AB 45 — Revises provisions relating to insurance. (BDR 57-316)

Existing law requires a bond or other security to be provided by a title agent this bill revises the requirements relating to the bond and providesa thattitle theinsurer bondfas musta meetcondition theof requirementsdoing setbusiness. forth in section 3.

(NRS 692A.1041) Section 55 of - 81st Session (2021) – 4 – this bill revises the requirements relating to the bond and provides that the bond must meet the requirements set forth in section 3.

Existing law requires each insurer or group of insurers each year to submit to the Commissioner a corporate governance annual disclosure containing certaincertainmit to information required by the Commissioner.

(NRS 692C.3504) Section 57 of this bill requires each insurer or insurance group, after the first such submission, to submit an amended version of the previous year’s disclosure which shows theion,the to changes made for the current year.

Existing law also sets forth requirements for a thosecaptive requirements,insurer including,to withouttransact limitation,business. by providing for periodic reviews of persons who manage the affairs of a captive insurer.

Existing(NRS law694C.310) governsSection nonprofit59 hospitalof andthis medicalbill orrevises dentalthose servicerequirements, corporations.including, without limitation, by providing for periodic reviews of persons who manage the affairs of a captive insurer.

(ChapterExisting 695Blaw ofgoverns NRS)nonprofit Sectionhospital 61and ofmedical thisor billdental expandsservice the list of the provisions of law to which nonprofit hospital and medical or dental serviceservicet of the corporations are expressly made subject.

SectionExisting 63 of this bill expands the list of the provisions of law togoverns whichS) organizations for dental carecare. are expressly made subject.

(Chapter 695D of NRS) Section 63 of this bill expands the list of the provisions of law to which organizations for dental care are expressly made subject.

and (2) pay any fees associated with the statement of whichregistration. risk retention groups and their agents and representatives are expressly made subject.

ExistingSection 66 of this bill expands the list of the provisions of law to which risk retention groups and their agents and representatives are expressly made subjExisting law governs prepaid limited health service organizations.

- *AB45_R1* – 5 – Section 68 of this bill changes which provisions of law govern certain investments by prepaid limited health service organizations.

Existing law provides for the renewal of a certificate as an exchange enrollment renewal.tor.facilitator.

(NRS 695J.140) Section 70 of this bill revises the requirements for Existingrenewal. law requires a bond or other security to be provided by a person who renders or agrees to render motor club services.

- 81st Session (2021) – 5 – Existing law requires a bond or other security to be provided by a person who renders or agrees to render motor club services.

Existing696A.300) lawSection provides73 forof this bill specifies the licensureday ofon awhich clubthe agentlicense forexpiresRS aafter motorit club.is originally issued and after it is renewed.

(NRSExisting 696A.300)law Sectionrequires 73a ofbond thisor billother specifiessecurity theto daybe onprovided whichby thea licenseself-insured expiresemployer afterfor itthe ispurposes originallyof issuedthe andstatutes aftergoverning itindustrial isinsurance. renewed.

employer(NRS for616A.305, the616B.300) purposesSection 78 of thethis statutesbill governingdeletes industrialrequirements insurance.relating to termination of the bond.

(NRSured 616A.305, 616B.300) Section 78 of this bill deletes requirements relating to termination of the bond.

(NRS 616A.050, 616A.055, 616B.353) Section 79 of Section 86 of this bill repealsrevises existingrequirements lawrelating governingto thetermination cancellation of bondsthe ofbond. title agents and title insurers.

In addition to complying with certain requirements applicable to associations of self-insured public or private employers, existing law requires an association of existing law requires an association of self-insured private employers to:

(1) at the time of initial qualification to be an association of self-insured employers and for the first 3 years of its successful operation, have a combined tangible net worth of all members in the association of at least $2,500,000;

or (2) after 3 years of successful operation as a qualified association of self-insured private employers, have combined net cash flows from operating activities plus net cash flows from financing activities of all members in the association equal to five times the average of claims paid for each of the last 3 years or $7,500,000, whichever is less.

In lieu of satisfying these fiscal requirements, existing law authorizes the association or its members to deposit with the Commissioner of Insurance a solvency bond in an aggregate amount of at least $2,500,000.

(NRS 616B.353) Section 85.5 of this bill revises these fiscal requirements until June 30, 2023.

Specifically, section 85.5:

(1) provides that until June 30, 2023, an association of self-insured private employers association complies with the requirement that the association has a combinedhe tangible net worth of all members in the association of at least $2,500,000;

and (2) retains the ability of an association to obtain a solvency bond in lieu of the tangible net worth requirement and the authority of the Commissioner to adjust the amount of any such bond.

Section 86 of this bill repeals existing law governing the cancellation of bonds of title agents and title insurers.

differentSection sections87 of this bill.desbill provides various effective dates and expiration dates for THEdifferent PEOPLEsections OFof THEthis STATEbill. OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section- 1.81st Session (2021) – 6 – EXPLANATION – Matter in bolded italics is new;

matter between brackets [omitted material] is material to be omitted.

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Sections 1 and 2.

2.

(Deleted by amendment.) Sec.

The provisions of this section govern the bond and any claim against the bond to the extent the provisions of this section do not conflict with the provisionspro2.sioA person may provide a substitute form of security in lieu of the bond if the specific statutes which govern the license.license authorize the substitute form of security.

2.3.

A person may provide a substitute form of security in lieu of the bond if the specific statutes which govern the license authorize the substitute form of security.

- *AB45_R1* – 6 – 3.

Know All Persons by These Presents, that........................, as principal, and........................, as surety, are held and firmly bound unto the State of Nevada for the use and benefit of any person who suffers damages because of a violation of any of the provisions of Nevada law relating to insurance, in the sum of............, lawful money of the United States, to be paid to the State of Nevada for such use and benefit, for which payment well and truly to be made, and that we bind ourselves, our heirs, executors, administrators, successors and assigns, jointly and severally, firmly by these presents.presThe condition of that obligation is such that:

TheWhereas, conditionthe Commissioner of thatInsurance obligationof the Department of Business and Industry of the State of Nevada has issued the - 81st Session (2021) – 7 – principal a...........(license, permit, certificate of registration, certificate of authority or other authorization) pursuant to Nevada law relating to insurance, and the principal is suchrequired that:to furnish a bond, which is conditioned as Now, therefore, if the principal, the principal’s agents and employees, strictly, honestly and faithfully comply with the provisions of Nevada law relating to insurance, and pay all damages suffered by any person because of a violation of any of the provisions of Nevada law relating to insurance, or by reason of any fraud, dishonesty, misrepresentation or concealment of material facts growing out of any transaction governed by the provisions of Nevada law relating to insurance, then this obligation is void;

Whereas, the Commissioner of Insurance of the Department of Business and Industry of the State of Nevada has issued the principal a..........(license, permit, certificate of registration, certificate of authority or other authorization) pursuant to Nevada law relating to insurance, and the principal is required to furnish a bond, which is conditioned as set forth in this bond:

Now, therefore, if the principal, the principal’s agents and employees, strictly, honestly and faithfully comply with the provisions of Nevada law relating to insurance, and pay all damages suffered by any person because of a violation of any of the provisions of Nevada law relating to insurance, or by reason of any fraud, dishonesty, misrepresentation or concealment of material facts growing out of any transaction governed by the provisions of Nevada law relating to insurance, then this obligation is void;

The surety may cancel this bond and be relieved of further liability hereunder by giving written notice to the principal and to the Commissioner of Insurance of the Department of - *AB45_R1* – 7 – Business and Industry of the State of Nevada in accordance with Nevada law.

In Witness Whereof, the seal and signature of the principal hereto is affixed, and the corporate seal and the name of the surety hereto is affixed and attested by its authorized officers at....................Nevada, this................(day) of................(month) of......(year).

9 ...............................................(Seal) Principal ...............................................(Seal) Surety By....................................................

Except as otherwise provided by law, the surety may cancel the bond upon 60 days’ advance written notice to the Commissioner and to the person to - 81st Session (2021) – 8 – whom the bond relates.

If the bond is cancelled, the license of the person to whom the bond relates is revokedcancelled byunless operationthe person:tion of law as of the date the (a) Has on file another bond iswhich cancelledmeets unlessall theapplicable person:requirements;

(a) Has on file another bond which meets all applicable requirements;

The form letter must include, without limitation, a - *AB45_R1* – 8 – place for the health carrier to explain the reason for the denial of the application.

(b) Hold hearings to solicit public input when developing the formdeveloping letterthe describedform inletter.ragraph paragraph (a) and consider such input when developing2. the form letter.

2.

The report must include, - 81st Session (2021) – 9 – without limitation, the number of total denials, the number of denials for different types of providers of health care, the number of denials by different carriers and the reasons for such denials.

(b) Post the report on an Internet website maintained by the Division.Div(c) Submit the report to the Governor and the Director of the Legislative Counsel Bureau for transmittal to the Legislature.

(c) Submit the report to the Governor and the Director of the Legislative Counsel Bureau for transmittal to the Legislature.

The appointment must be made on a form as designated and furnished by the Commissioner, and must be accompanied by a copy of a resolution of the board of directors or like governing body of the insurer, if an incorporated insurer, - *AB45_R1* – 9 – showing that those officers who executed the appointment were authorizedaut2. to do so on behalf of the insurer.

2.

The insurer shall - 81st Session (2021) – 10 – provide written notice to the Commissioner of any change of such a designation by a new filing.

Service of process against an insurer for whom the Commissioner is attorney in fact must be made in accordance with NRSNRSSec. 680A.260.

Sec.4.60.NRS 680A.260 is hereby amended to read as follows:

4.

NRS 680A.260 is hereby amended to read as follows:

If summons is served under this section, the time within which the insurer is required to appear must be extended an additional 10 days beyond that otherwise allowed by NevadaNev4. Rules of Civil Procedure.

- *AB45_R1* – 10 – 4.

(1) For any one kind of insurance as defined in NRS 681A.010 to 681A.080, inclusive ........................................283 - 81st Session (2021) – 11 – (2) For two or more kinds of insurance as so defined ..........................................................................................578........................................................................................$578 (3) For a reinsurer...........................................................2,450 (c) Each annual continuation of a certificate.......................2,450 (d) Reinstatement pursuant to NRS 680A.180, 50 percent of the annual continuation fee otherwiseotherwise50 required.

(a) Application and license...................................................$125 (b) Appointment fee for each insurer........................................15 (c) Triennial renewal of each license......................................125 (d) Temporary license...............................................................10 (e)6.) ModificationSurplus oflines anbrokers:sting existing license.....................................50 6.(a) Application and license...................................................$125 (b) Triennial renewal of each license......................................125 7.

Surplus lines brokers:

(a) Application and license...................................................$125 - *AB45_R1* – 11 – (b) Triennial renewal of each license....................................$125 7.

(a) Application and license...................................................$125 - 81st Session (2021) – 12 – (b) Triennial renewal of each license......................................125license....................................$125 10.

(a) Original registration..........................................................$50 (b) Annual renewal...................................................................25 11.

Insurance vending machines:machines:......................................................25 (a) Application and license, for each machine......................$125 (b) Triennial renewal of each license......................................125 12.

(a) Application and license, for each machine......................$125 (b) Triennial renewal of each license......................................125 12.

Certified copies of certificates of authority and licenses issued pursuant to the Code......................................$10 18.on file in the Division, a reasonable charge fixed by the Commissioner, including charges for duplicating or amending the forms and for certifying the copies and affixing the official seal.

For19. copies and amendments of documents on file in the Division, a reasonable charge fixed by the Commissioner, including charges for duplicating or amending the forms and for certifying the copies and affixing the official seal.

- *AB45_R1* – 12 – 19.

(a) Application and license...................................................$125 (b) Appointment for each surety insurer...................................15 (c) Triennial renewal of each license......................................125 22.- 81st Session (2021) – 13 – agents:

Licenses and renewals for bail enforcement agents:(a) Application and license...................................................$125 (b) Triennial renewal of each license......................................125 23.

(a) Application and license...................................................$125 (b) Triennial renewal of each license......................................125 23.

(a) Application and license...................................................$125 (b) Triennial renewal of each license......................................125 (c) Appointment fee for each title insurer.................................15 26.seller of prepaid funeral contracts...............................................$125 27.

Certificate of authority and renewal for a seller of prepaid funeral contracts...............................................$125 27.

(a) Initial registration............................................................$250 -registration....................................................................................250 *AB45_R1* – 13 – (b) Each annual continuation of a certificate of registration..................................................................................$250 31.

- 81st Session (2021) – 14 – (1) Application and license................................................500license..............................................$500 (2) Annual renewal............................................................500 (c) Registration of producer of insurance acting as a viatical settlement broker.......................................................250 33.(a) Application and license...................................................$125 (b) Triennial renewal..............................................................125 34.

Insurance consultants:

(a) Application and license...................................................$125 (b) Triennial renewal..............................................................125 34.

(a) Filing of application.......................................................$500 (b) Issuance of certificate......................................................283 39.(a) Application and license....................................................$78 (b) Appointment by each motor club.........................................5 (c) Triennial renewal of each license......................................78 40.

Motor club agent:

(a) Application and license....................................................$78 (b) Appointment by each motor club.........................................5 (c) Triennial renewal of each license......................................78 40.

(a) Application and license....................................................$10 (b) Renewal of license..............................................................10 - *AB45_R1* – 14 – 41.

(Deleted by amendment.) - 81st Session (2021) – 15 – Sec.

Chapter 681681A of NRS is hereby amended by adding thereto the provisions set forth as sections 6.1 to 6.96, inclusive, of this act:

“Covered agreement” means an agreement entered into pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act, 31 U.S.C.

A qualified jurisdiction, as determined by the Commissioner pursuant to NRS 681A.1553, which is not otherwise described in subsections 1 and 2 and which the Commissioner determines meets certain additional requirements, consistent with the terms and conditions of in-force covered agreements,agreements,tent with including, without limitation, that the qualified jurisdiction:

(b) Does not require a United States-domiciled assuming insurer to establish or maintain a local presence as a condition for - *AB45_R1* – 15 – entering into a reinsurance agreement with any ceding insurer subject to regulation by the non-United States jurisdiction or as a condition to allow the ceding insurer to recognize credit for such reinsurance;

- 81st Session (2021) – 16 – (c) Recognizes the United States’s state regulatory approach to group supervision and group capital, by providing written confirmation by a competent regulatory authority, in the qualified jurisdiction, that insurers and insurance groups that are domiciled or maintain their headquarters in this State or another jurisdiction accredited by the NAIC shall be subject only to worldwideworldwideurisdiction prudential insurance group supervision including, without limitation, worldwide group governance, solvency and capital, and reporting, as applicable, by the Commissioner or the commissioner of the domiciliary state and will not be subject to group supervision at the level of the worldwide parent undertaking of the insurance or reinsurance group by the qualified jurisdiction;

“Solvent scheme of arrangement” means a foreign or alien statutory or regulatory compromise procedure subject to requisite majority creditor approval and judicial sanction in the assuming insurer’s home jurisdiction either to finally commute liabilities of duly noticed classed members or creditors of a solvent debtor, or to reorganize or restructure the debts and obligations of a solvent debtor on a final basis, and which may be subject totoons of judicial recognition and enforcement of the arrangement by a governing authority outside the ceding insurer’s home jurisdiction.

The assuming insurer must have its head office or be domiciled in.in, as applicable, and be licensed in a reciprocal jurisdiction.

as applicable, and be licensed in a reciprocal jurisdiction.

The assuming insurer must have and maintain, on an ongoing basis, minimum capital and surplus, or its equivalent, - *AB45_R1* – 16 – calculated according to the methodology of its domiciliary jurisdiction on at least an annual basis as of the preceding December- 3181st orSession at(2021) the– annual17 date– otherwise statutorily reported to the reciprocal jurisdiction, and confirmed as set forth in section 6.4 of this act, in the following amounts:

3.ongoing basis a minimum solvency or capital ratio, as applicable, as follows:

The assuming insurer must have and maintain on an ongoing basis a minimum solvency or capital ratio, as applicable, as follows:

or (c) If the assuming insurer is domiciled in a reciprocal jurisdiction which meets the requirements of subsection 3 of section 6.14 of this act, after consultation with the reciprocal jurisdiction and considering any applicable recommendations published by the NAIC, such solvency or capital ratio as the Commissioner determines to be an effective measure of solvency.

(a) The assuming insurer must agree to provide prompt written notice and explanation to the Commissioner if it falls below the minimum requirements set forth in subsection 2 or 3, or if any - *AB45_R1*81st –Session 17(2021) – regulatory18 action– is taken against it for serious noncompliance with applicable law.

taken against it for serious noncompliance (b) The assuming insurer must consent in writing to the jurisdiction of the courts of this State and to the appointment of the Commissioner as agent for service of process.

(d) Each reinsurance agreement must include a provision requiring the assuming insurer to provide security in an amount equal to 100 percent of the assuming insurer’s liabilities attributable to reinsurance ceded pursuant to that agreement if the assuming insurer resists enforcement of a final judgment that is enforceable under the law of the jurisdiction in which it was obtained or a properly enforceable arbitration award, whether obtained by the ceding insurer or by its legal successor on behalf of its resolution estate, if applicable.

(e) The assuming insurer must confirm that it is not presently participating in any solvent scheme of arrangement which involves this State’s ceding insurers, and agree to notify the ceding insurer and the Commissioner and to provide security in an amount equal to 100 percent of the assuming insurer’s liabilities to the ceding insurer consistent with the terms of the scheme, should the assuming insurer enter into such a solvent scheme of arrangement.provisions of NRS 681A.1551 to 681A.1557, inclusive, and NRSthe 681A.240, as specified by the Commissioner by regulation.

The security must be in a form consistent with the provisions of NRS 681A.1551 to 681A.1557, inclusive, and NRS 681A.240, as specified by the Commissioner by regulation.

- 81st Session (2021) – 19 – 1.

For the 2 years preceding entry into the reinsurance agreement and on an annual basis thereafter, the assuming - *AB45_R1* – 18 – insurer’s annual audited financial statements, in accordance with the applicable law of the jurisdiction of its head office or domiciliary jurisdiction, as applicable, including, without limitation, the external audit report;report;cable, including, without 2.

2.

2.insurers or reinsurers have overdue reinsurance recoverable on paid losses of 90 days or more which are not in dispute and which exceed for each ceding insurer $100,000, unless otherwise specified in an applicable covered agreement;

More than 15 percent of the assuming insurer’s ceding insurers or reinsurers have overdue reinsurance recoverable on paid losses of 90 days or more which are not in dispute and which exceed for each ceding insurer $100,000, unless otherwise specified in an applicable covered agreement;

Nothing in this section precludes an assuming insurer - 81st Session (2021) – 20 – from providing the Commissioner with information on a voluntary basis.

2.(a) MustComminclude,’s without limitation, any reciprocal jurisdiction which meets the requirements of subsection 1 or 2 of section 6.14 of this act;

The Commissioner’s list:

- *AB45_R1* – 19 – (a) Must include, without limitation, any reciprocal jurisdiction which meets the requirements of subsection 1 or 2 of section 6.14 of this act;

The Commissioner may remove a jurisdiction from the list of reciprocal jurisdictions upon a determination that the jurisdiction no longer meets one or more of the requirements of a reciprocal jurisdiction, as provided by applicable law or in accordance with an applicable process published by the NAIC, except that the Commissioner must not remove from the list a reciprocal jurisdiction which meets the requirements of subsection 1 or 2 of section 6.14 of this act.

Upon removal of a reciprocal jurisdiction from the Commissioner’s list, credit for reinsurance ceded to an assuming insurer which has its home office or is domiciled in that jurisdiction must be allowed if otherwise allowed pursuantpurSec. to NRS 681A.110 through 681A.240.

inclusive.

Sec.

If an NAIC accredited jurisdiction has determined that the conditions set forth in sections 6.25 to 6.4, inclusive, of this act have been met, the Commissioner may defer to that jurisdiction’s - 81st Session (2021) – 21 – determination and add the applicable assuming insurer to the list of assuming insurers to which cessions must be granted credit in accordance with this section.

The Commissioner may accept financial documentation filed with another NAIC accredited jurisdiction or with the NAIC for the purpose of satisfying the requirements set forth in sections 6.25 to 6.4, inclusive, of this act.

- *AB45_R1* – 20 – 3.

If an assuming insurer’s eligibility is revoked, no credit for reinsurance may be granted after the effective date of the revocation with respect to any reinsurance agreements entered into by the assuming insurer, including reinsurance agreements entered into prior to the date of revocation, except to the extent that the assuming insurer’s obligations under the contract are secured in a form acceptable to the Commissioner and consistent with the provisions of NRS 681A.240.

Shall provide the assuming insurer with 30 days from the notice provided pursuant to subsection 1 to submit a plan to remedy the defect, and 90 days from the notice provided pursuant - 81st Session (2021) – 22 – to subsection 1 to remedy the defect, except in exceptional circumstances determined by the Commissioner in which a shorter period is necessary for policyholder and other consumer protection;

3.subsection 2, if the Commissioner determines that no orcified in insufficient action was taken by the assuming insurer, may impose additional requirements upon the assuming insurer as determined by the Commissioner to be appropriate;

After the expiration of 90 days or less, as specified in subsection 2, if the Commissioner determines that no or insufficient action was taken by the assuming insurer, may impose - *AB45_R1* – 21 – additional requirements upon the assuming insurer as determined by the Commissioner to be appropriate;

Credit may be taken under sections 6.1 to 6.75, inclusive, of this act only for reinsurance agreements entered into, amended, or renewed on or after October 1, 2021, and only with respectlater toof:o losses incurred and reserves reported on or after the later(a) of:The date on which the assuming insurer has met all eligibility requirements pursuant to sections 6.25 to 6.4, inclusive, of this act;

(a) The date on which the assuming insurer has met all eligibility requirements pursuant to sections 6.25 to 6.4, inclusive, of this act;

Nothing in sections 6.1 to 6.75, inclusive, of this act authorize an assuming insurer to withdraw or reduce the security provided- under81st anySession reinsurance(2021) agreement– except23 as– permitted by the terms of the agreement.agreement.nce agreement except as permitted by 4.

4.

If the assuming insurer does not meet the requirements of NRS 681A.110, 681A.160, 681A.170 and sections 6.1 to 6.75, inclusive, of this act, credit permitted by NRS 681A.180, 681A.190 or 681A.155 to 681A.1557, inclusive, must - *AB45_R1* – 22 – not be allowed unless the assuming insurer has agreed to the following conditions set forth in the trust agreement:

Notwithstanding any provision to the contrary in the trust instrument, if the trust fund consists of an amount that is less than the amount required pursuant to NRS 681A.180 or 681A.190, or if the grantor of the trust fund is declared to be insolvent or placed into receivership, rehabilitation, liquidation or a similar proceeding in accordance with the laws of the grantor’s state or country of domicile, the trustee of the trust fund must comply with an order of the commissioner of insurance or other appropriate with person with regulatory authority over the trust fund in that state or country or a court of competent jurisdiction requiring the trustee to transfer to that commissioner or person all the assets of the trust fund;

If the commissioner of insurance or other appropriate person with regulatory authority over the trust fund determines that the assets of the trust fund or any portion of the trust fund are not required to satisfy any claim of any ceding insurer of the grantor of the trust fund in the United States, the assets must be returned by that commissioner or person to the trustee of the trust fund for distribution in accordance with the trust agreement;

- 81st Session (2021) – 24 – Sec.

As used in this Code, unless the context otherwise requires, the words and terms defined in NRS 681A.020 tomeanings 681A.080,ascribed inclusive,to andthem sectionsin 6.1those tosections.6.16, 6.16, inclusive, have the meanings2. ascribed to them in those sections.

2.

- *AB45_R1* – 23 – Sec.

2.the ceding insurer, in calculating the amounts or forms of security required to be held pursuant to regulations adopted pursuant to this section, to use the Valuation Manual, as defined in NRS 681B.0071, which is in effect on the date as of which the calculation is made, to the extent applicable.

A regulation adopted pursuant to this section may require the ceding insurer, in calculating the amounts or forms of security required to be held pursuant to regulations adopted pursuant to this section, to use the Valuation Manual, as defined in NRS 681B.0071, which is in effect on the date as of which the calculation is made, to the extent applicable.

or - 81st Session (2021) – 25 – [(b)] (c) Maintains at least $250,000,000 in capital and surplus when determined in accordance with the Accounting Practices and Procedures Manual adopted by the National Association of Insurance Commissioners, as amended, excluding the impact of any permittedpermit(1) orIs prescribedlicensed practices,in and:at least 26 states;

(1) Is licensed in at least 26 states;

No credit may be taken as an asset or as a deduction from liability on account of reinsurance unless the reinsurer is authorized to transact insurance or reinsurance in this state [or] pursuant to the requirements of NRS 681A.110, 681A.155 - *AB45_R1* – 24 – to 681A.190, inclusive, [and in any of these cases] 681A.220 or sections 6.1 to 6.8, inclusive, of this act.

Credit shall be allowed for the cases of authorization pursuant to NRS 681A.110 to 681A.160, inclusive, or 681A.170 only with respect to cessions of those kinds or classes of business for which the assuming insurer is licensed or otherwise permitted to write or assume in its state of domicile or, in the case of a United States branch of an alien assuming insurer, in the state through which it is entered and licensed to transact insurance or reinsurance.reiSec.

Sec.

2.- 81st Session (2021) – 26 – (a) The trust must consist of an account in trust equal to the assuming insurer’s liabilities attributable to business written in the United States and the assuming insurer shall maintain a surplus in trust of not less than $20,000,000.

In the case of a single assuming insurer:

(a) The trust must consist of an account in trust equal to the assuming insurer’s liabilities attributable to business written in the United States and the assuming insurer shall maintain a surplus in trust of not less than $20,000,000.

The risk assessment may involve an actuarial review, including an independent analysis of reserves and cash flows, and must consider all material risk factors, including, as applicable, the - *AB45_R1* – 25 – lines of business involved, the stability of the incurred loss estimates and the effect of the surplus requirements on the assuming insurer’s liquidity or solvency.

The minimum required trustee surplus maymayrer’s not be reduced to an amount less than 30 percent of the assuming insurer’s liabilities attributable to reinsurance ceded by ceding insurers domiciled in the United States and covered by the trust.

and (2) Make available to the Commissioner an annual certification of the solvency of each underwriter by the group’s domiciliarydom(c) regulatorThe andincorporated itsmembers independentof publicthe group:lic accountants.

(c) The incorporated members of the group:

Credit for reinsurance must not be granted unless the form of the trust and any amendments to the trust have been approved by the commissioner- of81st insuranceSession of(2021) the– state27 in– which the trust is domiciled or the commissioner of insurance of another state that, under the terms of the trust instrument, has accepted responsibility for regulatory authority over the trust.

(a) Contested claims become valid and enforceable from money held in the trust to the extent such claims remain unsatisfied within 30 days after the entry of the final order of any court of competent jurisdiction in the United States;

(d) The trust must remain in effect for as long as the assuming insurers or any member or former member of a group of insurers has - *AB45_R1* – 26 – outstanding obligations due under the agreements for reinsurancereinsuranceas subject to the trust;

(a) Notwithstanding any provision to the contrary in the trust instrument, if the trust fund consists of an amount that is less than the amount required pursuant to this section, or if the grantor of the trust fund is declared to be insolvent or placed into receivership, rehabilitation, liquidation or a similar proceeding in accordance with the laws of the grantor’s state or country of domicile, the trustee of the trust fund must comply with an order of the commissioner of insurance or other appropriate person with regulatory authority over the trust fund in that state or country or a court of competent jurisdiction requiring the trustee to transfer to that commissioner or person all the assets of the trust fund;

(b) The assets of the trust fund must be distributed by and claims filed with and valued by the commissioner of insurance or other - 81st Session (2021) – 28 – appropriate person with regulatory authority over the trust fund in accordance with the laws of the state in which the trust fund is domiciled that are applicable to the liquidation of domestic insurers in that state;

(c) If the commissioner of insurance or other appropriate person with regulatory authority over the trust fund determines that thetheon assets of the trust fund or any portion of the trust fund are not required to satisfy any claim of any ceding insurer of the grantor of the trust fund in the United States, the assets must be returned by that commissioner or person to the trustee of the trust fund for distribution in accordance with the trust agreement;

681A.220 Credit must be allowed if reinsurance is ceded to an assuming insurer not meeting the requirements of NRS 681A.110 and 681A.150 to 681A.190, inclusive, and sections 6.25 to 6.8, - *AB45_R1* – 27 – inclusive, of this act, but only with respect to the insurance of risks located in jurisdictions where such reinsurance is required by applicable law or regulation of that jurisdiction.

or (b)this Licensedstate.nsed as a nonresident intermediary for reinsurance in this2. state.

2.

- 81st Session (2021) – 29 – 4.

A person shall not act as a manager for reinsurance for any foreign or alien insurer or reinsurer if the person maintains an office, directly or as a member or employee of a firm or association or as an officer, director or employee of a corporation in this state, unless thethe(a) personA is:licensed producer in this state;

(a) A licensed producer in this state;

- *AB45_R1* – 28 – 5.

7.issuer, convertible to equity;mandatorily, or at the option of the 8.

Instruments which are mandatorily, or at the option of the issuer, convertible to equity;

8.

A certificate of registration as an administrator is valid for 3 years after the date the Commissioner issues the certificate to the administrator [.] or the administrator - 81st Session (2021) – 30 – renews the certificate, as applicable.

2.the administrator submits to the Commissioner:te of registration if (a) An application on a form prescribed by the Commissioner;

An administrator may renew a certificate of registration if the administrator submits to the Commissioner:

(a) An application on a form prescribed by the Commissioner;

Each administrator shall file with the Commissioner a bond [with an authorized surety in favor of the State of Nevada,] which complies with section 3 of this act, - *AB45_R1* – 29 – continuous in form and in an amount determined by the Commissioner of not less than $100,000.

The Commissioner shall establish schedules for the amount of the bond required, based on the amount of money received and distributeddis3. by an administrator.

3.

Without prejudice to any liability previously incurred, the surety may cancel the bond upon 90 days’ advance notice to the administrator and the Commissioner.

- 81st Session (2021) – 31 – Sec.

A resident firm or corporation which has more than one office in this state is a single licensee for the purposes of being appointed by insurers and the authority of natural persons to act for the firm or corporation.

- *AB45_R1* – 30 – (a) Be eligible to declare this state as its home state;

(b) Designate a natural person who is licensed as a managing general agent to be responsible for the compliance of the business entity with the insurance laws, rules and regulations of this State;

2.- 81st Session (2021) – 32 – the applicant’s own expense:

Each applicant must, as part of his or her application and at the(a) applicant’sArrange ownto expense:have a complete set of his or her fingerprints taken by a law enforcement agency or other authorized entity acceptable to the Commissioner;

(a) Arrange to have a complete set of his or her fingerprints taken by a law enforcement agency or other authorized entity acceptable to the Commissioner;

or (2) Written verification, on a form prescribed by the Commissioner, stating that the fingerprints of the applicant were taken and directly forwarded electronically or by another means to the Central Repository and that the applicant has given written permission to the law enforcement agency or other authorized entity taking the fingerprints to submit the fingerprints to the Central Repository for submission to the Federal Bureau of Investigation for a report on the applicant’s background and to such other law enforcement agencies as the Commissioner deems necessary.

- *AB45_R1* – 31 – (b) Request from each such agency any information regarding the applicant’s background as the Commissioner deems necessary;

A license as a managing general agent remains in effect unlessthe revoked,renewal suspendeddate orfor otherwisethe license:rwise terminated if, on or before the(a) renewalA daterequest for therenewal license:is submitted;

(a) A request for renewal is submitted;

A managing general agent may submit a request for renewal of his or her license within 30 days after the renewal date - 81st Session (2021) – 33 – if the managing general agent otherwise complies with the provisions of subsection 4 and pays, in addition to any fee paid pursuant to subsection 4, a penalty of 50 percent of all applicable fees for renewal, except for any fee required pursuant to NRSNRS6.80CExcept 680C.110.as otherwise provided in subsection 8, a license as a managing general agent expires if the Commissioner does not receive from the managing general agent a request for renewal of the license pursuant to subsection 4 or 5, as applicable, on or before the date which is 30 days after the renewal date.

6.

Except as otherwise provided in subsection 8, a license as a managing general agent expires if the Commissioner does not receive from the managing general agent a request for renewal of the license pursuant to subsection 4 or 5, as applicable, on or before the date which is 30 days after the renewal date.

(a) For the first renewal of the license, the last day of the Commissioner originally issued the license.hich the (b) For each renewal after the first renewal of the license, the last day of the month which is 3 years after the month in which the Commissionerlicense originallywas issuedlast thedue license.to be renewed.

- *AB45_R1* – 32 – (b) For each renewal after the first renewal of the license, the last day of the month which is 3 years after the month in which the license was last due to be renewed.

- 81st Session (2021) – 34 – (b) Accident and health insurance for sickness, bodily injury or accidental death, which may include benefits for disability income.

(d) Casualty insurance against legal liability, including liability for death, injury or disability and damage to real or personalpersonaliability property.

(k) Crop as a limited line.

- *AB45_R1* – 33 – 2.

A producer of insurance may submit a request for a renewal of his or her license within 30 days after the renewal date [specified on the license for the renewal] if the producer of insurance - 81st Session (2021) – 35 – otherwise complies with the provisions of [this] subsection 2 and pays, in addition to any fee paid pursuant to [this] subsection [,] 2, a penalty of 50 percent of all applicable fees for renewal , [fees,] except for any fee required pursuant to NRS 680C.110.

[A] 4.producer of insurance expires if the Commissioner [receives] doess a not receive from the producer of insurance a request for [a] renewal of the license [more than] pursuant to subsection 2 or 3, as applicable, on or before the date which is 30 days after the renewal date .

Except as otherwise provided in subsection 7, a license as a producer of insurance expires if the Commissioner [receives] does not receive from the producer of insurance a request for [a] renewal of the license [more than] pursuant to subsection 2 or 3, as applicable, on or before the date which is 30 days after the renewal date .

A licensed producer of insurance who is unable to renew his or her license because of military service, extended medical disability or other extenuating circumstance may request a waiver of theimposed timebecause limit and of anythe finefailure orto sanctionrenew.on otherwise required or imposed[5.] because8. of the failure to renew.

[5.]A 8.license must state the licensee’s name, address, personal identification number, the date of issuance, the lines of authority and the date of expiration and must contain any other information the Commissioner considers necessary.

A license must state the licensee’s name, address, personal identification number, the date of issuance, the lines of authority and the date of expiration and must contain any other - *AB45_R1* – 34 – information the Commissioner considers necessary.

The mailing of a letter by certified mail, return receipt requested, addressed to the licensee at his or her last mailing address appearing - 81st Session (2021) – 36 – on the records of the Division, and the return of the letter undelivered, constitutes a diligent effort by the Commissioner.

(a) For the first renewal of the license, the last day of the Commissioner originally issued the license.hich the (b) For each renewal after the first renewal of the license, the last day of the month which is 3 years after the month in which the Commissionerlicense originallywas issuedlast thedue license.to be renewed.

(b) For each renewal after the first renewal of the license, the last day of the month which is 3 years after the month in which the license was last due to be renewed.

Process served and the copy thereof forwarded as provided in this subsection constitutes for all purposes personal service thereof upon the licensee.] Service of process against a nonresident producer for whom the Commissioner is attorney inint a fact must be made in accordance with NRS 680A.260.

Every such licensee shall likewise file with the Commissioner his or her written agreement to appear before the Commissioner pursuant to notice of hearing, show cause order or subpoena issued by the Commissioner and [deposited, postage paid, - *AB45_R1* – 35 – by certified mail with the United States Postal Service, addressed to] served upon the licensee at his or her address last of record in the Division, and that upon failure of the licensee so to appear the licensee thereby consents to any subsequent suspension, revocation or refusal of the Commissioner to continue the licensee’s license.

- 81st Session (2021) – 37 – (a) Registered with the Commissioner as an agent who performs utilization review and has a medical director who is a physician or, in the case of an agent who reviews dental services, a dentist, licensed in any state;

or (b)review.Employed Employed by a registered agent who performs utilization review.2.

2.

The Commissioner shall makefee thefor planproviding availablea uponcopy requestof andthe plan.and shall charge a reasonable fee5. for providing a copy of the plan.

5.

- *AB45_R1* – 36 – Sec.

or (2) Not more than 30 days after the [expiration] renewal date of the license, all applicable renewal fees plus [any late fee - 81st Session (2021) – 38 – required;] a penalty of 50 percent of all applicable renewal fees except for any fee required pursuant to NRS 680C.110;

and (c) If the applicant is a resident, proof of the successful completion of appropriate courses of study required for renewal, as established by the Commissioner by regulation.

A license must state the licensee’s name, address, personal identification number, the date of issuance, the lines of authority and the date of expiration and must contain any other informationinformationty the Commissioner considers necessary.

- *AB45_R1* – 37 – (a) For the first renewal of the license, the last day of the month which is 3 years after the month in which the Commissioner originally issued the license.

- 81st Session (2021) – 39 – Sec.

A license may be renewed upon payment of all applicable fees for renewal to the Commissioner, completion of any other requirement for renewal of the license specified in this chapter and submission of the statement required pursuant to NRS 684A.143 if the licensee is a natural person.

The Commissioner may accept a request for renewal received by the Commissioner within 30 days after the expiration of the license if the request is accompanied by:

and (d) If applicable, a request for a waiver of the time limit for renewal and of any fine or sanction otherwise required or imposed because of the failure of the licensee to renew his or her license because of military service, extended medical disability or other ext3.uatAn adjuster who is unable to comply with the procedures and requirements to renew a license due to military service, long- term medical disability or some other extenuating circumstance.circumstance may request waiver of same and a waiver of any requirement relating to an examination, fine or other sanction imposed for failure to comply with such procedures or requirements.

3.

An adjuster who is unable to comply with the procedures and requirements to renew a license due to military service, long- term medical disability or some other extenuating circumstance may request waiver of same and a waiver of any requirement relating to an examination, fine or other sanction imposed for failure to comply with such procedures or requirements.

- *AB45_R1* – 38 – 5.

In order to assist in the performance of the duties of the Commissioner, the Commissioner may contract with nongovernmental entities, including, without limitation, the National Association of Insurance Commissioners or its affiliates or subsidiaries, to perform any ministerial function, including, without - 81st Session (2021) – 40 – limitation, the collection of fees and data, related to licensing that the Commissioner may deem appropriate.

7.

As used in this section, “renewal date” means:

A motor vehicle physical damage appraiser’s license is automatically suspended if the appraiser does not file with the Commissioner a replacement bond before the date of cancellation of the previous bond.] A replacement bond must meet all requirementsrequirementsf [of this section] for the initial bond.

- *AB45_R1* – 39 – 2.

- 81st Session (2021) – 41 – Sec.

A license may be renewed upon payment of all applicable fees for renewal to the Commissioner and submission of the statement required pursuant to NRS 684B.083 if the licensee is a natural person.

The Commissioner may accept a request for renewal received by the Commissioner within 30 days after the expiration of the license if the request is accompanied by a fee for renewal of 150 percent of all applicable fees otherwise required, except for any fee required pursuant to NRS 680C.110, and the statement required pursuant to NRS 684B.083 if the person requesting renewal is a natural person.

No person may act as, hold himself or herself out as or be a surplus lines broker with respect to subjects of insurance for which this State is the insured’s home state unless the person is licensed as such by the Commissioner pursuant to this chapter.

and - *AB45_R1* – 40 – (c) Passing any examination prescribed by the Commissioner on the subject of surplus lines.

- 81st Session (2021) – 42 – 3.

4.continues in force for 3 years unless it is suspended, revoked or otherwise terminated.

A license issued or renewed pursuant to this chapter continues in force for 3 years unless it is suspended, revoked or otherwise terminated.

The Commissioner may accept a request for renewal received by the Commissioner within 30 days after the expiration of the license if the request is accompanied by:

(b) For each renewal after the first renewal of the license, the last day of the month which is 3 years after the month in which the licenselicSec. was last due to be renewed.

Sec.20.5.astNRS 685A.200 is hereby amended to read as follows:

20.5.

NRS 685A.200 is hereby amended to read as follows:

The Commissioner or an authorized representative of the Commissioner shall forthwith mail a copy of the process served to the person designated by the insurer in the policy for the purpose by - *AB45_R1*81st Session (2021) – 4143 – prepaid registered or certified mail with return receipt requested.] affecting insurance under the provisions of this chapter must be made in accordance with NRS 680A.260.

If no [such] person is [so] designated to receive process in the policy, the [Commissioner or an authorized representative of the Commissioner] Division shall in like manner [mail] forward a copy of the process to the brokerbrokerin through whom the insurance was procured, or to the insurer at its principal place of business, addressed to the address of the broker or insurer, as the case may be, last of record with the [Commissioner.] Division.

5.summons or the initial documents served in an action.

ForThedes theonly purposesa ofCommissioner thisor section,an “process”authorized includesrepresentative onlyof athe summonsCommissioner oris thenot initialrequired to serve any documents servedafter inthe aninitial action.service of process.

The Commissioner or an authorized representative of the Commissioner is not required to serve any documents after the initial service of process.

(c)- A81st currentSession certified(2021) financial– statement44 or– another financial statement if individually approved by the Commissioner;Commissioner;er financial (d) An appointment of the Commissioner and the successors in office of the Commissioner as the applicant’s attorney to receive service of process;

- *AB45_R1* – 42 – (d) An appointment of the Commissioner and the successors in office of the Commissioner as the applicant’s attorney to receive service of process;

losses incurred by an insured beyond which an insurer under a policy of stop-loss insurance incurs a liability for payment to the insured.

24.

“Attachment point” means the amount of claims or losses incurred by an insured beyond which an insurer under a policy of stop-loss insurance incurs a liability for payment to the insured.

Sec.

Provides coverage for losses of the provider of health care or network above an attachment point which is stated in the policy;

andandabove an attachment point which is stated in the 3.

- 81st Session (2021) – 45 – contract of insurance, which provides coverage for the losses of an insured above an attachment point which is stated in the policy or contract, including, without limitation, a policy of insurance which includes stop-loss coverage or excess loss coverage.

30.

“Policy of stop-loss insurance” means a policy or contract of insurance, which provides coverage for the losses of an insured above an attachment point which is stated in the policy or - *AB45_R1* – 43 – contract, including, without limitation, a policy of insurance which includes stop-loss coverage or excess loss coverage.

Sec.

An insurer intending to issue a policy of stop- loss insurance in this State to cover losses of a group health plan shall, before issuing the policy, exercise reasonable diligence toton confirm that:

A policy form for a policy of stop-loss insurance which is intended for issue in this State to cover losses of a group health plan must be filed with and approved by the Commissioner pursuant to NRS 687B.120 before being delivered or issued for delivery.policy form must satisfy the following requirements:ements, the 1.

In addition to any other applicable requirements, the policy form must satisfy the following requirements:

1.

2.- 81st Session (2021) – 46 – insurance must be made to the sponsor of the group health plan or the group health plan itself and must not be made to:

Payments by the insurer under the policy of stop-loss insurance must be made to the sponsor of the group health plan or the group health plan itself and must not be made to:

- *AB45_R1* – 44 – (d) Providers of health care who provide health care services pursuant to the group health plan;

(a) The policy of provider stop-loss insurance must be issued to andinto insurethe policy.rovider of health care or the network which enters (b) Payments by the insurer under the policy of provider stop- loss insurance must be made to the provider of health care or the network which enters into the policy.

(b) Payments by the insurer under the policy of provider stop- loss insurance must be made to the provider of health care or the network which enters into the policy.

2.required by subsection 1 must be accompanied by a separateoval as document certifying that each of the requirements specified in paragraphs (a) to (d), inclusive, of subsection 1 have been met.

A policy form filed with the Commissioner for approval as required by subsection 1 must be accompanied by a separate document certifying that each of the requirements specified in paragraphs (a) to (d), inclusive, of subsection 1 have been met.

(a)- If81st aSession provider(2021) – 47 – plan of operation;er of viatical settlements, has set forth a detailed plan(b) ofIs operation;competent and trustworthy and intends to act in good faith in the capacity for which the license is sought;

(b) Is competent and trustworthy and intends to act in good faith in the capacity for which the license is sought;

and - *AB45_R1* – 45 – (e) If a provider or broker of viatical settlements:

(I) A surety bond [executed and issued by an authorized surety in favor of the State of Nevada, continuous in form] which complies with section 3 of this act and is in an amount [as] determined by the Commissioner, [of] which must be not less than $250,000;

orory the Commissioner, [of] which must be not less than (II) A deposit of cash, certificates of deposit, securities or any combination thereof in the amount of $250,000.

Notwithstanding any provision of this section to the contrary, the Commissioner shall accept as evidence of financial responsibility proof that financial instruments complying with the requirements of this section have been filed with a state where the applicant is licensed as a provider or broker of viatical settlements.

or (2) Unfair practices, - by81st theSession provider(2021) or– broker48 of– viatical settlements.b6.

6.

(a) Before the issuance of a certificate of authority, the seller shall post with the Commissioner and thereafter maintain in force a bond [in the principal sum of] which complies with section 3 of this act and is in an amount determined by the Commissioner, which must be not less than $50,000 , [issued by an authorized corporate - *AB45_R1* – 46 – surety in favor of the State of Nevada,] or a deposit of cash or negotiable securities or a combination of cash and negotiable securities.

(b) The bond or deposit must be held for the benefit of buyers of prepaid contracts, and other persons as their interests may appear, who may be damaged by misuse or diversion of money by the sellersellerar, or the agents of the seller, or to satisfy any judgments against the seller for failure to perform a prepaid contract.

(d) The Commissioner shall release the [bond or] deposit after the seller has ceased doing business as such and the Commissioner is satisfied of the nonexistence of any obligation or liability of the seller for which the [bond or] deposit was held.

- 81st Session (2021) – 49 – Sec.

2.holder of a valid seller’s certificate of authority, upon filing a written request for renewal accompanied by all applicable fees for renewal and the statement required pursuant to NRS 689.258.

An agent’s license may be renewed at the request of the holder of a valid seller’s certificate of authority, upon filing a written request for renewal accompanied by all applicable fees for renewal and the statement required pursuant to NRS 689.258.

The Commissioner may accept a request for renewal received by the Commissioner within 30 days after the expiration of the license if the request is accompanied by a fee for renewal of 150 percent of all - *AB45_R1* – 47 – applicable fees otherwise required, except for any fee required pursuant to NRS 680C.110, and the statement required pursuant to NRS 689.258.

689.495 1.

Except as otherwise provided in subsection 2:

The aggregate liability- of81st theSession surety(2021) for– all50 breaches– of the conditions of the bond must not exceed the sum of the bond.

[The surety on the bond hashase bond the right to cancel the bond upon giving 30 days’ notice to the Commissioner and thereafter is relieved of liability for any breach of condition occurring after the effective date of the cancellation.

- *AB45_R1* – 48 – (a) To offer for sale only prepaid contracts that are payable solelysol(b) Not to collect any money from the proceedspurchaser of a policyprepaid ofcontract. life insurance;

and (b) Not to collect any money from the purchaser of a prepaid contract.

The Commissioner may accept a request for renewal received by the Commissioner within 30 days after the expiration of the permit if the request is accompanied by a fee for renewal of 150 percent of all applicable fees otherwise required, except for any fee required pursuant totoe NRS 680C.110.

- 81st Session (2021) – 51 – Sec.

2.suspended or revoked, at the request of the holder of a valid seller’s permit upon filing a written request for renewal accompanied by all applicable fees for renewal and the statement required pursuant to NRS 689.258.

An agent’s license may be renewed, unless it has been suspended or revoked, at the request of the holder of a valid seller’s permit upon filing a written request for renewal accompanied by all applicable fees for renewal and the statement required pursuant to NRS 689.258.

- *AB45_R1* – 49 – 5.

Except as otherwise provided in this subsection, an individual health benefit plan issued pursuant to this chapter that includes coverage for maternity care and pediatric care for newbornnewbornhat infants may not restrict benefits for any length of stay in a hospital in connection with childbirth for a [mother] pregnant or postpartum individual or newborn infant covered by the plan to:

The provisions of this subsection do not apply to any individual health benefit plan in any case in which the decision to discharge the [mother] pregnant or postpartum individual or newborn infant before the expiration of the- minimum81st lengthSession of(2021) stay– set52 forth– in this subsection is made by the attending physician of the [mother] pregnant or postpartumpostpartume by individual or newborn infant.

(b) Provide monetary payments or rebates to a [mother] pregnant or postpartum individual to encourage [her] the individual to accept less than the minimum protection available pursuantpur(c) Penalize, or otherwise reduce or limit, the reimbursement of an attending provider of health care because the attending provider of health care provided care to a [mother] pregnant or postpartum individual or newborn infant in accordance with the provisions of this section;

(c) Penalize, or otherwise reduce or limit, the reimbursement of an attending provider of health care because the attending provider - *AB45_R1* – 50 – of health care provided care to a [mother] pregnant or postpartum individual or newborn infant in accordance with the provisions of this section;

(a) Prohibits an individual health benefit plan from imposing a deductible, coinsurance or other mechanism for sharing costs relating to benefits for hospital stays in connection with childbirth for a [mother] pregnant or postpartum individual or newborn child covered by the plan, except that such coinsurance or other mechanism for sharing costs for any portion of a hospital stay required by this section may not be greater than the coinsurance or other mechanism for any preceding portion of that stay.

(b) Prohibits an arrangement for payment between an individual health benefit plan and a provider of health care that uses capitation or other financial incentives, if the arrangement is designed to provide- services81st efficientlySession and(2021) consistently– in53 the– best interest of the [mother] pregnant or postpartum individual and [her] thetheterest of newborn infant.

 If a different length of stay is provided in the guidelines established by the American College of Obstetricians and Gynecologists, or its successor organization, and the American Academy of Pediatrics, or its successor organization, the group health plan or health insurance coverage may follow such guidelines in lieu of following the length of stay set forth above.

The - *AB45_R1* – 51 – provisions of this subsection do not apply to any group health plan or health insurance coverage in any case in which the decision to discharge the [mother] pregnant or postpartum individual or newborn infant before the expiration of the minimum length of stay set forth in this subsection is made by the attending physician of the [mother] pregnant or postpartum individual or newborn infant.

3.insurance that offers coverage for maternity care and pediatric care of newborn infants may not:

A group health plan or coverage under group health insurance that offers coverage for maternity care and pediatric care of newborn infants may not:

(b) Provide monetary payments or rebates to a [mother] pregnant or postpartum individual to encourage [her] the individual- to81st acceptSession less(2021) than– the54 minimum– protection available pursuant to this section;

than the minimum protection available (c) Penalize, or otherwise reduce or limit, the reimbursement of an attending provider of health care because the attending provider of health care provided care to a [mother] pregnant or postpartum individual or newborn infant in accordance with the provisions of this section;

(a) Prohibits a group health plan or carrier from imposing a deductible, coinsurance or other mechanism for sharing costs relating to benefits for hospital stays in connection with childbirth for a [mother] pregnant or postpartum individual or newborn child covered by the plan, except that such coinsurance or other mechanism for sharing costs for any portion of a hospital stay required by this section may not be greater than the coinsurance or other mechanism for any preceding portion of that stay.

- *AB45_R1* – 52 – (b) Prohibits an arrangement for payment between a group health plan or carrier and a provider of health care that uses capitation or other financial incentives, if the arrangement is designed to provide services efficiently and consistently in the best interest of the [mother] pregnant or postpartum individual and [her] the newborn infant.

Sec.689C.194 NRS 1.

44.

NRS 689C.194 is hereby amended to read as follows:

689C.194 1.

- If81st aSession different(2021) length– of55 stay– is provided in the guidelines established by the American College of Obstetricians andandlines Gynecologists, or its successor organization, and the American Academy of Pediatrics, or its successor organization, the health benefit plan may follow such guidelines in lieu of following the length of stay set forth above.

3.and pediatric care of newborn infants may not:rage for maternity care (a) Deny a [mother] pregnant or postpartum individual or [her] the newborn infant coverage or continued coverage under the terms of the plan if the sole purpose of the denial of coverage or continued coverage is to avoid the requirements of this section;

A health benefit plan that offers coverage for maternity care and pediatric care of newborn infants may not:

(a) Deny a [mother] pregnant or postpartum individual or [her] the newborn infant coverage or continued coverage under the terms of the plan if the sole purpose of the denial of coverage or continued coverage is to avoid the requirements of this section;

- *AB45_R1* – 53 – (c) Penalize, or otherwise reduce or limit, the reimbursement of an attending provider of health care because the attending provider of health care provided care to a [mother] pregnant or postpartum individual or newborn infant in accordance with the provisions of this section;

(d) Provide incentives of any kind to an attending physician to induce the attending physician to provide care to a [mother] pregnant or postpartum individual or newborn infant in a manner that is inconsistent with the provisions of this section;

(a) Prohibits a health benefit plan or carrier from imposing a deductible, coinsurance or other mechanism for sharing costs relating- to81st benefitsSession for(2021) hospital– stays56 in– connection with childbirth for a [mother] pregnant or postpartum individual or newborn childchildirth covered by the plan, except that such coinsurance or other mechanism for sharing costs for any portion of a hospital stay required by this section may not be greater than the coinsurance or other mechanism for any preceding portion of that stay.

689C.560 A voluntary purchasing group shall post a bond for the benefit of members of the group and their eligible employees and dependents, or deposit a certificate of deposit or securities, [in such a manner] which complies with section 3 of this act and is in an amount as determined by the Commissioner .

[establishes by regulation.] Sec.Secs.

46.46-53.

47.

(Deleted by amendment.) Sec.

48.

(Deleted by amendment.) Sec.

49.

(Deleted by amendment.) Sec.

50.

(Deleted by amendment.) Sec.

51.

(Deleted by amendment.) Sec.

52.

(Deleted by amendment.) - *AB45_R1* – 54 – Sec.

53.

(Deleted by amendment.) Sec.

or (2) Passing a written examination concerning escrows as prescribedpre(c) bySubmit the Commissioner;name and business address of the title agent who will supervise the escrow officer;

(c) Submit the name and business address of the title agent who will supervise the escrow officer;

- 81st Session (2021) – 57 – 3.

The Commissioner may waive the requirements of paragraph (b) of subsection 1 if the applicant submits with his or her application satisfactory proof that the applicant, in good standing, currently holds a license, or held a license within 1 year before the date the applicant submits the application, which was issued pursuant to the provisions of NRS 645A.020.

which was issued 4.

Except as otherwise provided in subsection 8, a license as an escrow officer expires if the Commissioner does not receive from the escrow officer an application for renewal pursuant to - *AB45_R1* – 55 – subsection 4 or 5 on or before the date which is 30 days after the renewal date.

8.because of military service, extended medical disability or otherse extenuating circumstance may request a waiver of the time limit and of any fine or sanction otherwise required or imposed because of the failure to renew.

An escrow officer who is unable to renew his or her license because of military service, extended medical disability or other extenuating circumstance may request a waiver of the time limit and of any fine or sanction otherwise required or imposed because of the failure to renew.

12.- 81st Session (2021) – 58 – (a) For the first renewal of the license, the last day of the month which is 3 years after the month in which the Commissioner originally issued the license.

As used in this section, “renewal date” means:

(a) For the first renewal of the license, the last day of the month which is 3 years after the month in which the Commissioner originally issued the license.

In addition to all other requirements set forth in this title and except as otherwise provided in [subsection 4] subsections 2 and 3 and NRS 692A.1042, as a condition to doing business in this State, each title agent and title insurer shall deposit with the Commissioner and keep in full force and effect a corporate surety bond [payable to the State of Nevada, in the amount set forth in subsection 3, which is executed by a corporate surety satisfactory to] which complies with section 3 of this act and is in an amount must name as determinedprincipals the title agency or title insurer and all escrow officers employed by or associated with the Commissionertitle .agent or title insurer.

[and which names] The bond must name as principals the title agency or title insurer and all escrow officers employed by or associated with the title agent or title insurer.

Know All Persons by These Presents, that ........................, as principal, and ........................, as surety, are held and - *AB45_R1* – 56 – firmly bound unto the State of Nevada for the use and benefit of any person who suffers damages because of a violation of any of the provisions of chapter 692A of NRS, in the sum of ............, lawful money of the United States, to be paid to the State of Nevada for such use and benefit, for which payment well and truly to be made, and that we bind ourselves, our heirs, executors, administrators, successors and assigns, jointly and severally, firmly by these presents.

TheCommissioner conditionof Insurance of thatthe obligationDepartment of Businessas, the and Industry of the State of Nevada has issued the principal a license or certificate of authority as a title agent or title insurer, and the principal is suchrequired that:to furnish a bond, which is conditioned as set forth in this bond:

Whereas,Now, therefore, if the Commissionerprincipal, ofthe Insuranceprincipal’s ofagents and employees, strictly, honestly and faithfully comply with the Departmentprovisions of Businesschapter 692A of NRS, and Industrypay all damages suffered by any person because of a violation of any of the State- 81st Session (2021) – 59 – provisions of Nevadachapter has692A issuedof theNRS, principalor aby licensereason of any fraud, dishonesty, misrepresentation or certificateconcealment of authoritymaterial asfacts agrowing titleout agentof orany titletransaction insurer,governed andby the principalprovisions isof requiredchapter to692A furnishof aNRS, bond,then whichthis obligation is conditionedvoiThis asbond setbecomes fortheffective on the ..........(day) of ................(month) of ......(year), and remains in force until the surety is released from liability by the Commissioner of Insurance or until this bond:bond is cancelled by the surety.

Now, therefore, if the principal, the principal’s agents and employees, strictly, honestly and faithfully comply with the provisions of chapter 692A of NRS, and pay all damages suffered by any person because of a violation of any of the provisions of chapter 692A of NRS, or by reason of any fraud, dishonesty, misrepresentation or concealment of material facts growing out of any transaction governed by the provisions of chapter 692A of NRS, then this obligation is void;

otherwise it remains in full force.

This bond becomes effective on the ..........(day) of ................(month) of ......(year), and remains in force until the surety is released from liability by the Commissioner of Insurance or until this bond is cancelled by the surety.

In Witness Whereof, the seal and signature of the principal hereto is affixed, and the corporate seal and the name of the surety hereto is affixed and attested by its authorized officers at .................Nevada,,...................Nevada, this ................(ofy)................(daof ................(month) of ......(year).]......(year). [............................................

(Seal)]...............................................(Seal) [Principal] [...........................................................................................(Seal) [Surety] By....................................................

(Seal)] [Surety] [By.................................................] [Attorney-in-fact] [......................................................]........................................................ [Nevada licensed insurance agent - *AB45_R1* – 57 – 3.] Each title agent and title insurer [shall deposit] may, in lieu of a corporate surety bond that complies with the provisions of [this section or] subsection 1, deposit a substitute form of security that complies with the provisions of NRS 692A.1042 in an amount [that:

Nevada licensed insurance agent 3.] Each title agent and title insurer [shall deposit] may, in lieu of a corporate surety bond that complies with the provisions of [this section or] subsection 1, deposit a substitute form of security that complies with the provisions of NRS 692A.1042 in an amount [that:

After the initial deposit, the Commissioner- shall,81st onSession an(2021) annual– basis,60 determine– the appropriate amount of the [surety bond or] substitute form of security that must be deposited by the title agent or title insurer based upon the average collected balance of the trust account or escrow account maintained by the title agent or title insurer pursuant to NRS 692A.250.

(c)692A.160 Unearnedor premium692A.170.um reserves maintained pursuant to NRS 692A.160(d) Fidelity bonds maintained by the title agent or 692A.170.title insurer.

(d) Fidelity bonds maintained by the title agent or title insurer.

- *AB45_R1* – 58 – (a) A copy of the proposed articles of incorporation or association and bylaws, or the partnership agreement, which will govern the operation of the business.

(b) A list of the owners or participants and the nature and degree of (c) A list of the persons who will operate the business, and their interest.addresses and qualifications, including experience.

(c) A list of the persons who will operate the business, and their addresses and qualifications, including experience.

- 81st Session (2021) – 61 – (g) Other information which the Commissioner requires.

(b)(c) The personsrules whoof willoperation beexpressed operatingin the businessarticles areofqualified; qualified;

(c) The rules of operation expressed in the articles of incorporation or association and the bylaws, or in the partnership agreement, will promote the efficiency of the operation of the owners or participants;

The Commissioner shall give written notice to any licensee whose license the Commissioner intends to suspend or revoke, and the licensee shall be granted a hearing if the licensee requests it in writing within 15 days after the receipt of the notice from thethes it in Commissioner.

- *AB45_R1* – 59 – 7.

Chapter 681692C of NRS is hereby amended by adding thereto the provisions set forth as sections 56.15 to 56.55, inclusive, of this act:

“NAIC Liquidity Stress Test Framework” means a separate NAIC publication which includes a history of the NAIC’s - 81st Session (2021) – 62 – development of regulatory liquidity stress testing, the scope criteria applicable for a specific data year and the liquidity stress test instructions and reporting templates for a specific data year, with the scope criteria, instructions and reporting template being as adopted by the NAIC and as amended by the NAIC from time to time in accordance with the procedures adopted by the NAIC.

Except as authorized by subsection 3 or as otherwise required in this chapter, a person shall not engage in the making, publishing, disseminating, circulating or placing before the public, or causing directly or indirectly to be made, published, disseminated, circulated or placed before the public in a newspaper, magazine or other publication, or in the form of a notice, circular, pamphlet, letter or poster, or over any radio or television station or any electronic means of communication available to the public, or in any other way as an advertisement, announcement or statement containing a representation or statement with regard to the group capital calculation, group capital ratio, the liquidity stress test results or supporting disclosures for the liquidity stress test of any insurer or any - *AB45_R1* – 60 – insurer group, or of any component derived in the calculation by any insurer, broker or other person engaged in any manner in the insurance business, and any such action shall be deemed by the Commissioner to be misleading.

If any materially false statement with respect to the group capital calculation, resulting group capital ratio, an inappropriate comparison of any amount to an insurer’s or insurance group’s group capital calculation or resulting group capital ratio, liquidity stress test result, supporting disclosures for the liquidity stress test or an inappropriate comparison of any amount to an insurer’s or insurance- group’s81st liquiditySession stress(2021) test– result63 or– supporting disclosures is published in any written publication and the insurer is able to demonstrate to the Commissioner with substantial proof the falsity of such statement or the inappropriateness, as the case may be, then the insurer may publish announcements in a written publication if the sole purpose of the announcement is to rebut the materially false statement.

(a) Has annual direct written and unaffiliated assumed premiums, including, without limitation, international direct and assumed premiums, but excluding premiums reinsured with the Federalof Cropless Insurancethan Corporation$1,000,000,000;ration and Federal Flood Program, (b) Has no insurers within its holding company structure that are domiciled outside of lessthe thanUnited $1,000,000,000;States or one of its territories;

(b) Has no insurers within its holding company structure that are domiciled outside of the United States or one of its territories;

When an insurance holding company system has previously filed the annual group capital calculation at least once, the lead state commissioner has the discretion to accept in lieu of the group capital calculation a limited group capital filing if the - *AB45_R1* – 61 – insurance holding company system has annual direct written and unaffiliated assumed premiums, including, without limitation, international direct and assumed premiums, but excluding premiums reinsured with the Federal Crop Insurance Corporation and Federal Flood Program, of less than $1,000,000,000, and the insurance holding company system:

(b)- Does81st notSession include(2021) a– banking,64 depository– or other financial entity that is subject to an identified regulatory capital framework;

(a) Any insurer within the insurance holding company system is not in compliance with risk-based capital requirements pursuant to NRS 681B.550 and any regulations adopted pursuant thereto,thereto,suant or a similar standard for a non-United States insurer;

(a)NRS With692C.290:espect respect to the paragraph (d) of subsection 3 of NRS(1) 692C.290:The non-United States jurisdiction recognizes the United States’s state regulatory approach to group supervision and group capital, by providing confirmation by a competent regulatory authority, in such jurisdiction, that insurers and insurance groups whose lead state is accredited by the NAIC under the NAIC Accreditation Program shall be subject only to worldwide prudential insurance group supervision including worldwide group governance, solvency and capital, and reporting, - 81st Session (2021) – 65 – as applicable, by the lead state and will not be subject to group supervision, including, without limitation, worldwide group governance, solvency and capital, and reporting, at the level of the worldwide parent undertaking of the insurance or reinsurance group (2) If no United States insurance groups operate in the non-United States jurisdiction, that non-United States jurisdiction indicates formally in writing to the lead state commissioner with a copy to the International Association of Insurance Supervisors that the group capital calculation is an acceptable international capital standard.

(1) The non-United States jurisdiction recognizes the United States’s state regulatory approach to group supervision and - *AB45_R1* – 62 – group capital, by providing confirmation by a competent regulatory authority, in such jurisdiction, that insurers and insurance groups whose lead state is accredited by the NAIC under the NAIC Accreditation Program shall be subject only to worldwide prudential insurance group supervision including worldwide group governance, solvency and capital, and reporting, as applicable, by the lead state and will not be subject to group supervision, including, without limitation, worldwide group governance, solvency and capital, and reporting, at the level of the worldwide parent undertaking of the insurance or reinsurance group by the non-United States jurisdiction;

or (2) If no United States insurance groups operate in the non-United States jurisdiction, that non-United States jurisdiction indicates formally in writing to the lead state commissioner with a copy to the International Association of Insurance Supervisors that the group capital calculation is an acceptable international capital standard.

For the purposes of subsection 1, a list of non-United States jurisdictions that recognize and accept the group capital calculation, published by the NAIC, may be considered as further specifiedspe(a) A list of jurisdictions that recognize and accept the group capital calculation pursuant to paragraph (d) of subsection 3 of NRS 692C.290, published by the following:NAIC, may be used to assist the lead state commissioner in determining which insurers shall file an annual group capital calculation.

(a) A list of jurisdictions that recognize and accept the group capital calculation pursuant to paragraph (d) of subsection 3 of NRS 692C.290, published by the NAIC, may be used to assist the lead state commissioner in determining which insurers shall file an annual group capital calculation.

To assist with a determination under subsection 4 of NRS 692C.290, the list may be used to identify whether a jurisdiction that is exempted under either paragraph (c) of subsection 3 of NRS 692C.290 or paragraph (d) of subsection 3 of NRS 692C.290 - *AB45_R1* – 63 – requires a group capital filing for any United States based insurance group’s operations in that non-United States jurisdiction.

- 81st Session (2021) – 66 – (b) For a non-United States jurisdiction where no United States insurance groups operate, the confirmation provided to meet the requirement of subparagraph (2) of paragraph (a) of subsection 1 serves as support for a recommendation to be publishedcapital ascalculation aadopted jurisdictionby thatthe recognizesNAIC.zes and accepts the group capital3. calculation adopted by the NAIC.

3.

692C.280 No information need be disclosed on the registration statementmaterial filedfor pursuantthe topurposes of NRS 692C.270692C.260 ifto such692C.350, informationinclusive.ot isUnless the Commissioner by rule, regulation or order provides otherwise, sales, purchases, exchanges, loans or extensions of credit, or investments involving one-half of 1 percent or less of an insurer’s admitted assets as of the 31st day of December next preceding, shall not be deemed material for the purposes of NRS 692C.260 to 692C.350, inclusive.

Unless the Commissioner by rule, regulation or order provides otherwise, sales, purchases, exchanges, loans or extensions of credit, or investments involving one-half of 1 percent or less of an insurer’s admitted assets as of the 31st day of December next preceding, shall not be deemed material for purposes of NRS 692C.260 to 692C.350, inclusive.

Each registered insurer shall keep current the information required to be disclosed in its registration statement by reporting all material changes or additions on forms provided by the - *AB45_R1* – 64 – Commissioner within 15 days after the end of the month in which it learns- of81st eachSession such(2021) change– or67 addition,– and not less often than annually, except that, subject to the provisions of NRS 692C.390, each registered insurer shall report all dividends and other distributions to shareholders within 5 business days following the declaration and 10 days before payment.

Except as otherwise provided in this subsection, the ultimate controlling person of every insurer subject to registration shall concurrently file with the registration an annual groupgrouptration capital calculation as directed by the lead state commissioner.

(b) Except as otherwise provided in this paragraph, an insurance holding company system that is required to perform a group capital calculation specified by the United States Federal Reserve Board.

- 81st Session (2021) – 68 – (c) An insurance holding company system whose non-United States group wide supervisor is located within a reciprocal - *AB45_R1* – 65 – jurisdiction as defined in section 6.14 of this act that recognizes the United States’s state regulatory approach to group supervision andand(d) groupAn capital.insurance holding company system:

(d) An insurance holding company system:

5.capital calculation stated in paragraphs (a) to (d), inclusive, of subsection 3, the lead state commissioner has the discretion to exempt the ultimate controlling person from filing the annual group capital calculation or to accept a limited group capital filing or report in accordance with criteria as specified by the Commissioner in regulation.

Notwithstanding the exemptions from filing the group capital calculation stated in paragraphs (a) to (d), inclusive, of subsection 3, the lead state commissioner has the discretion to exempt the ultimate controlling person from filing the annual group capital calculation or to accept a limited group capital filing or report in accordance with criteria as specified by the Commissioner in regulation.

The ultimate controlling person of every insurer subject to registration and also scoped into the NAIC Liquidity Stress Test - 81st Session (2021) – 69 – Framework shall file the results of a specific year’s liquidity stress test.

The filing shall be made to the lead state insurance commissioner of the insurance holding company system as - *AB45_R1* – 66 – determined by the procedures within the Financial Analysis HandbookHan8.ooFor adoptedthe bypurposes theof NAIC.subsection 7:

8.

For the purposes of subsection 7:

(c) An insurer that does not trigger at least one threshold of the scope criteria is not considered scoped into the NAIC Liquidity Stress Test Framework for the specified data year unless the lead state insurance commissioner, in consultation with the NAIC Financial Stability Task Force or its successor, determines the insurer should be scoped into the NAIC Liquidity Stress Test Fra9.woThe lead state commissioner, in consultation with the NAIC Financial Stability Task Force or its successor, will assess whether an insurer is scoped in or not scoped in to the NAIC Liquidity Stress Test Framework foras thatpart dataof year.the lead state commissioner’s determinations pursuant to this section for an insurer.

9.

The lead state commissioner, in consultation with the NAIC Financial Stability Task Force or its successor, will assess whether an insurer is scoped in or not scoped in to the NAIC Liquidity Stress Test Framework as part of the lead state commissioner’s determinations pursuant to this section for an insurer.

Whenever it appears to the Commissioner that any person has committed a violation of subsection 2 which prevents the full understanding- of81st theSession enterprise(2021) risk– to70 the– insurer by affiliates or by the insurance holding company system, the violation may serve asass or by an independent basis for disapproving dividends or distributions and for conducting an examination of the insurer pursuant to NRS 679B.230 to 679B.287, inclusive.

- *AB45_R1* – 67 – Sec.

If an insurer is a member of an insurance group, the insurer shall submit the report required by this section to the insurance commissioner of the lead state for the insurance group in accordance with the laws of the lead state, as determined by the procedures contained in the most recent Financial Analysis HandbookCommissioners.shed published by the National Association of Insurance Commissioners.2.

2.

The corporate governance annual disclosure must include the signature of the chief executive officer or corporate secretary of the insurer or insurance group attesting that, to the best of that person’s belief and knowledge, the insurer or insurance group has implemented the corporate governance practices described in thetheas corporate governance annual disclosure and that a copy of the corporate governance annual disclosure has been provided to the board of directors, or the appropriate committee thereof, of the insurer or insurance group.

- 81st Session (2021) – 71 – [4.] 5.

For purposes of completing the corporate governance annual disclosure, the insurer or insurance group may provide information regarding the corporate governance at the level of the legal entity which exercises ultimate control over the insurer or insurance group, of an intermediate holding company or of the insurer or insurance group, depending upon the manner in which the insurer or insurance group has structured its system of corporate - *AB45_R1* – 68 – governance.

[6.]information 7.substantially similar to the information required by NRS 692C.3501 to 692C.3509, inclusive, in other documents provided to the Commissioner, including, without limitation, proxy statements filed in conjunction with any forms filed pursuant to NRS 692C.270 or any regulations adopted pursuant thereto, or other state or federal filings provided to the Division, may cross-reference in the corporate governance annual disclosure the document in which the information is included rather than duplicating such information in the corporate governance annual disclosure.

An insurer or insurance group which provides information substantially similar to the information required by NRS 692C.3501 to 692C.3509, inclusive, in other documents provided to the Commissioner, including, without limitation, proxy statements filed in conjunction with any forms filed pursuant to NRS 692C.270 or any regulations adopted pursuant thereto, or other state or federal filings provided to the Division, may cross-reference in the corporate governance annual disclosure the document in which the information is included rather than duplicating such information in the corporate governance annual disclosure.

Except as otherwise provided in NRS 239.0115, all information, documents and copies thereof obtained by or disclosed to the Commissioner or any other person in the course of an examination or investigation made pursuant to NRS 692C.410, and- all81st informationSession reported(2021) or– provided72 to– the Commissioner pursuant to subsections 12 and 13 of NRS 692C.190, NRSNRSsioner 692C.260 to 692C.350, inclusive, and 692C.378, is recognized by this State as being proprietary and to contain trade secrets, is confidential, is not subject to subpoena, is not subject to discovery, is not admissible in evidence in any private civil action and must not be made public by the Commissioner or any other person, except to insurance departments of other states, without the prior written consent of the insurer to which it pertains unless the Commissioner, - *AB45_R1* – 69 – after giving the insurer and its affiliates who would be affected thereby notice and an opportunity to be heard, determines that the interests of policyholders, shareholders or the public will be served by the publication thereof, in which event he or she may publish all or any part thereof in any manner as he or she may deem appropriate.

For the purposes of the information reported and provided to the Commissioner pursuant to subsections 3 to 6, inclusive, of NRS 692C.290, the Commissioner shall maintain the confidentiality of the group capital calculation and group capital ratio produced within the calculation and any group capitalcapitalcapital information received from an insurance holding company supervised by the Federal Reserve Board or any U.S.

3.document or copy thereof specified in subsection 1 , including, without limitation, proprietary and trade secret documents and materials, in accordance with NRS 679B.122.

The Commissioner may share or receive any information, document or copy thereof specified in subsection 1 , including, without limitation, proprietary and trade secret documents and materials, in accordance with NRS 679B.122.

The Commissioner shall enter into a written agreement with the NAIC and any third party consultant designated by the Commissioner governing the sharing and use of information - 81st Session (2021) – 73 – specified in subsection 1 .

(a) Specify procedures and protocols regarding the confidentiality and security of information shared with the NAIC [and its affiliates and subsidiaries,] or a third party consultant designated by the Commissioner, including procedures andandconsultant protocols for sharing by the NAIC with other state, federal and international regulators .

[;] With regard to the requirements of this paragraph, the agreement must provide that the recipient agrees in writing to maintain the confidentiality and privileged status of the - *AB45_R1* – 70 – documents, materials or other information and has verified in writing the legal authority to maintain such confidentiality.

(d) Require prompt notice to be given to an insurer whose confidential information in the possession of the NAIC or a third party consultant designated by the Commissioner is subject to a request or subpoena to the NAIC or the third party consultant for disclosure or production .

andandr the third party consultant for (d)] (e) Require the NAIC [and its affiliates and subsidiaries] or a third party consultant designated by the Commissioner to consent to intervention by an insurer in any judicial or administrative action in which the NAIC [and its affiliates or subsidiaries] or the third party consultant may be required to disclose confidential information about the insurer shared with the NAIC [and its affiliates and subsidiaries.] or the third party consultant.

No waiver of any applicable privilege or claim of confidentiality in the documents, materials or information shall - 81st Session (2021) – 74 – occur as a result of disclosure to the Commissioner in accordance with this section or as a result of sharing as authorized in this section.

Documents, materials and other information in the possession or control of the NAIC or a third party consultant designated by the Commissioner in accordance with this section are:

- *AB45_R1* – 71 – Sec.

(a)and Possesssurplus andof thereafternot maintainless than $25,000.n unimpaired paid-in capital and(b) surplusPursuant ofto notNRS less694C.230, thanpay $25,000.an annual fee and, in addition to any other fee or charge, all applicable fees required pursuant to NRS 680C.110 for the renewal of a license.

(b) Pursuant to NRS 694C.230, pay an annual fee and, in addition to any other fee or charge, all applicable fees required pursuant to NRS 680C.110 for the renewal of a license.

The effective date of such a contract of insurance or - 81st Session (2021) – 75 – reinsurance must be before the date on which the Commissioner issued a certificate of dormancy to the captive insurer.

[A] After being issued a certificate of dormancy, and until the certificate of dormancy expires or is revoked, a dormant captive insurerins(a) isSubject not:to or liable for the payment of any tax pursuant to NRS 694C.450.

(a) Subject to or liable for the payment of any tax pursuant to NRS 694C.450.

[and is forfeited if not renewed within that period.] If not timely - *AB45_R1* – 72 – renewed, the certificate of dormancy expires.

9.out the provisions of this section.gulations necessary to carry Sec.

The Commissioner may adopt regulations necessary to carry out the provisions of this section.

Sec.

- 81st Session (2021) – 76 – (1) A state-chartered bank, a state-chartered credit union or a thrift company licensed pursuant to chapter 677 of NRS that is located in this State;

or (2) A federally chartered bank or federally chartered credit union that has a branch which is located in this State,  that is authorized pursuant to state or federal law to transfer money.

(c) The captive insurer employs or has entered into a contract with a qualified and experienced certified public accountant who is - *AB45_R1* – 73 – approved by the Commissioner or a firm of certified public accountants that is nationally recognized.

The Commissioner may periodically review the qualifications of a natural person or business organization described in paragraph (b) of subsection 2 and, if appropriate:

The bond [with sureties approved by the Commissioner] must comply with section 3 of this act and be in [such] an amount [,] determined by the Commissioner, which - 81st Session (2021) – 77 – must be not less than $300,000 nor more than $1,500,000 .

If the purposes of the society conform to the requirements of this chapter and all applicable provisions of the law of this state have been complied with, the Commissioner shall so certify, retain and file the articles of incorporation and furnish the incorporators a preliminary certificate of authority for the society to solicit members as provided in this chapter.

The articles of incorporation and all proceedings thereunder are void 1 year after the date of the preliminary certificate of authority, or at the expiration of the extended period, - *AB45_R1* – 74 – unless the society has completed its organization and received a certificate of authority to do business.

Every society authorized to do business in this state shall appoint in writing the Commissioner [and each successor in office to be its true and lawful attorney] as attorney-in-fact upon whom all lawful process in any action or proceeding against it must be served, and shall agree in the writing that any lawful process against it which is served on the Commissioner is of the same legal force and validity as if served upon the society, and that the authority continues in force so long as any liability remains outstanding in this state.

- 81st Session (2021) – 78 – 4.

At the time of serving any process upon the Commissioner, the plaintiff or complainant in the action shall pay to the CommissionerCom6.ssFor athe feepurposes of $5.this section, “process” includes only the summons or the initial documents served in an action.

6.

For the purposes of this section, “process” includes only the summons or the initial documents served in an action.

Nonprofit hospital and medical or dental service corporations are subject to the provisions of this chapter, and to the provisions of chapters 679A and 679B of NRS, subsections 2, 4, 18, 19 and 31 of NRS 680B.010, NRS 680B.025 to 680B.060, inclusive, chapter 681B of NRS, NRS 686A.010 to 686A.315, inclusive, 686B.010 to 686B.175, inclusive, 687B.010 to 687B.040, inclusive, 687B.070 to 687B.140, inclusive, 687B.150, 687B.160, 687B.180, 687B.200 to 687B.255, inclusive, 687B.270, 687B.310 to - *AB45_R1* – 75 – 687B.380, inclusive, 687B.410, 687B.420, 687B.430, 687B.500 and chapters 692B, 692C, 693A and 696B of NRS, to the extent applicable and not in conflict with the express provisions of this chapter.

The provisions of NRS 449.465, 679A.200, 679B.700, subsections 7 and 8 of NRS 680A.270, subsections 2, 4, 18, 19 and 31 of NRS 680B.010, NRS 680B.020 to 680B.060,680B.060,ns 2, 4, inclusive, [chapter] chapters 681B and 686A of NRS, NRS 686B.010 to [686B.1799,] 686B.175, inclusive, 687B.122 to 687B.128, inclusive, 687B.310 to 687B.420, inclusive, and 687B.500 and chapters 692C and 695G of NRS apply to a health maintenance organization.

If an organization is an admitted health insurer, as that term is defined in NRS 449.450, it is not exempt from the fees imposed pursuant to] - 81st Session (2021) – 79 – this chapter and to the provisions set forth in this section, to the extent reasonably applicable.

Organizations for dental care are subject to the provisions of NRS 449.465 [.] , 679B.700, subsections 7 and 8 of NRS 680A.270, subsections 2, 4, 18, 19 and 31 of NRS 680B.010, NRS 680B.020 to 680B.060, inclusive, chapters 681B and 686A of NRS, NRS 686B.010 to 686B.175, inclusive, and chapters 687B, 692C and 695G of NRS.

- *AB45_R1* – 76 – 2.

A risk retention group seeking to be chartered in this State must obtain a certificate of authority pursuant to chapter 694C of NRS to transact liability insurance and, except as otherwise providedpro(a) All of the laws, regulations and requirements applicable to liability insurers in this chapter,State, mustunless complyotherwise with:approved by the Commissioner;

(a) All of the laws, regulations and requirements applicable to liability insurers in this State, unless otherwise approved by the Commissioner;

A risk retention group chartered in a state other than Nevada that is seeking to transact insurance as a risk retention group in this State must comply with the provisions of NRS 694C.390 and 695E.150 to 695E.210, inclusive [.] , including, without limitation, by submitting the statement of registration required by paragraph (a)- of81st subsectionSession 1(2021) of– NRS80 695E.150– for the statement of registration.0 and paying all fees required forSec. the statement of registration.

Sec.

Each risk retention group shall report all premiums paid to it and shall pay the taxes on premiums and any related fines or penaltiespen3.tieAny forperson risksacting resident,as locatedan agent or toa bebroker performedfor ina therisk state.retention group pursuant to NRS 695E.210 shall:

3.(a) Report to the Commissioner each premium for direct business for risks resident, located or to be performed in this State which the person has placed with or on behalf of a risk retention group that is not chartered in this State.

Any person acting as an agent or a broker for a risk retention group pursuant to NRS 695E.210 shall:

(a) Report to the Commissioner each premium for direct business for risks resident, located or to be performed in this State - *AB45_R1* – 77 – which the person has placed with or on behalf of a risk retention group that is not chartered in this State.