Effective 28 Aug 2012
376.307. Limits on acquisition of certain investments. — 1. Solely for the purpose of acquiring investments that exceed the quantitative limitations of sections 376.297 to 376.304, an insurer may acquire under this subsection an investment, or engage in investment practices described in section 376.303, but an insurer shall not acquire an investment, or engage in investment practices described in section 376.303, under this subsection if as a result of and after giving effect to the transaction:
(1) The aggregate amount of investments then held by an insurer under this subsection would exceed three percent of its admitted assets; or
(2) The aggregate amount of investments as to one limitation in sections 376.297 to 376.304 then held by the insurer under this subsection would exceed one percent of its admitted assets.
2. In addition to the authority provided in subsection 1 of this section, an insurer may acquire under this subsection an investment of any kind, or engage in investment practices described in section 376.303 that are not specifically prohibited by this chapter without regard to the categories, conditions, standards, or other limitations of sections 376.297 to 376.304, if as a result of and after giving effect to the transaction the aggregate amount of investments then held under this subsection would not exceed the lesser of:
(1) Ten percent of its admitted assets; or
(2) Seventy-five percent of its capital and surplus.
An insurer shall not acquire any investment, or engage in any investment practice under this subsection, if as a result of and after giving effect to the transaction the aggregate amount of all investments in any one person then held by the insurer under this subsection would exceed three percent of its admitted assets.
3. In addition to the investments acquired under subsections 1 and 2 of this section, an insurer may acquire under this subsection an investment of any kind, or engage in investment practices described in section 376.303 that are not specifically prohibited by this chapter without regard to any limitations of sections 376.297 to 376.304, if:
(1) The director grants prior approval;
(2) The insurer demonstrates that its investments are being made in a prudent manner and that the additional amounts will be invested in a prudent manner; and
(3) As a result of and after giving effect to the transaction, the aggregate amount of investments then held by the insurer under this subsection does not exceed the greater of:
(a) Twenty-five percent of its capital and surplus; or
(b) One hundred percent of its capital and surplus less ten percent of its admitted assets.
4. Under this section, an insurer shall not acquire or engage in an investment practice prohibited under section 376.294 or acquire or engage in an investment that is a derivative transaction.
--------
(L. 1961 p. 175 § 1, A.L. 1982 S.B. 726, A.L. 2002 H.B. 1518 merged with S.B. 1009, A.L. 2007 S.B. 66, A.L. 2012 H.B. 1112)
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.