NRS 682B.010 Authorizeddeposits. The following deposits of insurerswhen made through the Commissioner must be accepted and held by him in trust,subject to the provisions of NRS 682B.010to 682B.120, inclusive:

1. Deposits required under this Code for authority totransact insurance in this state.

2. Deposits of domestic insurers when made pursuant tothe laws of other states, provinces and countries as a requirement forauthority to transact insurance in such state, province or country.

3. Deposits in such additional amounts as arepermitted to be made under NRS 682B.080.

(Added to NRS by 1971, 1629; A 1985, 609)

NRS 682B.015 Additionaldeposit.

1. In addition to the deposits authorized by NRS 682B.010, the Commissioner may byregulation require as a condition of transacting the business of insurance inthis state that a special deposit be maintained in this state by an authorizedinsurer who is subject to the provisions of chapter680A of NRS or by an eligible insurer who is subject to the provisions of chapter 685A of NRS.

2. A deposit pursuant to this section:

(a) Must be held for the sole benefit and protection ofpolicyholders residing in this state and any risk that is resident, located orto be performed in this state that is the subject of insurance; and

(b) Is subject to the provisions of NRS 682B.030 to 682B.120, inclusive.

(Added to NRS by 1993, 2386)

NRS 682B.020 Purposeof deposit.

1. Deposits made in this state under NRS 680A.140 and 680A.330 (retaliatory provision) shall beheld in trust for the respective purposes stated in those sections.

2. A deposit made in this state by a domestic insurertransacting insurance in another state, province or country, and as required bythe laws of such other state, province or country, shall be held for theprotection of all the insurers policyholders or all its policyholders andcreditors or for such other purpose or purposes as may be specified pursuant tosuch laws.

3. Deposits required under NRS 680A.330 (retaliatory provision)shall be held for such purposes as are required by such section, and asspecified by the Commissioners order requiring such deposit to be made.

(Added to NRS by 1971, 1629)

NRS 682B.030 Securitieseligible for deposit.

1. All such deposits required under NRS 680A.140 for authority to transactinsurance in this state shall consist of good interest-bearing ordividend-paying securities of kinds eligible for investment of the funds ofdomestic insurers under NRS chapter 682A(investments).

2. All other deposits of a domestic insurer held inthis state pursuant to the laws of another state, province or country shall becomprised of securities of the kinds described in subsection 1, and of suchadditional kind or kinds of securities required or permitted by the laws ofsuch state, province or country.

3. Deposits of foreign insurers made in this stateunder NRS 680A.330 (retaliatoryprovision) shall consist of such assets as are required by the Commissioner pursuantto such law.

4. Evidences of indebtedness secured by real propertyshall be eligible for deposit only if the real property securing suchindebtedness is situated within the State of Nevada. The evidence ofindebtedness so deposited shall be accompanied by a certificate from a dulyauthorized title insurer doing business in the county in which the realproperty is situated, showing that the indebtedness is a first lien againstsuch real property, other than for real property taxes.

(Added to NRS by 1971, 1629)

NRS 682B.040 Depositsthrough Commissioner required; exceptions; Account for Division of Insurance;responsibilities of State.

1. Except as otherwise provided in NRS 682B.050 and 682B.055, deposits made in this statepursuant to this Code must be made through the Commissioner. The Account forthe Division of Insurance is hereby created in the State Agency Fund for Bonds.All money received by the Commissioner must be deposited with the StateTreasurer to the credit of the Account. All claims against the Account must bepaid as other claims against the State are paid.

2. The State of Nevada is responsible for thesafekeeping of all securities or other assets deposited with the StateTreasurer through the Commissioner pursuant to this Code, and shall bear thecosts of the depository.

(Added to NRS by 1971, 1630; A 1985, 609, 935; 1991,1625, 1820; 1993, 572, 573, 1914)

NRS 682B.050 Custodialarrangements.

1. In lieu of a deposit made as provided in NRS 682B.040, the Commissioner in hisdiscretion may, upon written request of the insurer and where of greater convenienceto the insurer, permit such deposit to be made with and held by the trustdepartment of an established bank or credit union located in Nevada if both thebank or credit union and the custodial arrangements are approved by theCommissioner.

2. All such custodial arrangements shall comply insubstance with the requirements of this Code as to like deposits through theCommissioner, as to amount, purposes, maintenance, replenishment, release andwithdrawal, and as to the rights of the insurer therein.

3. The cost of any such custodianship shall be borneby the insurer. The State of Nevada shall have no responsibility for thesafekeeping of any such deposit.

4. The Commissioner may at any time, in hisdiscretion, terminate any such custodial arrangement and require the depositrepresented thereby to be made as otherwise provided for under NRS 682B.010 to 682B.120, inclusive.

(Added to NRS by 1971, 1630; A 1999, 1548)

NRS 682B.055 Useof securities as deposit without delivery to Commissioner. The Commissioner:

1. May allow an insurer to use securities as a depositor as a part of a deposit without delivering the securities to the Commissionerunder the conditions specified in regulations adopted pursuant to subsection 1of NRS 680A.140.

2. Shall allow any successor organization to the StateIndustrial Insurance System that was established by section 79 of chapter 642,Statutes of Nevada 1981, at page 1449, to use the money held in trust by theorganization pursuant to NRS 616B.042as a deposit or as a part of a deposit for authority to transact industrial insurancewithout delivering that money to the Commissioner.

(Added to NRS by 1985, 609; A 1999, 1832)

NRS 682B.060 Assignment,transfer and conveyance of assets; release.

1. Except as provided in NRS 682B.055, an insurer shall assign tothe Commissioner and his successors in office in trust all securities beingdeposited with or through him under NRS682B.010 to 682B.120, inclusive,which are not negotiable by delivery. In lieu of such an assignment, theinsurer may give the Commissioner an irrevocable power of attorney authorizinghim to transfer the securities or any part thereof for any purpose within thescope of NRS 682B.010 to 682B.120, inclusive.

2. In the case of securities or assets held undercustodial arrangements pursuant to NRS682B.050, the custodians receipt therefor must be delivered to the Commissionerin trust, if negotiable, or assigned to him so that legal title to suchsecurities or assets is vested in the Commissioner and his successors inoffice.

3. The insurer shall convey to the Commissioner andhis successors in office in trust any real property being deposited under thisCode.

4. Upon release to the insurer, or other personentitled thereto, of any security or asset, the Commissioner shall reassign ortransfer or reconvey it to the insurer or person. In the case of power ofattorney given pursuant to subsection 1, the Commissioner shall deliver thepower of attorney, together with the securities covered thereby, to the insureror person entitled thereto.

(Added to NRS by 1971, 1631; A 1985, 609)

NRS 682B.070 Appraisal. The Commissioner may, in his discretion, prior toacceptance for deposit of any particular asset or security, or at any timethereafter while so deposited, have the same appraised or valued by competentappraisers. The reasonable costs of any such appraisal or valuation shall beborne by the insurer.

(Added to NRS by 1971, 1631)

NRS 682B.080 Excessdeposits.

1. If assets deposited by an insurer under NRS 682B.010 to 682B.120, inclusive, are subject tomaterial fluctuations in market value, the Commissioner may, in his discretion,require the insurer to deposit and maintain on deposit additional assets in anamount reasonably necessary to assure that the deposit at all times has amarket value of not less than the amount specified under the law by which thedeposit is required.

2. An insurer may otherwise at its option depositassets in an amount exceeding its deposit required or otherwise permitted underthis Code by not more than 20 percent of such required or permitted deposit, or$20,000, whichever is the larger amount, for the purpose of absorbingfluctuations in the value of assets deposited and to facilitate exchange andsubstitution of such assets. During the solvency of the insurer, any suchexcess shall be released to the insurer upon its request. During the insolvencyof the insurer, such excess deposit shall be released only as provided insubsection 3 of NRS 682B.120.

(Added to NRS by 1971, 1631)

NRS 682B.090 Rightsof insurer during solvency. So long as theinsurer remains solvent and is in compliance with this Code it may:

1. Demand, receive, sue for and recover the incomefrom the assets deposited;

2. Exchange and substitute assets of equivalent orgreater fair market value for the deposited assets; and

3. At any reasonable time inspect any such deposit.

(Added to NRS by 1971, 1632)

NRS 682B.100 Levyupon deposit. No judgment creditor or otherclaimant of an insurer shall have the right to levy upon any of the assets orsecurities held in this state as a deposit for the protection of the insurerspolicyholders or policyholders and creditors. Levy upon deposits made pursuantto NRS 680A.330 (retaliatoryprovision) shall be permitted if so provided in the Commissioners order underwhich the deposit is required.

(Added to NRS by 1971, 1632)

NRS 682B.110 Deficiencyof deposit. If for any reason the market valueof assets of an insurer held on deposit in this state falls below the amountrequired under this Code, the insurer shall promptly deposit other oradditional assets eligible for deposit sufficient to cure the deficiency. Ifthe insurer has failed to cure the deficiency within 20 days after receipt ofnotice thereof by registered or certified mail from the Commissioner, theCommissioner shall forthwith revoke the insurers certificate of authority.

(Added to NRS by 1971, 1632)

NRS 682B.120 Durationand release of deposit.

1. Every deposit made in this state by an insurerpursuant to this Code shall be held as long as there is outstanding anyliability of the insurer as to which the deposit was so required; or, if thedeposit is required under NRS 680A.330(retaliatory provision), the deposit shall be held for so long as the basis ofsuch retaliation exists.

2. If the insurer has reinsured all its outstanding risksin another insurer or insurers, the Commissioner may deliver to such assuminginsurer or its assigns, after the expiration of 1 year from the effective dateof such reinsurance, any assets or securities deposited with him under thisCode by the ceding insurer upon proof satisfactory to him that:

(a) The assuming insurer has assumed and agreed todischarge all liabilities of every kind due and to become due which the depositwas to secure; and

(b) The assuming insurer has on deposit in this state,or with public authority in another state, securities of quality, amount andvalue not less than the deposit required of the ceding insurer under this Codeand which will reasonably subsist for the security of the obligations of theceding insurer so assumed.

3. If the insurer is subject to delinquency proceedingsas defined in NRS 696B.060, upon theorder of a court of competent jurisdiction the Commissioner shall yield theinsurers assets held on deposit to the receiver, conservator, rehabilitator orliquidator of the insurer, or to any other properly designated officer orofficers who succeed to the management and control of the insurers assets.

(Added to NRS by 1971, 1632)

ALIEN INSURERS

NRS 682B.130 Depositof assets in trust.

1. An alien insurer may use Nevada as a state of entryto transact insurance in the United States of America by making and maintainingin this state a deposit of assets in trust with a bank, credit union or trustcompany approved by the Commissioner.

2. The deposit, together with other trust deposits ofthe insurer held in the United States of America for the same purpose, must bein an amount not less than as required of an alien insurer under NRS 680A.140, deposit requirement ingeneral, and must consist of United States money, public obligations of thegovernment or states or political subdivisions of the United States of America,and obligations of corporations and institutions in the United States ofAmerica, all as eligible for the investment of money of domestic insurers underNRS 682A.060, 682A.070 and 682A.080.

3. Such a deposit may be referred to as trusteedassets.

(Added to NRS by 1971, 1633; A 1999, 1549)

NRS 682B.140 Purposeand duration. The deposit provided for in NRS 682B.130 shall be for the benefit,security and protection of the policyholders, or policyholders and creditors,of the insurer in the United States of America, and shall be maintained as longas there is outstanding in the United States of America any liability of theinsurer arising out of its insurance transactions therein.

(Added to NRS by 1971, 1633)

NRS 682B.150 Trustagreement: Approval.

1. The deposit referred to in NRS 682B.130 shall be made and maintainedunder a written trust agreement between the insurer and the trustee, consistentwith the requirements of NRS 682B.130to 682B.250, inclusive, and shall beauthenticated in such form and manner as the Commissioner may designate orapprove.

2. The agreement shall not be effective until filedwith and approved by the Commissioner in writing. The Commissioner shall notapprove any trust agreement found by him not to be in compliance with law, orthe terms of which do not in fact provide reasonably adequate protection forthe insurers policyholders or policyholders and creditors in the United Statesof America.

(Added to NRS by 1971, 1633)

NRS 682B.160 Trustagreement: Amendment. A trust agreement may beamended, but the amendment shall not be effective until filed with and approvedin writing by the Commissioner as being in compliance with NRS 682B.130 to 682B.250, inclusive.

(Added to NRS by 1971, 1633)

NRS 682B.170 Withdrawalof approval. The Commissioner may withdraw hisapproval of any trust agreement or of any amendment thereof if he finds uponhearing, after notice thereof to the insurer and the trustee, that therequisites for such approval, as provided in NRS 682B.130 to 682B.250, inclusive, have been found byhim not to exist or no longer to exist.

(Added to NRS by 1971, 1634)

NRS 682B.180 Titleto assets. Title to the trusteed assets isvested in the trustee and its successors for the purposes of the trust deposit,and the trust agreement shall so provide.

(Added to NRS by 1971, 1634)

NRS 682B.190 Assetskept separate. The trustee shall keep thetrusteed assets separate from other assets and shall maintain a record thereofsufficient to identify trusteed assets at all times.

(Added to NRS by 1971, 1634)

NRS 682B.200 Statementof trustee.

1. The trustee of trusteed assets shall from time totime file with the Commissioner statements, in such forms as the Commissionermay designate and request in writing, certifying the character of such assetsand the amounts and market value thereof.

2. If the trustee fails to file the statement within areasonable time after request therefor by the Commissioner, the Commissionermay suspend or revoke the certificate of authority of the insurer.

(Added to NRS by 1971, 1634)

NRS 682B.210 Examinationof assets. The Commissioner may examinetrusteed assets at any time in accordance with the same conditions andprocedures as govern examination of insurers in general under this Code.

(Added to NRS by 1971, 1634)

NRS 682B.220 Withdrawalof assets.

1. The trust agreement shall provide, in substance,that no withdrawal of trusteed assets shall be made by the insurer or permittedby the trustee without the written authorization or approval of theCommissioner in advance thereof, except as follows:

(a) Any or all income, earnings, dividends or interestaccumulations of the trusteed assets may be paid over to the United Statesmanager of the insurer upon request of the insurer or the manager.

(b) For substitution, coincidentally with suchwithdrawal, of other securities or assets of value at least equal in amount tothose being withdrawn, if:

(1) Such substituted securities or assets arelikewise such as are eligible for deposit under NRS 682B.130;

(2) Such withdrawal is requested in writing bythe insurers United States manager pursuant to general or specific writtenauthority previously given or delegated by the insurers board of directors orother similar governing body; and

(3) A certified copy of such authority has beenfiled with the trustee.

(c) For the purpose of making deposits required by lawin any state in which the insurer is or thereafter becomes an authorizedinsurer, for the protection of the insurers policyholders or policyholders andcreditors in such state or in the United States of America, if such withdrawaldoes not reduce the insurers deposit in this state to an amount less than theminimum deposit required under NRS680A.140. The trustee shall transfer any assets so withdrawn and in theamount so required to be deposited in the other state directly to the depositaryrequired to receive the deposit in the other state, as certified in writing bythe public officer having supervision of insurance in the other state.

(d) For the purpose of transferring the trusteed assetsto an official conservator, rehabilitator or liquidator pursuant to the orderof a court of competent jurisdiction.

2. The Commissioner shall so authorize or approvewithdrawal of only such assets as are in excess of the amount of assetsrequired to be so held in trust under NRS680A.140, or as may otherwise be consistent with the provisions of NRS 682B.130 to 682B.250, inclusive.

3. If at any time the insurer becomes insolvent, or ifits assets held in the United States of America are less in amount than the sumof its liabilities in the United States of America arising from its insurancetransactions therein and the amount of the required deposit, upon determinationthereof the Commissioner shall in writing order the trustee to suspend theright of the insurer or any other person to withdraw assets as authorized underparagraphs (a), (b) and (c) of subsection 1, and the trustee shall comply withsuch order until further order of the Commissioner.

(Added to NRS by 1971, 1634)

NRS 682B.230 Substitutionof trustee. A new trustee or new trustees maybe substituted for the original trustee of trusteed assets for any propercause. Any such substitution shall be subject to the Commissioners approval.

(Added to NRS by 1971, 1635)

NRS 682B.240 Mexicanand Canadian insurers. The provisions of NRS 682B.130 to 682B.250, inclusive, applicable to aUnited States manager shall, in the case of insurers domiciled in Mexico orCanada, be deemed to refer to the president, vice president, secretary,treasurer or other comparable officer of the insurer.

(Added to NRS by 1971, 1635)

NRS 682B.250 Otherprovisions applicable. NRS 682B.070 (appraisal) and 682B.100 (levy upon deposit) shall alsoapply to trusteed assets of an alien insurer.

(Added to NRS by 1971, 1635)

Disclaimer: These codes may not be the most recent version. Nevada may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.