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2023 Nevada Revised Statutes › Chapter 682A - Investments › NRS 682A.452 - Derivative transactions: Limitations on hedging transactions.

An insurer may enter into hedging transactions under NRS 682A.450 to 682A.458, inclusive, if, as a result of and after giving effect to the transaction:
1. The aggregate statement value of options, caps, floors and warrants not attached to another financial instrument purchased and used in hedging transactions does not exceed 7.5 percent of its admitted assets;
2. The aggregate statement value of options, caps and floors written in hedging transactions does not exceed 3 percent of its admitted assets; and
3. The aggregate potential exposure of collars, swaps, forwards and futures used in hedging transactions does not exceed 6.5 percent of its admitted assets.
(Added to NRS by 2015, 3446)
2023 Nevada Revised Statutes › Chapter 682A - Investments › NRS 682A.454 - Derivative transactions: Limitations on income generation transactions.

An insurer may only enter into the following types of income generation transactions if, as a result of and after giving effect to the transactions, the aggregate statement value of the fixed income assets that are subject to call or which generate the cash flows for payments under the caps or floors, plus the face value of fixed income securities underlying a derivative instrument subject to call, plus the amount of the purchase obligations under the puts, does not exceed 10 percent of its admitted assets:
1. Sales of covered call options on noncallable fixed income securities, callable fixed income securities if the option expires by its terms before the end of the noncallable period or derivative instruments based on fixed income securities;
2. Sales of covered call options on equity securities, if the insurer holds in its portfolio, or can immediately acquire through the exercise of options, warrants or conversion rights already owned, the equity securities subject to call during the complete term of the call option sold;
3. Sales of covered puts on investments that the insurer is allowed to acquire pursuant to this chapter, if the insurer has escrowed, or entered into a custodian agreement segregating, cash or cash equivalents with a market value equal to the amount of its purchase obligations under the put during the complete term of the put option sold; or
4. Sales of covered caps or floors, if the insurer holds in its portfolio the investments generating the cash flow to make the required payments under the caps or floors during the complete term that the cap or floor is outstanding.
(Added to NRS by 2015, 3446)
2023 Nevada Revised Statutes › Chapter 682A - Investments › NRS 682A.458 - Commissioner may allow additional derivative transactions by regulation; limitations.

In accordance with the regulations adopted pursuant to NRS 682A.388, the Commissioner may approve additional transactions involving the use of derivative instruments in excess of the limits of NRS 682A.452 for other risk-management purposes, but replication transactions must not be allowed for other than risk-management purposes.
(Added to NRS by 2015, 3447)
2023 Nevada Revised Statutes › Chapter 682A - Investments › NRS 682A.462 - Limited exemption from quantitative limits on certain investments.

Solely for the purpose of acquiring investments that exceed the quantitative limitations of NRS 682A.402 to 682A.448, inclusive, an insurer may acquire in accordance with this section an investment, or engage in investment practices described in NRS 682A.438, but an insurer shall not acquire an investment or engage in investment practices described in NRS 682A.438 in accordance with this section if, as a result of and after giving effect to the transaction:
1. The aggregate amount of investments held by the insurer would exceed 3 percent of its admitted assets; or
2. The aggregate amount of investments as to one limitation in NRS 682A.402 to 682A.448, inclusive, held by the insurer would exceed 1 percent of its admitted assets.
(Added to NRS by 2015, 3447)
2023 Nevada Revised Statutes › Chapter 682A - Investments › NRS 682A.464 - Limited exemption from certain restrictions on investments.

1. In addition to the authority provided in NRS 682A.462, an insurer may acquire in accordance with this section an investment of any kind, or engage in investment practices described in NRS 682A.438 that are not specifically prohibited by the provisions of this chapter, without regard to the categories, conditions, standards or other limitations of NRS 682A.402 to 682A.448, inclusive, if, as a result of and after giving effect to the transaction, the aggregate amount of investments held would not exceed the lesser of:
(a) Ten percent of its admitted assets; or
(b) Seventy-five percent of its capital and surplus.
2. An insurer shall not acquire any investment or engage in any investment practice in accordance with this section if, as a result of and after giving effect to the transaction, the aggregate amount of all investments in any one person held by the insurer would exceed 3 percent of its admitted assets.
(Added to NRS by 2015, 3447)
2023 Nevada Revised Statutes › Chapter 682A - Investments › NRS 682A.466 - Additional exemption from certain investment limitations with approval of Commissioner.

In addition to the investments acquired as described in NRS 682A.462 and 682A.464, an insurer may acquire in accordance with this section an investment of any kind, or engage in investment practices described in NRS 682A.438, that are not specifically prohibited by the provisions of this chapter, without regard to any limitations of NRS 682A.402 to 682A.448, inclusive, if:
1. The Commissioner grants prior approval;
2. The insurer demonstrates that its investments are being made in a prudent manner and that the additional amounts will be invested in a prudent manner; and
3. As a result of and after giving effect to the transaction the aggregate amount of investments held by the insurer is not greater than:
(a) Twenty-five percent of its capital and surplus; or
(b) One hundred percent of capital and surplus less 10 percent of its admitted assets.
(Added to NRS by 2015, 3447)
2023 Nevada Revised Statutes › Chapter 682A - Investments › NRS 682A.468 - Prohibitions applied to exempted investments.

An investment prohibited by NRS 682A.380, not allowed by NRS 682A.450 to 682A.458, inclusive, or additional derivative instruments acquired under NRS 682A.450 to 682A.458, inclusive, must not be acquired pursuant to NRS 682A.462 to 682A.468, inclusive.
(Added to NRS by 2015, 3448)
2023 Nevada Revised Statutes › Chapter 682A - Investments › NRS 682A.502 - Reserve requirements.

Subject to all other limitations and requirements of this chapter, a property and casualty, financial guaranty, mortgage guaranty or accident and health insurer shall maintain an amount not less than 100 percent of adjusted loss reserves and loss adjustment expense reserves, 100 percent of adjusted unearned premium reserves and 100 percent of statutorily required policy and contract reserves in:
1. Cash and cash equivalents;
2. High and medium grade investments that qualify pursuant to NRS 682A.518 and 682A.520;
3. Equity interests that qualify pursuant to NRS 682A.522 to 682A.528, inclusive, and which are traded on a qualified exchange;
4. Investments of the type set forth in NRS 682A.550 to 682A.558, inclusive, if the investments are rated in the highest generic rating category by a nationally recognized statistical rating organization recognized by the SVO for rating foreign jurisdictions and if any foreign currency exposure is effectively hedged through the maturity date of the investments;
5. Qualifying investments of the type set forth in subsections 2, 3 and 4 that are acquired pursuant to NRS 682A.570 and 682A.572;
6. Interest and dividends receivable on qualifying investments of the type set forth in subsections 1 to 5, inclusive; or
7. Reinsurance recoverable on paid losses.
(Added to NRS by 2015, 3448)
2023 Nevada Revised Statutes › Chapter 682A - Investments › NRS 682A.504 - Required reserve amount.

1. For the purposes of determining the amount of assets to be maintained in accordance with this section, the calculation of adjusted loss reserves and loss adjustment expense reserves, adjusted unearned premium reserves and statutorily required policy and contract reserves must be based on the amounts reported as of the most recent annual or quarterly statement date.
2. Adjusted loss reserves and loss adjustment expense reserves must be, for each individual line of business, equal to the sum derived by multiplying the amount obtained pursuant to paragraph (a) by the amount obtained pursuant to paragraph (b), and subtracting from the product obtained by way of that multiplication the amount obtained pursuant to paragraph (c), as follows:
(a) The result of each amount reported by the insurer as losses and loss adjustment expenses unpaid for each accident year for each individual line of business.
(b) The discount factor that is applicable to the line of business and accident year published by the Internal Revenue Service in accordance with the provisions of section 846 of the Internal Revenue Code, 26 U.S.C. § 846, as amended, for the calendar year that corresponds to the most recent annual statement of the insurer.
(c) Accrued retrospective premiums discounted by an average discount factor. The discount factor used in this paragraph must be calculated by dividing the losses and loss adjustment expenses unpaid after discounting by loss and loss adjustment expense reserves before discounting the amount obtained pursuant to paragraph (a).
3. For purposes of the calculations required pursuant to subsection 2, the losses and loss adjustment expenses unpaid must be determined net of anticipated salvage and subrogation, and gross of any discount for the time value of money or tabular discount.
4. Adjusted unearned premium reserves must be equal to the sum derived by subtracting the amount obtained pursuant to paragraph (b) from the amount obtained pursuant to paragraph (a), as follows:
(a) The amount reported by the insurer as unearned premium reserves.
(b) The admitted asset amounts reported by the insurer as:
(1) Premiums in and agent’s balances in the course of collection, accident and health premiums due and unpaid and uncollected premiums for accident and health premiums;
(2) Premiums, agent’s balances and installments booked but deferred and not yet due; and
(3) Bills receivable, taken for premium.
5. Statutorily required policy and contract reserves also must include, without limitation, any required contingency reserves, including, without limitation, in the case of a mortgage guaranty insurer, the amounts required by NRS 681B.100.
(Added to NRS by 2015, 3448)
2023 Nevada Revised Statutes › Chapter 682A - Investments › NRS 682A.506 - Required reporting of reserves.

A property and casualty, financial guaranty, mortgage guaranty or accident and health insurer shall supplement its annual statement with a reconciliation and summary of its assets and reserve requirements as required in NRS 682A.502 and 682A.504. A reconciliation and summary showing that an insurer’s assets as required in NRS 682A.502 and 682A.504 are greater than or equal to its undiscounted reserves referred to in NRS 682A.502 and 682A.504 is sufficient to satisfy this requirement. Upon prior notification, the Commissioner may require an insurer to submit such a reconciliation and summary with any quarterly statement filed during the calendar year.
(Added to NRS by 2015, 3449)
2023 Nevada Revised Statutes › Chapter 682A - Investments › NRS 682A.508 - Notification to Commissioner of insufficient reserves.

If a property and casualty, financial guaranty, mortgage guaranty or accident and health insurer’s assets and reserves do not comply with NRS 682A.502 and 682A.504, the insurer shall notify the Commissioner immediately of the amount by which the reserve requirements exceed the annual statement value of the qualifying assets, explain why the deficiency exists and, within 30 days after the date of the notice, propose a plan of action to remedy the deficiency.
(Added to NRS by 2015, 3449)
2023 Nevada Revised Statutes › Chapter 682A - Investments › NRS 682A.510 - Authority of Commissioner to remedy insufficient reserves.

1. If the Commissioner determines that an insurer is not in compliance with NRS 682A.502 and 682A.504, the Commissioner shall require the insurer to eliminate the condition causing the noncompliance within a specified time after the date on which the notice of the Commissioner’s requirements is mailed or delivered to the insurer.
2. If an insurer fails to comply with the Commissioner’s requirements that are imposed pursuant to subsection 1, the insurer is deemed to be in hazardous financial condition and the Commissioner shall take one or more of the actions authorized by law as to insurers in hazardous financial condition.
(Added to NRS by 2015, 3449)
2023 Nevada Revised Statutes › Chapter 682A - Investments › NRS 682A.512 - Diversification of investments.

1. Except as otherwise specified in this chapter, an insurer shall not acquire, directly or indirectly through an investment subsidiary, an investment in accordance with the provisions of this chapter if, as a result of and after giving effect to the investment, the insurer would hold more than 5 percent of its admitted assets in investments of all kinds issued, assumed, accepted, insured or guaranteed by a single person.
2. The limitation in subsection 1 does not apply to the aggregate amounts insured by a single financial guaranty insurer with the highest generic rating issued by a nationally recognized statistical rating organization.
3. Asset-backed securities are not subject to the limitation in subsection 1. However, an insurer shall not acquire an asset-backed security if, as a result of and after giving effect to the investment, the aggregate amount of asset-backed securities secured by, or evidencing an interest in, a single asset or single pool of assets held by a trust or other business entity held by the insurer would exceed 5 percent of its admitted assets.
(Added to NRS by 2015, 3450)
2023 Nevada Revised Statutes › Chapter 682A - Investments › NRS 682A.514 - Medium and lower grade investments.

1. An insurer shall not acquire, directly or indirectly through an investment subsidiary, an investment in accordance with the provisions of NRS 682A.518, 682A.530 to 682A.538, inclusive, or 682A.550 to 682A.558, inclusive, or counterparty exposure in accordance with the provisions of NRS 682A.566 if, as a result of and after giving effect to the investment:
(a) The aggregate amount of all medium and lower grade investments held by the insurer would exceed 20 percent of its admitted assets;
(b) The aggregate amount of lower grade investments held by the insurer would exceed 10 percent of its admitted assets;
(c) The aggregate amount of investments rated 5 or 6 by the SVO held by the insurer would exceed 5 percent of its admitted assets;
(d) The aggregate amount of investments rated 6 by the SVO held by the insurer would exceed 1 percent of its admitted assets; or
(e) The aggregate amount of medium and lower grade investments held by the insurer that receive as cash income less than the equivalent yield for United States Treasury issues with a comparative average life, would exceed 1 percent of its admitted assets.
2. An insurer shall not acquire, directly or indirectly through an investment subsidiary, an investment in accordance with the provisions of NRS 682A.518, 682A.530 to 682A.538, inclusive, or 682A.550 to 682A.558, inclusive, or counterparty exposure in accordance with the provisions of NRS 682A.566 if, as a result of and after giving effect to the investment:
(a) The aggregate amount of medium and lower grade investments issued, assumed, guaranteed, accepted or insured by any one person or, as to asset-backed securities by or evidencing an interest in a single asset or pool of assets, held by the insurer, would exceed 1 percent of its admitted assets; or
(b) The aggregate amount of lower grade investments issued, assumed, guaranteed, accepted or insured by any one person or, as to asset-backed securities by or evidencing an interest in a single asset or pool of assets, held by the insurer, would exceed 0.5 percent of its admitted assets.
3. If an insurer attains or exceeds the limit of any one rating category referred to in this section, the insurer must not be precluded from acquiring investments in other rating categories subject to the specific and multicategory limits applicable to those investments.
(Added to NRS by 2015, 3450)
2023 Nevada Revised Statutes › Chapter 682A - Investments › NRS 682A.516 - Canadian investments.

1. An insurer shall not acquire, directly or indirectly through an investment subsidiary, any Canadian investments authorized by the provisions of this chapter if, as a result of and after giving effect to the investment, the aggregate amount of these investments held by the insurer would exceed 40 percent of its admitted assets, or if the aggregate amount of Canadian investments not acquired in accordance with paragraph (c) or (d) of subsection 1 of NRS 682A.518 held by the insurer would exceed 25 percent of its admitted assets.
2. As to an insurer that is authorized to do business in Canada or that has outstanding insurance, annuity or reinsurance contracts on lives or risks resident or located in Canada and denominated in Canadian currency, the limitations in subsection 1 must be increased by the greater of:
(a) The amount the insurer is required by Canadian law to invest in Canada or to be denominated in Canadian currency; or
(b) One hundred twenty-five percent of the amount of its reserves and other obligations under contracts on risks resident or located in Canada.
(Added to NRS by 2015, 3451)
2023 Nevada Revised Statutes › Chapter 682A - Investments › NRS 682A.524 - Limitation on aggregate amount of investments held in equity interests.

An insurer shall not acquire an investment in accordance with the provisions of NRS 682A.522 to 682A.528, inclusive, if, as a result of and after giving effect to the investment, the aggregate amount of investments held by the insurer in accordance with the provisions of those sections would exceed the greater of 25 percent of the insurer’s admitted assets or 100 percent of the insurer’s surplus as regards policyholders.
(Added to NRS by 2015, 3454)
2023 Nevada Revised Statutes › Chapter 682A - Investments › NRS 682A.526 - Restriction on mortgage or real estate holdings acquired or held as equity interests.

An insurer shall not acquire in accordance with the provisions of NRS 682A.522 to 682A.528, inclusive, any investments that the insurer may acquire in accordance with the provisions of NRS 682A.540 to 682A.546, inclusive.
(Added to NRS by 2015, 3454)
2023 Nevada Revised Statutes › Chapter 682A - Investments › NRS 682A.530 - Tangible personal property under lease or other agreement.

1. Subject to the limitations of NRS 682A.512, 682A.514 and 682A.516, an insurer may acquire tangible personal property or equity interests therein located or used wholly or in part within a domestic jurisdiction either directly or indirectly through limited partnership interests and general partnership interests not otherwise prohibited by paragraph (d) of subsection 1 of NRS 682A.380, joint ventures, stock of an investment subsidiary or membership interests in a limited-liability company, trust certificates or other similar instruments.
2. Investments acquired as described in subsection 1 are eligible only if:
(a) The property is subject to a lease or other agreement with a person whose rated credit instruments in the amount of the purchase price of the personal property the insurer could acquire in accordance with the provisions of NRS 682A.518; and
(b) The lease or other agreement provides the insurer the right to receive rental, purchase or other fixed payments for the use or purchase of the property, and the aggregate value of the payments, together with the estimated residual value of the property at the end of its useful life and the estimated tax benefits to the insurer resulting from ownership of the property, must be adequate to return the cost of the insurer’s investment in the property, plus a return deemed adequate by the insurer.
(Added to NRS by 2015, 3455)
2023 Nevada Revised Statutes › Chapter 682A - Investments › NRS 682A.532 - Valuation of personal property under lease.

The insurer shall compute the amount of each investment entered into in accordance with the provisions of NRS 682A.530 to 682A.538, inclusive, on the basis of the out-of-pocket purchase price and applicable related expenses paid by the insurer for the investment, net of each borrowing made to finance the purchase price and expenses, to the extent the borrowing is without recourse to the insurer.
(Added to NRS by 2015, 3455)
2023 Nevada Revised Statutes › Chapter 682A - Investments › NRS 682A.534 - Limitation on aggregate amount of investments held in personal property under lease.

An insurer shall not acquire an investment in accordance with the provisions of NRS 682A.530 to 682A.538, inclusive, if, as a result of and after giving effect to the investment, the aggregate amount of all investments held by the insurer in accordance with the provisions of NRS 682A.530 to 682A.538, inclusive, would exceed:
1. Two percent of its admitted assets; or
2. One half of one percent of its admitted assets as to any single item of tangible personal property.
(Added to NRS by 2015, 3455)
2023 Nevada Revised Statutes › Chapter 682A - Investments › NRS 682A.536 - Computation of investments held as personal property under lease for purposes of investment diversification requirements.

For the purposes of determining compliance with the limitations of NRS 682A.512, 682A.514 and 682A.516, investments acquired by an insurer in accordance with the provisions of NRS 682A.530 to 682A.538, inclusive, must be aggregated with those acquired in accordance with the provisions of NRS 682A.518, and each lessee of the property in accordance with a lease referred to in NRS 682A.530 to 682A.538, inclusive, shall be deemed the issuer of an obligation in the amount of the investment of the insurer in the property determined as provided in NRS 682A.532.
(Added to NRS by 2015, 3455)
2023 Nevada Revised Statutes › Chapter 682A - Investments › NRS 682A.538 - Exempted personal property under lease.

Nothing in NRS 682A.530 to 682A.538, inclusive, applies to tangible personal property lease arrangements between an insurer and its subsidiaries and affiliates in accordance with a cost-sharing arrangement or agreement permitted in accordance with the provisions of chapter 692C of NRS.
(Added to NRS by 2015, 3455)
2023 Nevada Revised Statutes › Chapter 682A - Investments › NRS 682A.542 - Income-producing real estate.

1. An insurer may acquire, manage and dispose of real estate situated in a domestic jurisdiction either directly or indirectly through limited partnership interests and general partnership interests not otherwise prohibited by paragraph (d) of subsection 1 of NRS 682A.380, joint ventures, stock of an investment subsidiary or membership interests in a limited-liability company, trust certificates or other similar interests. The real estate must be income producing or intended for improvement or development for investment purposes under an existing program, in which case the real estate shall be deemed to be income producing.
2. The real estate may be subject to mortgages, liens or other encumbrances, the amount of which must, to the extent that the obligations secured by the mortgages, liens or encumbrances are without recourse to the insurer, be deducted from the amount of the investment of the insurer in the real estate for purposes of determining compliance with subsections 2 and 3 of NRS 682A.546.
(Added to NRS by 2015, 3457)
2023 Nevada Revised Statutes › Chapter 682A - Investments › NRS 682A.544 - Real estate for accommodation of business operations.

1. An insurer may acquire, manage and dispose of real estate for the convenient accommodation of the insurer’s, and its affiliates, business operations, including home office, branch office and filed office operations.
2. Real estate acquired as described in this section may include excess space for rent to others, if the excess space, valued at its fair market value, would otherwise be an allowed investment in accordance with the provisions of NRS 682A.542 and is so qualified by the insurer.
3. The real estate acquired as described in this section may be subject to one or more mortgages, liens or other encumbrances, the amount of which must, to the extent that the obligations secured by the mortgages, liens or encumbrances are without recourse to the insurer, be deducted from the amount of the investment of the insurer in the real estate for purposes of determining compliance with subsection 4 of NRS 682A.546.
4. For purposes of this section, business operations must not include that portion of real estate used for the direct provision of health care services by an insurer whose insurance premiums and required statutory reserves for accident and health insurance constitute at least 95 percent of total premium considerations or total statutory required reserves, respectively. An insurer may acquire real estate used for these purposes under NRS 682A.542.
(Added to NRS by 2015, 3457)
2023 Nevada Revised Statutes › Chapter 682A - Investments › NRS 682A.546 - Limitation on aggregate amount of investments held in mortgage loans and real estate.

1. An insurer shall not acquire an investment in accordance with the provisions of NRS 682A.540 if, as a result of and after giving effect to the investment, the aggregate amount of all investments held by the insurer pursuant to that section would exceed:
(a) One percent of its admitted assets in mortgage loans covering any one secured location;
(b) One-quarter of one percent of its admitted assets in construction loans covering any one secured location; or
(c) One percent of its admitted assets in construction loans in the aggregate.
2. An insurer shall not acquire an investment under NRS 682A.542 if, as a result of and after giving effect to the investment and any outstanding guarantees made by the insurer in connection with the investment, the aggregate amount of investments held by the insurer under NRS 682A.542 plus the guarantees outstanding would exceed:
(a) One percent of its admitted assets in any one parcel or group of contiguous parcels of real estate, except that this limitation does not apply to that portion of real estate used for the direct provision of health care services by an insurer whose insurance premiums and required statutory reserves for accident and health insurance constitute at least 95 percent of total premium considerations or total statutory required reserves, respectively, including, without limitation, hospitals, medical clinics, medical professional buildings or other health facilities used for the purpose of providing health services; or
(b) The lesser of 10 percent of its admitted assets or 40 percent of its surplus as regards policyholders in the aggregate, except for an insurer whose insurance premiums and required statutory reserves for accident and health insurance constitute at least 95 percent of total premium considerations or total statutory required reserves, respectively, this limitation must be increased to 15 percent of its admitted assets in the aggregate.
3. An insurer shall not acquire an investment pursuant to NRS 682A.540 or 682A.542 if, as a result of and after giving effect to the investment and any guarantees it has made in connection with the investment, the aggregate amount of all investments held by the insurer in accordance with the provisions of those sections plus the guarantees outstanding would exceed 25 percent of the insurer’s admitted assets.
4. The limitations of NRS 682A.512, 682A.514 and 682A.516 do not apply to an insurer’s acquisition of real estate under NRS 682A.544. An insurer shall not acquire real estate under NRS 682A.544 if, as a result of and after giving effect to the acquisition, the aggregate amount of real estate held by the insurer in accordance with that section would exceed 10 percent of its admitted assets. With the permission of the Commissioner, additional amounts of real estate may be acquired under NRS 682A.544.
(Added to NRS by 2015, 3458)
2023 Nevada Revised Statutes › Chapter 682A - Investments › NRS 682A.550 - Foreign investments.

Subject to the limitations of NRS 682A.512, 682A.514 and 682A.516, an insurer may acquire foreign investments, or engage in investment practices with persons of, or in, foreign jurisdictions, of substantially the same types as those that an insurer is allowed to acquire pursuant to this chapter, other than of the type allowed under NRS 682A.520 if, as a result of and after giving effect to the investment:
1. The aggregate amount of foreign investments held by the insurer in accordance with this section does not exceed 20 percent of its admitted assets; and
2. The aggregate amount of foreign investments held by the insurer in accordance with this section in a single foreign jurisdiction does not exceed 10 percent of its admitted assets as to a foreign jurisdiction that has a sovereign debt rating of SVO 1 or 5 percent of its admitted assets as to any other foreign jurisdiction.
(Added to NRS by 2015, 3460)
2023 Nevada Revised Statutes › Chapter 682A - Investments › NRS 682A.552 - Foreign currency exposure.

1. Subject to the limitations of NRS 682A.512, 682A.514 and 682A.516, an insurer may acquire investments, or engage in investment practices denominated in foreign currencies, whether or not they are foreign investments acquired as described in NRS 682A.550, or additional foreign currency exposure as a result of the termination or expiration of a hedging transaction with respect to investments denominated in a foreign currency if:
(a) The aggregate amount of investments held by the insurer in accordance with this section denominated in foreign currencies does not exceed 15 percent of its admitted assets; and
(b) The aggregate amount of investments held by the insurer in accordance with this section denominated in the foreign currency of a single foreign jurisdiction does not exceed 10 percent of its admitted assets as to a foreign jurisdiction that has a sovereign debt rating of SVO 1 or 5 percent of its admitted assets as to any other foreign jurisdiction.
2. An investment must not be considered denominated in a foreign currency if the acquiring insurer enters into one or more contracts in transactions allowed under NRS 682A.560 to 682A.568, inclusive, and the business entity counterparty agrees, in accordance with the contract or contracts, to exchange all payments made on the foreign currency denominated investment for United States currency at a rate which effectively insulates the investment cash flows against future changes in currency exchange rates during the period the contract or contracts are in effect.
(Added to NRS by 2015, 3461)
2023 Nevada Revised Statutes › Chapter 682A - Investments › NRS 682A.554 - Additional foreign investment and foreign currency allowance for insurers authorized to do business in foreign jurisdiction and holding foreign contracts.

In addition to investments allowed under NRS 682A.550 and 682A.552, an insurer that is authorized to do business in a foreign jurisdiction, and that has outstanding insurance, annuity or reinsurance contracts on lives or risks resident or located in that foreign jurisdiction and denominated in foreign currency of that jurisdiction, may acquire foreign investments respecting that foreign jurisdiction, and may acquire investments denominated in the currency of that jurisdiction, subject to the limitations of NRS 682A.512, 682A.514 and 682A.516. Investments made in accordance with this section in obligations of foreign governments, their political subdivisions and government-sponsored enterprises are not subject to the limitations of NRS 682A.512, 682A.514 and 682A.516 if those investments carry an SVO rating of 1 or 2. The aggregate amount of investments acquired by the insurer in accordance with this section must not exceed the greater of:
1. The amount the insurer is required by law to invest in the foreign jurisdiction; or
2. One hundred twenty-five percent of the amount of the insurer’s reserves, net of reinsurance and other obligations under the contracts.
(Added to NRS by 2015, 3461)
2023 Nevada Revised Statutes › Chapter 682A - Investments › NRS 682A.556 - Additional foreign investment and foreign currency allowance for insurers not authorized to do business in foreign jurisdiction but holding foreign contracts.

In addition to investments allowed under NRS 682A.550 and 682A.552, an insurer that is not authorized to do business in a foreign jurisdiction but which has outstanding insurance, annuity or reinsurance contracts on lives or risks resident or located in a foreign jurisdiction and denominated in foreign currency of that jurisdiction, may acquire foreign investments respecting that foreign jurisdiction, and may acquire investments denominated in the currency of that jurisdiction subject to the limitations set forth in NRS 682A.512, 682A.514 and 682A.516. Investments made in accordance with this section in obligations of foreign governments, their political subdivisions and government-sponsored enterprises are not subject to the limitations of NRS 682A.512, 682A.514 and 682A.516 if those investments carry an SVO rating of 1 or 2. The aggregate amount of investments acquired by the insurer in accordance with this section must not exceed 105 percent of the amount of the insurer’s reserves, net of reinsurance, and other obligations under the contracts on risks resident or located in the foreign jurisdiction.
(Added to NRS by 2015, 3461)
2023 Nevada Revised Statutes › Chapter 682A - Investments › NRS 682A.558 - Calculation of foreign investments for purposes of determining compliance with limitations.

Investments acquired in conformance with NRS 682A.550 to 682A.558, inclusive, must be aggregated with investments of the same types made under this chapter, and in a similar manner, for purposes of determining compliance with the limitations, if any, contained in this chapter. Investments in obligations of foreign governments, their political subdivisions and government-sponsored enterprises of these persons, except for those exempted in accordance with the provisions of NRS 682A.554 and 682A.556, are subject to the limitations of NRS 682A.512, 682A.514 and 682A.516.
(Added to NRS by 2015, 3462)
2023 Nevada Revised Statutes › Chapter 682A - Investments › NRS 682A.560 - Derivative transactions.

An insurer may, directly or indirectly through an investment subsidiary, engage in derivative transactions as described in NRS 682A.560 to 682A.568, inclusive, pursuant to the following conditions:
1. An insurer may use derivative instruments under NRS 682A.560 to 682A.568, inclusive, to engage in hedging transactions and certain income generation transactions, as these terms may be further defined in regulations adopted by the Commissioner pursuant to NRS 682A.388; and
2. An insurer must be able to demonstrate to the Commissioner the intended hedging characteristics and the ongoing effectiveness of the derivative transaction or combination of transactions through cash flow testing or other appropriate analyses.
(Added to NRS by 2015, 3462)
2023 Nevada Revised Statutes › Chapter 682A - Investments › NRS 682A.562 - Derivative transactions: Limitations on hedging transactions.

An insurer may enter into hedging transactions under NRS 682A.560 to 682A.568, inclusive, if, as a result of and after giving effect to the transaction:
1. The aggregate statement value of options, caps, floors and warrants not attached to another financial instrument purchased and used in hedging transactions does not exceed 7.5 percent of its admitted assets;
2. The aggregate statement value of options, caps and floors written in hedging transactions does not exceed 3 percent of its admitted assets; and
3. The aggregate potential exposure of collars, swaps, forwards and futures used in hedging transactions does not exceed 6.5 percent of its admitted assets.
(Added to NRS by 2015, 3462)
2023 Nevada Revised Statutes › Chapter 682A - Investments › NRS 682A.564 - Derivative transactions: Limitations on income generation transactions.

An insurer may only enter into the following types of income generation transactions if, as a result of and after giving effect to the transactions, the aggregate statement value of the fixed income assets that are subject to call plus the face value of fixed income securities underlying a derivative instrument subject to call, plus the amount of the purchase obligations under the puts, does not exceed 10 percent of its admitted assets:
1. Sales of covered call options on noncallable fixed income securities, callable fixed income securities if the option expires by its terms before the end of the noncallable period or derivative instruments based on fixed income securities;
2. Sales of covered call options on equity securities, if the insurer holds in its portfolio, or can immediately acquire through the exercise of options, warrants or conversion rights already owned, the equity securities subject to call during the complete term of the call option sold; or
3. Sales of covered puts on investments that the insurer is allowed to acquire pursuant to this chapter if the insurer has escrowed, or entered into a custodian agreement segregating, cash or cash equivalents with a market value equal to the amount of its purchase obligations under the put during the complete term of the put option sold.
(Added to NRS by 2015, 3462)
2023 Nevada Revised Statutes › Chapter 682A - Investments › NRS 682A.568 - Commissioner may allow additional derivative transactions by regulation; limitations.

In accordance with the regulations adopted pursuant to NRS 682A.388, the Commissioner may approve additional transactions involving the use of derivative instruments in excess of the limits of NRS 682A.562 or for other risk-management purposes, but replication transactions must not be allowed for other than risk-management purposes.
(Added to NRS by 2015, 3463)
2023 Nevada Revised Statutes › Chapter 682A - Investments › NRS 682A.570 - Limited exemption from certain restrictions on investments.

An insurer may acquire investments, or engage in investment practices, in accordance with the provisions of this section and NRS 682A.572, of any kind that are not specifically prohibited by this chapter, or engage in investment practices, without regard to any limitation in NRS 682A.512 to 682A.558, inclusive, but an insurer shall not acquire an investment or engage in an investment practice in accordance with the provisions of this section and NRS 682A.572 if, as a result of and after giving effect to the transaction, the aggregate amount of the investments held by the insurer in accordance with the provisions of this section and NRS 682A.572 would exceed the greater of:
1. Its unrestricted surplus; or
2. The lesser of:
(a) Ten percent of its admitted assets; or
(b) Fifty percent of its surplus as regards policy holders.
(Added to NRS by 2015, 3463)
2023 Nevada Revised Statutes › Chapter 682A - Investments › NRS 682A.572 - Quantitative limitation on exempted investments.

An insurer shall not acquire any investment or engage in any investment practice in accordance with subsection 2 of NRS 682A.570 if, as a result of and after giving effect to the transaction, the aggregate amount of all investments in any one person held by the insurer in accordance with subsection 1 of NRS 682A.570 would exceed 5 percent of its admitted assets.
(Added to NRS by 2015, 3463)
2023 Nevada Revised Statutes › Chapter 682B - Deposits › NRS 682B.010 - Authorized deposits.

The following deposits of insurers when made through the Commissioner must be accepted and held by the Commissioner in trust, subject to the provisions of NRS 682B.010 to 682B.120, inclusive:
1. Deposits required under this Code for authority to transact insurance in this state.
2. Deposits of domestic insurers when made pursuant to the laws of other states, provinces and countries as a requirement for authority to transact insurance in such state, province or country.
3. Deposits in such additional amounts as are permitted to be made under NRS 682B.080.
(Added to NRS by 1971, 1629; A 1985, 609)
2023 Nevada Revised Statutes › Chapter 682B - Deposits › NRS 682B.015 - Additional deposit.

1. In addition to the deposits authorized by NRS 682B.010, the Commissioner may by regulation require as a condition of transacting the business of insurance in this state that a special deposit be maintained in this state by an authorized insurer who is subject to the provisions of chapter 680A of NRS or by an eligible insurer who is subject to the provisions of chapter 685A of NRS.
2. A deposit pursuant to this section:
(a) Must be held for the sole benefit and protection of policyholders residing in this state and any risk that is resident, located or to be performed in this state that is the subject of insurance; and
(b) Is subject to the provisions of NRS 682B.030 to 682B.120, inclusive.
(Added to NRS by 1993, 2386)
2023 Nevada Revised Statutes › Chapter 682B - Deposits › NRS 682B.020 - Purpose of deposit.

1. Deposits made in this state under NRS 680A.140 and 680A.330 (retaliatory provision) shall be held in trust for the respective purposes stated in those sections.
2. A deposit made in this state by a domestic insurer transacting insurance in another state, province or country, and as required by the laws of such other state, province or country, shall be held for the protection of all the insurer’s policyholders or all its policyholders and creditors or for such other purpose or purposes as may be specified pursuant to such laws.
3. Deposits required under NRS 680A.330 (retaliatory provision) shall be held for such purposes as are required by such section, and as specified by the Commissioner’s order requiring such deposit to be made.
(Added to NRS by 1971, 1629)
2023 Nevada Revised Statutes › Chapter 682B - Deposits › NRS 682B.030 - Securities eligible for deposit.

1. All such deposits required under NRS 680A.140 for authority to transact insurance in this state shall consist of good interest-bearing or dividend-paying securities of kinds eligible for investment of the funds of domestic insurers under NRS chapter 682A (investments).
2. All other deposits of a domestic insurer held in this state pursuant to the laws of another state, province or country shall be comprised of securities of the kinds described in subsection 1, and of such additional kind or kinds of securities required or permitted by the laws of such state, province or country.
3. Deposits of foreign insurers made in this state under NRS 680A.330 (retaliatory provision) shall consist of such assets as are required by the Commissioner pursuant to such law.
4. Evidences of indebtedness secured by real property shall be eligible for deposit only if the real property securing such indebtedness is situated within the State of Nevada. The evidence of indebtedness so deposited shall be accompanied by a certificate from a duly authorized title insurer doing business in the county in which the real property is situated, showing that the indebtedness is a first lien against such real property, other than for real property taxes.
(Added to NRS by 1971, 1629)
2023 Nevada Revised Statutes › Chapter 682B - Deposits › NRS 682B.040 - Deposits through Commissioner required; exceptions; Account for the Division of Insurance; responsibilities of State.

1. Except as otherwise provided in NRS 682B.050 and 682B.055, deposits made in this state pursuant to this Code must be made through the Commissioner. The Account for the Division of Insurance is hereby created in the State Agency Fund for Bonds. All money received by the Commissioner must be deposited with the State Treasurer to the credit of the Account. All claims against the Account must be paid as other claims against the State are paid.
2. The State of Nevada is responsible for the safekeeping of all securities or other assets deposited with the State Treasurer through the Commissioner pursuant to this Code, and shall bear the costs of the depository.
(Added to NRS by 1971, 1630; A 1985, 609, 935; 1991, 1625, 1820; 1993, 572, 573, 1914)
2023 Nevada Revised Statutes › Chapter 682B - Deposits › NRS 682B.050 - Custodial arrangements.

1. In lieu of a deposit made as provided in NRS 682B.040, the Commissioner in his or her discretion may, upon written request of the insurer and where of greater convenience to the insurer, permit such deposit to be made with and held by the trust department of an established bank or credit union located in Nevada if both the bank or credit union and the custodial arrangements are approved by the Commissioner.
2. All such custodial arrangements shall comply in substance with the requirements of this Code as to like deposits through the Commissioner, as to amount, purposes, maintenance, replenishment, release and withdrawal, and as to the rights of the insurer therein.
3. The cost of any such custodianship shall be borne by the insurer. The State of Nevada shall have no responsibility for the safekeeping of any such deposit.
4. The Commissioner may at any time, in his or her discretion, terminate any such custodial arrangement and require the deposit represented thereby to be made as otherwise provided for under NRS 682B.010 to 682B.120, inclusive.
(Added to NRS by 1971, 1630; A 1999, 1548)
2023 Nevada Revised Statutes › Chapter 682B - Deposits › NRS 682B.055 - Use of securities as deposit without delivery to Commissioner.

The Commissioner:
1. May allow an insurer to use securities as a deposit or as a part of a deposit without delivering the securities to the Commissioner under the conditions specified in regulations adopted pursuant to subsection 1 of NRS 680A.140.
2. Shall allow any successor organization to the State Industrial Insurance System that was established by section 79 of chapter 642, Statutes of Nevada 1981, at page 1449, to use the money held in trust by the organization pursuant to NRS 616B.042 as a deposit or as a part of a deposit for authority to transact industrial insurance without delivering that money to the Commissioner.
(Added to NRS by 1985, 609; A 1999, 1832)
2023 Nevada Revised Statutes › Chapter 682B - Deposits › NRS 682B.060 - Assignment, transfer and conveyance of assets; release.

1. Except as provided in NRS 682B.055, an insurer shall assign to the Commissioner and the successors in office of the Commissioner in trust all securities being deposited with or through the Commissioner under NRS 682B.010 to 682B.120, inclusive, which are not negotiable by delivery. In lieu of such an assignment, the insurer may give the Commissioner an irrevocable power of attorney authorizing the Commissioner to transfer the securities or any part thereof for any purpose within the scope of NRS 682B.010 to 682B.120, inclusive.
2. In the case of securities or assets held under custodial arrangements pursuant to NRS 682B.050, the custodian’s receipt therefor must be delivered to the Commissioner in trust, if negotiable, or assigned to the Commissioner so that legal title to such securities or assets is vested in the Commissioner and the successors in office of the Commissioner.
3. The insurer shall convey to the Commissioner and the successors in office of the Commissioner in trust any real property being deposited under this Code.
4. Upon release to the insurer, or other person entitled thereto, of any security or asset, the Commissioner shall reassign or transfer or reconvey it to the insurer or person. In the case of power of attorney given pursuant to subsection 1, the Commissioner shall deliver the power of attorney, together with the securities covered thereby, to the insurer or person entitled thereto.
(Added to NRS by 1971, 1631; A 1985, 609)
2023 Nevada Revised Statutes › Chapter 682B - Deposits › NRS 682B.070 - Appraisal.

The Commissioner may, in his or her discretion, prior to acceptance for deposit of any particular asset or security, or at any time thereafter while so deposited, have the same appraised or valued by competent appraisers. The reasonable costs of any such appraisal or valuation shall be borne by the insurer.
(Added to NRS by 1971, 1631)