694C.340 - Investments; loan to parent or affiliated company in certain circumstances. - Nevada Statutes

694C.340  Investments; loan to parent or affiliated company in certain circumstances.

      1.  Except as otherwise provided in this section and NRS 694C.382, an association captive insurer, an agency captive insurer, a rental captive insurer or a sponsored captive insurer shall comply with the requirements relating to investments set forth in chapter 682A of NRS. Upon the request of the association captive insurer, agency captive insurer, rental captive insurer or sponsored captive insurer, the Commissioner may approve the use of reliable, alternative methods of valuation and rating.

      2.  A pure captive insurer is not subject to any restrictions on allowable investments, except that the Commissioner may prohibit or limit any investment that threatens the solvency or liquidity of the pure captive insurer.

      3.  A pure captive insurer may make a loan to its parent or affiliated company if the loan:

      (a) Is first approved in writing by the Commissioner;

      (b) Is evidenced by a note that is in a form that is approved by the Commissioner; and

      (c) Does not include any money that has been set aside as capital or surplus as required by subsection 1 of NRS 694C.250.

      (Added to NRS by 1999, 3214; A 2005, 2156; 2007, 3329)