NAC683A.119. Determination of whether administrator or applicant is financially unsound.

The Commissioner will consider the following to determine whether an administrator or an applicant for a certificate of registration as an administrator is financially unsound pursuant to NRS 683A.08524 or 683A.0892:

     1. The administrator or applicant:

     (a) Submits a financial statement to the Commissioner, pursuant to NRS 683A.08522 or 683A.08528, reporting:

          (1) The sum of its assets is less than the sum of its liabilities;

          (2) A recurring operating loss;

          (3) Negative cash flow from operations; or

          (4) A significant decrease in assets within a fiscal year or over a period of years;

     (b) Has defaulted on a loan or restructuring of debt;

     (c) Has lost key personnel; or

     (d) Has experienced an uninsured or underinsured catastrophe.

     2. The administrator loses more than 50 percent of its contracts to act as an administrator within a fiscal year.

     3. Adverse findings reported in examinations concerning the financial condition of the administrator or applicant that the Commissioner determines to be material.

     4. Information and reports concerning the administrator or applicant from the Insurance Regulatory Information System of the National Association of Insurance Commissioners.

     5. Whether the portfolio of assets of the administrator or applicant, when considered in light of the current economic conditions, is of sufficient value, liquidity or diversity to ensure the ability of the administrator or applicant to meet its outstanding obligations as those obligations mature.

     6. An opinion issued by an independent certified public accountant that the administrator or applicant is unable to operate as a going concern.

     (Added to NAC by Comm’r of Insurance by R171-03, eff. 12-16-2003)