Rated credit instruments

1. Subject to the limitations of NRS 682A.404, but not to the limitations of NRS 682A.402, an insurer may acquire rated credit instruments issued, assumed, guaranteed or insured by: (a) The United States; (b) A government-sponsored enterprise of the United States, if the instruments of the government-sponsored enterprise are assumed, guaranteed or insured by the United States or are otherwise backed or supported by the full faith and credit of the United States; (c) Canada; or (d) A government-sponsored enterprise of Canada, if the instruments of the government-sponsored enterprise are assumed, guaranteed or insured by Canada or are otherwise backed or supported by the full faith and credit of Canada. 2. An insurer shall not acquire an instrument in accordance with paragraph (c) or (d) of subsection 1 if, as a result of and after giving effect to the investment, the aggregate amount of investments held by the insurer in accordance with paragraph (c) or (d) of subsection 1 would exceed 40 percent of its admitted assets. 3. Subject to the limitations of NRS 682A.404, but not to the limitations of NRS 682A.402, an insurer may acquire credit rated instruments, excluding asset-backed securities: (a) Issued by a government money market mutual fund, a class one money market mutual fund or a class one bond mutual fund; (b) Issued, assumed, guaranteed or insured by a government-sponsored enterprise of the United States other than those eligible under subsection 1; (c) Issued, assumed, guaranteed or insured by a state, if the instruments are general obligations of the state; or (d) Issued by a multilateral development bank. 4. An insurer shall not acquire an instrument of any one fund, any one enterprise or entity or any one state as described in subsection 3 if, as a result of and after giving effect to the investment, the aggregate amount of investments held in any one fund, enterprise or entity, or state would exceed 10 percent of the insurer’s admitted assets. 5. Subject to the limitations of NRS 682A.402, 682A.404 and 682A.406, an insurer may acquire preferred stocks that are not foreign investments and which meet the requirements of rated credit instruments if, as a result of and after giving effect to the investment: (a) The aggregate amount of preferred stocks held by the insurer in accordance with this section does not exceed 20 percent of the insurer’s admitted assets; and (b) The aggregate amount of preferred stocks held by the insurer in accordance with this section which are not sinking fund stocks or rated P1 or P2 by the SVO does not exceed 10 percent of the insurer’s admitted assets. 6. Subject to the limitations of NRS 682A.402, 682A.404 and 682A.406, in addition to those investments eligible pursuant to subsections 1 to 5, inclusive, an insurer may acquire rated credit instruments that are not foreign investments. 7. An insurer shall not acquire special rated credit instruments as described in this section if, as a result of and after giving effect to the investment, the aggregate amount of special rated credit instruments held by the insurer would exceed 5 percent of the insurer’s admitted assets.