Nev. Rev. Stat. § 696C.010 Definitions.
As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS 696C.020 and 696C.030 have the meanings ascribed to them in those sections.
ADMINISTRATIVE SUPERVISION OF INSURERS
Nev. Rev. Stat. 696C
in effectNev. Rev. Stat. § 696C.020 Commissioner defined.
Commissioner means the Commissioner of Insurance and, if applicable:
1. A deputy of the Commissioner; or
2. The Division.
Nev. Rev. Stat. § 696C.030 Insurer defined.
Insurer includes, without limitation:
1. A captive insurer that has been issued a certificate of authority pursuant to chapter 694C of NRS;
2. A fraternal benefit society that has been issued a certificate of authority pursuant to chapter 695A of NRS;
3. A health maintenance organization that has been issued a certificate of authority pursuant to chapter 695C of NRS;
4. A nonprofit corporation for hospital, medical or dental services that has been issued a certificate of authority pursuant to chapter 695B of NRS;
5. An organization for dental care that has been issued a certificate of authority pursuant to chapter 695D of NRS;
6. A prepaid limited health service organization that has been issued a certificate of authority pursuant to chapter 695F of NRS;
7. A risk retention group that has been issued a certificate of registration pursuant to chapter 695E of NRS;
8. Any person who is engaged as principal and as indemnitor, surety or contractor in the business of entering into contracts of insurance; and
9. Any person purporting to be an insurer listed in subsections 1 to 8, inclusive, or in the process of organizing, or holding himself or herself out as organizing, or proposing to organize in this State for the purpose of becoming an insurer listed in subsections 1 to 8, inclusive.
Nev. Rev. Stat. § 696C.050 Applicability.
The provisions of this chapter apply to:
1. All domestic insurers;
2. Any foreign insurer doing business in this State regarding whom an applicable official of the foreign insurers state of domicile has requested that the Commissioner apply the provisions of this chapter to the foreign insurer;
3. All persons purporting to be an insurer, or in the process of organizing, or holding themselves out as organizing, or proposing to organize in this State for the purpose of becoming an insurer; and
4. All other persons to whom the provisions of this chapter are otherwise expressly made applicable by law.
Nev. Rev. Stat. § 696C.100 Conditions for placement under administrative supervision; duties of Commissioner; duration; review.
1. The Commissioner may place an insurer under administrative supervision if:
(a) At any time, the Commissioner determines that:
(1) The insurer is in a hazardous financial condition as set forth in regulations adopted pursuant to NRS 680A.205 , 695B.150 , 695C.318 , 695D.157 or 695F.212 or any other applicable provision of this title;
(2) The insurer is in a hazardous financial condition pursuant to NRS 682A.510 , 695C.319 or 695C.3195 or any other applicable provision of this title;
(3) The continued operation of the insurer transacting business in this State may be hazardous to the insureds or creditors of the insurer or to the general public;
(4) As described in subsection 5, the insurer appears to have exceeded its powers as granted by its license or certificate of authority, as applicable, or as granted by applicable law; or
(5) The insurer is conducting its business fraudulently; or
(b) The insurer agrees to be placed under administrative supervision.
2. If the Commissioner places an insurer under administrative supervision pursuant to subsection 1:
(a) The Commissioner shall promptly notify the insurer that the insurer has been placed under administrative supervision, and include with that notice:
(1) The determination, if any, made by the Commissioner pursuant to paragraph (a) of subsection 1;
(2) A written list of the actions which the insurer must take to satisfy the Commissioner that the placement of the insurer under administrative supervision pursuant to subsection 1 is no longer appropriate;
(3) The initial period of administrative supervision established pursuant to paragraph (b);
(4) The actions, if any, identified by the Commissioner pursuant to subsection 2 of NRS 696C.110 ; and
(5) A statement that the provisions of this chapter govern the administrative supervision of the insurer.
(b) Except as otherwise provided in this paragraph, the initial period of administrative supervision begins upon the insurers receipt of the notice described in paragraph (a) and ends 60 days after the date of the Commissioners determination pursuant to paragraph (a) of subsection 1 or the date of the insurers agreement pursuant to paragraph (b) of subsection 1, as applicable. The Commissioner may designate a different date for the end of the initial period of administrative supervision, if the Commissioner determines that a different date is appropriate and includes that date in the notice required by paragraph (a).
3. The insurer remains under administrative supervision pursuant to this section from the beginning of the initial period of administrative supervision established pursuant to paragraph (b) of subsection 2 until the date on which the insurer is released from administrative supervision by the Commissioner pursuant to paragraph (a) of subsection 4.
4. At the end of the initial period of supervision established pursuant to paragraph (b) of subsection 2 and at the end of any extended period of supervision established pursuant to paragraph (b) of this subsection, the Commissioner shall provide the insurer with notice and an opportunity for a hearing to determine whether the insurer has taken the actions specified pursuant to subparagraph (2) of paragraph (a) of subsection 2 to the satisfaction of the Commissioner. If the Commissioner determines that the insurer:
(a) Has taken such actions to the satisfaction of the Commissioner, the Commissioner shall release the insurer from administrative supervision; or
(b) Has not taken such actions to the satisfaction of the Commissioner, the Commissioner shall designate an extended period of supervision during which the insurer remains under administrative supervision.
5. For the purposes of subparagraph (4) of paragraph (a) of subsection 1, an insurer shall be deemed to have exceeded its powers if the insurer:
(a) Refused to permit the Commissioner, or an examiner authorized by the Commissioner, to examine its books, papers, accounts, records or affairs;
(b) Is a domestic insurer and unlawfully removed from this State books, papers, accounts or records necessary for an examination of the insurer;
(c) Failed or refused to promptly comply with any applicable statutes or regulations relating to financial reporting or any requests of the Commissioner relating thereto;
(d) Failed or refused to comply with an order of the Commissioner to make good, within the time prescribed by law, any prohibited deficiency in its capital, capital stock or surplus;
(e) Continued to transact insurance or write business in this State after its license or certificate of authority, as applicable, has been revoked or suspended by the Commissioner;
(f) Unlawfully, in violation of an order of the Commissioner, or without first having obtained written approval of the Commissioner if written approval is required by law, and whether accomplished by contract or otherwise:
(1) Completely reinsured its entire outstanding business; or
(2) Merged or substantially consolidated its entire property or business with another insurer;
(g) Engaged in any transaction in which it is not authorized to engage under the laws of this State; or
(h) Otherwise failed or refused to comply with a lawful order of the Commissioner.
Nev. Rev. Stat. § 696C.110 Commissioner or designee required to serve as administrative supervisor; authority of Commissioner to prohibit insurer under administrative supervision from taking certain actions without approval of administrative supervisor.
1. During the period an insurer is under administrative supervision pursuant to NRS 696C.100 , the Commissioner or an appointee designated by the Commissioner shall serve as the administrative supervisor of the insurer.
2. The Commissioner may identify any one or more actions specified in subsection 3 as actions which the insurer shall not take during the period the insurer remains under administrative supervision pursuant to NRS 696C.100 unless the insurer obtains approval in advance from the administrative supervisor designated pursuant to subsection 1.
3. If identified by the Commissioner pursuant to subsection 2, the insurer shall not, without obtaining approval in advance from the administrative supervisor:
(a) Dispose of, convey or encumber any of its assets or its business in force;
(b) Withdraw money from any of its bank accounts;
(c) Lend any of its money;
(d) Invest any of its money;
(e) Transfer any of its property;
(f) Incur any debt, obligation or liability;
(g) Merge or consolidate with another insurer or any other business entity as defined in NRS 682A.025 ;
(h) Approve new premiums or renew any policies;
(i) Enter into any new reinsurance contract or treaty;
(j) Terminate, surrender, forfeit, convert or lapse any insurance policy, certificate or contract, except for nonpayment of premiums due;
(k) Release, pay or refund premium deposits, accrued cash or loan values, unearned premiums or other reserves on any insurance policy, certificate or contract;
(l) Make any material change in management; or
(m) Increase any salary or benefit of an officer or director, increase the preferential payment of a bonus or dividend or increase any other payment deemed by the Commissioner to be preferential.
Nev. Rev. Stat. § 696C.120 Confidentiality; exceptions.
1. Notwithstanding any other provision of law and except as set forth in this section and NRS 239.0115 , any proceedings and hearings, and any notices, correspondence, reports, records and other information in the possession of the Commissioner, relating to the administrative supervision of any insurer pursuant to this chapter are confidential by law and privileged, are not subject to subpoena, are not subject to discovery and are not admissible in evidence in any private civil action.
2. The Commissioner may use the information specified in subsection 1 in the furtherance of any regulatory or legal action brought as part of his or her official duties, including, without limitation, his or her duties as a receiver pursuant to chapter 696B of NRS.
3. Neither the Commissioner nor any other person who received access to any information specified in subsection 1 while acting under the authority of the Commissioner may be permitted or required to testify in any private civil action concerning the information.
4. In order to assist in the performance of the regulatory duties of the Commissioner, the Commissioner may:
(a) Share the information specified in subsection 1 with:
(1) Other state, federal and international regulatory agencies, including, without limitation, members of any supervisory college as defined in NRS 692C.359 ;
(2) The National Association of Insurance Commissioners and its affiliates and subsidiaries;
(3) Third party consultants designated by the Commissioner; and
(4) State, federal and international law enforcement authorities, if the Commissioner determines that the disclosure is necessary or proper for the enforcement of the laws of this State or another state,
Ê provided that the recipient agrees to maintain the confidentiality of the applicable information specified in subsection 1. No waiver of any applicable privilege or claim of confidentiality occurs because of the sharing of information pursuant to this paragraph.
(b) Open any proceedings or hearings to the public or make public any other information specified in subsection 1 if the Commissioner determines that it is in the best interest of the public or in the best interest of the insurer, the insureds or creditors of the insurer, or the general public.
Nev. Rev. Stat. § 696C.130 Contest of action of administrative supervisor.
1. During the period an insurer is under administrative supervision pursuant to NRS 696C.100 , the insurer may contest any action taken or proposed to be taken by the administrative supervisor designated pursuant to subsection 1 of NRS 696C.110 on the ground that the action would not result in improving the condition of the insurer. To contest an action taken or proposed to be taken by the administrative supervisor, the insurer must submit a request for reconsideration to the administrative supervisor. If the administrative supervisor, upon reconsideration, denies the insurers request, the insurer may request a review of the decision of the administrative supervisor pursuant to NRS 679B.310 to 679B.370 , inclusive.
2. Any action taken by the Commissioner pursuant to this chapter is subject to:
(a) Review pursuant to NRS 679B.310 to 679B.370 , inclusive, and any regulations adopted pursuant thereto; and
(b) Judicial review pursuant to chapter 233B of NRS.
Nev. Rev. Stat. § 696C.140 Effect of chapter on Commissioners power to institute delinquency proceedings.
Nothing in this chapter shall be construed to limit the authority of the Commissioner to institute delinquency proceedings against an insurer pursuant to chapter 696B of NRS for the purpose of conserving, rehabilitating, reorganizing or liquidating the insurer, without regard to whether the Commissioner has currently or previously placed the insurer under administrative supervision pursuant to NRS 696C.100.
Nev. Rev. Stat. § 696C.150 Meetings between Commissioner and administrative supervisor or representative.
Notwithstanding any other provision of law, at the time of any proceeding or during the pendency of any proceeding held pursuant to this chapter, the Commissioner may meet with an administrative supervisor designated by the Commissioner pursuant to subsection 1 of NRS 696C.110, and with the attorney or other representative of the administrative supervisor designated pursuant to subsection 1 of NRS 696C.110, without the presence of any other person:
1. To carry out the duties of the Commissioner under this chapter; or
2. To allow the administrative supervisor to carry out his or her duties under this chapter.
Nev. Rev. Stat. § 696C.160 Regulations; employment of staff by Commissioner; payment by insurer of costs of such staff and administrative supervisor.
The Commissioner may:
1. Adopt any regulations necessary to carry out the purposes and provisions of this chapter;
2. In addition to an administrative supervisor designated by the Commissioner pursuant to subsection 1 of NRS 696C.110 , employ any other counsels, actuaries, clerks and assistants as the Commissioner deems necessary for the administrative supervision of an insurer; and
3. Require an insurer placed under administrative supervision to pay the compensation and expenses of the administrative supervisor designated by the Commissioner pursuant to subsection 1 of NRS 696C.110 and any other counsels, actuaries, clerks and assistants described in subsection 2.
Nev. Rev. Stat. § 696C.170 Commissioner, staff and administrative supervisor: Immunity from liability.
There shall be no liability on the part of, and no cause of action of any nature against, the Commissioner or any employee or agent of the Commissioner, or an administrative supervisor designated pursuant to subsection 1 of NRS 696C.110, for any action taken by them in the performance of their powers and duties under this chapter.
Source: NV Statutes (Official Site)URL: https://www.leg.state.nv.us/nrs/NRS-696C.htmlFetched: 10/4/2026