Nevada Administrative Code Chapter 685A - Nonadmitted Insurance
Here’s a clear overview of Nevada Administrative Code Chapter 685A—the rules governing placement of nonadmitted insurance (i.e., surplus lines and independently procured policies not offered by admitted carriers):
📘 Definitions & Scope
“Nonadmitted insurance”: Property‑and‑casualty coverage placed either directly or via a broker with a nonadmitted insurer—this term includes both surplus lines and independently procured insurance
“Nonadmitted insurer”: An insurer without authority in NV but eligible under this Chapter to accept such placements
Eligibility & Capital Requirements (NRS 685A.070)
Minimum capital/surplus of $15M (or as required under NRS 680A.120) is mandatory.
A broker may place business with insurers below that threshold only if the Commissioner makes an affirmative finding, but never if capital is under $4.5M
Rules also govern foreign (non-U.S.) insurers, requiring inclusion in the NAIC listing or establishment of a U.S.-held trust fund of specified minimums ($5.4M or more, with group trust requirements up to $100M)
Placement Conditions (NAC 685A.215)
Home-state diligence: Before writing surplus lines in NV (for a Nevada-home-state insured), a broker must attempt to secure coverage from admitted carriers and get at least three declinations
Coverage combining multiple classes cannot trigger surplus placement; if a single-class version is refused, only then may placement proceed
These rules do not apply to commercial purchasers who qualify as "exempt commercial purchasers" (ECPs) under the statutes
Taxation & Filing Requirements
Broker duties include quarterly surplus-lines reporting (see NRS 685A.050) and remittance of premium taxes in compliance with sections like NAC 685A.420
Insurance Broker Oversight
Brokers must be licensed, can charge fees (subject to limits), maintain records, and can have licenses suspended for noncompliance—these administrative provisions are found throughout NRS 685A.120–.190 and NAC §§ 685A.205–.250 .
✅ Summary Table
| Topic | Key Rule |
|---|---|
| Definition | Nonadmitted insurance = surplus + independently procured (leg.state.nv.us) |
| Capital requirement | $15M+, or Commissioner exception (never < $4.5M) |
| Broker diligence | 3 declinations from admitted carriers required |
| ECP exception | Doesn’t apply to exempt commercial purchasers |
| Tax & reporting | Quarterly broker filings + premium taxes due |
| Licensing & oversight | Broker licensing, fees, recordkeeping, disciplinary rules |
📌 Practical Takeaway
If you're a broker seeking to place surplus-lines coverage in Nevada, you must:
Verify insurer capital/surplus—ensure $15M or get Commissioner approval (not under $4.5M).
Achieve 3 denials from appointed insurers (unless the purchaser is an ECP).
File surplus lines reports and pay taxes quarterly.
Stay licensed, maintain records, charge allowable fees, and comply with oversight statutes.
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