20-533. Qualification of securities or property as eligible investments
A. No security or investment, other than real and personal property acquired pursuant to section 20-556, shall be eligible for acquisition unless it is interest bearing or interest accruing or dividend or income paying, is not then in default as to principal or interest and the insurer is entitled to receive for its exclusive account and benefit the interest or income accruing on the security or investment, except as provided in subsection D of this section. Defaults in interest or income occurring subsequent to acquisition of an investment shall not affect allowance thereof as an asset.
B. No security or investment shall be eligible for purchase at a price above its market value.
C. No provision of this article shall prohibit the acquisition by an insurer of other or additional securities or property if received as a dividend or as a lawful distribution of assets, or if acquired pursuant to a lawful and bona fide agreement of bulk reinsurance, merger or consolidation. Any investment so acquired through bulk reinsurance, merger or consolidation, which is not otherwise eligible under this article, is subject to the following conditions:
1. The investment qualifies as an asset under the insurance laws of the jurisdiction of the insurer from which the investment was acquired.
2. The insurer shall dispose of the investment within three years after the date of acquisition unless within the period the security has attained the necessary standard of eligibility pursuant to this article.
D. An insurer may invest any of its monies in debt securities which are not interest bearing or interest accruing if, after giving effect to the acquisition of the debt security, the aggregate cost of the securities, other than investments acquired pursuant to subsection C of this section, does not exceed ten per cent of the insurer's total assets.
Copyright ©2024 LegalFix. All rights reserved. LegalFix is not a law firm, is not licensed to practice law, and does not provide legal advice, services, or representation. The information on this website is an overview of the legal plans you can purchase—or that may be provided by your employer as an employee benefit or by your credit union or other membership group as a membership benefit.
LegalFix provides its members with easy access to affordable legal services through a network of independent law firms. LegalFix, its corporate entity, and its officers, directors, employees, agents, and contractors do not provide legal advice, services, or representation—directly or indirectly.
The articles and information on the site are not legal advice and should not be relied upon—they are for information purposes only. You should become a LegalFix member to get legal services from one of our network law firms.
You should not disclose confidential or potentially incriminating information to LegalFix—you should only communicate such information to your network law firm.
The benefits and legal services described in the LegalFix legal plans are not always available in all states or with all plans. See the legal plan Benefit Overview and the more comprehensive legal plan contract during checkout for coverage details in your state.
Use of this website, the purchase of legal plans, and access to the LegalFix networks of law firms are subject to the LegalFix Terms of Service and Privacy Policy.