Senate Bill No. 11–Committee on Commerce and Labor

 

Prefiled January 24, 2003

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Referred to  Committee on Commerce and Labor

 

SUMMARY—Revises provisions governing extraordinary dividends or distributions of certain insurers. (BDR 57‑95)

 

FISCAL NOTE:  Effect on Local Government: No.

                           Effect on the State: No.

 

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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

AN ACT relating to insurance; revising provisions governing extraordinary dividends or distributions of certain insurers; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

1-1  Section 1. NRS 692C.380 is hereby amended to read as

1-2  follows:

1-3  692C.380  For purposes of NRS 692C.360 to 692C.400,

1-4  inclusive, an extraordinary dividend or distribution includes any

1-5  dividend or distribution of cash or other property, whose fair market

1-6  value together with that of other dividends or distributions made

1-7  within the preceding 12 months exceeds the greater of:

1-8  1.  Ten percent of the insurer’s surplus as regards policyholders

1-9  as of December 31 next preceding the dividend or distribution; or

1-10      2.  The net gain from operations of the insurer, if the insurer is a

1-11  life insurer, or the net income, not including [unrealized] realized

1-12  capital gains if the insurer is not a life insurer, for the 12-month

1-13  period ending December 31 next preceding the dividend or

1-14  distribution,

1-15  but does not include pro rata distributions of any class of the

1-16  insurer’s own securities.

 

2-1  Sec. 2.  This act becomes effective upon passage and approval.

 

2-2  H