304.7-423 Investment practices that are allowed without regard to limitations of
this subtitle.
(1)
(2)
(3)
Solely for the purpose of acquiring investments that exceed the quantitative
limitations of KRS 304.7-403, 304.7-405, 304.7-407, 304.7-409, 304.7-411, 304.7413, 304.7-415, and 304.7-417, an insurer may acquire under this subsection an
investment, or engage in investment practices described in KRS 304.7-415, but an
insurer shall not acquire an investment, or engage in investment practices described
in KRS 304.7-415, under this subsection if, as a result of and after giving effect to
the transaction:
(a) The aggregate amount of investments then held by an insurer under this
subsection would exceed three percent (3%) of its admitted assets; or
(b) The aggregate amount of investments as to one (1) limitation in KRS 304.7403, 304.7-405, 304.7-407, 304.7-409, 304.7-411, 304.7-413, 304.7-415, and
304.7-417 then held by the insurer under this subsection would exceed one
percent (1%) of its admitted assets.
(a) In addition to the authority provided under subsection (1) of this section, an
insurer may acquire under this subsection an investment of any kind, or
engage in investment practices described in KRS 304.7-415, that are not
specifically prohibited by this subtitle, without regard to the categories,
conditions, standards, or other limitations of KRS 304.7-403, 304.7-405,
304.7-407, 304.7-409, 304.7-411, 304.7-413, 304.7-415, and 304.7-417 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 (10%) of its admitted assets; or
2.
Seventy-five percent (75%) of its capital and surplus.
(b) However, 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
(1) person then held by the insurer under this subsection would exceed three
percent (3%) of its admitted assets.
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 KRS 304.7-415, that are not specifically
prohibited by this subtitle without regard to any limitations of KRS 304.7-403,
304.7-405, 304.7-407, 304.7-409, 304.7-411, 304.7-413, 304.7-415, and 304.7-417
if:
(a) The commissioner grants prior approval;
(b) 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
(c) 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:
1.
2.
(4)
Twenty-five percent (25%) of its capital and surplus; or
One hundred percent (100%) of capital and surplus less ten percent
(10%) of its admitted assets.
An investment prohibited under KRS 304.7-363, not permitted under KRS 304.7419, or additional derivative instruments acquired under KRS 304.7-419 shall not
be acquired under this section.
Effective: July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 1020, effective July 15, 2010. -- Created
2000 Ky. Acts ch. 388, sec. 18, effective July 14, 2000.
Disclaimer: These codes may not be the most recent version. Kentucky may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
