reglab/statecodes huggingface dataset:
2023 Nevada Revised Statutes › Chapter 682A - Investments › NRS 682A.179 - "Real estate" defined.

1. "Real estate" means:
(a) Real property;
(b) Interests in real property, including, without limitation, leaseholds, minerals and oil and gas that have not been separated from the underlying fee interest;
(c) Improvements and fixtures located on or in real property; and
(d) The seller’s equity in a contract providing for a deed of real estate.
2. As to a mortgage on real estate, the term includes the leasehold estate only if it has an unexpired term, including, without limitation, renewal options exercisable at the option of the lessee, extending beyond the scheduled maturity date of the obligation that is secured by a mortgage on the leasehold estate for the greater of:
(a) A period equal to at least 20 percent of the original term of the obligation; or
(b) Ten years.
(Added to NRS by 2015, 3424)
2023 Nevada Revised Statutes › Chapter 682A - Investments › NRS 682A.183 - "Replication transaction" defined.

"Replication transaction" means a derivative transaction that is intended to replicate the performance of one or more assets which an insurer is authorized to acquire in accordance with the provisions of this chapter. The term does not include a derivative transaction that is entered into as a hedging transaction.
(Added to NRS by 2015, 3424)
2023 Nevada Revised Statutes › Chapter 682A - Investments › NRS 682A.185 - "Repurchase transaction" defined.

"Repurchase transaction" means a transaction in which an insurer purchases securities from a business entity that is obligated to repurchase the purchased securities, or equivalent securities, from the insurer at a specified price, either within a specified period of time or upon demand.
(Added to NRS by 2015, 3424)
2023 Nevada Revised Statutes › Chapter 682A - Investments › NRS 682A.193 - "Reverse repurchase transaction" defined.

"Reverse repurchase transaction" means a transaction in which an insurer sells securities to a business entity and is obligated to repurchase the sold securities, or equivalent securities, from the business entity at a specified price, either within a specified period of time or on demand.
(Added to NRS by 2015, 3424)
2023 Nevada Revised Statutes › Chapter 682A - Investments › NRS 682A.197 - "Securities lending transaction" defined.

"Securities lending transaction" means a transaction in which securities are loaned by an insurer to a business entity that is obligated to return the loaned securities, or equivalent securities, to the insurer, either within a specified period of time or upon demand.
(Added to NRS by 2015, 3424)
2023 Nevada Revised Statutes › Chapter 682A - Investments › NRS 682A.203 - "Sinking fund stock" defined.

"Sinking fund stock" means preferred stock that:
1. Is subject to a mandatory sinking fund or similar arrangement that will provide for the redemption or open market purchase of the entire issue over a period not greater than 40 years after the date of acquisition; and
2. Provides for mandatory sinking fund installments or open market purchases commencing not more than 10.5 years after the date of issue, with the sinking fund installments providing for the purchase or redemption, on a cumulative basis commencing 10 years after the date of issue, of at least 2.5 percent per year of the original number of shares of that issue of preferred stock.
(Added to NRS by 2015, 3424)
2023 Nevada Revised Statutes › Chapter 682A - Investments › NRS 682A.209 - "Substantially similar securities" defined.

"Substantially similar securities" means securities that meet all criteria for "substantially similar" specified in the
Accounting Practices and Procedures Manual
adopted by the NAIC, as amended, and in an amount that constitutes good delivery form as determined from time to time by the Public Securities Administration, or its successor organization.
(Added to NRS by 2015, 3425)
2023 Nevada Revised Statutes › Chapter 682A - Investments › NRS 682A.223 - "Warrant" defined.

"Warrant" means an instrument that:
1. Gives the holder the right to purchase an underlying financial instrument at a given price and time or at a series of prices and times outlined in the warrant agreement; and
2. Is issued alone or in connection with the sale of other securities, including, without limitation, as part of a merger or recapitalization agreement, or to facilitate the divestiture of the securities of another business entity.
(Added to NRS by 2015, 3425)
2023 Nevada Revised Statutes › Chapter 682A - Investments › NRS 682A.245 - Qualifications for asset-backed securities.

To qualify as an asset-backed security, a trust or other special purpose bankruptcy-remote business entity must meet the following conditions:
1. The trust or other business entity is established solely for the purpose of acquiring specific types of assets or rights to cash flows, issuing securities and other instruments representing an interest in or right to receive cash flows from those assets or rights, and engaging in activities required to service the assets or rights and any credit enhancement or support features held by the trust or other business entity; and
2. The assets of the trust or other business entity consist solely of interest-bearing obligations or other contractual obligations representing the right to receive payment from the cash flows from the assets or rights. The existence of credit enhancements, including, without limitation, letters of credit or guarantees, or support features, including, without limitation, swap agreements, do not cause a security or other instrument to be ineligible as an asset-backed security.
(Added to NRS by 2015, 3425)
2023 Nevada Revised Statutes › Chapter 682A - Investments › NRS 682A.255 - Presumptive control.

1. Control, as defined in NRS 682A.047, shall be deemed to exist if a person, directly or indirectly, owns, controls, holds with the power to vote or holds proxies representing 10 percent or more of the voting securities of another person.
2. A presumption of control may be rebutted by a showing that control does not exist in fact.
3. The Commissioner may determine, after furnishing all interested persons notice and an opportunity to be heard and making specific findings of fact to support the determination, that control exists in fact, notwithstanding the absence of a presumption to that effect.
(Added to NRS by 2015, 3426)
2023 Nevada Revised Statutes › Chapter 682A - Investments › NRS 682A.265 - Calculation of counterparty exposure.

1. Except as otherwise provided in this section, the counterparty exposure amount is the net amount of credit risk attributable to an over-the-counter derivative instrument. The amount of credit risk equals:
(a) The market value of the over-the-counter derivative instrument if the liquidation of the derivative instrument would result in a final cash payment to the insurer; or
(b) Zero, if the liquidation of the derivative instrument would not result in a final cash payment to the insurer.
2. If over-the-counter derivative instruments are entered into in accordance with a written master agreement which provides for netting of payments owed by the respective parties, and the domiciliary jurisdiction of the counterparty is either within the United States or, if not within the United States, within a foreign jurisdiction listed in the
Purposes and Procedures Manual
of the SVO as eligible for netting, the net amount of credit risk is the greater of zero or the net sum of:
(a) The market value of the over-the-counter derivative instruments entered into in accordance with the agreement, the liquidation of which would result in a final cash payment to the insurer; and
(b) The market value of the over-the-counter derivative instruments entered into in accordance with the agreement, the liquidation of which would result in a cash payment by the insurer to the business entity.
3. For open transactions, market value must be determined at the end of the most recent quarter of the insurer’s fiscal year and must be reduced by the market value of acceptable collateral held by the insurer or placed in escrow by one or both parties.
(Added to NRS by 2015, 3426)
2023 Nevada Revised Statutes › Chapter 682A - Investments › NRS 682A.275 - Qualifications for equivalent securities.

To qualify as equivalent securities, the securities must be:
1. In a securities lending transaction, securities that are identical to the loaned securities in all features including the amount of the loaned securities, except as to certificate number if held in physical form, but if any different security is exchanged for a loaned security by recapitalization, merger, consolidation or other corporate action, the different security shall be deemed to be the loaned security;
2. In a repurchase transaction, securities that are identical to the purchased securities in all features including the amount of the purchased securities, except as to the certificate number if held in physical form; or
3. In a reverse repurchase transaction, securities that are identical to the sold securities in all features including the amount of the sold securities, except as to the certificate number if held in physical form.
(Added to NRS by 2015, 3426)
2023 Nevada Revised Statutes › Chapter 682A - Investments › NRS 682A.285 - Exception for foreign investments.

1. An investment shall not be deemed a foreign investment if the issuing person, qualified primary credit source or qualified guarantor is a domestic jurisdiction or a person domiciled in a domestic jurisdiction unless:
(a) The issuing person is a shell business entity; and
(b) The investment is not assumed, accepted, guaranteed or insured or otherwise backed by a domestic jurisdiction or a person, that is not a shell business entity, domiciled in a domestic jurisdiction.
2. For the purposes of this section:
(a) "Qualified guarantor" means a guarantor against which an insurer has a direct claim for full and timely payment, evidenced by a contractual right for which an enforcement action can be brought in a domestic jurisdiction.
(b) "Qualified primary credit source" means the credit source to which an insurer looks for payment as to an investment and against which an insurer has a direct claim for full and timely payment, evidenced by a contractual right for which an enforcement action can be brought in a domestic jurisdiction.
(c) "Shell business entity" means a business entity having no economic substance, except as a vehicle for owning interests in assets issued, owned or previously owned by a person domiciled in a foreign jurisdiction.
(Added to NRS by 2015, 3427)
2023 Nevada Revised Statutes › Chapter 682A - Investments › NRS 682A.300 - Investments and investment practices required to conform with this chapter.

Insurers may acquire, hold or invest in investments or engage in investment practices as set forth in this chapter. Investments not conforming to the provisions of this chapter are not admitted assets.
(Added to NRS by 1971, 1617; A 1999, 1832; 2015, 3463)
2023 Nevada Revised Statutes › Chapter 682A - Investments › NRS 682A.305 - Requirements for admitted assets.

Subject to the provisions of NRS 682A.310, an insurer shall not acquire or hold an investment as an admitted asset unless at the time of acquisition the investment is:
1. Eligible for the payment or accrual of interest or a discount, whether in cash or securities, eligible to receive dividends or other distributions or is otherwise income producing; or
2. Acquired in accordance with NRS 682A.418, 682A.422, 682A.434 to 682A.442, inclusive, 682A.446 to 682A.452, inclusive, 682A.528, 682A.532, 682A.544 to 682A.552, inclusive, or 682A.554 and 682A.556 or pursuant to the authority of this title, other than this chapter.
(Added to NRS by 2015, 3428)
2023 Nevada Revised Statutes › Chapter 682A - Investments › NRS 682A.310 - Exemption from requirements for admitted assets.

An insurer may acquire or hold as admitted assets investments that do not otherwise qualify as provided in this chapter if:
1. The insurer has not acquired them for the purpose of circumventing any limitations contained in this chapter;
2. The insurer complies with the provisions of NRS 682A.380 and 682A.386 as to the investments; and
3. The insurer acquires the investments in the following circumstances:
(a) As payment on account of existing indebtedness or in connection with the refinancing, restructuring or workout of existing indebtedness, if taken to protect the insurer’s interest in that investment;
(b) As realization on collateral for an obligation;
(c) In connection with an otherwise qualified investment or investment practice, as interest on, or a dividend or other distribution related to, the investment or investment practice, or in connection with the refinancing of the investment, in each case for no additional or only nominal consideration;
(d) Under a lawful and bona fide agreement of recapitalization or voluntary or involuntary reorganization in connection with an investment held by the insurer; or
(e) Under a bulk reinsurance, merger or consolidation transaction approved by the Commissioner if the assets constitute admissible investments for the ceding, merged or consolidated companies.
(Added to NRS by 2015, 3428)
2023 Nevada Revised Statutes › Chapter 682A - Investments › NRS 682A.315 - Limitation on time for admitted asset acquired by exemption.

1. An investment, or portion of an investment, acquired by an insurer in accordance with NRS 682A.310 becomes a nonadmitted asset 3 years, or 5 years in the case of mortgage loans and real estate, after the date of its acquisition, unless within that period the investment has become a qualified investment in accordance with a provision of this chapter, other than NRS 682A.310, but an investment acquired in accordance with an agreement of bulk reinsurance, merger or consolidation may be qualified for a longer period if so provided in the plan for reinsurance, merger or consolidation as approved by the Commissioner.
2. Upon application by the insurer, and a showing that the nonadmission of an asset held in accordance with NRS 682A.310 would materially injure the interests of the insurer, the Commissioner may extend the period of admissibility for an additional reasonable period of time.
(Added to NRS by 2015, 3429)
2023 Nevada Revised Statutes › Chapter 682A - Investments › NRS 682A.320 - Qualification of investment based on date of acquisition or date of commitment to acquire.

Except as otherwise provided in NRS 682A.325 and 682A.335, an investment shall be deemed to qualify pursuant to this chapter if, on the date the insurer committed to acquire the investment or on the date of its acquisition, it would have qualified pursuant to this chapter. For the purposes of determining limitations contained in this chapter, an insurer shall give appropriate recognition to any commitments to acquire investments.
(Added to NRS by 2015, 3429)
2023 Nevada Revised Statutes › Chapter 682A - Investments › NRS 682A.325 - Applicability of law to admitted assets or certain transactions held or entered on or before July 1, 2015.

1. An investment, held as an admitted asset by an insurer on July 1, 2015, which qualified pursuant to this chapter before July 1, 2015, shall be deemed to remain qualified as an admitted asset pursuant to this chapter.
2. Each specific transaction constituting an investment practice of the type described in this chapter that was lawfully entered into by an insurer, and was in effect on July 1, 2015, must continue to be allowed in accordance with the provisions of this chapter until its expiration or termination in accordance with its terms.
(Added to NRS by 2015, 3429)
2023 Nevada Revised Statutes › Chapter 682A - Investments › NRS 682A.330 - Computation of limitations based on admitted assets.

Unless otherwise specified, an investment limitation computed on the basis of an insurer’s admitted assets or capital and surplus shall relate to the amount required to be shown on the statutory balance sheet of the insurer most recently required to be filed with the Commissioner. For purposes of computing any limitation based on admitted assets, the insurer shall deduct from the amount of its admitted assets the amount of the liability recorded on its statutory balance sheet for:
1. The return of acceptable collateral received in a reverse repurchase transaction or a securities lending transaction;
2. Cash received in a dollar roll transaction; and
3. The amount reported as borrowed money in the most recently filed financial statement to the extent not included in subsections 1 and 2.
(Added to NRS by 2015, 3429)
2023 Nevada Revised Statutes › Chapter 682A - Investments › NRS 682A.335 - Qualification or requalification of admitted asset on or after date of acquisition.

An investment qualified, in whole or in part, for acquisition or holding as an admitted asset may be qualified or requalified at the time of acquisition or a later date, in whole or in part, in accordance with any section of this chapter if the relevant conditions contained in that section are satisfied at the time of qualification or requalification.
(Added to NRS by 2015, 3430)
2023 Nevada Revised Statutes › Chapter 682A - Investments › NRS 682A.345 - Agreements to purchase securities in advance of issuance prohibited.

An insurer shall not enter into an agreement to purchase securities in advance of their issuance for resale to the public as part of a distribution of the securities by the issuer, or otherwise guarantee the distribution, except that an insurer may acquire privately placed securities with registration rights.
(Added to NRS by 2015, 3430)
2023 Nevada Revised Statutes › Chapter 682A - Investments › NRS 682A.350 - Order by Commissioner to alter investment practice.

Notwithstanding the provisions of this chapter, the Commissioner, for good cause, may, in accordance with the provisions of chapter 233B of NRS, order an insurer to nonadmit, limit, dispose of, withdraw from or discontinue an investment or investment practice. The authority of the Commissioner pursuant to this section is in addition to any other authority of the Commissioner.
(Added to NRS by 2015, 3430)
2023 Nevada Revised Statutes › Chapter 682A - Investments › NRS 682A.365 - Adoption by board of written plan for investments.

An insurer’s board of directors shall adopt a written plan for acquiring and holding investments and for engaging in investment practices that specifies guidelines as to the quality, maturity and diversification of investments and other specifications, including, without limitation, investment strategies intended to ensure that the investments and investment practices are appropriate for the business conducted by the insurer, its liquidity needs and its capital and surplus. The board of directors shall review and assess the insurer’s technical investment and administrative capabilities and expertise before adopting a written plan concerning an investment strategy or practice.
(Added to NRS by 2015, 3430)
2023 Nevada Revised Statutes › Chapter 682A - Investments › NRS 682A.367 - Supervision and direction of board; formal resolution of board regarding investments.

Investments acquired and held pursuant to this chapter must be acquired and held under the supervision and direction of the board of directors of the insurer. The board of directors shall evidence by formal resolution, at least annually, that it has determined whether all investments have been made in accordance with delegations, standards, limitations and investment objectives prescribed by the board or a committee of the board charged with the responsibility to direct the insurer’s investments.
(Added to NRS by 2015, 3430)
2023 Nevada Revised Statutes › Chapter 682A - Investments › NRS 682A.369 - Quarterly review of investments and written plan for investments.

On no less than a quarterly basis, and more often if deemed appropriate, an insurer’s board of directors or a committee of the board shall:
1. Receive and review a summary report on the insurer’s investment portfolio, its investment activities and practices engaged in pursuant to delegated authority, in order to determine whether the investment activity or practice of the insurer is consistent with its written plan; and
2. Review and revise, as appropriate, the written plan.
(Added to NRS by 2015, 3430)
2023 Nevada Revised Statutes › Chapter 682A - Investments › NRS 682A.371 - Availability of documentation to board.

In discharging its duties pursuant to NRS 682A.365 to 682A.375, inclusive, the board of directors shall require that the records of any authorizations or approvals, other documentation as the board may require and reports of any action taken pursuant to authority delegated in accordance with the written plan referred to in NRS 682A.365 be made available on a regular basis to the board of directors.
(Added to NRS by 2015, 3431)
2023 Nevada Revised Statutes › Chapter 682A - Investments › NRS 682A.373 - Standard of care.

In discharging its duties pursuant to NRS 682A.365 to 682A.375, inclusive, the board of directors of an insurer shall perform its duties in good faith and with that degree of care that ordinarily prudent individuals in like positions would use under similar circumstances.
(Added to NRS by 2015, 3431)
2023 Nevada Revised Statutes › Chapter 682A - Investments › NRS 682A.375 - "Board of directors" refers to any equivalent governing body.

If an insurer does not have a board of directors, all references to the board of directors in this chapter shall be deemed to be references to the governing body of the insurer having authority equivalent to that of a board of directors.
(Added to NRS by 2015, 3431)
2023 Nevada Revised Statutes › Chapter 682A - Investments › NRS 682A.380 - Prohibited investments.

1. An insurer shall not, directly or indirectly:
(a) Invest in an obligation or security, or make a guarantee for the benefit of or in favor of an officer or director of the insurer, except as provided in NRS 682A.382 and 682A.384;
(b) Invest in an obligation or security, make a guarantee for the benefits of or in favor of, or make other investments in a business entity of which 10 percent or more of the voting securities or equity interests are owned directly or indirectly by, or for the benefit of, one or more officers or directors of the insurer, except as authorized in chapter 692C of NRS or provided in NRS 682A.382 and 682A.384;
(c) Engage on its own behalf, or through one or more affiliates, in a transaction or series of transactions designed to evade the prohibitions of this chapter;
(d) Invest in a partnership as a general partner, except that an insurer may make an investment as a general partner:
(1) If all other partners are subsidiaries of the insurer;
(2) For the purpose of:
(I) Meeting cash calls committed to before July 1, 2015;
(II) Completing those specific projects or activities of the partnership in which the insurer was a general partner on July 1, 2015, that had been undertaken as of that date; or
(III) Making capital improvements to property owned by the partnership on July 1, 2015, if the insurer was a general partner as of that date; or
(3) Pursuant to NRS 682A.310; or
(e) Invest in or lend its funds upon the security of shares of its own stock, except that an insurer may acquire shares of its own stock for the following purposes:
(1) Conversion of a stock insurer into a mutual or reciprocal insurer or a mutual or reciprocal insurer into a stock insurer;
(2) Issuance to the insurer’s officers, employees or agents in connection with a plan approved by the Commissioner for converting a publicly held insurer into a privately held insurer pursuant to NRS 693A.400 to 693A.540, inclusive, or in connection with other stock option and employee benefit plans; or
(3) In accordance with any other plan approved by the Commissioner.
2. Nothing contained in paragraph (d) of subsection 1 shall be construed to prohibit a subsidiary or other affiliate of the insurer from becoming a general partner.
3. Any investment or loan made by an insurer in accordance with the provisions of paragraph (e) of subsection 1 must not be an admitted asset of the insurer.
(Added to NRS by 2015, 3431)
2023 Nevada Revised Statutes › Chapter 682A - Investments › NRS 682A.382 - Loans to officers and directors prohibited.

1. Except as otherwise provided in NRS 682A.384, an insurer shall not, without the prior written approval of the Commissioner, directly or indirectly:
(a) Make a loan to, or another investment in, an officer or director of the insurer, or a person in which the officer or director has any direct or indirect financial interest;
(b) Make a guarantee for the benefit of, or in favor of, an officer or director of the insurer, or a person in which the officer or director has any direct or indirect financial interest; or
(c) Enter into an agreement for the purchase or sale of property from or to an officer or director of the insurer, or a person in which the officer or director has any direct or indirect financial interest.
2. For the purposes of this section, an officer or director shall not be deemed to have a financial interest by reason of an interest that is held directly or indirectly through the ownership of equity interests representing less than 2 percent of all outstanding equity interests issued by a person that is a party to the transaction, or solely by reason of that individual’s position as a director or officer of a person that is a party to the transaction.
3. This section does not allow an investment that is prohibited by NRS 682A.380.
4. This section does not apply to a transaction between an insurer and any of its subsidiaries or affiliates that is entered into in compliance with the provisions of chapter 692C of NRS, other than a transaction between an insurer and its officer or director.
(Added to NRS by 2015, 3432)
2023 Nevada Revised Statutes › Chapter 682A - Investments › NRS 682A.384 - Permissible loans.

An insurer may, without the prior written approval of the Commissioner, make:
1. Policy loans in accordance with the terms of the policy or contract and NRS 682A.460;
2. Advances to officers or directors for expenses reasonably expected to be incurred in the ordinary course of the insurer’s business or guarantees associated with credit or charge cards issued, or credit extended, for the purpose of financing these expenses;
3. Loans secured by the principal residence of an existing or new officer of the insurer made in connection with the officer’s relocation at the insurer’s request, if the loans comply with the requirements of NRS 682A.430 to 682A.436, inclusive, or 682A.540 to 682A.546, inclusive, and the terms and conditions otherwise are the same as those generally available from unaffiliated third parties;
4. Secured loans to an existing or new officer of the insurer made in connection with the officer’s relocation at the insurer’s request, if the loans:
(a) Do not have a term exceeding 2 years;
(b) Are required to finance mortgage loans outstanding at the same time on the prior and new residences of the officer;
(c) Do not exceed an amount equal to the equity of the officer in the prior residence; and
(d) Are required to be fully repaid upon the earlier of the end of the 2-year period or the sale of the prior residence; or
5. Loans and advances to officers or directors made in compliance with state or federal law specifically related to the loans and advances by a regulated noninsurance subsidiary or affiliate of the insurer in the ordinary course of business and on terms not more favorable than available to other customers of the entity.
(Added to NRS by 2015, 3432)
2023 Nevada Revised Statutes › Chapter 682A - Investments › NRS 682A.386 - Valuation of investments.

For the purposes of this chapter, the value or amount of an investment acquired or held, or an investment practice engaged in, pursuant to this chapter, unless otherwise specified in this title, is the value at which assets of an insurer are required to be reported for statutory accounting purposes as determined in accordance with procedures prescribed in published accounting and valuation standards of the NAIC, including, without limitation, the
Purposes and Procedures Manual
of the SVO and the
Valuation of Securities Manual
, the
Accounting Practices and Procedures Manual
, the
Annual Statement Instructions
or any successor valuation procedures officially adopted by the NAIC.
(Added to NRS by 2015, 3433)
2023 Nevada Revised Statutes › Chapter 682A - Investments › NRS 682A.402 - 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 3 percent of its admitted assets in investments of all kinds issued, assumed, accepted, insured or guaranteed by a single person, or 5 percent of its admitted assets in investments in the voting securities of a depository institution or any company that controls the institution.
2. The limitations in subsection 1 do 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 limitations 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 3 percent of its admitted assets.
(Added to NRS by 2015, 3433)
2023 Nevada Revised Statutes › Chapter 682A - Investments › NRS 682A.404 - 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.408, 682A.420 to 682A.428, inclusive, or 682A.440 to 682A.448, inclusive, or counterparty exposure in accordance with the provisions of NRS 682A.456 if, as a result of and after giving effect to the investment:
(a) The aggregate amount of 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 3 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;
(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;
(f) 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 secured 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
(g) The aggregate amount of lower grade investments issued, assumed, guaranteed, accepted or insured by any one person or, as to asset-backed securities secured 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.
2. If an insurer attains or exceeds the limit of any one rating category referred to in this section, the insurer is not precluded from acquiring investments in other rating categories subject to the specific and multicategory limits applicable to those investments.
(Added to NRS by 2015, 3433)
2023 Nevada Revised Statutes › Chapter 682A - Investments › NRS 682A.406 - Canadian investments.

1. An insurer shall not acquire, directly or indirectly through an investment subsidiary, a Canadian investment 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 the provisions of paragraph (c) or (d) of subsection 1 of NRS 682A.408 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) An amount not to exceed 115 percent of the amount of its reserves and other obligations under contracts on lives or risks resident or located in Canada.
(Added to NRS by 2015, 3434)
2023 Nevada Revised Statutes › Chapter 682A - Investments › NRS 682A.414 - 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.412 to 682A.418, 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 those sections would exceed 20 percent of the insurer’s admitted assets, or the amount of equity interests held by the insurer that are not listed on a qualified exchange would exceed 5 percent of the insurer’s admitted assets. An accident and health insurer is not subject to the provisions of NRS 682A.412 to 682A.418, inclusive, but is subject to the same aggregate limitation on equity interests as a property and casualty insurer in accordance with the provisions of NRS 682A.502 to 682A.510, inclusive, and 682A.522 to 682A.528, inclusive.
(Added to NRS by 2015, 3438)
2023 Nevada Revised Statutes › Chapter 682A - Investments › NRS 682A.416 - 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.412 to 682A.418, inclusive, any investments that the insurer may acquire in accordance with the provisions of NRS 682A.430 to 682A.436, inclusive.
(Added to NRS by 2015, 3438)
2023 Nevada Revised Statutes › Chapter 682A - Investments › NRS 682A.420 - Tangible personal property under lease or other agreement.

1. Subject to the limitations of NRS 682A.402, 682A.404 and 682A.406, 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.408; 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, 3438)
2023 Nevada Revised Statutes › Chapter 682A - Investments › NRS 682A.422 - Valuation of personal property under lease.

The insurer shall compute the amount of each investment acquired in accordance with the provisions of NRS 682A.420 to 682A.428, 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, 3439)
2023 Nevada Revised Statutes › Chapter 682A - Investments › NRS 682A.424 - 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.420 to 682A.428, 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.420 to 682A.428, 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, 3439)
2023 Nevada Revised Statutes › Chapter 682A - Investments › NRS 682A.426 - 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.402, 682A.404 and 682A.406, investments acquired by an insurer in accordance with the provisions of NRS 682A.420 to 682A.428, inclusive, must be aggregated with those acquired in accordance with the provisions of NRS 682A.408, and each lessee of the property under a lease referred to in NRS 682A.420 to 682A.428, 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.422.
(Added to NRS by 2015, 3439)
2023 Nevada Revised Statutes › Chapter 682A - Investments › NRS 682A.428 - Exempted personal property under lease.

Nothing in NRS 682A.420 to 682A.428, 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, 3439)
2023 Nevada Revised Statutes › Chapter 682A - Investments › NRS 682A.432 - 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 instruments. 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.436.
(Added to NRS by 2015, 3440)
2023 Nevada Revised Statutes › Chapter 682A - Investments › NRS 682A.434 - 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 field 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.432 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.436.
4. For the 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 accident and health insurer for its insureds. An insurer may acquire real estate used for these purposes under NRS 682A.432.
(Added to NRS by 2015, 3441)
2023 Nevada Revised Statutes › Chapter 682A - Investments › NRS 682A.440 - Foreign investments.

Subject to the limitations of NRS 682A.402, 682A.404 and 682A.406, an insurer may acquire foreign investments, or engage in investment practices with persons of or in foreign jurisdictions, of substantially the same type as those that an insurer is allowed to acquire pursuant to this chapter, other than of the type allowed under NRS 682A.410 if, as a result of and after giving effect to the investments:
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 3 percent of its admitted assets as to any other foreign jurisdiction.
(Added to NRS by 2015, 3444)
2023 Nevada Revised Statutes › Chapter 682A - Investments › NRS 682A.442 - Foreign currency exposure.

1. Subject to the limitations of NRS 682A.402, 682A.404 and 682A.406, 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.440, 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 10 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 3 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.450 to 682A.458, inclusive, and the business entity counterparty agrees in 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, 3444)
2023 Nevada Revised Statutes › Chapter 682A - Investments › NRS 682A.444 - 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.440 and 682A.442, 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 a 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.402, 682A.404 and 682A.406. 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.402, 682A.404 and 682A.406 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 the law of the foreign jurisdiction to invest in the foreign jurisdiction; or
2. One hundred fifteen percent of the amount of the insurer’s reserves, net of reinsurance, and other obligations under the contracts on lives or risks resident or located in the foreign jurisdiction.
(Added to NRS by 2015, 3445)
2023 Nevada Revised Statutes › Chapter 682A - Investments › NRS 682A.446 - 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.440 and 682A.442, 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 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.402, 682A.404 and 682A.406. 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.402, 682A.404 and 682A.406 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 lives or risks resident or located in the foreign jurisdiction.
(Added to NRS by 2015, 3445)
2023 Nevada Revised Statutes › Chapter 682A - Investments › NRS 682A.448 - Calculation of foreign investments for purposes of determining compliance with limitations.

Investments acquired in conformance with NRS 682A.440 to 682A.448, 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 by NRS 682A.444 and 682A.446, are subject to the limitations of NRS 682A.402, 682A.404 and 682A.406.
(Added to NRS by 2015, 3445)
2023 Nevada Revised Statutes › Chapter 682A - Investments › NRS 682A.450 - Derivative transactions.

An insurer may, directly or indirectly through an investment subsidiary, engage in derivative transactions as described in NRS 682A.450 to 682A.458, inclusive, pursuant to the following conditions:
1. An insurer may use derivative instruments under NRS 682A.450 to 682A.458, 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 the transactions through cash flow testing or other appropriate analyses.
(Added to NRS by 2015, 3446)