692B.020 - Incorporation.
692B.020 Incorporation.
1. The general corporation laws of this state govern the incorporation of domestic stock and mutual insurers formed after January 1, 1972, where not in conflict with the express provisions of this Code. In case of such conflict the express provisions of this Code govern.
2. A domestic insurer must be incorporated by not less than three natural persons. The articles of incorporation must set forth the name and residence address of each of the true incorporators, and dummy incorporators must not be used.
3. The articles of incorporation must also set forth:
(a) The names and addresses of each proposed director or officer who is not an incorporator;
(b) The kind or kinds of insurance proposed to be transacted, in accordance with the definitions thereof contained in NRS 681A.010 to 681A.080, inclusive;
(c) If to be a stock insurer, the amount of authorized capital, the number of shares into which divided, and the par value of each share, which par value must not be less than $1. Shares without nominal or par value must not be authorized. All authorized shares must be of one class, with one vote per outstanding share and equal rights between outstanding shares as to dividends and distributions, and in all other respects; and
(d) If to be a mutual insurer, the contingent liability of policyholders for payment of losses and expenses of the insurer, which liability must not be less than one or more than six times the policyholder’s premium at the annual rate for a term of 1 year, as specified in the articles of incorporation. Such contingent liability may be rendered inoperative pursuant to the provisions of NRS 693A.250.
4. The articles of incorporation of a proposed stock insurer must require that all shares be issued at a price not less than par value, and must not provide for stock options.
(Added to NRS by 1971, 1782; A 1991, 2204)