1. Except as otherwise provided in subsection 2, credit must be allowed if reinsurance is ceded to an assuming insurer which is accredited as a reinsurer in this state. An accredited reinsurer is one which satisfies all of the following conditions:

(a) Files with the Commissioner a properly executed Form AR-1, provided on the Internet website of the Division, as evidence of its submission to this state’s jurisdiction.

(b) Submits to this state’s authority to examine its books and records.

(c) Files with the Commissioner a certified copy of a certificate of authority or other evidence approved by the Commissioner indicating that it is licensed to transact insurance or reinsurance in at least one state, or in the case of a branch in the United States of an alien assuming insurer is entered through and licensed to transact insurance or reinsurance in at least one state.

(d) Files annually with the Commissioner a copy of its annual statement filed with the Division of its state of domicile or entry and a copy of its most recent audited financial statement.

(e) Demonstrates to the satisfaction of the Commissioner that it has adequate financial capacity to meet its reinsurance obligations and is otherwise qualified to assume reinsurance from domestic insurers. An assuming insurer is deemed to meet this requirement as of the time of its application if it maintains a surplus as regards policyholders in an amount which is:

(1) Not less than $20,000,000 and whose accreditation has not been denied by the Commissioner within 90 days after its submission; or

(2) Less than $20,000,000 and whose accreditation has been approved by the Commissioner.

(f) Pays all applicable fees, including, without limitation, all applicable fees required pursuant to NRS 680C.110.

2. If an accredited or certified reinsurer ceases to meet the requirements for accreditation or certification, the Commissioner may suspend or revoke the reinsurer’s accreditation or certification. Before suspending or revoking the reinsurer’s accreditation or certification, the Commissioner must give the reinsurer notice and opportunity for a hearing.

3. The suspension or revocation of an accreditation or certification may not take effect until after the Commissioner’s order on hearing unless:

(a) The reinsurer waives its right to a hearing;

(b) The Commissioner’s order is based upon regulatory action taken by the reinsurer’s domiciliary jurisdiction or the voluntary surrender or termination of the reinsurer’s eligibility to transact insurance or reinsurance business in its domiciliary jurisdiction or in the primary certifying state of the reinsurer; or

(c) The Commissioner finds that an emergency requires immediate action and a court of competent jurisdiction has not stayed the Commissioner’s action.

4. During the period in which a reinsurer’s accreditation or certification is suspended, no reinsurance contract issued or renewed after the effective date of the suspension qualifies for credit except to the extent that the reinsurer’s obligations under the contract are secured pursuant to NRS 681A.240. If the reinsurer’s accreditation or certification is revoked, no credit for reinsurance may be granted after the effective date of the revocation except to the extent that the reinsurer’s obligations under the contract are secured pursuant to NRS 681A.240.

(Added to NRS by 1995, 1756; A 2003, 3283; 2009, 1770; 2013, 3351; 2015, 3385)