NAC683A.540. Duties of insurers.

     1. The insurer shall file with the Division, in a form approved by the Commissioner, an independent financial examination of each managing general agent with which it has done business.

     2. If a managing general agent establishes loss reserves, the insurer shall obtain annually the opinion of an actuary attesting to the adequacy of the loss reserves established for losses incurred and on the outstanding business produced by the managing general agent. This opinion must be made separately from any other required loss reserve certification.

     3. The insurer shall, at least once every 6 months, conduct an on-site review of the operations of the managing general agent for underwriting and processing claims.

     4. An officer of the insurer, who is not affiliated with the managing general agent, must have binding authority for all reinsurance contracts or for the insurer’s participation in insurance or reinsurance syndicates.

     5. Within 30 days after appointing or terminating the contract of a managing general agent, the insurer shall provide written notice to the Commissioner. Notices of appointment of a managing general agent must include a statement of the duties that he or she will perform for the insurer, the lines of insurance for which he or she is to be authorized to act, and any other information requested by the Commissioner.

     6. At least once every 3 months, an insurer shall review its books and records to determine if any producer of insurance has become a managing general agent. If the insurer determines that the person has become a managing general agent, the insurer shall promptly notify that person and the Commissioner of the determination. The insurer and the person must comply with the provisions of NAC 683A.470 to 683A.550, inclusive, within 30 days after such a determination by the insurer.

     7. An insurer shall not appoint to its board of directors an officer, director, employee or controlling shareholder of its managing general agents. This subsection does not apply to relationships governed by chapter 692C of NRS.

     (Added to NAC by Comm’r of Insurance, eff. 9-19-90; A 5-27-92; R172-01, 7-5-2002)