NRS 682A.382 Loans to officers and directors prohibited.

279 words·~1 min read·/nv/chapter-682a-investments/682a-382

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

1. Except as otherwise provided in NRS 682A.384 , an insurer shall not, without the prior written approval of the Commissioner, directly or indirectly:

(a)Make a loan to, or another investment in, an officer or director of the insurer, or a person in which the officer or director has any direct or indirect financial interest;

(b)Make a guarantee for the benefit of, or in favor of, an officer or director of the insurer, or a person in which the officer or director has any direct or indirect financial interest; or

(c)Enter into an agreement for the purchase or sale of property from or to an officer or director of the insurer, or a person in which the officer or director has any direct or indirect financial interest.

2. For the purposes of this section, an officer or director shall not be deemed to have a financial interest by reason of an interest that is held directly or indirectly through the ownership of equity interests representing less than 2 percent of all outstanding equity interests issued by a person that is a party to the transaction, or solely by reason of that individual’s position as a director or officer of a person that is a party to the transaction.

3. This section does not allow an investment that is prohibited by NRS 682A.380 .

4. This section does not apply to a transaction between an insurer and any of its subsidiaries or affiliates that is entered into in compliance with the provisions of chapter 692C of NRS, other than a transaction between an insurer and its officer or director.