For the purposes of this chapter, in determining whether or not an insurer’s surplus as regards policyholders is reasonable in relation to the insurer’s outstanding liabilities and adequate to its financial needs, the following factors among others must be considered:

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1.  The size of the insurer as measured by its assets, capital and surplus, reserves, premium writings, operating results, insurance in force and other appropriate criteria.

2.  The extent to which the insurer’s business is diversified among the several lines of insurance.

3.  The number and size of risks insured in each line of business.

4.  The extent of the geographical dispersion of the insurer’s insured risks.

5.  The nature and extent of the insurer’s reinsurance program.

6.  The quality, diversification and liquidity of the insurer’s investment portfolio.

7.  The recent past and projected future trend in the size of the insurer’s surplus as regards policyholders.

8.  The surplus as regards policyholders maintained by other comparable insurers.

9.  The adequacy of the insurer’s reserves.

10.  The quality and liquidity of investments in affiliates or subsidiaries made pursuant to NRS 692C.180 to 692C.250, inclusive. The Commissioner may treat any such investment as a disallowed asset for purposes of determining the adequacy of surplus as regards policyholders whenever in the judgment of the Commissioner such investment so warrants.

11.  The quality of the insurer’s earnings and the extent to which the reported earnings of the insurer include extraordinary items. As used in this subsection, the term ‘extraordinary item’ means a nonrecurring occurrence or event.