NAC681B.300. Definitions.

For the purposes of NRS 681B.280 and NAC 681B.300 to 681B.335, inclusive:

     1. “Acquisition” includes every purchase, lease, exchange, merger, consolidation, succession or other means except the construction or development of real property by or for the reporting insurer or the acquisition of materials for that purpose.

     2. “Disposition” includes every sale, lease, exchange, merger, consolidation, mortgage, hypothecation, assignment for the benefit of creditors or otherwise, abandonment, destruction or other disposition.

     3. An acquisition or the aggregate of any series of related acquisitions during any 30-day period, or a disposition or the aggregate of any series of related dispositions during any 30-day period, is “material” if it is nonrecurring and not in the ordinary course of business and involves more than 5 percent of the insurer’s total admitted assets as reported in its most recent statutory statement filed with the Commissioner of Insurance of the insurer’s state of domicile.

     4. A nonrenewal, cancellation or revision of an agreement for ceded reinsurance, and a new agreement for ceded reinsurance that affects the in-force life insurance business of an insurer, is “material” if it affects:

     (a) For property and casualty business, including accident and health business when written as casualty business:

          (1) More than 50 percent of the insurer’s total ceded written premium; or

          (2) More than 50 percent of the insurer’s total ceded indemnity and loss adjustment reserves.

     (b) For life, annuity, accident and health business, more than 50 percent of the total reserve credit taken for business ceded, on an annualized basis, as indicated in the insurer’s most recent annual statement filed with the Commissioner.

     5. For property and casualty business or life, annuity, accident or health business, a revision of an agreement for ceded reinsurance, and a new agreement for ceded reinsurance that affects the in-force life insurance business of an insurer, is “material” if:

     (a) An authorized reinsurer representing more than 10 percent of a total cession is replaced by one or more unauthorized reinsurers; or

     (b) Previously established requirements for collateral have been reduced or waived for one or more unauthorized reinsurers representing collectively more than 10 percent of a total cession.

     (Added to NAC by Comm’r of Insurance, eff. 6-28-96; A by R024-02, 5-31-2002)