682A.080 - Corporate obligations.
682A.080 Corporate obligations.
1. An insurer may invest any of its funds in obligations other than those eligible for investment under NRS 682A.230, relating to real property mortgages, if they are issued, assumed or guaranteed by any solvent institution and are qualified under any of the following:
(a) Obligations which are secured by adequate collateral security and bear fixed interest if, during each of any 3, including the last 2, of the 5 fiscal years next preceding the date of acquisition by the insurer, the net earnings of the issuing, assuming or guaranteeing institution available for its fixed charges, as defined in NRS 682A.090, have been not less than 1 1/2 times the total of its fixed charges for that year. In determining the adequacy of collateral security, not more than one-third of the total value of the required collateral may consist of stock other than stock meeting the requirements of NRS 682A.100, relating to preferred or guaranteed stock.
(b) Fixed interest-bearing obligations, other than those described in paragraph (a), if the net earnings of the issuing, assuming or guaranteeing institution available for its fixed charges for a period of 5 fiscal years next preceding the date of acquisition by the insurer have averaged per year not less than 1 1/2 times its average annual fixed charges applicable to that period and if, during the last year of that period, the net earnings have been not less than 1 1/2 times its fixed charges for that year.
(c) Adjustment, income or other contingent interest obligations if the net earnings of the issuing, assuming or guaranteeing institution available for its fixed charges for a period of 5 fiscal years next preceding the date of acquisition by the insurer have averaged per year not less than 1 1/2 times the sum of its average annual fixed charges and its average annual maximum contingent interest applicable to such period and if, during each of the last 2 years of that period, the net earnings have not been less than 1 1/2 times the sum of its fixed charges and maximum contingent interest for such year.
(d) Capital stock and other securities of:
(1) A state development corporation organized under the provisions of chapter 670 of NRS.
(2) A corporation for economic revitalization and diversification organized under the provisions of chapter 670A of NRS, if the insurer is a member of the corporation, and to the extent of its loan limit established under NRS 670A.200.
2. No insurer may invest in any such bonds or evidences of indebtedness in excess of 10 percent of any issue of such bonds or evidences of indebtedness or, subject to subsection 1 of NRS 682A.050, relating to diversification, more than an amount equal to 10 percent of the insurer’s admitted assets in any issue.
(Added to NRS by 1971, 1620; A 1975, 1828; 1983, 1281; 2003, 3288)