NRS 682A.408
Rated credit instruments.


1.

Subject to the limitations of NRS 682A.404, but not to the limitations of NRS 682A.402, an insurer may acquire rated credit instruments issued, assumed, guaranteed or insured by:

(a)

The United States;

(b)

A government-sponsored enterprise of the United States, if the instruments of the government-sponsored enterprise are assumed, guaranteed or insured by the United States or are otherwise backed or supported by the full faith and credit of the United States;

(c)

Canada; or

(d)

A government-sponsored enterprise of Canada, if the instruments of the government-sponsored enterprise are assumed, guaranteed or insured by Canada or are otherwise backed or supported by the full faith and credit of Canada.

2.

An insurer shall not acquire an instrument in accordance with paragraph (c) or (d) of subsection 1 if, as a result of and after giving effect to the investment, the aggregate amount of investments held by the insurer in accordance with paragraph (c) or (d) of subsection 1 would exceed 40 percent of its admitted assets.

3.

Subject to the limitations of NRS 682A.404, but not to the limitations of NRS 682A.402, an insurer may acquire credit rated instruments, excluding asset-backed securities:

(a)

Issued by a government money market mutual fund, a class one money market mutual fund or a class one bond mutual fund;

(b)

Issued, assumed, guaranteed or insured by a government-sponsored enterprise of the United States other than those eligible under subsection 1;

(c)

Issued, assumed, guaranteed or insured by a state, if the instruments are general obligations of the state; or

(d)

Issued by a multilateral development bank.

4.

An insurer shall not acquire an instrument of any one fund, any one enterprise or entity or any one state as described in subsection 3 if, as a result of and after giving effect to the investment, the aggregate amount of investments held in any one fund, enterprise or entity, or state would exceed 10 percent of the insurer’s admitted assets.

5.

Subject to the limitations of NRS 682A.402, 682A.404 and 682A.406, an insurer may acquire preferred stocks that are not foreign investments and which meet the requirements of rated credit instruments if, as a result of and after giving effect to the investment:

(a)

The aggregate amount of preferred stocks held by the insurer in accordance with this section does not exceed 20 percent of the insurer’s admitted assets; and

(b)

The aggregate amount of preferred stocks held by the insurer in accordance with this section which are not sinking fund stocks or rated P1 or P2 by the SVO does not exceed 10 percent of the insurer’s admitted assets.

6.

Subject to the limitations of NRS 682A.402, 682A.404 and 682A.406, in addition to those investments eligible pursuant to subsections 1 to 5, inclusive, an insurer may acquire rated credit instruments that are not foreign investments.

7.

An insurer shall not acquire special rated credit instruments as described in this section if, as a result of and after giving effect to the investment, the aggregate amount of special rated credit instruments held by the insurer would exceed 5 percent of the insurer’s admitted assets.

Source: Section 682A.408 — Rated credit instruments., https://www.­leg.­state.­nv.­us/NRS/NRS-682A.­html#NRS682ASec408.

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

Jun. 24, 2021

§ 682A.408’s source at nv​.us