Prohibited investments

1. An insurer shall not, directly or indirectly: (a) Invest in an obligation or security, or make a guarantee for the benefit of or in favor of an officer or director of the insurer, except as provided in NRS 682A.382 and 682A.384; (b) Invest in an obligation or security, make a guarantee for the benefits of or in favor of, or make other investments in a business entity of which 10 percent or more of the voting securities or equity interests are owned directly or indirectly by, or for the benefit of, one or more officers or directors of the insurer, except as authorized in chapter 692C of NRS or provided in NRS 682A.382 and 682A.384; (c) Engage on its own behalf, or through one or more affiliates, in a transaction or series of transactions designed to evade the prohibitions of this chapter; (d) Invest in a partnership as a general partner, except that an insurer may make an investment as a general partner: (1) If all other partners are subsidiaries of the insurer; (2) For the purpose of: (I) Meeting cash calls committed to before July 1, 2015; (II) Completing those specific projects or activities of the partnership in which the insurer was a general partner on July 1, 2015, that had been undertaken as of that date; or (III) Making capital improvements to property owned by the partnership on July 1, 2015, if the insurer was a general partner as of that date; or (3) Pursuant to NRS 682A.310; or (e) Invest in or lend its funds upon the security of shares of its own stock, except that an insurer may acquire shares of its own stock for the following purposes: (1) Conversion of a stock insurer into a mutual or reciprocal insurer or a mutual or reciprocal insurer into a stock insurer; (2) Issuance to the insurer’s officers, employees or agents in connection with a plan approved by the Commissioner for converting a publicly held insurer into a privately held insurer pursuant to NRS 693A.400 to 693A.540, inclusive, or in connection with other stock option and employee benefit plans; or (3) In accordance with any other plan approved by the Commissioner. 2. Nothing contained in paragraph (d) of subsection 1 shall be construed to prohibit a subsidiary or other affiliate of the insurer from becoming a general partner. 3. Any investment or loan made by an insurer in accordance with the provisions of paragraph (e) of subsection 1 must not be an admitted asset of the insurer.