Nevada Administrative Code
Chapter 694C - Captive Insurers
ADMINISTRATION
Section 694C.240 - Security deposit or letter of credit

Universal Citation: NV Admin Code 694C.240

Current through December 31, 2024

1. If the Commissioner determines that the financial condition of a captive insurer warrants additional security, the Commissioner may require the captive insurer to:

(a) Deposit with the State Treasurer:
(1) Cash; or

(2) Securities which have been approved by the Commissioner; or

(b) Furnish the Commissioner a clean irrevocable letter of credit issued by a bank chartered by the State of Nevada, or a bank that is a member of the United States Federal Reserve System, on a form approved by the Commissioner. If there is a change to such a letter of credit, the captive insurer shall, as soon as practicable, file an updated copy of the letter of credit with the Commissioner.

2. A captive insurer may:

(a) Receive interest or dividends from the security deposit; or

(b) With the approval of the Commissioner, exchange the deposit for other deposits of equal value.

3. If the captive insurer discontinues business, the Commissioner will return the deposit to the captive insurer only after being satisfied that all obligations of the captive insurer have been discharged.

Added to NAC by Comm'r of Insurance by R125-99, eff. 1-27-2000; A by R080-16A, eff. 11/2/2016

NRS 679B.130, 694C.170;

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.
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