NAC677.510. Requirements of private insurer for approval of contract.

     1. Before the Commissioner will approve a contract for the insurance of deposits that is issued by a private insurer pursuant to subsection 2 of NRS 677.247, a private insurer must:

     (a) Be licensed in this State by the Commissioner of Insurance;

     (b) Be rated within one of the five highest rating categories by a national rating service or hold a certificate of authority as an acceptable surety on federal bonds issued by the Secretary of the Treasury pursuant to 31 C.F.R. § 223.3; and

     (c) Agree to:

          (1) Submit quarterly and annual financial statements to the Commissioner and the Commissioner of Insurance;

          (2) Maintain an investment portfolio that includes assets of sufficient liquidity to reimburse depositors fully and promptly for any losses which the depositors may incur, including, without limitation, cash, reinsurance and lines of credit; and

          (3) Create and maintain reserves of not less than 15 percent of the amount of the insured deposits in the form of:

               (I) Cash;

               (II) United States treasury bills or notes;

               (III) Short-term certificates of deposit;

               (IV) Money market accounts;

               (V) Lines of credit; or

               (VI) The investments set forth in NRS 355.140.

     2. As used in this section, “short-term” means having a maturity of 2 years or less.

     (Added to NAC by Comm’r of Financial Institutions by R101-01, eff. 11-15-2001)