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.

Source: Section 682A.404 — Medium and lower grade investments., https://www.­leg.­state.­nv.­us/NRS/NRS-682A.­html#NRS682ASec404.

682A.400
Applicability.
682A.402
Diversification of investments.
682A.404
Medium and lower grade investments.
682A.406
Canadian investments.
682A.408
Rated credit instruments.
682A.410
Insurer investment pools.
682A.412
Acquisition of equity interests generally permissible.
682A.414
Limitation on aggregate amount of investments held in equity interests.
682A.416
Restriction on mortgage or real estate holdings acquired or held as equity interests.
682A.418
Short sale of equity investments.
682A.420
Tangible personal property under lease or other agreement.
682A.422
Valuation of personal property under lease.
682A.424
Limitation on aggregate amount of investments held in personal property under lease.
682A.426
Computation of investments held as personal property under lease for purposes of investment diversification requirements.
682A.428
Exempted personal property under lease.
682A.430
Mortgage loans.
682A.432
Income-producing real estate.
682A.434
Real estate for accommodation of business operations.
682A.436
Limitation on aggregate amount of investments held in mortgage loans and real estate.
682A.438
Securities lending, repurchase, reverse repurchase and dollar roll transactions.
682A.440
Foreign investments.
682A.442
Foreign currency exposure.
682A.444
Additional foreign investment and foreign currency allowance for insurers authorized to do business in foreign jurisdiction and holding foreign contracts.
682A.446
Additional foreign investment and foreign currency allowance for insurers not authorized to do business in foreign jurisdiction but holding foreign contracts.
682A.448
Calculation of foreign investments for purposes of determining compliance with limitations.
682A.450
Derivative transactions.
682A.452
Derivative transactions: Limitations on hedging transactions.
682A.454
Derivative transactions: Limitations on income generation transactions.
682A.456
Derivative transactions: Counterparty exposure.
682A.458
Commissioner may allow additional derivative transactions by regulation
682A.460
Policy loans.
682A.462
Limited exemption from quantitative limits on certain investments.
682A.464
Limited exemption from certain restrictions on investments.
682A.466
Additional exemption from certain investment limitations with approval of Commissioner.
682A.468
Prohibitions applied to exempted investments.
Last Updated

Feb. 5, 2021

§ 682A.404’s source at nv​.us