NAC681A.330. Use of trust agreement for reduction of liability for reinsurance.

A trust agreement may be used to reduce any liability for reinsurance ceded to an unauthorized assuming insurer in financial statements required to be filed with the Division, if the trust account is established on or before the date the financial statement of the ceding insurer is filed. The allowable reduction for the existence of an acceptable trust account is the current fair market value of the acceptable assets available to be withdrawn from the trust account at the time of filing, except that the reduction may not exceed the specific obligations under the reinsurance agreement that the trust account was established to secure.

     (Added to NAC by Comm’r of Insurance, eff. 6-28-96)