Nevada Administrative Code
Chapter 681A - Kinds of Insurance; Reinsurance
CERTIFIED REINSURERS
Section 681A.460 - Assignment of ratings by Commissioner; factors for making determination; adjustment of required security; periodic reporting requirements for certified reinsurers; reevaluation of rating; application of upgraded or downgraded rating to reinsurance contracts

1. Except as otherwise provided in NAC 681A.500, the Commissioner will assign a rating to each certified reinsurer pursuant to NRS 681A.1554. When determining the rating for a certified reinsurer, the Commissioner will evaluate the certified reinsurer as a separate entity from any group in which it may be a member, but the Commissioner may give consideration to the group in which a certified reinsurer is a member if the Commissioner determines such consideration would be appropriate. The Commissioner may evaluate an association that includes incorporated and individual unincorporated underwriters that has been approved to do business as a certified reinsurer on the basis of its group rating.

2. The Commissioner will determine the maximum rating that he or she may assign to a certified reinsurer on the basis of the financial strength ratings assigned to the certified reinsurer by two or more rating agencies determined to be acceptable by the Commissioner. The Commissioner will use the lowest financial strength rating received by the certified reinsurer to establish a maximum rating for the certified reinsurer in accordance with the following table:

3. When determining whether to assign the maximum rating pursuant to subsection 2 or a lower rating to a certified reinsurer, the Commissioner may consider factors which include, without limitation:

4. The Commissioner may adjust the security that a certified reinsurer is required to post pursuant to paragraph (b) of subsection 2 of section 8 to protect the liabilities of the certified reinsurer to its ceding insurers on the basis of the reputation of the certified reinsurer for prompt payment of claims as described in paragraph (d) of subsection 3. The Commissioner will, at a minimum, deem a certified insurer to be one rating lower for the purpose of posting security if the Commissioner finds that:

5. Each certified insurer shall submit to the Commissioner with its initial application and on an ongoing basis thereafter:

6. Upon receipt of information indicating that a rating agency has upgraded or downgraded a certified reinsurer or that some other relevant circumstance has occurred, the Commissioner will reevaluate the rating assigned to a certified reinsurer and, if the Commissioner determines that a different rating is appropriate, provide written notice to the certified reinsurer that a different rating has been assigned. If the Commissioner upgrades the rating of a certified reinsurer, the upgraded rating applies to any reinsurance contract entered into by the certified reinsurer after the date of the written notice and the previous rating applies to any reinsurance contract entered into by the certified reinsurer on or before the date of the written notice. If the Commissioner downgrades the rating of a certified reinsurer, the downgraded rating applies to all reinsurance contracts of the certified reinsurer.

7. A copy of Form CR-1, Form CR-F and Form CR-S may be obtained free of charge from the Division at the Internet address http://doi.nv.gov/Insurers/Company-Admissions/Annual-Renewals-of-Company-License/.