[Rev. 11/21/2013 1:07:51 PM--2013]
NRS 682A.010††††††† Scope.
NRS 682A.020††††††† Eligible investments.
NRS 682A.030††††††† General qualifications.
NRS 682A.040††††††† Authorization and record of investments.
NRS 682A.050††††††† Diversification.
NRS 682A.060††††††† Public obligations.
NRS 682A.070††††††† Obligations and stock of certain federal and international agencies.
NRS 682A.080††††††† Corporate obligations.
NRS 682A.090††††††† Definitions; net earnings.
NRS 682A.100††††††† Preferred or guaranteed stock.
NRS 682A.110††††††† Common stocks.
NRS 682A.120††††††† Insurance stocks.
NRS 682A.130††††††† Stocks of subsidiaries.
NRS 682A.140††††††† Common trust funds; mutual funds.
NRS 682A.150††††††† Bankersí acceptances and bills of exchange.
NRS 682A.160††††††† Equipment trust obligations or certificates.
NRS 682A.170††††††† Loans secured by policy.
NRS 682A.180††††††† Collateral loans.
NRS 682A.190††††††† Savings and share accounts.
NRS 682A.200††††††† Miscellaneous investments; records.
NRS 682A.210††††††† Special accounts.
NRS 682A.220††††††† Special investments of title insurers.
NRS 682A.230††††††† Mortgages and deeds of trust.
NRS 682A.240††††††† Real property.
NRS 682A.250††††††† Time limited for disposal of real property.
NRS 682A.260††††††† Time limited for disposal of other ineligible property and securities.
NRS 682A.270††††††† Failure to dispose of real property, personal property or securities: Effect; penalty.
NRS 682A.280††††††† Prohibited investments and underwriting.
NRS 682A.290††††††† Investments of foreign insurers.
††††† NRS 682A.010 Scope. 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 insurerís assets or particular funds must relate to such assets or funds as shown by the insurerís 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 insurerís 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)
††††† 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 insurerís 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)
††††† NRS 682A.070 Obligations and stock of certain federal and international agencies. 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 a qualified community development entity as defined in NRS 231A.120, and to the extent in compliance with the investment limitations established pursuant to NRS 231A.230.
††††† 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 insurerís admitted assets in any issue.
††††† 1. Certain terms used are defined for the purposes of this chapter as follows:
††††† (a) ďFixed chargesĒ includes interest on funded and unfunded debt, amortization of debt discount and rentals for leased properties.
††††† (b) ďInstitutionĒ includes corporations, joint-stock associations and business trusts.
††††† (c) ďNet earnings available for fixed chargesĒ 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) ďObligationĒ 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 ďpreferred dividend requirementĒ 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 insurerís admitted assets in any one issue.
††††† 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.
††††† 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 Commissionerís 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 consent to any such acquisition if the Commissioner 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 insurerís 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 ďsubsidiaryĒ is a corporation of which the insurer owns sufficient stock to give it effective control.
††††† 3. All of the insurerís 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.
††††† 1. A bankís 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)
††††† NRS 682A.150 Bankersí acceptances and bills of exchange. An insurer may invest in bankersí 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)
††††† NRS 682A.160 Equipment trust obligations or certificates. 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)
††††† NRS 682A.170 Loans secured by policy. 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)
††††† NRS 682A.180 Collateral loans. 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)
††††† NRS 682A.190 Savings and share accounts. 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.
††††† 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 insurerís 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) Agentsí 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.
††††† NRS 682A.210 Special accounts. 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 insurerís 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 insurerís board of directors or by an investment committee of the board of directors making or authorizing the investment on the insurerís 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 insurerís 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 Director of the Department of Veterans Services pursuant to the Servicemenís 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. ďImproved real propertyĒ 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 insurerís 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 insurerís assets; but the Commissioner may authorize an insurer to increase the investment in such amount as the Commissioner may determine if, upon proper showing made upon a hearing held by the Commissioner, the Commissioner finds that the 15-percent limitation is insufficient to provide reasonable and convenient accommodation for the insurerís 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 insurerís 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 insurerís 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 insurerís accommodation under paragraph (a) of subsection 1 of NRS 682A.240.
††††† 2. Upon proof satisfactory to the Commissioner 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)
††††† NRS 682A.260 Time limited for disposal of other ineligible property and securities. 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 insurerís certificate of authority if the insurer fails to dispose of the investment within such reasonable time as the Commissioner may, by 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 otherwise 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 insurerís 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:
†††††††††††† (1) Policy loans authorized under NRS 682A.170; or
†††††††††††† (2) Loans on the same terms and conditions as any other borrower which have been approved by a majority vote of the board of directors of the insurer and which conform to the standards set forth in NRS 682A.230.
††††† (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; A 2007, 3317)
††††† 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)