Nevada Revised Statutes 682B.220 – Withdrawal of assets
1. The trust agreement shall provide, in substance, that no withdrawal of trusteed assets shall be made by the insurer or permitted by the trustee without the written authorization or approval of the Commissioner in advance thereof, except as follows:
Terms Used In Nevada Revised Statutes 682B.220
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- 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.
- Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
- 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.
(a) Any or all income, earnings, dividends or interest accumulations of the trusteed assets may be paid over to the United States manager of the insurer upon request of the insurer or the manager.
(b) For substitution, coincidentally with such withdrawal, of other securities or assets of value at least equal in amount to those being withdrawn, if:
(1) Such substituted securities or assets are likewise such as are eligible for deposit under NRS 682B.130;
(2) Such withdrawal is requested in writing by the insurer’s United States manager pursuant to general or specific written authority previously given or delegated by the insurer’s board of directors or other similar governing body; and
(3) A certified copy of such authority has been filed with the trustee.
(c) For the purpose of making deposits required by law in any state in which the insurer is or thereafter becomes an authorized insurer, for the protection of the insurer’s policyholders or policyholders and creditors in such state or in the United States of America, if such withdrawal does not reduce the insurer’s deposit in this state to an amount less than the minimum deposit required under NRS 680A.140. The trustee shall transfer any assets so withdrawn and in the amount so required to be deposited in the other state directly to the depositary required to receive the deposit in the other state, as certified in writing by the public officer having supervision of insurance in the other state.
(d) For the purpose of transferring the trusteed assets to an official conservator, rehabilitator or liquidator pursuant to the order of a court of competent jurisdiction.
2. The Commissioner shall so authorize or approve withdrawal of only such assets as are in excess of the amount of assets required to be so held in trust under NRS 680A.140, or as may otherwise be consistent with the provisions of NRS 682B.130 to 682B.250, inclusive.
3. If at any time the insurer becomes insolvent, or if its assets held in the United States of America are less in amount than the sum of its liabilities in the United States of America arising from its insurance transactions therein and the amount of the required deposit, upon determination thereof the Commissioner shall in writing order the trustee to suspend the right of the insurer or any other person to withdraw assets as authorized under paragraphs (a), (b) and (c) of subsection 1, and the trustee shall comply with such order until further order of the Commissioner.