valuation: Minimum reserve. NRS 681B.160 Valuation of bonds. NRS 681B.170 Valuation of other securities. NRS 681B.180 Valuation of property. NRS 681B.190 Valuation of purchase money mortgages. NRS 681B.200 Life insurance: “Qualified actuary” defined. NRS 681B.210 Life insurance: Insurer to submit annual opinion of qualified actuary as to computation of reserves and related actuarial items. NRS 681B.220 Life insurance: Insurer to submit annual opinion of qualified actuary as to sufficiency of reserves and related actuarial items. NRS 681B.230 Life insurance: Opinion of actuary to be supported by memorandum; Commissioner may cause independent actuary to review opinion under certain circumstances. NRS 681B.240 Life insurance: Requirements for opinion of actuary. NRS 681B.250 Life insurance: Liability of qualified actuary; disciplinary action. NRS 681B.260 Life insurance: Confidentiality of material provided by insurer to Commissioner. NRS 681B.270 Regulations regarding standards for valuation of reserves of insurers. NRS 681B.280 Insurers to report material acquisition or disposition of assets; regulations. NRS 681B.290 Insurer to report its level of risk-based capital; regulations; exemption. _________ NRS 681B.010 Assets. In any determination of the financial condition of an insurer, there must be allowed as assets only such assets as are owned by the insurer and which consist of: 1. Cash in the possession of the insurer, or in transit under its control, and including the true balance of any deposit in a solvent bank, credit union or trust company. 2. Investments, securities, properties and loans acquired or held in accordance with this Code, and in connection therewith the following items: (a) Interest due or accrued on any bond or evidence of indebtedness which is not in default and which is not valued on a basis including accrued interest. (b) Declared and unpaid dividends on stock and shares, unless such amount has otherwise been allowed as an asset. (c) Interest due or accrued upon a collateral loan in an amount not to exceed 1 year’s interest thereon. (d) Interest due or accrued on deposits in solvent banks, credit unions and trust companies, and interest due or accrued on other assets, if such interest is, in the judgment of the Commissioner, a collectible asset. (e) Interest due or accrued on a mortgage loan, in an amount not exceeding in any event the amount, if any, of the excess of the value of the property less delinquent taxes thereon over the unpaid principal; but in no event may interest accrued for a period in excess of 18 months be allowed as an asset. (f) Rent due or accrued on real property if such rent is not in arrears for more than 3 months, and rent more than 3 months in arrears if the payment of such rent is adequately secured by property held in the name of the tenant and conveyed to the insurer as collateral. (g) The unaccrued portion of taxes paid before the due date on real property. 3. Premium notes, policy loans and other policy assets and liens on policies and certificates of life insurance and annuity contracts and accrued interest thereon, in an amount not exceeding the legal reserve and other policy liabilities carried on each individual policy. 4. The net amount of uncollected and deferred premiums and annuity considerations in the case of a life insurer. 5. Premiums in the course of collection, other than for life insurance, not more than 3 months past due, less commissions payable thereon. The foregoing limitation does not apply to premiums payable directly or indirectly by the United States Government or by any of its instrumentalities. 6. Installment premiums other than life insurance premiums to the extent of the unearned premium reserve carried on the policy to which premiums apply. 7. Notes and like written obligations not past due, taken for premiums other than life insurance premiums, on policies permitted to be issued on such basis, to the extent of the unearned premium reserves carried thereon. 8. The full amount of reinsurance recoverable by a ceding insurer from a solvent reinsurer, which reinsurance is authorized under NRS 681A.110. 9. Amounts receivable by an assuming insurer representing money withheld by a solvent ceding insurer under a reinsurance treaty. 10. Deposits or equities recoverable from underwriting associations, syndicates and reinsurance funds, or from any suspended financial institution, to the extent deemed by the Commissioner available for the payment of losses and claims and at values to be determined by him. 11. All such assets, whether or not consistent with the provisions of this section, as may be allowed pursuant to the annual statement form approved by the Commissioner for the kinds of insurance to be reported upon therein. 12. As to a title insurer, its title plant and equipment reasonably necessary for the conduct of its abstract or title insurance business, at not to exceed the cost thereof. 13. Electronic and mechanical machines and related equipment constituting a data processing, recordkeeping or accounting system or systems if the cost of each such system is at least $25,000, which cost must be amortized in full over a period not to exceed 10 years. The aggregate amount invested in all such systems must not exceed 5 percent of the insurer’s assets. 14. Other assets, not inconsistent with the provisions of this section, deemed by the Commissioner to be available for the payment of losses and claims at values to be determined by him. (Added to NRS by 1971, 1607; A 1993, 1447; 1995, 470; 1997, 299; 1999, 1547) NRS 681B.020 Assets not allowed. 1. In addition to assets impliedly excluded by the provisions of NRS 681B.010, the following expressly may not be allowed as assets in any determination of the financial condition of an insurer: (a) Goodwill, trade names and other like intangible assets. (b) Advances to officers, other than policy loans, whether secured or not, and advances to employees, agents and other persons on personal security only. (c) Stock of such insurer, owned by it, or any equity therein or loans secured thereby, or any proportionate interest in such stock acquired or held through the ownership by such insurer of an interest in another firm, corporation or business unit. (d) Furniture, fixtures, furnishings, safes, vehicles, libraries, stationery, literature and supplies, other than data processing, recordkeeping and accounting systems authorized under subsection 13 of NRS 681B.010, except: (1) In the case of title insurers such materials and plants as the insurer is expressly authorized to invest in under NRS 682A.220; and (2) In the case of any insurer, such personal property as the insurer is permitted to hold pursuant to chapter 682A of NRS, or which is reasonably necessary for the maintenance and operation of real property lawfully acquired and held by the insurer other than real property used by it for home office, branch office and similar purposes. (e) The amount, if any, by which the aggregate book value of investments as carried in the ledger assets of the insurer exceeds the aggregate value thereof as determined under this Code. 2. If any successor organization to the State Industrial Insurance System that was established by section 79 of chapter 642, Statutes of Nevada 1981, at page 1449, wishes to transact in this state property or casualty insurance other than industrial insurance, the money required to be held in trust by that organization pursuant to NRS 616B.042 may not be allowed as assets of the successor organization in determining its financial condition to transact such insurance. (Added to NRS by 1971, 1608; A 1999, 1831) NRS

Vegas Law