As used in NRS 686B.270 to 686B.320, inclusive, unless the context otherwise requires, “insured” means any person who has maintained at least 1 year of coverage with an essential insurance association. (Added to NRS by 1981, 1021) NRS 686B.270 Conversion into domestic stock insurer: Applicability of certain provisions governing nonprofit cooperative corporations. The provisions of NRS 81.130 and 81.510 do not apply to the conversion of an essential insurance association to a domestic stock insurer as provided in NRS 686B.280 to 686B.320, inclusive. (Added to NRS by 1981, 1023; A 1985, 1878; 1991, 1318) NRS 686B.280 Conversion into domestic stock insurer: Filing and contents of notice of intent to qualify. 1. An essential insurance association shall, whenever requested to do so by the Commissioner, file a notice of intent to qualify as a domestic stock insurer. In the absence of a request by the Commissioner, an essential insurance association may file such a notice whenever it considers it appropriate. 2. The notice must be filed with the Commissioner at least 4 months before the date the association is to become a domestic stock insurer and must contain: (a) An application prepared pursuant to chapter 680A of NRS for a certificate of authority to transact business in Nevada as a domestic stock insurer; (b) A valuation of capital and surplus according to both market and amortized value based on the association’s annual financial statement for the previous year; (c) The value and number of shares of stock to which each insured is entitled; and (d) The terms of any proposal offering money or its equivalent in lieu of issuing fractional shares. (Added to NRS by 1981, 1021) NRS 686B.290 Conversion into domestic stock insurer: Notice to insurers and insureds; hearing. 1. At the time the association files a notice of intent to qualify as a domestic stock insurer, it must give notice of its intent to all participating insurers and all insureds on a form approved by the Commissioner. The notice to each insured must state the total amount of stock to be issued and the amount of shares to which he is entitled. 2. Any participating insurer or insured may, within 30 days after the date of the notice, apply to the Division for a hearing concerning the association’s ability to qualify as a domestic insurer, the valuation of capital and surplus, or the proposed number and distribution of shares of stock. (Added to NRS by 1981, 1022; A 1991, 1630; 1993, 1917; 2003, 3307) NRS 686B.300 Conversion into domestic stock insurer: Determination of percentage of stock for each insured. The association shall determine the percentage of stock to which each insured is entitled as follows: 1. The amount of gain or loss from operations, including an equitable allocation of investment income attributable to operations, is calculated for each of the following groups: (a) Insureds who have not paid a capital stabilization charge; (b) Insureds who have paid this charge for a given policy year; and (c) Insureds who have paid a single charge to cover all policy years of participation in the association. 2. For each calendar year the association has been in operation, the amount of gain or loss from operations, including an equitable allocation of investment income attributable to each group, is divided by the number of insured months in that group. 3. For each group in which an insured participated in any calendar year, his number of insured months in that group is multiplied by the amount of income per insured month attributable to that group, as determined in subsection 2. 4. For each insured, the results of the calculations performed under subsection 3 for each group in which the insured was a member during a particular calendar year are added. 5. For each insured, the total amount he paid in capital stabilization charges is computed. 6. For each insured, the sum of the results of the calculations performed under subsections 4 and 5 are divided by the total surplus of the association as shown in its financial statement for the year preceding its conversion to a domestic stock insurer, to obtain that insured’s percentage of ownership of the total stock to be distributed. (Added to NRS by 1981, 1022) NRS 686B.310 Conversion into domestic stock insurer: Capitalization. An association must comply with the provisions of NRS 680A.120 to qualify as a domestic stock insurer. Any paid-in capital in excess of the minimum amount required may be shown as surplus. (Added to NRS by 1981, 1023) NRS 686B.320 Conversion into domestic stock insurer: Issuance of certificate of authority. Upon determining that the Association has complied with NRS 686B.280 to 686B.310, inclusive, and all other requirements applicable to domestic stock insurers, the Commissioner may issue to the Association a certificate of authority to transact business as a domestic stock insurer. (Added to NRS by 1981, 1023; A 2003, 3307) NRS 686B.330 Conversion into domestic mutual insurer or domestic reciprocal insurer: “Insured” defined. As used in NRS 686B.330 to 686B.370, inclusive, unless the context otherwise requires, “insured” has the meaning ascribed to it in NRS 686B.260. (Added to NRS by 2003, 3303) NRS 686B.340 Conversion into domestic mutual insurer or domestic reciprocal insurer: Exemption from applicability of NRS 81.130 and 81.510. The provisions of NRS 81.130 and 81.510 do not apply to the conversion of an essential insurance association to a domestic mutual insurer or a domestic reciprocal insurer as provided in NRS 686B.330 to 686B.370, inclusive. (Added to NRS by 2003, 3304) NRS 686B.350 Conversion into domestic mutual insurer or domestic reciprocal insurer: Filing and contents of notice of intent to qualify. 1. An essential insurance association shall, if requested to do so by the Commissioner, file a notice of intent to qualify as a domestic mutual insurer or a domestic reciprocal insurer. In the absence of a request by the Commissioner, an essential insurance association may file such a notice at such time as the association determines appropriate. 2. The notice must be filed with the Commissioner at least 4 months before the date the association is to become a domestic mutual insurer or a domestic reciprocal insurer and must include: (a) An application prepared pursuant to chapter 680A of NRS for a certificate of authority to transact business in Nevada as a domestic mutual insurer or a domestic reciprocal insurer; (b) A valuation of the policyholder’s surplus according to both market and amortized value based on the association’s annual financial statement for the previous year; and (c) A provision for the return of any unused portion of the insured’s capital stabilization charges. (Added to NRS by 2003, 3304) NRS 686B.360 Conversion into domestic mutual insurer or domestic reciprocal insurer: Notice to insurers and insured; hearing. 1. At the time the association files a notice of intent to qualify as a domestic mutual insurer or domestic reciprocal insurer, it must give a notice of intent to all participating insurers and all insureds on a form approved by the Commissioner. 2. Any participating insurer or insured may, within 30 days after the date of the notice, apply to the Division for a hearing concerning the association’s ability to qualify as a domestic mutual insurer or domestic reciprocal insurer. 3. An association must comply with the provisions of: (a) Chapter 692B of NRS, as applicable to mutual insurers, to qualify as a domestic mutual insurer; or (b) Chapter 694B of NRS, as applicable to reciprocal insurers, to qualify as a domestic reciprocal insurer. (Added to NRS by 2003, 3304) NRS 686B.370 Conversion into domest

Vegas Law