t of an account in trust equal to the group’s liabilities attributable to business written in the United States and the group shall maintain a surplus in trust of which $100,000,000 must be held jointly for the benefit of ceding insurers in the United States to any member of the group, and the group shall make available to the Commissioner an annual certification of the solvency of each underwriter by the group’s domiciliary regulator and its independent public accountants. 4. If the assuming insurer does not meet the requirements of NRS 681A.110, 681A.160 or 681A.170, credit must not be allowed unless the assuming insurer has agreed to the following conditions set forth in the trust agreement: (a) Notwithstanding any provision to the contrary in the trust instrument, if the trust fund consists of an amount that is less than the amount required pursuant to this section, or if the grantor of the trust fund is declared to be insolvent or placed into receivership, rehabilitation, liquidation or a similar proceeding in accordance with the laws of the grantor’s state or country of domicile, the trustee of the trust fund must comply with an order of the commissioner of insurance or other appropriate person with regulatory authority over the trust fund in that state or country or a court of competent jurisdiction requiring the trustee to transfer to that commissioner or person all the assets of the trust fund; (b) The assets of the trust fund must be distributed by and claims filed with and valued by the commissioner of insurance or other appropriate person with regulatory authority over the trust fund in accordance with the laws of the state in which the trust fund is domiciled that are applicable to the liquidation of domestic insurers in that state; (c) If the commissioner of insurance or other appropriate person with regulatory authority over the trust fund determines that the assets of the trust fund or any portion of the trust fund are not required to satisfy any claim of any ceding insurer of the grantor of the trust fund in the United States, the assets must be returned by that commissioner or person to the trustee of the trust fund for distribution in accordance with the trust agreement; and (d) The grantor of the trust must waive any right that: (1) Is otherwise available to him under the laws of the United States; and (2) Is inconsistent with the provisions of this subsection. (Added to NRS by 1995, 1757; A 2003, 3284) NRS 681A.190 Reinsurance ceded to group of incorporated insurers under common administration. 1. Credit must be allowed if reinsurance is ceded to a group of incorporated insurers under common administration which: (a) Does not engage in any business other than underwriting as a member of the group; (b) Is subject to the same amount of regulation and solvency control by the group’s domiciliary regulator as are the unincorporated members of the group; (c) Reports annually to the Commissioner the information required by subsection 1 of NRS 681A.180; (d) Has continuously transacted insurance outside the United States for at least 3 years immediately before making an application for accreditation; (e) Submits to this state’s authority to examine its books and records and bears the expense of the examination; (f) Has aggregate policyholders’ surplus of $10,000,000,000; and (g) Maintains a trust pursuant to subsection 2. 2. The trust must be in an amount equal to the group’s several liabilities attributable to business ceded by ceding insurers in the United States to any member of the group pursuant to contracts of reinsurance issued in the name of the group, and the group shall maintain a joint surplus in trust of which $100,000,000 must be held jointly for the benefit of ceding insurers in the United States to any member of the group as additional security for any such liabilities. 3. Each member of the group shall, within 90 days after the date its financial statements must be filed with the group’s domiciliary regulator, make available to the Commissioner an annual certification of the member’s solvency by the member’s domiciliary regulator and its independent public accountant. (Added to NRS by 1995, 1757; A 2003, 3285) NRS 681A.200 Requirements for establishment or amendment of certain trusts. 1. A trust for the purposes of NRS 681A.180 or 681A.190, and any amendment to the trust, must be established or amended in a form approved by: (a) The Commissioner; and (b) The commissioner of insurance or other appropriate person of: (1) The state in which the trust is domiciled; or (2) Any other state that, pursuant to the trust instrument, accepts regulatory authority over the trust. 2. The form of the trust and any amendment to the trust must be filed with the commissioner of insurance or other appropriate person of each state in which the policyholders of the ceding insurer who are the beneficiaries of the trust are domiciled. 3. The trust instrument must provide that contested claims become valid, enforceable and payable from money held in the trust fund to the extent that the contested claims remain unsatisfied, within 30 days after the entry of the final order of any court of competent jurisdiction in the United States. The trust must vest legal title to its assets in the trustees of the trust for its policyholders and ceding insurers in the United States, their assigns and successors in interest. The trust and the assuming insurer are subject to examination as determined by the Commissioner. The trust must remain in effect for as long as the assuming insurer or any member or former member of the group of insurers has outstanding obligations due under the agreements for reinsurance subject to the trust. 4. Not later than February 28 of each year the trustees of the trust shall report to the Commissioner in writing setting forth the balance of the trust and listing the trust’s investments at the end of the preceding year and shall certify the date of termination of the trust, if so planned, or certify that the trust will not expire before the next following December 31. (Added to NRS by 1995, 1758; A 2003, 3285) NRS 681A.210 Requirements when assuming insurer is not licensed or accredited to transact insurance or reinsurance in this State. 1. Except as otherwise provided in subsection 2, if the assuming insurer is not licensed or accredited to transact insurance or reinsurance in this State, the credit permitted by NRS 681A.170 or 681A.180 must not be allowed unless the assuming insurer agrees in the agreements for reinsurance: (a) That in the event of the failure of the assuming insurer to perform its obligations under the terms of the agreement, the assuming insurer, at the request of the ceding insurer, will submit to the jurisdiction of any court of competent jurisdiction in any state of the United States, will comply with all requirements necessary to give the court jurisdiction, and will abide by the final decision of the court or of any appellate court in the event of an appeal; (b) To designate the Commissioner or a designated attorney as its true and lawful attorney upon whom may be served any lawful process in an action, suit or proceeding instituted by or on behalf of the ceding company; and (c) To comply with the conditions set forth in subsection 4 of NRS 681A.180. 2. This section does not conflict with or override the obligation of the parties to an agreement for reinsurance to arbitrate their disputes if such an obligation is created in the agreement. (Added to NRS by 1995, 1758; A 2003, 3286) NRS 681A.220 Requirements when assuming insurer does not meet certain requirements. Credit must be allowed if reinsurance is ceded to an assuming insurer not meeting the requirements of NRS 681A.110 or 681A.150, 681A.160, 681A.170, 681A.180

Vegas Law