Nevada Revised Statutes 682A.452 – Derivative transactions: Limitations on hedging transactions
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An insurer may enter into hedging transactions under NRS 682A.450 to 682A.458, inclusive, if, as a result of and after giving effect to the transaction:
Terms Used In Nevada Revised Statutes 682A.452
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
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.