NRS682A.280. Prohibited investments and underwriting.

      1.  In addition to investments excluded pursuant to other provisions of this Code, an insurer shall not acquire, invest in or lend its funds upon the security of:

      (a) Issued shares of its own capital stock, except as otherwise provided in NRS 693A.170 (purchase of own shares by stock insurer). No such shares shall be considered as an asset of the insurer in any determination of its financial condition.

      (b) Securities issued by any corporation or enterprise the controlling interest of which is, or will after such acquisition by the insurer be, held directly or indirectly by the insurer or any combination of the insurer and the insurer’s directors, officers, subsidiaries or controlling stockholders, other than a parent corporation, and the spouses and children of any of the foregoing individuals. Investments in controlled insurance corporations or subsidiaries under NRS 682A.120 and 682A.130 are not subject to the provisions of this section.

      (c) Any note or other evidence of indebtedness of any director, officer, employee or controlling stockholder of the insurer, or of the spouse or child of any of the foregoing individuals, except as to:

             (1) Policy loans authorized under NRS 682A.170; or

             (2) Loans on the same terms and conditions as any other borrower which have been approved by a majority vote of the board of directors of the insurer and which conform to the standards set forth in NRS 682A.230.

      (d) Any real property in which any officer or director of the insurer has a financial interest.

      2.  No insurer shall underwrite or participate in the underwriting of an offering of securities or property of any other person. This section shall not be deemed to prohibit the insurer from being a subsidiary which is the principal underwriter of a registered investment company (mutual fund).

      3.  No insurer shall enter into any agreement to withhold from sale any of its securities or property, and the disposition of its assets shall at all times be within the control of the insurer.

      (Added to NRS by 1971, 1628; A 2007, 3317)