Nev. Admin. Code § 683A.105

Current through June 11, 2024

Section 683A.105 - Application for certificate of registration

1. Each applicant for a certificate of registration as an administrator shall submit:

(a) If the applicant is a newly formed business:

(1) A financial statement pursuant to subsection 1 of NRS 683A.08522 that has been reviewed by an independent certified public accountant;

(2) A financial statement pursuant to subsection 2 that has been audited by an independent certified public accountant; or

(3) A pro forma balance sheet and a statement listing estimated income and expenses for the first year, compiled in a form which complies with generally accepted accounting principles.

(b) If the applicant is not a newly formed business:

(1) A financial statement pursuant to subsection 1 of NRS 683A.08522 that has been reviewed by an independent certified public accountant; or

(2) A financial statement pursuant to subsection 2 that has been audited by an independent certified public accountant.

(c) Evidence of the ability of the applicant to pay its obligations when they are due. The Division, in determining an applicant's ability to pay its obligations when due, will consider the capitalization and current financial condition of the applicant and may request credit reports of the applicant and the owners.

2. An applicant for a certificate of registration as an administrator may satisfy the requirements set forth in subsection 1 of NRS 683A.08522 by submitting a financial statement of the parent company of the applicant if:

(a) The applicant:

(1) Is a wholly owned subsidiary of the parent company; and

(2) Provides a parental guaranty of performance for a period of not less than 1 year which is signed by an officer of the parent company and which guarantees the financial solvency of the applicant; and

(b) The financial statement of the parent company:

(1) Is certified by an officer of the applicant and by an officer of the parent company;

(2) Satisfies the requirements set forth in subsection 1 of NRS 683A.08522; and

(3) Has been audited by an independent certified public accountant.

3. The financial statement of an applicant for a certificate of registration as an administrator submitted pursuant to subsection 2 of this section or subsection 1 of NRS 683A.08522, as applicable, must include:

(a) A balance sheet that reports the assets, liabilities and net worth of the applicant;

(b) An income statement that reports the revenues and expenses of the applicant;

(c) A statement of cash flow; and

(d) Notes to the financial statement.

Nev. Admin. Code § 683A.105

Added to NAC by Comm'r of Insurance, eff. 1-22-86; A 5-27-92; 12-15-94; R152-99, 1-28-2000; A by R087-17AP, eff. 6/26/2018

NRS 679B.130 and 683A.08522