695E.050 - “Hazardous financial condition” defined.

695E.050  “Hazardous financial condition” defined.  “Hazardous financial condition” means that, based on its present or reasonably anticipated financial condition, a risk retention group, although not yet financially impaired or insolvent, is unlikely to be able to:

      1.  Meet obligations to policyholders with respect to known claims and reasonably anticipated claims; or

      2.  Pay other obligations in the normal course of business.

      (Added to NRS by 1987, 1328)