Prior Notice Of A Transaction (Page 3 of 5) in pdf

ITEM 4.

LOANS OR EXTENSIONS OF CREDIT TO A NON-AFFILIATE

If the transaction involves a loan or extension of credit to any person who is not an affiliate,

furnish a brief description of the agreement or understanding whereby the proceeds of the proposed

transaction, in whole or in substantial part, are to be used to make loans or extensions of credit to, to

purchase the assets of, or to make investments in, any affiliate of the insurer making such loans or

extensions of credit, and specify in what manner the proceeds are to be used to loan to, extend credit to,

purchase assets of or make investments in any affiliate. Describe the amount and source of funds,

securities, property or other consideration for the loan or extension of credit and, if the transaction is one

involving consideration other than cash, a description of its cost and its fair market value together with

an explanation of the basis for evaluation. Furnish a brief statement as to the effect of the transaction

upon the insurer's surplus.

No notice need be given if the loan or extension of credit is one which equals less than, in the

case of non-life insurers, the lesser of 3% of the insurer's admitted assets or 25% of surplus as regards

policyholders or, with respect to life insurers, 3% of the insurer's admitted assets, each as of the 31st day

of December next preceding.

ITEM 5.

REINSURANCE

If the transaction is a reinsurance agreement or modification thereto, as described by Chapter

692C of Nevada Revised Statutes, Section 363, subsection 1(c), or a reinsurance pooling agreement or

modification thereto as described by Chapter 692C of Nevada Revised Statutes, Section 363, subsection

1(c), furnish a description of the known and/or estimated amount of liability to be ceded and/or assumed

in each calendar year, the period of time during which the agreement will be in effect, and a statement

whether an agreement or understanding exists between the insurer and non-affiliate to the effect that any

portion of the assets constituting the consideration for the agreement will be transferred to one or more

of the insurer's affiliates. Furnish a brief description of the consideration involved in the transaction,

and a brief statement as to the effect of the transaction upon the insurer's surplus.

No notice need be given for reinsurance agreements or modifications thereto if the reinsurance

premium or a change in the insurer's liabilities, or the projected reinsurance premium or change in the

insurer’s liabilities in any of the next three years, in connection with the reinsurance agreement or

modification thereto is less than 5% of the insurer's surplus as regards policyholders, as of the 31st day

of December next preceding. Notice shall be given for all reinsurance pooling agreements including

modification thereto.

ITEM 6.

MANAGEMENT AGREEMENTS, SERVICE AGREEMENTS AND COST-

SHARING ARRANGEMENTS.

For management and service agreements, furnish:

(a)

A brief description of the managerial responsibilities, or services to be performed;

NDOI-411 / July 2016

Prior Notice Of A Transaction Page 3