NRS 682A.310 Exemption from requirements for admitted assets.

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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.