Nevada Administrative Code
Chapter 681B - Insurance: Assets and Liabilities
RISK-BASED CAPITAL OF INSURERS
Events Requiring Company Action
Section 681B.490 - Identification of events
Universal Citation: NV Admin Code 681B.490
Current through December 12, 2024
1. The following constitute events that require company action:
(a) The filing by an insurernsurer or health organization of a report on risk-based capital which indicates that:
(1) The total adjusted capital of the insurer or health organization is greater than or equal to its regulatory action level of risk-based capital but less than its company action level of risk-based capital;
(2) For a life and health insurer, the total adjusted capital of the insurer has a negative trend and is greater than or equal to its company action level of risk-based capital but less than the product of times its authorized control level of risk-based capital;
(3) For a property and casualty insurer, the total adjusted capital is greater than or equal to its company action level risk-based capital but less than the product of 3 times its authorized control level of risk -based capital and triggers the "Trend Test" determined in accordance with the "Trend Test" calculation included in the instructions relating to risk- based capital for property an d casualty insurers; or
(4) For a health organization, the total adjusted capital is greater than or equal to its company action level risk-based capital but less than the product of 3 times its authorized control level of risk-based capital and triggers the "Trend Test" determined in accordance with the "Trend Test" calculation included in the instructions relating to risk-based capital for health organizations
(b) Notification by the Commissioner to an insurer or health organization that the Commissioner has adjusted a report on risk-based capital of the insurer or health organization in accordance with NAC 681B.485 and that the adjusted report indicates a situation described in paragraph (a), except that if the insurer or health organization challenges the adjustment pursuant to NAC 681B.580, the event that requires company action is the notification by the Commissioner to the insurer or health organization that the Commissioner has, after a hearing, rejected the challenge of the insurer or health organizaion.
2. As used in this section, "negative trend" means a negative trend over a period, as determined in accordance with the "Trend Test" calculation included in the instructions relating to risk-based capital.
Added to NAC by Comm'r of Insurance by R088-97, eff. 3-19-98; A by R132-13, eff. 10/1/2014
NRS 679B.130, 681B.290
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