NRS 682A.404 Medium and lower grade investments.

340 words·~2 min read·/nv/chapter-682a-investments/682a-404

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

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.