NAC680A.014. “Internal control over financial reporting” defined.

“Internal control over financial reporting” means a process effected by the board of directors, management and other personnel of an insurer or other entity and designed to provide reasonable assurance regarding the reliability of the financial statements required pursuant to NRS 680A.265 and 680A.270 and the regulations adopted pursuant thereto, including, without limitation, those policies and procedures that:

     1. Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of assets;

     2. Provide reasonable assurance that transactions are recorded as necessary to permit preparation of the financial statements, and that receipts and expenditures are being made only in accordance with the authorization of management and the board of directors; and

     3. Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of assets that could have a material effect on the financial statements of the entity.

     (Added to NAC by Comm’r of Insurance by R205-08, 11-25-2009, eff. 1-1-2010)