NAC681B.235. Asset adequacy analysis: Use of appropriate allocation of assets in amount of Interest Maintenance Reserve; disclosure of amount of assets used for Asset Valuation required.

     1. An appropriate allocation of assets in the amount of the Interest Maintenance Reserve, whether positive or negative, must be used in any asset adequacy analysis. Analysis of risks regarding asset default may include an appropriate allocation of assets supporting the Asset Valuation Reserve. Assets supporting the Asset Valuation Reserve may not be applied for any other risks with respect to the adequacy of reserves. Analysis of these and other risks may include assets supporting other mandatory or voluntary reserves available to the extent those assets are not used for risk analysis and to support reserves.

     2. The amount of the assets used for the Asset Valuation Reserve must be disclosed in the Table of Reserves and Liabilities of the opinion of the qualified actuary submitted pursuant to NRS 681B.220 and in the supporting memorandum provided pursuant to NRS 681B.230. The method used for selecting particular assets or allocated portions of assets must be disclosed in the supporting memorandum.

     (Added to NAC by Comm’r of Insurance, eff. 5-23-96)