NAC677.520. Considerations in determination of acceptability of private insurer to issue contract; additional reserve.

     1. In determining whether a private insurer is acceptable to issue a contract for the insurance of deposits, the Commissioner will consider:

     (a) The value of the insurer’s capital;

     (b) The qualifications of the directors, officers and managers of the insurance company;

     (c) The insurer’s articles of incorporation and its bylaws and all amendments thereto;

     (d) The insurer’s policies for investments; and

     (e) The form of all insurance contracts entered into by the insurer, including contracts for reinsurance.

     2. After a private insurer obtains the approval of the Commissioner and the Commissioner of Insurance to issue a contract for the insurance of deposits, the Commissioner, after consultation with the Commissioner of Insurance, may, for cause, require the insurer to establish and maintain, for such a time as the Commissioner may require, an additional reserve, in cash or United States treasury bills or notes, in an amount fixed by the Commissioner. If required, the reserve must be kept in an account approved by the Commissioner in a federally insured financial institution located in this State.

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