Nevada Administrative Code
Chapter 692C - Holding Companies
ACQUISITIONS, MERGERS, REGISTRATION, SUBSIDIARIES AND TRANSACTIONS
Section 692C.060 - Agreement between registered insurer and affiliate for sharing cost of services or for management services

Universal Citation: NV Admin Code 692C.060

Current through February 27, 2024

Any agreement between a registered insurer and an affiliate for sharing the cost of services or for management services must, to the extent applicable:

1. Identify the person providing the services and the nature of those services;

2. Set forth the methods to allocate each cost;

3. Require:

(a) Timely settlement, not less frequently than quarterly; and

(b) Compliance with the requirements set forth in the Accounting Practices and Procedures Manual published by the National Association of Insurance Commissioners, as adopted by reference in NAC 679B.033;

4. Prohibit any advancement of money by the insurer to the affiliate, except to pay for services defined in the agreement;

5. State that the insurer will:

(a) Maintain oversight for any functions performed for the insurer by the affiliate; and

(b) Monitor services at least annually for quality assurance;

6. Define books and records of the insurer to include, without limitation, all books and records developed or maintained under or related to the agreement;

7. Specify that all books and records of the insurer are and remain the property of the insurer and are subject to the control of the insurer;

8. State that all money and invested assets of the insurer are the exclusive property of the insurer, are held for the benefit of the insurer and are subject to the control of the insurer;

9. Include standards for the termination of the agreement with and without cause;

10. Include provisions for the indemnification of the insurer in the event of gross negligence or willful misconduct on the part of the affiliate providing the services;

11. Specify that, if the insurer is placed in receivership or seized by the Commissioner pursuant to chapter 696B of NRS:

(a) All of the rights of the insurer under the agreement extend to the receiver or Commissioner; and

(b) All relevant books and records will immediately be made available to the receiver or the Commissioner, and must be turned over to the receiver or Commissioner immediately upon the receiver's or Commissioner's request;

12. Specify that the affiliate has no automatic right to terminate the agreement if the insurer is placed in receivership pursuant to chapter 696B of NRS; and

13. Specify that the affiliate will continue to maintain any systems, programs or other infrastructure related to the agreement, notwithstanding a seizure of the insurer by the Commissioner pursuant to chapter 696B of NRS, and will make them available to the receiver while the affiliate continues to receive timely payment for services rendered.

Added to NAC by Comm'r of Insurance by R078-16A, eff. 12/21/2016

NRS 679B.130, 692C.120, 692C.360

Disclaimer: These regulations may not be the most recent version. Nevada may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.