Compliance with Regulation of Financial Responsibility

Bulletin No. 06-007 October 23, 2006 COMPLIANCE WITH REGULATION ON FINANCIAL RESPONSIBILITY On September 18, 2006, the Nevada Division of Insurance adopted regulation R120-06. The regulation requires that: Viatical Settlement Providers must provide a surety bond or errors and omissions insurance policy in the amount of $500,000 to the Division on or before December 15, 2006. The regulation allows for alternative types of financial security in lieu of the surety bond or errors and omissions insurance policy. These other alternatives are itemized in NRS 100.065. Viatical Settlement Brokers must provide a surety bond or errors and omissions insurance policy in the amount of $250,000 to the Division on or before December 15, 2006. The regulation allows for alternative types of financial security in lieu of the surety bond or errors and omissions insurance policy. These other alternatives are itemized in NRS 100.065. The regulation also requires Viatical Settlement Providers and Viatical Settlement Brokers to certify that they were in compliance with the financial responsibility provisions during the previous calendar year in the report that must be filed annually with the Division on or before March 1. ____________________________________ ALICE A. MOLASKY-ARMAN Commissioner of Insurance