Nevada Administrative Code Chapter 693A - Corporate Powers and Procedures of Domestic Stock and Mutual Insurers
Nevada Administrative Code (NAC) Chapter 693A — Corporate Powers and Procedures of Domestic Stock and Mutual Insurers governs the corporate structure, operations, and procedural requirements specific to domestic stock and mutual insurance companies in Nevada. This chapter supplements NRS Chapter 693A, providing additional regulatory clarity for how these entities are formed and managed.
🔹 Key Provisions of NAC Chapter 693A
1. Mutual-to-Stock Conversion Procedures
Sets forth detailed rules for mutual insurers converting into stock insurers (demutualization).
Topics include:
Plan of conversion requirements (including policyholder voting procedures).
Commissioner’s review and approval process.
Notice requirements to policyholders and stakeholders.
Rules about the issuance of shares and allocation of ownership interests.
2. Stock Issuance and Capital Structure
Describes the process and limitations for stock issuance by domestic stock insurers.
Ensures compliance with statutory capital and surplus requirements under Nevada law.
Outlines acceptable forms of consideration for stock issuance (e.g., cash, property, services).
3. Corporate Governance and Shareholder Rights
Addresses:
Board of directors' composition and responsibilities.
Shareholder meeting procedures and voting rights.
Record-keeping and filing obligations with the Division of Insurance.
4. Approval of Corporate Changes
Corporate changes such as mergers, consolidations, redomestication, or changes in control must be filed with and approved by the Commissioner.
Details supporting documentation required for such applications.
5. Safeguards for Policyholders (Mutual Companies)
Ensures policyholder rights are maintained throughout major corporate actions.
Mandates fair treatment and adequate disclosures during conversion, merger, or restructuring processes.
🔸 Purpose of NAC 693A
The chapter is designed to:
Regulate the formation, governance, and restructuring of domestic insurers.
Protect policyholders, especially in mutual insurers, from losing equitable interests during demutualization or corporate restructuring.
Promote transparency, financial soundness, and ethical corporate conduct in Nevada’s insurance industry.
⚖️ Related Statutory Authority
NRS 693A.110 to 693A.660 — Primary statutory foundation for the NAC chapter.
NRS Chapters 679A–695G — Broader framework for insurance regulation in Nevada.
Would you like a breakdown of any specific section or process in NAC 693ANevada Administrative Code (NAC) Chapter 693A — Corporate Powers and Procedures of Domestic Stock and Mutual Insurers governs the corporate structure, operations, and procedural requirements specific to domestic stock and mutual insurance companies in Nevada. This chapter supplements NRS Chapter 693A, providing additional regulatory clarity for how these entities are formed and managed.
🔹 Key Provisions of NAC Chapter 693A
1. Mutual-to-Stock Conversion Procedures
Sets forth detailed rules for mutual insurers converting into stock insurers (demutualization).
Topics include:
Plan of conversion requirements (including policyholder voting procedures).
Commissioner’s review and approval process.
Notice requirements to policyholders and stakeholders.
Rules about the issuance of shares and allocation of ownership interests.
2. Stock Issuance and Capital Structure
Describes the process and limitations for stock issuance by domestic stock insurers.
Ensures compliance with statutory capital and surplus requirements under Nevada law.
Outlines acceptable forms of consideration for stock issuance (e.g., cash, property, services).
3. Corporate Governance and Shareholder Rights
Addresses:
Board of directors' composition and responsibilities.
Shareholder meeting procedures and voting rights.
Record-keeping and filing obligations with the Division of Insurance.
4. Approval of Corporate Changes
Corporate changes such as mergers, consolidations, redomestication, or changes in control must be filed with and approved by the Commissioner.
Details supporting documentation required for such applications.
5. Safeguards for Policyholders (Mutual Companies)
Ensures policyholder rights are maintained throughout major corporate actions.
Mandates fair treatment and adequate disclosures during conversion, merger, or restructuring processes.
🔸 Purpose of NAC 693A
The chapter is designed to:
Regulate the formation, governance, and restructuring of domestic insurers.
Protect policyholders, especially in mutual insurers, from losing equitable interests during demutualization or corporate restructuring.
Promote transparency, financial soundness, and ethical corporate conduct in Nevada’s insurance industry.
⚖️ Related Statutory Authority
NRS 693A.110 to 693A.660 — Primary statutory foundation for the NAC chapter.
NRS Chapters 679A–695G — Broader framework for insurance regulation in Nevada.
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