NAC680A.173. Purpose of provisions.

     1. The purpose of NAC 680A.173 to 680A.211, inclusive, is to improve the Division’s surveillance of the financial condition of insurers by requiring:

     (a) An annual audit of financial statements reporting the financial position and the results of operations of insurers by independent certified public accountants;

     (b) The filing of a Communication of Internal Control Related Matters Noted in an Audit; and

     (c) The filing of a Management’s Report on Internal Control Over Financial Reporting.

     2. A foreign or alien insurer is exempt from the provisions of NAC 680A.177 to 680A.197, inclusive, if:

     (a) The insurer files an Audited Financial Report with the insurance regulatory authority of another state pursuant to the requirements of that state for filing an annual Audited Financial Report, if such requirements have been found by the insurance regulatory authority to be substantially similar to the requirements of this chapter; and

     (b) Copies of the following that are filed with the insurance regulatory authority of that state are filed with the Commissioner in accordance with the filing dates specified in NAC 680A.177, 680A.191, 680A.193 and 680A.195, respectively:

          (1) An annual Audited Financial Report;

          (2) Notification of Adverse Financial Condition;

          (3) Communication of Internal Control Related Matters Noted in an Audit; and

          (4) An Accountant’s Letter of Qualifications.

     3. A foreign or alien insurer required to file the Management’s Report on Internal Control Over Financial Reporting with the insurance regulatory authority of another state is exempt from filing in this State if the other state has substantially similar reporting requirements and if the report is filed with the insurance regulatory authority of the other state within the time specified.

     4. The provisions of NAC 680A.173 to 680A.211, inclusive, do not prohibit, preclude or in any way limit the authority of the Commissioner to order, conduct or perform examinations of an insurer pursuant to the provisions of chapter 679B of NRS and the regulations adopted pursuant thereto.

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