692B.200 - Mutual insurers: Initial qualifications.
692B.200 Mutual insurers: Initial qualifications.
1. When newly organized, a domestic mutual insurer may be authorized to transact any one of the kinds of insurance listed in the schedule contained in subsection 2.
2. When applying for an original certificate of authority, the insurer must be otherwise qualified therefor under this Code, and must have received and accepted bona fide applications as to substantial insurable subjects for insurance of a substantial character of the kind of insurance proposed to be transacted, must have collected in cash the full premium therefor at a rate not less than that usually charged by other insurers for comparable coverages, must have surplus funds on hand and deposited as of the date such insurance coverages are to become effective, or, in lieu of such applications, premiums, and surplus, may deposit and thereafter maintain surplus, all in accordance with that part of the following schedule which applies to the one kind of insurance the insurer proposes to transact:
(A) (B) (C) (D) (E) (F) (G) (H)
Max. Deposit Deposit
Min. Min.No. Min. Min. Amt. Min. of
No.of Subjects Prem. Amt. Ins.Ea. Surplus Surplus
Kind of Apps. Cov- Col- Ins.Ea. Subj. Funds In Lieu
Ins. Accepted ered lected Subj. (v) (vi) (vi)
Life (i)...................... 500 500 Annual $2,000 $5,000 $100,000 $200,000
Health (ii)................ 500 500 Quarterly $25 $50 $100,000 $200,000
(Weekly Indemnity)
Property (iii)............ 100 250 Annual $3,000 $7,000 $100,000 $200,000
Casualty (iv)............. 50 500 Annual $5,000 $25,000 $200,000 $300,000
Expendable surplus: In addition to surplus deposited and thereafter to be maintained as shown in column (G) or (H) in the above schedule, the insurer when first authorized must have on hand additional surplus funds in an amount not less than 150 percent of the applicable deposited surplus required of it under the above schedule. Of such additional surplus the insurer may expend two- thirds thereof thereafter in conduct of its business, and shall maintain unimpaired the remaining one-third together with such deposited surplus.
3. The following provisions are respectively applicable to the schedule in subsection 2 and provisions as indicated by like Roman numerals appearing in such schedule:
(i) No group insurance or term policies for terms of less than 10 years shall be included.
(ii) No group, blanket or family plans of insurance shall be included. In lieu of weekly indemnity a like premium value in medical, surgical and hospital benefits may be provided. Any accidental death or dismemberment benefit provided shall not exceed $5,000.
(iii) Only insurance of the owner’s interest in real property may be included.
(iv) Insurance of legal liability for bodily injury and property damage, to which the maximum and minimum insured amounts apply, must be included.
(v) The maximums provided for in column (F) are net of applicable reinsurance.
(vi) The deposit of surplus in the amount specified in columns (G) and (H) must thereafter be maintained unimpaired. The deposit is subject to the provisions of NRS 682B.010 to 682B.120, inclusive (administration of deposits).
As to the financial requirements for the authority of such insurer to transact additional kinds of insurance, see NRS 693A.190.
(Added to NRS by 1971, 1793)