304.7-457 Rated credit investments.
(1)
(2)
(3)
(4)
Subject to the limitations of KRS 304.7-455(4) to (6), but not to the limitations of
KRS 304.7-455(1) to (3), an insurer may acquire rated credit instruments issued,
assumed, guaranteed, or insured by:
(a) The United States; or
(b) A government sponsored enterprise of the United States, if the instruments of
the government sponsored enterprise are assumed, guaranteed, or insured by
the United States or are otherwise backed or supported by the full faith and
credit of the United States.
(a) Subject to the limitations of KRS 304.7-455(4) to (6), but not to the
limitations of KRS 304.7-455(1) to (3), an insurer may acquire rated credit
instruments issued, assumed, guaranteed, or insured by:
1.
Canada; or
2.
A government sponsored enterprise of Canada, if the instruments of the
government sponsored enterprise are assumed, guaranteed, or insured by
Canada or are otherwise backed or supported by the full faith and credit
of Canada;
(b) However, an insurer shall not acquire an instrument under this subsection if,
as a result of and after giving effect to the investment, the aggregate amount of
investments then held by the insurer under this subsection would exceed forty
percent (40%) of its admitted assets.
(a) Subject to the limitations of KRS 304.7-455(4) to (6), but not to the
limitations of KRS 304.7-455(1) to (3), an insurer may acquire rated credit
instruments, excluding asset-backed securities:
1.
Issued by a government money market mutual fund, a class one money
market mutual fund, or a class one bond mutual fund;
2.
Issued, assumed, guaranteed, or insured by a government sponsored
enterprise of the United States other than those eligible under subsection
(1) of this section;
3.
Issued, assumed, guaranteed, or insured by a state, if the instruments are
general obligations of the state; or
4.
Issued by a multilateral development bank;
(b) However, an insurer shall not acquire an instrument of any one (1) fund, any
one (1) enterprise or entity, or any one (1) state under this subsection if, as a
result of and after giving effect to the investment, the aggregate amount of
investments then held in any one (1) fund enterprise or entity, or state under
this subsection would exceed ten percent (10%) of its admitted assets.
Subject to the limitations of KRS 304.7-455, an insurer may acquire preferred
stocks that are not foreign investments and that meet the requirements of rated
credit instruments if, as a result of and after giving effect to the investment:
(a) The aggregate amount of preferred stocks then held by the insurer under this
subsection does not exceed twenty percent (20%) of its admitted assets; and
(b)
(5)
(6)
The aggregate amount of preferred stocks then held by the insurer under this
subsection that are not sinking fund stocks or rated P1 or P2 by the SVO does
not exceed ten percent (10%) of its admitted assets.
Subject to the limitations of KRS 304.7-455, in addition to those investments
eligible under subsections (1) to (4) of this section, an insurer may acquire rated
credit instruments that are not foreign investments.
An insurer shall not acquire special rated credit instruments under this section if, as
a result of and after giving effect to the investment, the aggregate amount of special
rated credit instruments then held by the insurer would exceed five percent (5%) of
its admitted assets.
Effective: July 14, 2000
History: Created 2000 Ky. Acts ch. 388, sec. 22, effective July 14, 2000.
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