Nevada Revised Statutes 681A.217 – Conditions under which credit allowed when assuming insurer does not meet certain requirements
If the assuming insurer does not meet the requirements of NRS 681A.110, 681A.160, 681A.170 and NRS 681A.211 to 681A.2165, inclusive, credit permitted by NRS 681A.155 to 681A.1557, inclusive, NRS 681A.180 or 681A.190 must not be allowed unless the assuming insurer has agreed to the following conditions set forth in the trust agreement:
Terms Used In Nevada Revised Statutes 681A.217
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Grantor: The person who establishes a trust and places property into it.
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
- person: means a natural person, any form of business or social organization and any other nongovernmental legal entity including, but not limited to, a corporation, partnership, association, trust or unincorporated organization. See Nevada Revised Statutes 0.039
- Trustee: A person or institution holding and administering property in trust.
1. 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 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;
2. The assets of the trust fund must be distributed by and claims filed with and valued by the commissioner of insurance or other 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;
3. 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; and
4. The grantor of the trust must waive any right that:
(a) Is otherwise available to the grantor under the laws of the United States; and
(b) Is inconsistent with the provisions of this section.