Nevada Revised Statutes 693A.170 – Purchase of own shares by stock insurer
A domestic insurer shall have the right to purchase or acquire shares of its own stock only as follows:
Terms Used In Nevada Revised Statutes 693A.170
- Bequest: Property gifted by will.
- Equitable: Pertaining to civil suits in "equity" rather than in "law." In English legal history, the courts of "law" could order the payment of damages and could afford no other remedy. See damages. A separate court of "equity" could order someone to do something or to cease to do something. See, e.g., injunction. In American jurisprudence, the federal courts have both legal and equitable power, but the distinction is still an important one. For example, a trial by jury is normally available in "law" cases but not in "equity" cases. Source: U.S. Courts
- Gift: A voluntary transfer or conveyance of property without consideration, or for less than full and adequate consideration based on fair market value.
1. For elimination of fractional shares.
2. Incidental to the enforcement of rights of the insurer with respect to lawful transactions previously entered into in good faith for purposes other than the acquisition of such shares.
3. For the purposes of a general savings and investment plan for employees of the insurer.
4. For mutualization of the insurer, as provided in NRS 693A.290.
5. For purposes as stated under a plan for such acquisition submitted to and approved in writing by the Commissioner. The Commissioner shall not approve a plan unless found by the Commissioner to be for proper purposes, to be reasonable, fair and equitable as to the remaining stockholders of the insurer, and not materially adverse to the protection of the insurer’s policyholders.
6. As the result of a gift or bequest of the shares to the insurer.
7. By call for redemption and cancellation of a callable class of stock in accordance with provisions of the insurer’s articles of incorporation.