Nevada § 682A.562 Derivative transactions: Limitations on hedging transactions

Nevada Statutes

§ 682A.562 — Derivative transactions: Limitations on hedging transactions

Nevada § 682A.562

Title 57INSURANCE

Ch. 682AInvestments

PROPERTY AND CASUALTY, FINANCIAL GUARANTY AND MORTGAGE GUARANTY INSURERS

This text of Nevada § 682A.562 (Derivative transactions: Limitations on hedging transactions) is published on Counsel Stack Legal Research, covering Nevada primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Nev. Rev. Stat. § 682A.562 (2026).

Text

An insurer may enter into hedging transactions under NRS 682A.560 to 682A.568, inclusive, if, as a result of and after giving effect to the transaction:

1.The aggregate statement value of options, caps, floors and warrants not attached to another financial instrument purchased and used in hedging transactions does not exceed 7.5 percent of its admitted assets;

2.The aggregate statement value of options, caps and floors written in hedging transactions does not exceed 3 percent of its admitted assets; and

3.The aggregate potential exposure of collars, swaps, forwards and futures used in hedging transactions does not exceed 6.5 percent of its admitted assets.

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An insurer may enter into hedging transactions under NRS 682A.560 to 682A.568, inclusive, if, as a result of and after giving effect to the transaction:
1. The aggregate statement value of options, caps, floors and warrants not attached to another financial instrument purchased and used in hedging transactions does not exceed 7.5 percent of its admitted assets;
2. The aggregate statement value of options, caps and floors written in hedging transactions does not exceed 3 percent of its admitted assets; and
3. The aggregate potential exposure of collars, swaps, forwards and futures used in hedging transactions does not exceed 6.5 percent of its admitted assets.