§ 694C.410 — Examinations: Conducted by Commissioner; frequency; Commissioner authorized to obtain professional services; cost

Nevada § 694C.410

• Jurisdiction: Nevada
• Title 57: INSURANCE
• Ch. 694C: Captive

Text

1. Except as otherwise provided in this section, at least once every 3 years, and at such other times as the Commissioner determines necessary, the Commissioner, or a designee of the Commissioner, shall visit each captive insurer and thoroughly inspect and examine the affairs of the captive insurer to ascertain:
(a) The financial condition of the captive insurer;
(b) The ability of the captive insurer to fulfill its obligations; and
(c) Whether the captive insurer has complied with the provisions of this chapter and the regulations adopted pursuant thereto.
2. Upon the application of a captive insurer, the Commissioner may conduct the visits required pursuant to subsection 1 every 5 years if the captive insurer conducts comprehensive annual audits:
(a) The scope of which is satisfactory to the Commissioner; and
(b) Which are conducted by an independent auditor appointed by the Commissioner.
3. The provisions of subsections 1 and 2 do not apply to a pure captive insurer. The Commissioner may conduct an examination of a pure captive insurer at any reasonable time to ascertain:
(a) The financial condition of the pure captive insurer;
(b) The ability of the pure captive insurer to fulfill its obligations; and
(c) Whether the pure captive insurer has complied with the provisions of this chapter and the regulations adopted pursuant thereto.
4. The Commissioner may contract to obtain legal, financial and examination services from outside the Division to conduct the examination and make recommendations to the Commissioner. The cost of the examination must be paid to the Commissioner by the captive insurer.
5. The provisions of NRS 679B.230 to 679B.287 , inclusive, apply to examinations conducted pursuant to this section.

Legislative History

(Added to NRS by 1999, 3213 ; A 2011, 3394 )