US Lawyer Database

For Lawyer-Seekers

YOU DESERVE THE BEST LAWYER

Home » US Law » 2019 US Virgin Islands Code » Title 22 - Insurance » Chapter 23 - Investments

§ 551. Eligible investments

(a) Domestic insurers shall invest in or loan their funds on the security of, and shall hold as assets, only eligible investments as prescribed in this chapter. (b) Any particular investment of a domestic insurer held by it on the effective date of this title and which was a legal investment immediately prior thereto, shall […]

§ 552. General qualifications

(a) No security or other investment shall be eligible for purchase or acquisition under this chapter unless it is interest bearing or interest accruing or dividend or income paying, is not then in default in any respect, and the insurer is entitled to receive for its exclusive account and benefit the interest or income accruing […]

§ 553. Limitation on securities of one entity

An insurer shall not, except with the consent of the Commissioner, have at any time any combination of investments in or loans upon the security of the obligations, property, and securities of any one person, institution, or municipal corporation aggregating an amount exceeding 4 percent of the insurer’s assets. This section shall not apply to […]

§ 554. Public obligations

An insurer may invest any of its funds in bonds or other evidences of debt, not in default as to principal or interest, which are valid and legally authorized obligations issued, assumed or guaranteed by the United States or by any jurisdiction of the United States or by any political subdivision thereof or by any […]

§ 555. Corporate obligations

An insurer may invest any of its funds in obligations other than those eligible for investment under section 561 of this title if they are issued, assumed, or guaranteed by any solvent institution created or existing under the laws of the United States or of any jurisdiction of the United States, and are qualified under […]

§ 556. Terms defined

(a) Certain terms used are defined for the purposes of this chapter as follows: “Fixed charges” includes interest on funded and unfunded debt, amortization of debt discount, and rentals for leased properties. “Institution” includes corporations, joint stock associations, and business trusts. “Net earnings available for fixed charges” means net income after deducting operating and maintenance […]

§ 557. Securities of merged or reorganized institutions

In applying the earnings test set forth in section 556 of this title to any such institution, whether or not in legal existence during the whole of such five years next preceding the date of investment by the insurer, which has at any time during the five-year period acquired substantially all of the assets of […]

§ 558. Preferred or guaranteed stocks

(a) An insurer may invest any of its funds, in an aggregate amount not exceeding 10 percent of its assets, if a life insurer, or not exceeding 15 percent of such assets if other than a life insurer, in preferred or guaranteed stocks or shares, other than common stocks, of solvent institutions existing under the […]

§ 559. Trustees’ or receivers’ obligations

An insurer may invest any of its funds, in an aggregate amount not exceeding 2 percent of its assets, in certificates, notes, or other obligations issued by trustees or receivers of institutions, existing under the laws of the United States or of any jurisdiction of the United States, which, or the assets of which, are […]

§ 560. Equipment trust certificates

An insurer may invest any of its funds, in an aggregate amount not exceeding 10 percent of its assets, in equipment trust obligations or certificates which are adequately secured, or in other adequately secured instruments evidencing an interest in transportation equipment wholly or in part within the United States and the right to receive determined […]

§ 561. Mortgages, mortgage bonds, notes, contracts

An insurer may invest any of its funds in: (1) bonds or evidences of debt which are secured by first mortgages or deeds of trust on improved unencumbered real property located in the United States; (2) chattel mortgages in connection therewith pursuant to section 565 of this title; (3) the equity of the seller of […]

§ 562. Mortgage loans limited by property value

(a) No mortgage loan or investment therein upon any one parcel of real property shall exceed in amount at the time of acquisition: (1) seventy-five percent of the fair value of the property if the property is a dwelling house primarily intended for occupancy by one family and the loan is required to be amortized […]

§ 563. “Encumbrance” defined

(a) Real property shall not be deemed to be encumbered within the meaning of section 561 of this title by reason of the existence of: (1) instruments reserving mineral, oil, timber or similar rights, rights of way, sewer rights, or rights in walls; (2) liens for taxes or assessments not delinquent, or liens not delinquent […]

§ 564. Appraisal of property; insurance; limit of loan

(a) The fair value of property shall be determined by appraisal by a competent appraiser at the time of the making or acquiring of a mortgage loan or investing in a contract for the deed thereon, except, that as to bonds or notes secured by mortgage or trust deed guaranteed or insured by the Federal […]

§ 565. Auxiliary chattel mortgages

(a) In connection with a mortgage loan on the security of real property designed and used primarily for residential purposes only, acquired pursuant to section 561 of this title, an insurer may loan or invest an amount not exceeding 20 percent of the amount loaned on or invested in such real property mortgage, on the […]

§ 566. Real property owned; home office building, etc.

(a) An insurer may own and invest or have invested in its home office and branch office buildings any of its funds in aggregate amount not to exceed 10 percent of its assets unless approved by the Commissioner, or if a mutual insurer not to exceed 10 percent of its assets nor such amount as […]

§ 567. Disposal of real property, time limit

(a) Real property acquired by an insurer pursuant to paragraph (1) of subsection (b) of section 566 of this title shall be disposed of within five years after it has ceased being necessary for the use of the insurer in the transaction of its business. Real property acquired by an insurer pursuant to such loans, […]

§ 568. Foreign securities

(a) An insurer authorized to transact insurance in a foreign country may invest any of its funds, in aggregate amount not exceeding its deposit and reserve obligations incurred in such country, in securities of or in such country possessing characteristics and of a quality similar to those required pursuant to this chapter for investments in […]

§ 569. Policy loans

A life insurer may loan to its policyholder upon the pledge of the policy as collateral security, any sum not exceeding the legal reserve maintained on the policy.

§ 570. Savings and share accounts

An insurer may invest or deposit any of its funds in share or savings accounts of savings and loan associations, or in savings accounts of banks, and in any one such institution only to the extent that such an account is insured by the Federal Savings and Loan Insurance Corporation or the Federal Deposit Insurance […]