Real property.
1. A domestic insurer may invest in real property only if used for the purposes or acquired in any manner, and within limits, set forth below:
(a) The building in which it has its principal office, the land upon which the building stands, and such other real property as may be requisite for the insurer’s convenient accommodation in the transaction of its business. The amount so invested, and apportioned as to space actually so occupied or used, must not aggregate more than 15 percent of the insurer’s assets; but the Commissioner may authorize an insurer to increase the investment in such amount as he may determine if, upon proper showing made upon a hearing held by him, he finds that the 15-percent limitation is insufficient to provide reasonable and convenient accommodation for the insurer’s business.
(b) Real property acquired in satisfaction or part payment of loans, mortgages, liens, judgments, decrees or debts previously owing to the insurer in the due course of its business.
(c) Real property acquired in part payment of the consideration on the sale of other real property owned by it, if the transaction has effected a net reduction in the insurer’s investments in real property.
(d) Real property acquired by gift or devise, or through merger, consolidation or bulk reinsurance of another insurer under this Code.
(e) Additional real property and equipment incidental thereto, if necessary or convenient for the purpose of enhancing the sale or other value of real property previously acquired or held under this section. The additional real property and equipment, together with the real property for the enhancement of which it was acquired, must be included together, for the purpose of applicable investment limits, and is subject to disposal under NRS 682A.250 at the same time and under the same conditions as apply to the enhanced real property.
(f) Real property, or any interest therein, acquired or held by purchase, lease or otherwise, other than real property to be used primarily for mining, development of oil or mineral resources, recreational, amusement, hotel, motel or club purposes, acquired as an investment for production of income, or acquired to be improved or developed for investment purposes pursuant to an existing program therefor. The insurer may hold, mortgage, improve, develop, maintain, manage, lease, sell, convey and otherwise dispose of real property acquired by it under this section. An insurer may not have at any one time invested in real property under this paragraph more than 20 percent of its admitted assets.
2. Total investments of the insurer in real property under this section may not at any time exceed 35 percent of the insurer’s admitted assets.
Last modified: February 27, 2006