or 681A.190, but only with respect to the insurance of risks located in jurisdictions where such reinsurance is required by applicable law or regulation of that jurisdiction. (Added to NRS by 1995, 1758) NRS 681A.230 Ceding insurer to be allowed credit if reinsurance lawfully ceded to qualified assuming insurer; domiciliary liquidator of insolvent ceding insurer to give notice to assuming insurer of any claim against ceding insurer. 1. Credit must be allowed as an asset or as a deduction from liability to any ceding insurer for reinsurance lawfully ceded to an assuming insurer qualified therefor pursuant to NRS 681A.110, 681A.150, 681A.160, 681A.170, 681A.180 or 681A.190, but no such credit may be allowed unless the contract for reinsurance provides in substance that, in the event of the insolvency of the ceding insurer, the reinsurance is payable pursuant to a contract reinsured by the assuming insurer on the basis of reported claims allowed in any liquidation proceedings, subject to court approval, without diminution because of the insolvency of the ceding insurer. Except as otherwise provided in NRS 686C.223, those payments must be made directly to the ceding insurer or to its domiciliary liquidator unless: (a) The contract of reinsurance or other written contract specifically designates another payee of the payments in the event of the insolvency of the ceding insurer; or (b) The assuming insurer, with the consent of the persons directly insured, has assumed the obligations from the policies issued by the ceding insurer as direct obligations of the assuming insurer, and in substitution for the obligations of the ceding insurer, to the payees under those policies. 2. The domiciliary liquidator of an insolvent ceding insurer shall give written notice to the assuming insurer of the pendency of any claim against the ceding insurer on any contract reinsured within a reasonable time after such a claim is filed in the liquidation proceeding. During the pendency of the claim, the assuming insurer may investigate the claim and, at its own expense, interpose in the proceeding in which the claim is to be adjudicated any defense that the assuming insurer deems available to the ceding insurer or its liquidator. (Added to NRS by 1995, 1759; A 1997, 3021; 2001, 1025) NRS 681A.240 Requirements for reduction from liability when assuming insurer does not meet certain requirements concerning risk-based capital. A reduction from liability for the reinsurance ceded by a domestic insurer to an assuming insurer not meeting the requirements of NRS 681A.110 or the regulations of the Commissioner concerning risk-based capital must be allowed in an amount not exceeding the liabilities carried by the ceding insurer and the reduction must be in the amount of assets held by or on behalf of the ceding insurer, including assets held in trust for the ceding insurer, under a contract of reinsurance with the assuming insurer as security for the payment of obligations thereunder, if the security is held in the United States subject to withdrawal solely by, and under the exclusive control of, the ceding insurer, or, in the case of a trust, held in a qualified financial institution in the United States. The security may be in any of the following forms: 1. Cash. 2. Securities listed by the Securities Valuation Office of the National Association of Insurance Commissioners and qualifying as admitted assets. 3. Irrevocable, unconditional letters of credit, each issued or confirmed by a qualified financial institution in the United States which has been determined by the Commissioner, or the Securities Valuation Office of the National Association of Insurance Commissioners, to meet such standards of financial condition and standing as are considered necessary or appropriate to regulate the quality of financial institutions whose letters of credit are acceptable to the Commissioner, no later than December 31 of the year for which filing is made, and in the possession of the ceding company on or before the date of filing its annual statement. A letter of credit meeting applicable standards of acceptability of its issuer as of the date of its issuance or confirmation, notwithstanding the issuing or confirming institution’s subsequent failure to meet applicable standards of acceptability, continues to be acceptable as security until its expiration, extension, renewal, modification or amendment, whichever first occurs. 4. Any other form of security acceptable to the Commissioner. (Added to NRS by 1995, 1759) Brokers and Managers NRS 681A.250 Definitions. As used in NRS 681A.250 to 681A.580, inclusive, unless the context otherwise requires, the words and terms defined in NRS 681A.260 to 681A.410, inclusive, have the meanings ascribed to them in those sections. (Added to NRS by 1995, 1759) NRS 681A.260 “Actuary” defined. “Actuary” means a person who is a member in good standing of the American Academy of Actuaries or its successor organization. (Added to NRS by 1995, 1759) NRS 681A.270 “Automatic agreement” defined. “Automatic agreement” means an agreement between a reinsured and reinsurer whereby the ceding company is obligated to cede certain risks as provided in the agreement and the reinsurer is obligated to accept. (Added to NRS by 1995, 1760) NRS 681A.280 “Broker for reinsurance” defined. “Broker for reinsurance” means a person who negotiates a contract of reinsurance between a reinsured and reinsurer on behalf of the reinsured and who receives a commission for placement and other services rendered. The term does not include the ceding insurer. (Added to NRS by 1995, 1760) NRS 681A.290 “Cede” defined. “Cede” means to pass on to another insurer, who is designated the reinsurer, all or part of the insurance written by an insurer with the object of reducing the possible liability of the ceding insurer. (Added to NRS by 1995, 1760) NRS 681A.300 “Cession” defined. “Cession” means the unit of insurance passed to a reinsurer by a primary company which issued a policy to the original insured. (Added to NRS by 1995, 1760) NRS 681A.310 “Controlling person” defined. “Controlling person” means a person who directly or indirectly has the power to direct, or cause to be directed, the management, control or activities of an intermediary. (Added to NRS by 1995, 1760) NRS 681A.320 “Facultative” defined. A submission is “facultative” if both the primary insurer and the reinsurer have the choice to accept or reject the submission. (Added to NRS by 1995, 1760) NRS 681A.330 “Intermediary” defined. “Intermediary” includes a broker for reinsurance or a manager for reinsurance. (Added to NRS by 1995, 1760) NRS 681A.340 “Licensed producer” defined. “Licensed producer” means an agent, broker or intermediary licensed pursuant to this title. (Added to NRS by 1995, 1760) NRS 681A.350 “Manager for reinsurance” defined. “Manager for reinsurance” means a person who has authority to bind or manage all or part of the assumed reinsurance of a reinsurer and acts as an agent for the reinsurer whether known as a manager or other similar term. The term includes the manager of a separate division, department or underwriting office who acts as an agent for a reinsurer. For the purposes of NRS 681A.250 to 681A.580, inclusive, the following persons are not managers with respect to a reinsurer: 1. An employee of the reinsurer; 2. A manager of a branch of an alien reinsurer located in the United States; 3. An underwriting manager who, pursuant to a contract, manages all or part of the reinsurance of the reinsurer, is under common control with the reinsurer within the meaning of chapter 692C of NRS, and whose compensation is not based on the volume of premiums written; or 4. The manager of a group, association, pool or organization of insurers wh

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