USA Statutes : nevada
Title : Title 57 - INSURANCE
Chapter : CHAPTER 682A - INVESTMENTS
This chapter, with the exception of NRS
682A.290 , applies only to domestic
insurers.
(Added to NRS by 1971, 1617)
1. Insurers may invest in or lend their funds on the security of,
and may hold as invested assets, only eligible investments as prescribed
in this chapter.
2. Any particular investment held by an insurer on January 1,
1972, which was a legal investment at the time it was made, and which the
insurer was legally entitled to possess immediately before January 1,
1972, shall be deemed to be an eligible investment.
3. Any particular investment held by a successor organization to
the State Industrial Insurance System that was established by section 79
of chapter 642, Statutes of Nevada 1981, at page 1449, which was a legal
investment of the System made before January 1, 2000, and which the
successor organization is legally entitled to possess on or after January
1, 2000, shall be deemed to be an eligible investment of the successor
organization.
4. Eligibility of an investment must be determined as of the date
of its making or acquisition, except as stated in subsections 2 and 3.
5. Any investment limitation based upon the amount of the
insurer’s assets or particular funds must relate to such assets or funds
as shown by the insurer’s annual statement as of December 31 next
preceding the date of acquisition of the investment by the insurer, or as
shown by a current financial statement resulting from merger of another
insurer, bulk reinsurance or change in capitalization.
6. No insurer may pay any commission or brokerage for the purchase
or sale of property in excess of that usual and customary at the time and
in the locality where such purchases or sales are made, and complete
information regarding all payments of commission and brokerage must be
reported in the next annual statement.
(Added to NRS by 1971, 1617; A 1999, 1832 )
1. No security or investment (other than real and personal
property acquired under NRS 682A.240
(real property) shall be eligible for acquisition unless it is interest
bearing or interest accruing or entitled to dividends or is otherwise
income earning, is not then in default in any respect, and the insurer is
entitled to receive for its exclusive account and benefit the interest or
income accruing thereon.
2. No security or investment shall be eligible for purchase at a
price above its fair value or market value.
3. No provision of this chapter shall prohibit the acquisition by
an insurer of other or additional securities or property if received as a
dividend or as a lawful distribution of assets, or upon a debt or
judgment, or under a lawful and bona fide agreement of bulk reinsurance,
merger or consolidation. Any security or property so acquired which is
not otherwise an eligible investment under this chapter shall be disposed
of pursuant to NRS 682A.250 if real
property, or pursuant to NRS 682A.260
if personal property or securities.
(Added to NRS by 1971, 1618)
1. An insurer shall not make any investment or loan (other than
policy loans or annuity contract loans of a life insurer) unless the same
is authorized or ratified by the insurer’s board of directors or by a
committee thereof charged with supervision of investments and loans.
2. The insurer shall maintain a full record of each investment,
showing, among other pertinent information, the name of any officer,
director or principal stockholder of the insurer having any direct,
indirect or contingent interest in the securities, loan or property
constituting the investment, or in the person in whose behalf the
investment is made, and the nature of such interest.
(Added to NRS by 1971, 1618)
An insurer shall only invest in or
hold as assets categories of investments within applicable limits as
follows:
1. One person. An insurer shall not at any one time have any
combination of investments in or loans upon the security of obligations,
property or securities of any one person (other than its lawful
subsidiary) aggregating over 10 percent of the insurer’s assets. This
shall not apply as to general obligations of the United States of America
or of any state, or of Canada or any province thereof, or of the United
States of Mexico, or include policy loans made under NRS 682A.170 .
2. Voting stock. An insurer shall not invest in or hold at any one
time more than 10 percent of the outstanding voting stock of any
corporation, except as to voting rights of preferred stock during default
of dividends. This subsection does not apply to stock of a subsidiary of
the insurer acquired under NRS 682A.130 , or to controlling stock of an insurer
acquired under NRS 682A.120 .
3. Minimum capital. An insurer shall invest and maintain invested
funds not less in amount that the minimum paid-in capital stock required
under this Code of a domestic stock insurer transacting like kinds of
insurance, only in cash and the securities provided for under the
following sections: NRS 682A.060
(public obligations), NRS 682A.070
(obligations, stock of certain federal and international agencies), NRS
682A.080 (corporate obligations), NRS
682A.160 (equipment trust
certificates).
4. Revenue bonds of public utilities. An insurer shall not have
invested at any one time more than 25 percent of its assets in revenue
bonds of public utilities described in NRS 682A.080 .
5. Corporate obligations. An insurer shall not have invested at
any one time more than 20 percent of its assets in other corporate
obligations described in NRS 682A.080 .
6. Equipment trust certificates. An insurer shall not have
invested at any one time more than 20 percent of its assets in equipment
trust certificates described in NRS 682A.160 .
7. Real property encumbrances. An insurer shall not at any one
time have more than 50 percent of its assets invested in obligations
secured by real property mortgages, trust deeds, contracts of purchase or
other similar encumbrances of real property.
8. Other specific limits. Limits as to investments in the category
of real property shall be as provided in NRS 682A.240 ; and other specific limits shall apply as
stated in this chapter dealing with other respective kinds of investments.
(Added to NRS by 1971, 1618)
1. An insurer may invest in bonds or other evidences of
indebtedness, not in default as to principal or interest, which are valid
and legally authorized obligations issued, assumed or guaranteed by the
United States of America or by any state thereof, or by Canada or any of
the provinces thereof, or by the United States of Mexico or any of the
states thereof, or by any county, city, town, village, municipality or
district therein or by any political subdivision thereof or by a public
instrumentality of one or more of the foregoing, if, by statutory or
other legal requirements applicable thereto, such obligations are
payable, as to both principal and interest, from:
(a) Taxes levied or required to be levied upon all taxable property
or all taxable income within the jurisdiction of such governmental unit;
or
(b) Adequate special revenues pledged or otherwise appropriated or
by law required to be provided for the purpose of such payment; but not
including any obligation payable solely out of special assessments on
properties benefited by local improvements unless adequate security is
evidenced by the ratio of assessment to the value of the property or the
obligation is additionally secured by an adequate guaranty fund required
by law.
2. An insurer may invest in bonds or other evidences of
indebtedness of political subdivisions of states of the United States of
America or provinces of Canada payable from ad valorem taxes levied on
all taxable property situated therein only if the total amount of such
indebtedness after deducting sinking funds and all debts incurred for
self-sustaining public works does not exceed 10 percent of the actual
value of all taxable property therein on the basis of which the last
assessment was made before the date of such investment.
(Added to NRS by 1971, 1619)
An insurer may invest in the obligations, and in
stock that are stated, issued, assumed or guaranteed by the following
agencies of the United States, or in which the Federal Government is a
participant, whether or not those obligations are guaranteed by the
Federal Government:
1. Farm Loan Bank.
2. Commodity Credit Corporation.
3. Federal Intermediate Credit Banks.
4. Federal Land Banks.
5. Central Bank for Cooperatives.
6. Federal Home Loan Banks, and stock thereof.
7. Federal National Mortgage Association, and stock thereof if
acquired in connection with the sale of loans for mortgages to that
association.
8. United States Postal Service.
9. International Bank for Reconstruction and Development.
10. Inter-American Development Bank.
11. Asian Development Bank.
12. African Development Bank.
13. Any other similar agency of, or participated in by, the United
States and of similar financial stability.
(Added to NRS by 1971, 1620; A 1971, 1938; 1985, 654)
1. An insurer may invest any of its funds in obligations other
than those eligible for investment under NRS 682A.230 , relating to real property mortgages, if
they are issued, assumed or guaranteed by any solvent institution and are
qualified under any of the following:
(a) Obligations which are secured by adequate collateral security
and bear fixed interest if, during each of any 3, including the last 2,
of the 5 fiscal years next preceding the date of acquisition by the
insurer, the net earnings of the issuing, assuming or guaranteeing
institution available for its fixed charges, as defined in NRS 682A.090
, have been not less than 1 1/2 times
the total of its fixed charges for that year. In determining the adequacy
of collateral security, not more than one-third of the total value of the
required collateral may consist of stock other than stock meeting the
requirements of NRS 682A.100 ,
relating to preferred or guaranteed stock.
(b) Fixed interest-bearing obligations, other than those described
in paragraph (a), if the net earnings of the issuing, assuming or
guaranteeing institution available for its fixed charges for a period of
5 fiscal years next preceding the date of acquisition by the insurer have
averaged per year not less than 1 1/2 times its average annual fixed
charges applicable to that period and if, during the last year of that
period, the net earnings have been not less than 1 1/2 times its fixed
charges for that year.
(c) Adjustment, income or other contingent interest obligations if
the net earnings of the issuing, assuming or guaranteeing institution
available for its fixed charges for a period of 5 fiscal years next
preceding the date of acquisition by the insurer have averaged per year
not less than 1 1/2 times the sum of its average annual fixed charges and
its average annual maximum contingent interest applicable to such period
and if, during each of the last 2 years of that period, the net earnings
have not been less than 1 1/2 times the sum of its fixed charges and
maximum contingent interest for such year.
(d) Capital stock and other securities of:
(1) A state development corporation organized under the
provisions of chapter 670 of NRS.
(2) A corporation for economic revitalization and
diversification organized under the provisions of chapter 670A of NRS, if the insurer is a member of the
corporation, and to the extent of its loan limit established under NRS
670A.200 .
2. No insurer may invest in any such bonds or evidences of
indebtedness in excess of 10 percent of any issue of such bonds or
evidences of indebtedness or, subject to subsection 1 of NRS 682A.050
, relating to diversification, more
than an amount equal to 10 percent of the insurer’s admitted assets in
any issue.
(Added to NRS by 1971, 1620; A 1975, 1828; 1983, 1281; 2003, 3288
)
1. Certain terms used are defined for the purposes of this chapter
as follows:
(a) “Fixed charges” includes interest on funded and unfunded debt,
amortization of debt discount and rentals for leased properties.
(b) “Institution” includes corporations, joint-stock associations
and business trusts.
(c) “Net earnings available for fixed charges” means net income
after deducting operating and maintenance expenses, taxes other than
federal and state income taxes, depreciation and depletion, but excluding
extraordinary nonrecurring items of income or expense appearing in the
regular financial statements of such institutions.
(d) “Obligation” includes bonds, debentures, notes or other
evidences of indebtedness.
2. If net earnings are determined in reliance upon consolidated
earnings statements of parent and subsidiary institutions, such net
earnings shall be determined after provision for income taxes of
subsidiaries and after proper allowance for minority stock interest, if
any; and the required coverage of fixed charges shall be computed on a
basis including fixed charges and preferred dividends of subsidiaries
other than those payable by such subsidiaries to the parent corporation
or to any other of such subsidiaries, except that if the minority common
stock interest in the subsidiary corporation is substantial, the fixed
charges and preferred dividends may be apportioned in accordance with
regulations prescribed by the Commissioner.
(Added to NRS by 1971, 1621)
1. An insurer may invest in preferred or guaranteed stocks or
shares of any solvent institution if all of the prior obligations and
prior preferred stocks, if any, of the institution at the date of
acquisition of the investment by the insurer are eligible as investments
under this chapter and if the net earnings of the institution available
for its fixed charges during either of the last 2 years have been, and
during each of the last 5 years have averaged, not less than 1 1/2 times
the sum of its average annual fixed charges, if any, its average annual
maximum contingent interest, if any, and its average annual preferred
dividend requirements. For the purposes of this section, the computation
refers to the fiscal years immediately preceding the date of acquisition
of the investment by the insurer, and the term “preferred dividend
requirement” means cumulative or noncumulative dividends, whether paid or
not.
2. No insurer may invest in any such preferred or guaranteed
stocks in an amount in excess of 35 percent of the particular issue of
guaranteed or preferred stock or, subject to subsection 1 of NRS 682A.050
, more than an amount equal to 10
percent of the insurer’s admitted assets in any one issue.
(Added to NRS by 1971, 1622; A 2001, 2188 ; 2003, 3289 )
1. An insurer may invest up to 35 percent of its assets in
nonassessable common stocks, other than insurance stocks, of any solvent
corporation, except that bank or trust company stocks may be assessable
and any stocks may be assessable for taxes if the corporation has had net
earnings available for dividends on the stock in each of the 5 fiscal
years next preceding acquisition by the insurer. If the issuing
corporation has not been in legal existence for all of the 5 fiscal years
but was formed as a consolidation or merger of two or more businesses of
which at least one was in operation on a date 5 years before the
investment, the test of eligibility of its common stock under this
section must be based upon consolidated pro forma statements of the
predecessor or constituent institutions.
2. Any amount invested in a fund or trust under NRS 682A.140
must not be included in computing the
amounts prescribed in subsection 1.
(Added to NRS by 1971, 1622; A 2001, 2188 ; 2003, 3289 )
1. An insurer may invest in the stocks of other solvent insurers
formed under the laws of this or another state, which stocks meet the
applicable requirements of NRS 682A.100 (preferred or guaranteed stock) and NRS
682A.110 (common stocks).
2. With the Commissioner’s advance written consent an insurer may
acquire and hold the controlling interest in the outstanding voting stock
of another insurer formed under the laws of this or another state. All
stocks under this subsection shall be subject to the limitation as to
amount as provided in NRS 682A.130 .
The Commissioner shall not give his consent to any such acquisition if he
finds that it would not be in the best interests of the insurers
involved, or of their respective policyholders or stockholders, or that
such acquisition would materially tend to lessen competition or to result
in any monopoly in the insurance business.
(Added to NRS by 1971, 1622)
1. An insurer may invest in the stock of a subsidiary insurance
corporation formed or acquired by it, or in the stock of a subsidiary
business corporation formed and engaged solely in any one or more of the
following businesses:
(a) A business necessary and incidental to the convenient operation
of the insurer’s insurance business or to the administration of any of
its lawful affairs;
(b) Providing any actuarial, computer, data processing, accounting,
claims, appraisal, collection, sales, loss prevention or safety
engineering and similar services;
(c) Real property management and development;
(d) Premium financing;
(e) Financing of agents of the insurer;
(f) Acting as investment adviser and principal underwriter or
investment adviser or principal underwriter of a management company or
management companies (mutual funds), registered as such under the
Investment Company Act of 1940;
(g) Financial and investment counseling services;
(h) Administration of self-insurance plans;
(i) Administration of self-insured pension and similar plans, or
the self-insured portions of such plans;
(j) Securities broker-dealer;
(k) Escrow services;
(l) Trust services with respect to funds payable or paid by it
under its insurance contracts;
(m) Bank, savings and loan association or thrift company; or
(n) Insurance agency.
2. For the purposes of this section, a “subsidiary” is a
corporation of which the insurer owns sufficient stock to give it
effective control.
3. All of the insurer’s investments under this section shall be
deemed to be common stocks for the purposes of the limitation imposed by
NRS 682A.110 on the percentage of
admitted assets which may be invested in common stock.
(Added to NRS by 1971, 1623; A 1991, 255; 2001, 2189 )
An insurer may
invest in:
1. A bank’s common trust fund as defined in section 584 of the
United States Internal Revenue Code of 1954; and
2. The securities of any open-end management type investment
company or investment trust registered with the Securities and Exchange
Commission under the Investment Company Act of 1940, as from time to time
amended, if such investment company or trust has assets of not less than
$25,000,000 at the date of investment by the insurer.
(Added to NRS by 1971, 1623)
An
insurer may invest in bankers’ acceptances and bills of exchange of the
kinds and maturities made eligible by law for rediscount with Federal
Reserve Banks, and generally accepted by banks or trust companies which
are members of the Federal Reserve System.
(Added to NRS by 1971, 1624)
An
insurer may invest in equipment trust obligations or certificates
adequately secured and evidencing an interest in transportation
equipment, wholly or in part within the United States of America or
Canada, which obligations or certificates carry the right to receive
determined portions of rental, purchase or other fixed obligatory
payments to be made for the use or purchase of such transportation
equipment.
(Added to NRS by 1971, 1624)
A life insurer may lend to
its policyholder, upon pledge of the policy as collateral security, any
sum not exceeding the cash surrender value of the policy, or may lend
against pledge or assignment of any of its supplementary contracts or
other contracts or obligations, so long as the loan is adequately secured
by such pledge or assignment. Loans so made are eligible investments of
the insurer.
(Added to NRS by 1971, 1624)
An insurer may lend and thereby
invest its funds upon the pledge of securities eligible for investment
under this chapter. As of the date made, the loan must not exceed in
amount 90 percent of the market value of the collateral pledged.
(Added to NRS by 1971, 1624; A 2005, 2120 )
An insurer may invest in
share or savings accounts of thrift companies, credit unions or savings
and loan associations, or in savings accounts of banks, and in any one
such institution only to the extent that the investment is insured by the
Federal Deposit Insurance Corporation, the National Credit Union Share
Insurance Fund or a private insurer approved pursuant to NRS 677.247
or 678.755 .
(Added to NRS by 1971, 1624; A 1983, 154; 1993, 2818; 1999, 1548
; 2001, 2189 )
1. An insurer may make loans or investments not otherwise
expressly permitted under this chapter, in an aggregate amount not over
10 percent of the insurer’s admitted assets and not over 5 percent of
those assets as to any one such loan or investment, if the loan or
investment fulfills the requirements of NRS 682A.030 and otherwise qualifies as a sound
investment. No such loan or investment may be represented by:
(a) Any item described in NRS 681B.020 , or any loan or investment otherwise
expressly prohibited.
(b) Agents’ balances, or amounts advanced to or owing by agents,
except as to policy loans, mortgage loans and collateral loans otherwise
authorized under this chapter.
(c) Any category of loans or investments expressly eligible under
any other provision of this chapter.
(d) Any asset acquired or held by the insurer under any other
category of loans or investments eligible under this chapter.
2. The insurer shall keep a separate record of all loans and
investments made under this section.
(Added to NRS by 1971, 1624; A 2001, 2189 ; 2005, 2120 )
The amounts allocated to each
separate account established by the insurer pursuant to NRS 688A.390
(separate accounts), together with
accumulations thereon, may be invested or reinvested in accordance with
the provisions of NRS 688A.390 .
(Added to NRS by 1971, 1625)
1. A title insurer may invest funds in an amount not exceeding 50
percent of its subscribed capital stock in its abstract plant and
equipment and in stocks of abstract companies.
2. In all statements and proceedings required for determination of
the insurer’s condition, such investments shall be valued at the actual
cost thereof, or at such lesser value as the insurer may estimate.
(Added to NRS by 1971, 1625)
1. An insurer may invest in bonds or notes secured by mortgages or
deeds of trust representing first or second liens upon real property
located in this or another state, or in Canada, subject to the following
conditions:
(a) The amount loaned, or the aggregate amount of bonds issued upon
the security of a mortgage or deed of trust, must not at the time of the
investment exceed 85 percent of the fair market value of the real
property. The value of the property must be substantiated by the
appraisal of a recognized or experienced real estate appraiser acceptable
to the Commissioner. Before making the investment, a certificate of the
value of the property, based on the appraisal, must be executed by the
insurer’s board of directors or by an investment committee of the board
of directors making or authorizing the investment on the insurer’s behalf.
(b) There must have been no default as to payment of any part of
the principal or interest of any such bond or note.
(c) The total investment in any one such note, or bond or bonds
secured by the same real property, must not exceed $100,000 or 5 percent
of the insurer’s assets, whichever is greater.
(d) In applying the limitation under paragraph (a), there may be
excluded from the amount invested that portion of the investment which is
guaranteed by the Executive Director for Veterans’ Services pursuant to
the Servicemen’s Readjustment Act of 1944, as amended, or insured by the
Federal Housing Administrator or other agency of the Government of the
United States, or by an agency of the Government of Canada.
2. “Improved real property” means all farmland which has been
reclaimed and is used for the purpose of husbandry, whether for tillage
or pasture, and all real property within the limits of an incorporated
village, town or city on which permanent buildings suitable for residence
or commercial use are situated.
3. For the purposes of this section, real property shall not be
deemed to be encumbered:
(a) By reason of the existence of taxes or assessments which are
not delinquent, instruments creating or reserving mineral, oil or timber
rights, rights-of-way, joint driveways, sewer rights, rights in walls, or
by reason of building restrictions or other restrictive covenants; or
(b) When such real property is subject to lease in whole or in part
whereby rents or profits are reserved to the owner, if the security for
such investment is a full and unrestricted first lien upon such real
property and there is no condition or right of reentry or forfeiture
under which such investments can be cut off, subordinated or otherwise
disturbed.
(Added to NRS by 1971, 1625; A 2005, 2121 )
1. A domestic insurer may invest in real property only if used for
the purposes or acquired in any manner, and within limits, set forth
below:
(a) The building in which it has its principal office, the land
upon which the building stands, and such other real property as may be
requisite for the insurer’s convenient accommodation in the transaction
of its business. The amount so invested, and apportioned as to space
actually so occupied or used, must not aggregate more than 15 percent of
the insurer’s assets; but the Commissioner may authorize an insurer to
increase the investment in such amount as he may determine if, upon
proper showing made upon a hearing held by him, he finds that the
15-percent limitation is insufficient to provide reasonable and
convenient accommodation for the insurer’s business.
(b) Real property acquired in satisfaction or part payment of
loans, mortgages, liens, judgments, decrees or debts previously owing to
the insurer in the due course of its business.
(c) Real property acquired in part payment of the consideration on
the sale of other real property owned by it, if the transaction has
effected a net reduction in the insurer’s investments in real property.
(d) Real property acquired by gift or devise, or through merger,
consolidation or bulk reinsurance of another insurer under this Code.
(e) Additional real property and equipment incidental thereto, if
necessary or convenient for the purpose of enhancing the sale or other
value of real property previously acquired or held under this section.
The additional real property and equipment, together with the real
property for the enhancement of which it was acquired, must be included
together, for the purpose of applicable investment limits, and is subject
to disposal under NRS 682A.250 at the
same time and under the same conditions as apply to the enhanced real
property.
(f) Real property, or any interest therein, acquired or held by
purchase, lease or otherwise, other than real property to be used
primarily for mining, development of oil or mineral resources,
recreational, amusement, hotel, motel or club purposes, acquired as an
investment for production of income, or acquired to be improved or
developed for investment purposes pursuant to an existing program
therefor. The insurer may hold, mortgage, improve, develop, maintain,
manage, lease, sell, convey and otherwise dispose of real property
acquired by it under this section. An insurer may not have at any one
time invested in real property under this paragraph more than 20 percent
of its admitted assets.
2. Total investments of the insurer in real property under this
section may not at any time exceed 35 percent of the insurer’s admitted
assets.
(Added to NRS by 1971, 1626; A 1981, 632; 2001, 2190 )
1. Except as stated in subsection 2, or unless the insurer elects
to hold the real property as an investment under paragraph (f) of
subsection 1 of NRS 682A.240 :
(a) An insurer shall dispose of real property acquired under
paragraph (a) of subsection 1 of NRS 682A.240 within 5 years after it has ceased to be
necessary for the convenient accommodation of the insurer in the
transaction of its business.
(b) An insurer shall dispose of real property acquired under
paragraphs (b), (c) and (d) of subsection 1 of NRS 682A.240 within 3 years after the date of
acquisition, unless used or to be used for the insurer’s accommodation
under paragraph (a) of subsection 1 of NRS 682A.240 .
2. Upon proof satisfactory to him that the interests of the
insurer will suffer materially by the forced sale thereof, the
commissioner may by order grant a reasonable extension of the period, as
specified in such order, within which the insurer shall dispose of any
particular parcel of such real property.
(Added to NRS by 1971, 1627)
Any personal property or securities lawfully
acquired by an insurer which it could not otherwise have invested in or
loaned its funds upon at the time of such acquisition shall be disposed
of within 3 years from the date of acquisition unless within such period
the security has attained to the standard of eligibility; but any
security or personal property acquired under any agreement of bulk
reinsurance, merger or consolidation may be retained for a longer period
if so provided in the plan for such reinsurance, merger or consolidation
as approved by the Commissioner under NRS 693A.330 to 693A.370 , inclusive. Upon application by the insurer
and proof that forced sale of any such property or security would
materially injure the interests of the insurer, the Commissioner may
extend the disposal period for an additional reasonable time.
(Added to NRS by 1971, 1627)
1. Any real property, personal property or securities lawfully
acquired and held by an insurer after expiration of the period for
disposal thereof or any extension of such period granted by the
Commissioner as provided in NRS 682A.250 and 682A.260 shall not be allowed as an asset of the
insurer.
2. The insurer shall forthwith dispose of any ineligible
investment unlawfully acquired by it, and the Commissioner shall suspend
or revoke the insurer’s certificate of authority if the insurer fails to
dispose of the investment within such reasonable time as the Commissioner
may, by his order, specify.
(Added to NRS by 1971, 1628)
1. In addition to investments excluded pursuant to other
provisions of this Code, an insurer shall not acquire, invest in or lend
its funds upon the security of:
(a) Issued shares of its own capital stock, except as provided in
NRS 693A.170 (purchase of own shares
by stock insurer). No such shares shall be considered as an asset of the
insurer in any determination of its financial condition.
(b) Securities issued by any corporation or enterprise the
controlling interest of which is, or will after such acquisition by the
insurer be, held directly or indirectly by the insurer or any combination
of the insurer and the insurer’s directors, officers, subsidiaries or
controlling stockholders (other than a parent corporation), and the
spouses and children of any of the foregoing individuals. Investments in
controlled insurance corporations or subsidiaries under NRS 682A.120
and 682A.130 are not subject to the provisions of this
section.
(c) Any note or other evidence of indebtedness of any director,
officer, employee or controlling stockholder of the insurer, or of the
spouse or child of any of the foregoing individuals, except as to policy
loans authorized under NRS 682A.170 .
(d) Any real property in which any officer or director of the
insurer has a financial interest.
2. No insurer shall underwrite or participate in the underwriting
of an offering of securities or property of any other person. This
section shall not be deemed to prohibit the insurer from being a
subsidiary which is the principal underwriter of a registered investment
company (mutual fund).
3. No insurer shall enter into any agreement to withhold from sale
any of its securities or property, and the disposition of its assets
shall at all times be within the control of the insurer.
(Added to NRS by 1971, 1628)
1. A foreign or alien insurer may make investments permitted by
the laws of its domicile if its portfolio of investments is of a quality
substantially equal to that required under this chapter for similar funds
of like domestic insurers.
2. The provisions of this chapter do not prohibit a foreign or
alien insurer from making investments in agricultural real property or
ranches.
(Added to NRS by 1971, 1629; A 1981, 633)
