NRS682A.050. Diversification.

  An insurer shall only invest in or hold as assets categories of investments within applicable limits as follows:

      1.  One person. An insurer shall not at any one time have any combination of investments in or loans upon the security of obligations, property or securities of any one person (other than its lawful subsidiary) aggregating over 10 percent of the insurer’s assets. This shall not apply as to general obligations of the United States of America or of any state, or of Canada or any province thereof, or of the United States of Mexico, or include policy loans made under NRS 682A.170.

      2.  Voting stock. An insurer shall not invest in or hold at any one time more than 10 percent of the outstanding voting stock of any corporation, except as to voting rights of preferred stock during default of dividends. This subsection does not apply to stock of a subsidiary of the insurer acquired under NRS 682A.130, or to controlling stock of an insurer acquired under NRS 682A.120.

      3.  Minimum capital. An insurer shall invest and maintain invested funds not less in amount that the minimum paid-in capital stock required under this Code of a domestic stock insurer transacting like kinds of insurance, only in cash and the securities provided for under the following sections: NRS 682A.060 (public obligations), NRS 682A.070 (obligations, stock of certain federal and international agencies), NRS 682A.080 (corporate obligations), NRS 682A.160 (equipment trust certificates).

      4.  Revenue bonds of public utilities. An insurer shall not have invested at any one time more than 25 percent of its assets in revenue bonds of public utilities described in NRS 682A.080.

      5.  Corporate obligations. An insurer shall not have invested at any one time more than 20 percent of its assets in other corporate obligations described in NRS 682A.080.

      6.  Equipment trust certificates. An insurer shall not have invested at any one time more than 20 percent of its assets in equipment trust certificates described in NRS 682A.160.

      7.  Real property encumbrances. An insurer shall not at any one time have more than 50 percent of its assets invested in obligations secured by real property mortgages, trust deeds, contracts of purchase or other similar encumbrances of real property.

      8.  Other specific limits. Limits as to investments in the category of real property shall be as provided in NRS 682A.240; and other specific limits shall apply as stated in this chapter dealing with other respective kinds of investments.

      (Added to NRS by 1971, 1618)