs.

      1.  Every insurer except life insurers

shall, if requested by the Commissioner, submit an annual report to the

Commissioner on September 15, concerning its loss prevention and control

programs, and on new conclusions it has reached as to the loss implications of

its statistics, underwriting, claims files and operations.

      2.  Based on the reports of subsection 1,

as well as other available information, the Commissioner shall prepare each

year a report on the loss prevention programs of insurers with recommendations

for more effective loss prevention activity.

      (Added to NRS by 1971, 1588; A 1971, 1933)

      NRS 680A.300  Agent; countersignature.

      1.  Except as provided in NRS 680A.310, no authorized insurer may make, write,

place, renew or cause to be made, placed or renewed, any policy or duplicate

policy, endorsement or contract of insurance of any kind upon persons, property

or risks resident, located or to be performed in this State, except through its

duly appointed and licensed agents, any one of whom shall countersign the

policy, endorsement or contract.

      2.  Where two or more insurers jointly

issue a single policy, the policy may be countersigned, on behalf of all

insurers appearing thereon, by a duly appointed and licensed agent of any one

insurer.

      3.  In any case where it is necessary to

execute an emergency bond and a commissioned agent authorized to execute the

bond is not present, a manager or other employee of the insurer having

authority under a power of attorney may execute the bond in order to produce a

valid contract between the insurer and the obligee. The bond must subsequently

be countersigned by a commissioned agent who is authorized to execute the bond.

The commissioned agent who executes the bond shall make and retain an adequate

office record of the transaction.

      4.  An insurer may use an endorsement to

the policy for the sole purpose of countersigning the policy, as required in

this section, only if:

      (a) The endorsement is attached to the policy to

which it applies; and

      (b) The policy insures persons or property in

this State and one or more other states.

      (Added to NRS by 1971, 1589; A 1981, 704; 2009, 1765)

      NRS 680A.310  Exceptions to requirements for countersignature by agent.  NRS 680A.300 does

not apply to any of the following:

      1.  Life insurance and annuities.

      2.  Health insurance.

      3.  Policies covering property in transit

while in the possession or custody of any common carrier, or the rolling stock

or other property of any common carrier employed by it in the operation and

maintenance of its plant and business as a common carrier of freight or

passengers, or both.

      4.  Reinsurance or retrocessions made by or

for authorized insurers.

      5.  Bid bonds issued in connection with any

public or private contract.

      6.  A policy issued to a risk retention

group, as defined in NRS 695E.110, or

to a member of a risk retention group.

      (Added to NRS by 1971, 1589; A 1987, 1333)

      NRS 680A.320  Transaction with parent corporation, financial holding company,

depository institution, subsidiary or affiliated person.

      1.  For the purposes of this section:

      (a) An “affiliated person” is a person controlled

by any combination of the insurer, the parent corporation, a subsidiary or the

principal stockholders or officers or directors of any of the foregoing.

      (b) “Depository institution” has the meaning

ascribed to it in section 3 of the Federal Deposit Insurance Act, 12 U.S.C. §

1813(c)(1).

      (c) “Financial holding company” means a bank

holding company that satisfies the requirements of section 4(l)(1) of the Bank

Holding Company Act of 1956, 12 U.S.C. § 1841(l)(1).

      (d) “Health facility” has the meaning ascribed to

it in NRS 439A.015.

      (e) A “subsidiary” is a person of which either

the insurer and the parent corporation or the insurer or the parent corporation

holds practical control.

      2.  No insurer may engage directly or

indirectly in any transaction or agreement with its parent corporation, a

financial holding company, a depository institution, or any subsidiary or

affiliated person which will result or tend to result in:

      (a) Substitution contrary to the interest of the

insurer and through any method of any asset of the insurer with an asset or

assets of inferior quality or lower fair market value;

      (b) Deception as to the true operating results of

the insurer;

      (c) Deception as to the true financial condition

of the insurer;

      (d) Allocation to the insurer of a proportion of

the expense of combined facilities or operations which is unfair and

unfavorable to the insurer;

      (e) Unfair or excessive charges against the

insurer for services, facilities, supplies or reinsurance;

      (f) Unfair and inadequate charges by the insurer

for reinsurance, services, facilities or supplies furnished by the insurer to

others;

      (g) Payment by the insurer for services,

facilities, supplies or reinsurance not reasonably needed by the insurer;

      (h) Depletion of the insurer’s surplus, through

payment of dividends or other distribution or withdrawal, below the amount

thereof reasonably required for conduct of the insurer’s business and

maintenance of growth with safety to policyholders; or

      (i) Payment by the insurer for services or

products for which the health facility has charged less than fair market value,

unless the reduced charge is reflected in the form of reduced premiums. In

determining what constitutes fair market value, consideration must be given to

reasonable agreements for the preferential provision of health care, in

accordance with regulations adopted by the Commissioner. An insurer which pays

less than fair market value for services or products in a transaction which is

subject to the provisions of this paragraph shall annually file a certification

with the Commissioner that the reduced payment has been reflected in the form

of reduced premiums, together with documentation supporting the certification.

      3.  In all transactions between the insurer

and its parent corporation, or involving the insurer and any subsidiary or

affiliated person, full recognition must be given to the paramount duty and

obligation of the insurer to protect the interests of policyholders, both

existing and future.

      4.  If a health facility is a parent,

subsidiary or affiliate of an insurer or of a parent or facility of an insurer,

and the insurer purchases medical or any other services or products from the

health facility, the health facility may not:

      (a) Attempt artificially to reduce or increase

its margin of profit by altering the charges to the insurer.

      (b) Alter its true operating results or financial

condition through charges to the insurer for services or products.

Ê This

subsection does not prohibit activities authorized pursuant to paragraph (i) of

subsection 2.

      5.  If a health facility is found, after

notice and a hearing, to have violated the provisions of subsection 4, the

Commissioner may impose an administrative fine of not more than $5,000 for each

violation.

      (Added to NRS by 1971, 1590; A 1987, 884; 1989, 599; 2001, 2183)

      NRS 680A.330  Retaliatory provision.

      1.  When, by or pursuant to the laws of any

other state or foreign country or province, any taxes, licenses and other fees

in the aggregate, and any fines, penalties, deposit requirements or other

material requirements, obligations, prohibitions or restrictions are or would

be imposed upon Nevada insurers doing business or that might seek to do

business in such state, country or province, or upon the agents or

representatives of such insurers or upon brokers or adjusters, which are in

excess of such taxes, licenses and other fees in the aggregate, or which are in

excess of the fines, penalties, deposit requirements or other requirements,

obligations, prohibitions or restrictions directly imposed upon similar

insurers, or upon the agents or representatives of such insurers, or upon

brokers, or upon adjusters, of such other state, country or province under the

statutes of this state, so long as such laws of such other state, country or

province continue in force or are so applied, the same taxes, licenses and

other fees in the aggregate, or fines, penalties or deposit requirements or

other material requirements, obligations, prohibitions or restrictions of

whatever kind must be imposed by the Commissioner or the Department of Taxation

upon the insurers, or upon the agents or representatives of such insurers, or

upon brokers, of such other state, country or province doing business or

seeking to do business in Nevada. Any tax, license or other fee or other

obligation imposed by any city, county or other political subdivision or agency

of such other state, country or province on Nevada insurers or their agents,

representatives or adjusters shall be deemed to be imposed by such state,

country or province within the meaning of this section.

      2.  This section does not apply to:

      (a) Personal income taxes;

      (b) Ad valorem taxes on real or personal

property; or

      (c) Special purpose obligations or assessments

imposed by another state in connection with particular kinds of insurance other

than property insurance,

Ê except that

deductions, from premium taxes or other taxes otherwise payable, allowed on

account of real or personal property taxes paid must be taken into

consideration by the Commissioner and the Executive Director of the Department

of Taxation in determining the propriety and extent of retaliatory action under

this section.

      3.  For the purposes of this section the

domicile of an alien insurer, other than insurers formed under the laws of

Canada or a province thereof, is that state designated by the insurer in

writing filed with the Commissioner at the time of admission to this state or

within 6 months after January 1, 1972, whichever date is the later, and may be

any one of the following states:

      (a) That in which the insurer was first

authorized to transact insurance;

      (b) That in which is located the insurer’s

principal place of business in the United States of America; or

      (c) That in which is held the largest deposit of

trusteed assets of the insurer for the protection of its policyholders in the

United States of America.

Ê If the

insurer makes no such designation, its domicile shall be deemed to be that

state in which is located its principal place of business in the United States

of America.

      4.  The domicile of a Canadian insurer is

the province of Canada in which its head office is located.

      (Added to NRS by 1971, 1590; A 1993, 1905)