304.7-409 Equity interests in business entities.
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Subject to the limitations of KRS 304.7-403, an insurer may acquire equity interests
in business entities organized under the laws of any domestic jurisdiction.
An insurer shall not acquire an investment under this section if, as a result of and
after giving effect to the investment, the aggregate amount of investment then held
by the insurer under this section would exceed twenty percent (20%) of its admitted
assets, or the amount of equity interests then held by the insurer that are not listed
on a qualified exchange would exceed five percent (5%) of its admitted assets. An
accident and health insurer shall not be subject to this section but shall be subject to
the same aggregate limitation on equity interests as a property and casualty insurer
under KRS 304.7-461 and also to the provisions of KRS 304.7-453.
An insurer shall not acquire under this section any investment that the insurer may
acquire under KRS 304.7-413.
An insurer shall not short sell equity investments unless the insurer covers the short
sale by owning the equity investment or an unrestricted right to the equity
instrument exercisable within six (6) months of the short sale.
Effective: July 14, 2000
History: Created 2000 Ky. Acts ch. 388, sec. 11, effective July 14, 2000.
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