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 contained in this chapter; 2. The insurer complies with the provisions of NRS 682A.380 and 682A.386 as to the investments; and 3. The insurer acquires the investments in the following circumstances: (a) As payment on account of existing indebtedness or in connection with the refinancing, restructuring or workout of existing indebtedness, if taken to protect the insurer’s interest in that investment; (b) As realization on collateral for an obligation; (c) In connection with an otherwise qualified investment or investment practice, as interest on, or a dividend or other distribution related to, the investment or investment practice, or in connection with the refinancing of the investment, in each case for no additional or only nominal consideration; (d) Under a lawful and bona fide agreement of recapitalization or voluntary or involuntary reorganization in connection with an investment held by the insurer; or (e) Under a bulk reinsurance, merger or consolidation transaction approved by the Commissioner if the assets constitute admissible investments for the ceding, merged or consolidated companies.