20-551. Investments or deposits in financial institutions

A. An insurer may invest or deposit any of its funds in share, checking or savings accounts, in certificates of deposit or in any other deposit or account in solvent banks or in foreign branches of such banks, credit unions or savings and loan associations which are insured by an agency of the federal government. Branches of foreign banks located in the United States are deemed banks for the purposes of this subsection as long as they are in compliance with applicable state and federal banking laws and regulations.

B. An insurer may invest in obligations issued, assumed or guaranteed by those multinational development banks in which the United States is a member nation, including the international bank for reconstruction and development, the African development bank, the Asian development bank and the Inter-American development bank.

C. An insurer may invest or deposit its funds in any deposit, account or obligation of a foreign bank that has been determined by the securities valuation office of the national association of insurance commissioners to meet the credit standards for issuing letters of credit in support of the liability of a reinsurer to a ceding insurer or has demonstrated to the director that it meets or exceeds both the following standards:

1. Is domiciled in a country with a sovereign debt rating of " Aaa" or " AAA" for its long-term debt or P1 or A1 for its short-term debt by Moody's investors service or Standard and Poor or an equivalent rating by any other nationally recognized statistical rating organization.

2. Either of the following:

(a) For investment issues with maturities in excess of three hundred sixty-five days, has a long-term debt service rating of " Aa" by Moody's investor service or " AA" by Standard and Poor or an equivalent rating by any other nationally recognized statistical rating organization.

(b) For investment issues with maturities of three hundred sixty-five days or less, has a short-term debt service rating of P1 or A1 by Moody's investors service or Standard and Poor or an equivalent rating by any other nationally recognized statistical rating organization.

D. An insurer may invest or deposit its funds in any deposit, account or obligation of a solvent foreign bank that does not meet the requirements of subsection C of this section, if the amount of the investments or deposits do not exceed one hundred five per cent of the insurer's obligations to policyholders in the foreign country as denominated in the currency of the foreign country and the investments or deposits in the aggregate do not exceed ten per cent of the insurer's surplus as regards policyholders.

E. An investment or deposit made pursuant to subsections C and D of this section shall also be applied to the limitation of the amount of an insurer's assets that may be invested pursuant to section 20-552.