NAC694C.245. Requirements for material service provider contract.

     1. A material service provider contract between a captive insurer and a service provider:

     (a) Must be for a period of not more than 5 years;

     (b) Requires the approval of the majority of the captive insurer’s directors or subscribers’ advisory committee members for its initial term and for all renewals; and

     (c) Must be filed with the Division within 30 days after the effective date of the contract.

     2. As used in this section:

     (a) “Material service provider contract” means any contract between a captive insurer and a service provider under the terms of which the amount to be paid to the service provider by the captive insurer is greater than $15,000 during any one 12-month period.

     (b) “Service provider” means a captive manager, auditor, accountant, actuary, investment adviser, attorney, managing general underwriter, managing general agent, attorney-in-fact or any other party responsible for underwriting, the determination of rates, the collection of premiums, adjusting and settling claims or the preparation of financial statements.

     (Added to NAC by Comm’r of Insurance by R071-09, eff. 10-27-2009)