NAC616B.598. Requests for approval of declaration of dividend and for approval of distribution of dividend.

     1. An association must submit a request for approval of a declaration of a dividend to the Commissioner not less than 30 days before the proposed date of the declaration of the dividend.

     2. An association must submit a request for approval of a distribution of a dividend to the Commissioner not less than 30 days before the proposed date of the distribution of the dividend.

     3. A request for approval of a distribution of a dividend submitted by an association pursuant to subsection 2 must include:

     (a) An actuarial analysis of loss reserves that was prepared by a member of the American Academy of Actuaries not more than 90 days before the date that the request is submitted pursuant to subsection 2;

     (b) An analysis of the assets and obligations of the association by fund year that was prepared by the association on a form approved by the Commissioner and includes a detail of the unrealized gains and losses of the association;

     (c) The proposed date of the distribution of the dividend;

     (d) The amount of the dividend by fund year;

     (e) A copy of the most recent financial statements of the association;

     (f) Any other information or report that the Commissioner determines to be necessary to evaluate the request; and

     (g) If an association has a deficit in any fund year, a plan for making up the deficit of the association that meets the requirements of NRS 616B.422.

     4. As used in this section:

     (a) “Dividend” means any distribution of earnings or retained earnings, in the form of money or property, from an association to the members of the association.

     (b) “Fund year” means the fiscal year used by an association for the purposes of financial reporting.

     (Added to NAC by Comm’r of Insurance by R112-04, eff. 8-25-2004)