Nevada Administrative Code › Chapter 681A - Kinds of Insurance; Reinsurance › REINSURANCE TRANSACTIONS › Section 681A.325 - Reinsurance agreement entered into in conjunction with trust agreement and establishment of trust account: Stipulation of value and types of assets deposited in trust account

Current through June 11, 2024
1. A reinsurance
			 agreement entered into in conjunction with a trust agreement and the
			 establishment of a trust account may stipulate that assets deposited in the
			 trust account must be valued according to their current fair market value and
			 must consist only of:
(a) Cash in United
			 States legal tender.
(b)
			 Certificates of deposit issued by a United States bank and payable in United
			 States legal tender.
(c)
			 Investments of the types permitted by chapter 681B of NRS, if the investments
			 are issued by an institution that is not the parent, subsidiary or affiliate of
			 either the grantor or the beneficiary.
(d) Obligations that are issued in the United
			 States, and obligations issued in a market outside the United States that are
			 dollar denominated, by a solvent institution located in the United States other
			 than an insurance company, or which are assumed or guaranteed by a solvent
			 institution located in the United States other than an insurance company and
			 which are not in default as to principal or interest, if the obligations:
(1) Are rated "A" or higher, or its
			 equivalent, by a securities rating agency recognized by the Securities
			 Valuation Office, or if not so rated, are similar in structure and other
			 material respects to other obligations of the same institution so
			 rated;
(2) Are insured by at least
			 one authorized insurer, other than the investing insurer or a parent,
			 subsidiary or affiliate of the investing insurer, that is licensed to insure
			 obligations in this State and, after considering the insurance, are rated "AAA"
			 or its equivalent by a securities rating agency recognized by the Securities
			 Valuation Office; or
(3) Have been
			 designated as Class One or Class Two by the Securities Valuation
			 Office.
(e) The
			 following equity interests:
(1) Investments in
			 common shares or interests in a partnership of a solvent institution located in
			 the United States if:
(I) The obligations and
			 preferred shares, if any, of the solvent institution are eligible as
			 investments pursuant to this section; and
(II) For solvent institutions that are not
			 insurance companies, the equity interests of the solvent institution are
			 registered on a national securities exchange as provided in the Securities
			 Exchange Act of 1934,
			 15
			 U.S.C. §§
												78a to
			 78kk,
			 or otherwise registered pursuant to that Act, and if otherwise registered,
			 price quotations for the equity interests are furnished through a nationwide
			 automated quotations system approved by the Financial Industry Regulatory
			 Authority, or its successor organization. A trust shall not invest in equity
			 interests pursuant to this sub-subparagraph in an amount exceeding 1 percent of
			 the assets of the trust, even though the equity interests are not so registered
			 and are not issued by an insurance company.
(2) Investments in common shares of a solvent
			 institution organized under the laws of a country that is a member of the
			 Organization for Economic Cooperation and Development, if:
(I) All the obligations of the solvent
			 institution are rated "A" or higher, or its equivalent, by a rating agency
			 recognized by the Securities Valuation Office; and
(II) The equity interests of the solvent
			 institution are registered on a securities exchange regulated by the government
			 of a country that is a member of the Organization for Economic Cooperation and
			 Development.
(f) Obligations issued, assumed or guaranteed
			 by a multinational development bank if the obligations are rated "A" or higher,
			 or its equivalent, by a rating agency recognized by the Securities Valuation
			 Office.
(g) Securities of an
			 investment company that is registered pursuant to the Investment Company Act of
			 1940,
			 15 U.S.C. §§
										80a-1 et seq., if the investment company:
(1) Invests at least 90 percent of its assets
			 in the types of securities that qualify as an investment under paragraph (d) or
			 subparagraph (2) of paragraph (e) or
			 NRS
			 682A.069, or if the investment company
			 invests in securities that are determined by the Commissioner to be
			 substantively similar to the types of securities set forth in those provisions;
			 or
(2) Invests at least 90 percent
			 of its assets in the types of equity interests that qualify as an investment
			 under subparagraph (1) of paragraph (e).
(h) Other types of investments specified by
			 the reinsurance agreement.