Nevada Revised Statutes 686B.300 – Conversion into domestic stock insurer: Determination of percentage of stock for each insured
The association shall determine the percentage of stock to which each insured is entitled as follows:
Terms Used In Nevada Revised Statutes 686B.300
- Equitable: Pertaining to civil suits in "equity" rather than in "law." In English legal history, the courts of "law" could order the payment of damages and could afford no other remedy. See damages. A separate court of "equity" could order someone to do something or to cease to do something. See, e.g., injunction. In American jurisprudence, the federal courts have both legal and equitable power, but the distinction is still an important one. For example, a trial by jury is normally available in "law" cases but not in "equity" cases. Source: U.S. Courts
1. The amount of gain or loss from operations, including an equitable allocation of investment income attributable to operations, is calculated for each of the following groups:
(a) Insureds who have not paid a capital stabilization charge;
(b) Insureds who have paid this charge for a given policy year; and
(c) Insureds who have paid a single charge to cover all policy years of participation in the association.
2. For each calendar year the association has been in operation, the amount of gain or loss from operations, including an equitable allocation of investment income attributable to each group, is divided by the number of insured months in that group.
3. For each group in which an insured participated in any calendar year, the insured’s number of insured months in that group is multiplied by the amount of income per insured month attributable to that group, as determined in subsection 2.
4. For each insured, the results of the calculations performed under subsection 3 for each group in which the insured was a member during a particular calendar year are added.
5. For each insured, the total amount the insured paid in capital stabilization charges is computed.
6. For each insured, the sum of the results of the calculations performed under subsections 4 and 5 are divided by the total surplus of the association as shown in its financial statement for the year preceding its conversion to a domestic stock insurer, to obtain that insured’s percentage of ownership of the total stock to be distributed.