Section 681B.225 - Asset adequacy analysis: Aggregation of reserves and assets1. For the purpose of performing an asset adequacy analysis, the reserves and assets of an insurer may be aggregated by: (a) Aggregating the reserves and related actuarial items and the supporting assets for different products or lines of business before analyzing the adequacy of the combined assets to mature the combined liabilities; or(b) Aggregating the results of an asset adequacy analysis of one or more products or lines of business, the reserves for which prove through analysis to be redundant, with the results of one or more products or lines of business, the reserves for which prove through analysis to be deficient.2. If the reserves and assets are aggregated pursuant to paragraph (a) of subsection 1, the appointed actuary must be satisfied that the assets held in support of the reserves and related actuarial items aggregated are managed in such a manner that the cash flows from the aggregated assets are available to help mature the liabilities from the blocks of business that have been aggregated.3. If the reserves and assets are aggregated pursuant to paragraph (b) of subsection 1, the appointed actuary must be satisfied that the results of the asset adequacy analysis for the various products or lines of business for which the results are aggregated are: (a) Developed using consistent economic scenarios; or(b) Subject to mutually independent risks. The results of an asset adequacy analysis are subject to mutually independent risks if the likelihood of events impacting the adequacy of the assets supporting the redundant reserves is completely unrelated to the likelihood of events impacting the adequacy of the assets supporting the deficient reserves.4. If the reserves and assets of an insurer are aggregated, the actuary shall: (a) Disclose in his or her opinion that the reserves were aggregated on the basis of one of the methods described in this section; and(b) Describe the aggregation in the supporting memorandum.Nev. Admin. Code § 681B.225
Added to NAC by Comm'r of Insurance, eff. 5-23-96