Title 57

NRS 682A.139 “Mortgage loan” defined. “Mortgage loan” means an obligation secured by a mortgage, deed of trust, trust deed or other consensual lien on real estate. (Added to NRS by 2015, 3421)

NRS 682A.143 “Multilateral development bank” defined. “Multilateral development bank” means an international development organization of which the United States is a member. (Added to NRS by 2015, 3421)

NRS 682A.145 “Mutual fund” defined. “Mutual fund” means an investment company or, in the case of an investment company that is organized as a series company, an investment company series, that, in either case, is registered with the United States Securities and Exchange Commissio…

NRS 682A.147 “NAIC” defined. “NAIC” means the National Association of Insurance Commissioners, or its successor organization. (Added to NRS by 2015, 3422)

NRS 682A.149 “Obligation” defined. “Obligation” means evidence of indebtedness for the payment of money or other consideration, whether constituting a general obligation of the issuer or payable only out of certain revenues or certain funds pledged or otherwise dedicated for paym…

NRS 682A.153 “Option” defined. “Option” means an agreement giving the buyer the right to buy or receive, sell or deliver, enter into, extend or terminate, or effect a cash settlement based on the actual or expected price, level, performance or value of one or more underlying inte…

NRS 682A.155 “Over-the-counter derivative instrument” defined. “Over-the-counter derivative instrument” means a derivative instrument entered into with a business entity other than through a qualified exchange or qualified foreign exchange, or cleared through a qualified clearing…

NRS 682A.157 “Person” defined. “Person” means an individual, a business entity, a multilateral development bank or a government or quasi-governmental body, including, without limitation, a political subdivision or a government sponsored enterprise. (Added to NRS by 2015, 3422)

NRS 682A.159 “Potential exposure” defined. “Potential exposure” means the amount determined in accordance with the Annual Statement Instructions for the type of insurer to be reported on as adopted by the NAIC. (Added to NRS by 2015, 3422)

NRS 682A.163 “Preferred stock” defined. “Preferred stock” means the stock of a business entity authorized to issue the stock and that has a preference in liquidation over the common stock of the business entity. (Added to NRS by 2015, 3422)

NRS 682A.165 “Qualified bank” defined. “Qualified bank” means: 1. A national bank, state bank or trust company that at all times is not less than adequately capitalized as determined by the standards adopted by United States banking regulators and that is either regulated by stat…

NRS 682A.167 “Qualified business entity” defined. “Qualified business entity” means a business entity that is: 1. An issuer of obligations or preferred stock that is rated 1 or 2 by the SVO or an issuer of obligations, preferred stock or derivative instruments that are rated the …

NRS 682A.169 “Qualified clearinghouse” defined. “Qualified clearinghouse” means a clearinghouse for, and subject to the rules of, a qualified exchange or qualified foreign exchange, which provides clearing services, including acting as a counterparty to each of the parties to a t…

NRS 682A.173 “Qualified exchange” defined. “Qualified exchange” means: 1. A securities exchange registered as a national securities exchange or a securities market regulated in accordance with the Securities Exchange Act of 1934, 15 U.S.C. §§ 78a et seq., as amended; 2. A board o…

NRS 682A.175 “Qualified foreign exchange” defined. “Qualified foreign exchange” means a foreign exchange, board of trade or contract market located outside the United States, its territories or possessions: 1. That has received regulatory comparability relief in accordance with C…

NRS 682A.177 “Rated credit instrument” defined. 1. “Rated credit instrument” means a contractual right to receive cash or another rated credit instrument from another entity which instrument: (a) Is rated or required to be rated by the SVO; (b) In the case of an instrument with a…

NRS 682A.179 “Real estate” defined. 1. “Real estate” means: (a) Real property; (b) Interests in real property, including, without limitation, leaseholds, minerals and oil and gas that have not been separated from the underlying fee interest; (c) Improvements and fixtures located …

NRS 682A.183 “Replication transaction” defined. “Replication transaction” means a derivative transaction that is intended to replicate the performance of one or more assets which an insurer is authorized to acquire in accordance with the provisions of this chapter. The term does …

NRS 682A.185 “Repurchase transaction” defined. “Repurchase transaction” means a transaction in which an insurer purchases securities from a business entity that is obligated to repurchase the purchased securities, or equivalent securities, from the insurer at a specified price, e…

NRS 682A.187 “Required liabilities” defined. “Required liabilities” means the total liabilities required to be reported on the statutory financial statement of the insurer most recently required to be filed with the Commissioner. (Added to NRS by 2015, 3424)

NRS 682A.189 “Residential mortgage loan” defined. “Residential mortgage loan” means a mortgage loan primarily secured by real estate which is improved with at least one but not more than four residential dwelling units. (Added to NRS by 2015, 3424)

NRS 682A.193 “Reverse repurchase transaction” defined. “Reverse repurchase transaction” means a transaction in which an insurer sells securities to a business entity and is obligated to repurchase the sold securities, or equivalent securities, from the business entity at a specif…

NRS 682A.195 “Secured location” defined. “Secured location” means the contiguous real estate owned by one person. (Added to NRS by 2015, 3424)

NRS 682A.197 “Securities lending transaction” defined. “Securities lending transaction” means a transaction in which securities are loaned by an insurer to a business entity that is obligated to return the loaned securities, or equivalent securities, to the insurer, either within…

NRS 682A.199 “Series company” defined. “Series company” means an investment company that is organized as a series company, as defined in 17 C.F.R. § 270.18f-2. (Added to NRS by 2015, 3424)

NRS 682A.203 “Sinking fund stock” defined. “Sinking fund stock” means preferred stock that: 1. Is subject to a mandatory sinking fund or similar arrangement that will provide for the redemption or open market purchase of the entire issue over a period not greater than 40 years af…

NRS 682A.205 “Special rated credit instrument” defined. “Special rated credit instrument” means a rated credit instrument that meets the requirements of NRS 682A.295. (Added to NRS by 2015, 3425)

NRS 682A.207 “State” defined. “State” means a state, territory or possession of the United States, the District of Columbia or the Commonwealth of Puerto Rico. (Added to NRS by 2015, 3425)

NRS 682A.209 “Substantially similar securities” defined. “Substantially similar securities” means securities that meet all criteria for “substantially similar” specified in the Accounting Practices and Procedures Manual adopted by the NAIC, as amended, and in an amount that const…

NRS 682A.213 “SVO” defined. “SVO” means the Securities Valuation Office of the NAIC, or any successor office established by the NAIC. (Added to NRS by 2015, 3425)

NRS 682A.215 “Swap” defined. “Swap” means an agreement to exchange or to net payments at one or more times based on the actual or expected price, level, performance or value of one or more underlying interests. (Added to NRS by 2015, 3425)

NRS 682A.217 “Underlying interest” defined. “Underlying interest” means the assets, liabilities, other interests or a combination thereof underlying a derivative instrument, including, without limitation, any one or more securities, currencies, rates, indices, commodities or deri…

NRS 682A.219 “Unrestricted surplus” defined. “Unrestricted surplus” means the amount by which total admitted assets exceed 125 percent of the insurer’s required liabilities. (Added to NRS by 2015, 3425)

NRS 682A.223 “Warrant” defined. “Warrant” means an instrument that: 1. Gives the holder the right to purchase an underlying financial instrument at a given price and time or at a series of prices and times outlined in the warrant agreement; and 2. Is issued alone or in connection…

NRS 682A.245 Qualifications for asset-backed securities. To qualify as an asset-backed security, a trust or other special purpose bankruptcy-remote business entity must meet the following conditions: 1. The trust or other business entity is established solely for the purpose of a…

NRS 682A.255 Presumptive control. 1. Control, as defined in NRS 682A.047, shall be deemed to exist if a person, directly or indirectly, owns, controls, holds with the power to vote or holds proxies representing 10 percent or more of the voting securities of another person. 2. A p…

NRS 682A.265 Calculation of counterparty exposure. 1. Except as otherwise provided in this section, the counterparty exposure amount is the net amount of credit risk attributable to an over-the-counter derivative instrument. The amount of credit risk equals: (a) The market value …

NRS 682A.275 Qualifications for equivalent securities. To qualify as equivalent securities, the securities must be: 1. In a securities lending transaction, securities that are identical to the loaned securities in all features including the amount of the loaned securities, except…

NRS 682A.285 Exception for foreign investments. 1. An investment shall not be deemed a foreign investment if the issuing person, qualified primary credit source or qualified guarantor is a domestic jurisdiction or a person domiciled in a domestic jurisdiction unless: (a) The issu…

NRS 682A.295 Qualifications for special rated credit instruments. 1. To qualify as a special rated credit instrument the instrument must be: (a) An instrument that is structured so that, if it is held until retired by or on behalf of the issuer, its rate of return, based on its p…

NRS 682A.300 Investments and investment practices required to conform with this chapter. Insurers may acquire, hold or invest in investments or engage in investment practices as set forth in this chapter. Investments not conforming to the provisions of this chapter are not admitt…

NRS 682A.305 Requirements for admitted assets. Subject to the provisions of NRS 682A.310, an insurer shall not acquire or hold an investment as an admitted asset unless at the time of acquisition the investment is: 1. Eligible for the payment or accrual of interest or a discount,…

NRS 682A.310 Exemption from requirements for admitted assets. An insurer may acquire or hold as admitted assets investments that do not otherwise qualify as provided in this chapter if: 1. The insurer has not acquired them for the purpose of circumventing any limitations containe…

NRS 682A.315 Limitation on time for admitted asset acquired by exemption. 1. An investment, or portion of an investment, acquired by an insurer in accordance with NRS 682A.310 becomes a nonadmitted asset 3 years, or 5 years in the case of mortgage loans and real estate, after the…

NRS 682A.320 Qualification of investment based on date of acquisition or date of commitment to acquire. Except as otherwise provided in NRS 682A.325 and 682A.335, an investment shall be deemed to qualify pursuant to this chapter if, on the date the insurer committed to acquire th…

NRS 682A.325 Applicability of law to admitted assets or certain transactions held or entered on or before July 1, 2015. 1. An investment, held as an admitted asset by an insurer on July 1, 2015, which qualified pursuant to this chapter before July 1, 2015, shall be deemed to rema…