handled by the manager for reinsurance; (g) Any related correspondence and memoranda; (h) Proof of placement; (i) Any details regarding retrocessions handled by the manager for reinsurance, including the identity of retrocessionaires and percentage of each contract assumed or ceded; (j) Financial records, including accounts of premium and loss; and (k) If the manager for reinsurance places a contract of reinsurance on behalf of a ceding insurer: (1) Directly from any assuming reinsurer, written evidence that the assuming reinsurer has agreed to assume the risk; or (2) Through a representative of the assuming reinsurer, other than an employee, written evidence that the reinsurer has delegated binding authority to the representative. 2. The manager for reinsurance shall allow a reinsurer to have access and to copy all accounts and records maintained by him related to its business in a form usable by the reinsurer. (Added to NRS by 1995, 1764) NRS 681A.540 Managers: Prohibited acts. A manager for reinsurance shall not: 1. Except as otherwise provided in this section, cede retrocessions on behalf of the reinsurer. A manager for reinsurance may cede facultative retrocessions pursuant to facultative agreements if the contract with the reinsurer contains guidelines for underwriting the retrocessions. The guidelines must include a list of reinsurers with which automatic agreements are in effect, and for each reinsurer, the coverages and amounts or percentages that may be reinsured, and commission schedules. 2. Commit the reinsurer to participate in syndicates for reinsurance. 3. Appoint any producer without verifying that the producer is licensed to transact the type of reinsurance for which he is appointed. 4. Without approval of the reinsurer, pay or commit the reinsurer to pay a claim, net of retrocessions, that exceeds the lesser of an amount specified by the reinsurer or 1 percent of the policyholder’s surplus of the reinsurer as of December 31 of the last complete calendar year. 5. Collect any payment from a retrocessionaire or commit the reinsurer to any settlement of a claim with a retrocessionaire, without the approval of the reinsurer. If approval is given, the manager for reinsurance shall promptly forward a report to the reinsurer. 6. Employ a person who is employed by the reinsurer unless the manager for reinsurance is under common control with the reinsurer within the meaning of chapter 692C of NRS. 7. Appoint another person to act as a manager for reinsurance. (Added to NRS by 1995, 1765; A 1997, 3022) NRS 681A.550 Managers: Conditions for employment; annual statement of financial condition; reserves for losses; retrocessional contracts; notice of termination; prohibition against serving on board of directors of reinsurer. 1. A reinsurer shall not engage the services of any person to act as a manager for reinsurance on its behalf unless he is licensed as required by NRS 681A.430. 2. A reinsurer shall annually obtain a copy of statements of the financial condition of each manager for reinsurance whom the reinsurer has engaged. The statements must be prepared by an independent certified public accountant in a form approved by the Commissioner. 3. If a manager for reinsurance establishes reserves for losses, the reinsurer shall annually obtain the opinion of an actuary attesting to the adequacy of reserves established for losses incurred and outstanding on the business produced by the manager for reinsurance. The opinion of the actuary must be in addition to any other required certification. 4. An officer of the reinsurer must have authority to bind a reinsurer for all retrocessional contracts and for participation in syndicates for reinsurance. The officer must not be affiliated with the manager for reinsurance. 5. At least 30 days before termination of a contract with a manager for reinsurance, the reinsurer shall provide written notification of the termination to the Commissioner. 6. Except as otherwise provided in chapter 692C of NRS, a reinsurer shall not appoint to its board of directors any officer, director, employee, controlling shareholder or subproducer of its manager for reinsurance. (Added to NRS by 1995, 1766) NRS 681A.560 Examination of intermediary by Commissioner. 1. An intermediary is subject to examination by the Commissioner. The intermediary shall allow the Commissioner to have access to all of his books, bank accounts and records in a form usable to the Commissioner. 2. A manager for reinsurance may be examined as if he were the reinsurer. (Added to NRS by 1995, 1766) NRS 681A.570 Actions that may be taken against intermediary who fails to comply with laws. 1. If the Commissioner believes that the reinsurance intermediary or any other person has not materially complied with NRS 681A.250 to 681A.560, inclusive, or any regulation adopted or order issued pursuant thereto, the Commissioner may, after a hearing conducted in accordance with NRS 679B.310 to 679B.370, inclusive, order: (a) For each separate violation, the payment of a penalty in an amount not exceeding $5,000; and (b) The revocation or suspension of the license of the reinsurance intermediary. 2. If the Commissioner finds that the material noncompliance of the reinsurance intermediary has caused the insurer or reinsurer any loss or damage, the Commissioner may initiate a civil action against the intermediary on behalf of the insurer or reinsurer and the policyholders and creditors of the insurer or reinsurer to recover compensatory damages or other appropriate relief for the benefit of the insurer or reinsurer and the policyholders and creditors. 3. If an order of rehabilitation or liquidation of the insurer has been entered and the receiver appointed by that order determines that: (a) The reinsurance intermediary or any other person has not materially complied with NRS 681A.250 to 681A.560, inclusive, or any regulation adopted or order issued pursuant thereto; and (b) The insurer has suffered any loss or damage as a result of that noncompliance, the receiver may bring a civil action for the recovery of damages or for any other appropriate sanctions on behalf of the insurer. (Added to NRS by 1995, 1766; A 1997, 3023) NRS 681A.580 Rights of relevant parties not limited or expanded. NRS 681A.250 to 681A.580, inclusive, do not limit or restrict the rights of policyholders, claimants, creditors or other third parties or confer any rights on such persons. (Added to NRS by 1995, 1767) CHAPTER 681B - ASSETS AND LIABILITIES NRS 681B.010 Assets. NRS 681B.020 Assets not allowed. NRS 681B.030 Disallowance of asset arranged to deceive. NRS 681B.040 Liabilities. NRS 681B.050 Reserves for losses from casualty insurance. NRS 681B.060 Reserve for unearned premiums. NRS 681B.070 Reserve for unearned premiums for marine and transportation insurance. NRS 681B.080 Reserves for policies of health insurance. NRS 681B.100 Contingency reserves for insurance of repayment of debt secured by mortgage. NRS 681B.110 Standard of valuation: Valuation and calculation of reserves; acceptance of valuation by another state or jurisdiction. NRS 681B.120 Standard of valuation: Minimum standards for policies and contracts. NRS 681B.125 Standard of valuation: Interest rates for minimum standard. NRS 681B.130 Standard of valuation: Reserves; modified net premiums; calculations; minimum aggregate reserves. NRS 681B.140 Standard of valuation: Calculation of reserves on higher or lower standards; rate of interest. NRS 681B.145 Standard of valuation: Reserves for plan of life insurance. NRS 681B.150 Standard of

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