682A.110 - Common stocks. - Nevada Statutes

682A.110  Common stocks.

      1.  An insurer may invest up to 35 percent of its assets in nonassessable common stocks, other than insurance stocks, of any solvent corporation, except that bank or trust company stocks may be assessable and any stocks may be assessable for taxes if the corporation has had net earnings available for dividends on the stock in each of the 5 fiscal years next preceding acquisition by the insurer. If the issuing corporation has not been in legal existence for all of the 5 fiscal years but was formed as a consolidation or merger of two or more businesses of which at least one was in operation on a date 5 years before the investment, the test of eligibility of its common stock under this section must be based upon consolidated pro forma statements of the predecessor or constituent institutions.

      2.  Any amount invested in a fund or trust under NRS 682A.140 must not be included in computing the amounts prescribed in subsection 1.

      (Added to NRS by 1971, 1622; A 2001, 2188; 2003, 3289)