The purpose of this article is to protect and to further the interests of insureds, creditors, and the general public. This objective will be met by the establishment of: Prudent standards by which an insurer shall develop its investment policy and investment portfolio; A minimum financial security benchmark and a minimum asset requirement, each of […]
For purposes of this article, the term: “Admitted assets” means assets permitted to be reported as admitted assets on the statutory financial statement of the insurer most recently required to be filed with the Commissioner. “Asset-backed/mortgage-backed securities” shall include single-class mortgage-backed/asset-backed securities, multiclass residential mortgage-backed securities, and multiclass commercial mortgage-backed/asset-backed securities. “Asset-valuation reserve” means the […]
Unless otherwise established in accordance with paragraphs (2) and (3) of this subsection, the amount of the minimum financial security benchmark for an insurer shall be the greater of: The authorized control level risk-based capital applicable to the insurer as set forth by Code Section 33-56-3 less the asset valuation reserve and voluntary investment reserves […]
The following factors shall be evaluated by the insurer and considered along with its business in determining whether an investment portfolio or investment policy is prudent, and the Commissioner shall consider the following factors prior to making a determination that an insurer’s investment portfolio or investment policy is not prudent: General economic conditions; The possible […]
An insurer’s board of directors shall adopt a written plan for acquiring and holding investments and for engaging in investment practices that specifies guidelines as to the quality, maturity, and diversification of investments and other specifications, including investment strategies intended to assure that the investments and investment practices are appropriate for the business conducted by […]
The following classes of investments are eligible for support of an insurer’s outstanding liabilities, whether they are made directly or through limited partnership interests, joint ventures, stock of an investment subsidiary or membership interests in a limited liability company, trust certificates, participation certificates, or other similar instruments and, with the prior written approval of the […]
An insurer may, directly or indirectly through an investment subsidiary, engage in derivative transactions under this article under the following conditions: An insurer may use derivative instruments under this Code section to engage in hedging transactions which manage risk and certain income generation transactions, as these terms may be further defined in regulation promulgated by […]
Investments not conforming to this article shall not be admitted assets. Subject to subsection (c) of this Code section, an insurer shall not acquire or hold an investment as an admitted asset unless at the time of acquisition it is: Eligible for the payment or accrual of interest or discount (whether in cash or other […]
For purposes of determining compliance with Code Section 33-11-61, securities of a single issuer and its affiliates, other than: The government of the United States; or Government sponsored enterprises, shall not exceed 10 percent of admitted assets. This limitation shall not apply to the aggregate amounts insured by a single financial guaranty insurer with the […]
An insurer doing business that requires it to make payment in different currencies shall have investments in securities in each of these currencies in an amount that independently of all other investments meets the requirements of this article as applied separately to the insurer’s obligations in each currency. The Commissioner may by order exempt an […]
In addition to investments excluded or prohibited pursuant to other provisions of this article, an insurer shall not, directly or indirectly: Engage on its own behalf or through one or more affiliates in a transaction or series of transactions designed to evade the prohibitions of this article; or Invest in or lend its funds upon […]
Invested assets may be counted toward satisfaction of the minimum asset requirement only so far as they are invested in compliance with this article and applicable regulations promulgated and orders issued by the Commissioner pursuant to this article. Assets other than invested assets may be counted toward satisfaction of the minimum asset requirement at admitted […]
The Commissioner may retain at the insurer’s expense attorneys, actuaries, accountants, and other experts not otherwise a part of the Commissioner’s staff as may be reasonably necessary to assist in reviewing the insurer’s investments. Persons so retained shall be under the direction and control of the Commissioner and shall act in a purely advisory capacity. […]
If the Commissioner determines that an insurer’s investment practices do not meet the provisions of this article, the Commissioner may, after notification to the insurer of the Commissioner’s findings, order the insurer to make changes necessary to comply with the provisions of this article. If the Commissioner determines that by reason of the financial condition, […]
An insurer shall not acquire an investment under this article if, as a result of and after giving effect to the investment, the aggregate amount of all investments then held by the insurer under this article would exceed: For medium and lower grade investments, 20 percent of admitted assets; For lower grade investments, 10 percent […]
Any domestic life insurance company may establish one or more separate accounts and may allocate to such separate account or accounts, in accordance with the terms of a written agreement, any amounts paid to the company in connection with a pension, retirement, or profit-sharing plan, which is established by or in behalf of any group […]
This Code section is cumulative of and in addition to the authority granted by any other law of this state relating to separate accounts for insurance companies or to annuity contracts on a variable basis and shall not be deemed to repeal or affect the provisions of Code Section 33-11-65 dealing with the group variable […]
As used in this Code section, “variable life insurance policy” means any individual or group policy issued by an insurance company providing for life insurance and benefits incidental thereto, under which payments or values may vary in whole or in part so as to reflect investment results of any segregated portfolio of investments or of […]
