Nevada Revised Statutes 696B.220 – Grounds for liquidation of domestic insurer or domiciled alien insurer
The Commissioner may apply to the court for an order appointing the Commissioner as receiver (if his or her appointment as receiver is not then in effect) and directing the Commissioner to liquidate the business of a domestic insurer or of the United States branch of an alien insurer having trusteed assets in this state, whether or not there has been a prior order directing the Commissioner to conserve or rehabilitate the insurer, upon any one or more of the following grounds:
Terms Used In Nevada Revised Statutes 696B.220
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Prosecute: To charge someone with a crime. A prosecutor tries a criminal case on behalf of the government.
- Trustee: A person or institution holding and administering property in trust.
1. That the insurer has failed to cure an impairment of surplus, or capital, or assets within the time allowed therefor by any lawful order of the Commissioner.
2. That the insurer is insolvent, or has commenced voluntary liquidation or dissolution, or attempts to commence or prosecute or is the object, in this state or elsewhere, of any action or proceeding to liquidate its business or affairs, or to dissolve its corporate charter, or to procure the appointment of a receiver, trustee, custodian or sequestrator under any law except this Code. This subsection does not apply to the conversion of a stock insurer to an ordinary business corporation as authorized under NRS 693A.300, or to voluntary dissolution of the insurer pursuant to NRS 692B.250.
3. That the insurer has ceased for a period of 1 year to transact insurance business.
4. If a proposed insurer has not completed its organization and obtained a certificate of authority as an insurer within the time allowed therefor under any applicable solicitation permit issued by the Commissioner.
5. That efforts to rehabilitate the insurer and remove the causes or adverse effects thereof for which rehabilitation was instituted have failed despite all reasonable efforts by the Commissioner, or cannot be continued without material increase of risk of loss to the insurer’s creditors or policyholders.
6. If the insurer has requested or consented to liquidation by a vote or written authorization of a majority of its directors, or stockholders, or members (if a mutual insurer).