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.

Source: Section 682A.562 — Derivative transactions: Limitations on hedging transactions., https://www.­leg.­state.­nv.­us/NRS/NRS-682A.­html#NRS682ASec562.

682A.500
Applicability. 682A.502
Reserve requirements. 682A.504
Required reserve amount. 682A.506
Required reporting of reserves. 682A.508
Notification to Commissioner of insufficient reserves. 682A.510
Authority of Commissioner to remedy insufficient reserves. 682A.512
Diversification of investments. 682A.514
Medium and lower grade investments. 682A.516
Canadian investments. 682A.518
Rated credit instruments. 682A.520
Insurer investment pools. 682A.522
Acquisition of equity interests generally permissible. 682A.524
Limitation on aggregate amount of investments held in equity interests. 682A.526
Restriction on mortgage or real estate holdings acquired or held as equity interests. 682A.528
Short sale of equity investments. 682A.530
Tangible personal property under lease or other agreement. 682A.532
Valuation of personal property under lease. 682A.534
Limitation on aggregate amount of investments held in personal property under lease. 682A.536
Computation of investments held as personal property under lease for purposes of investment diversification requirements. 682A.538
Exempted personal property under lease. 682A.540
Mortgage loans. 682A.542
Income-producing real estate. 682A.544
Real estate for accommodation of business operations. 682A.546
Limitation on aggregate amount of investments held in mortgage loans and real estate. 682A.548
Securities lending, repurchase, reverse repurchase and dollar roll transactions. 682A.550
Foreign investments. 682A.552
Foreign currency exposure. 682A.554
Additional foreign investment and foreign currency allowance for insurers authorized to do business in foreign jurisdiction and holding foreign contracts. 682A.556
Additional foreign investment and foreign currency allowance for insurers not authorized to do business in foreign jurisdiction but holding foreign contracts. 682A.558
Calculation of foreign investments for purposes of determining compliance with limitations. 682A.560
Derivative transactions. 682A.562
Derivative transactions: Limitations on hedging transactions. 682A.564
Derivative transactions: Limitations on income generation transactions. 682A.566
Derivative transactions: Counterparty exposure. 682A.568
Commissioner may allow additional derivative transactions by regulation 682A.570
Limited exemption from certain restrictions on investments. 682A.572
Quantitative limitation on exempted investments.
Last Updated

Feb. 5, 2021

§ 682A.562’s source at nv​.us