US Laws, Codes, Statutes & Cases

                                  TITLE  41
                                  INSURANCE
                                  CHAPTER 7
                                 INVESTMENTS
    41-728.  REAL ESTATE. (1) An insurer may acquire, invest in, own,
maintain, alter, furnish, improve, manage, lease and convey the following real
estate only:
    (a)  Land and buildings used for home office purposes, together with such
    other real estate as is required for its accommodation in the convenient
    transaction of its business.
    (b)  Real estate acquired in satisfaction in full or in part of or through
    foreclosure of or judgment obtained upon, loans, mortgages, liens or other
    evidences of indebtedness previously owing to the insurer in the regular
    course of its business.
    (c)  Real estate acquired in part payment of the consideration in the sale
    of other real estate owned by the insurer.
    (d)  Real estate acquired by gift or devise.
    (e)  Real estate acquired through a lawful merger or consolidation of
    another insurer and not required for its accommodation as provided in
    paragraph (a) of this subsection.
    (f)  Real estate for the production of income, under lease, or being
    constructed under a definite agreement providing for lease, to solvent
    institutions for commercial or industrial purposes, other than primarily
    for agricultural, horticultural, ranch, mining, mineral, oil,
    recreational, amusement, club, motel, or hotel purposes.
    (g)  Real estate subject to a plan of development other than primarily for
    agricultural, horticultural, ranch, mining, mineral, oil, recreational,
    amusement, club, motel, or hotel purposes as limited by subsection (2)(c)
    of this section.
    (2)  The aggregate amount so invested by the insurer shall not exceed:
    (a)  If for home office and its other purposes pursuant to subsection
    (1)(a) of this section, ten percent (10%) of the insurer's assets, subject
    to the right of the director to approve an additional amount after hearing
    and for good cause shown.
    (b)  If for income purposes pursuant to subsection (1)(f) of this section,
    ten percent (10%) of the insurer's admitted assets.
    (c)  If for properties subject to a plan of development pursuant to
    subsection (1)(g) of this section, not more than five percent (5%) of its
    admitted assets of which not more than two percent (2%) of its admitted
    assets may be in any one (1) parcel or group of contiguous parcels. The
    director may disapprove the property as an admitted asset if the plan of
    development is not being pursued in good faith. Factors for review may
    include, but are not limited to, progress with regard to zoning, roads,
    utilities, plats and completed development by the insurer of properties.
    (d)  In all categories and for all purposes, not to exceed twenty percent
    (20%) of the insurer's assets.
    (e)  Notwithstanding the provisions of paragraphs (a) through (d) of this
    subsection, the aggregate amount invested by a domestic reciprocal insurer
    which is comprised of and exclusively insures members who are political
    subdivisions of the state, as defined in section 6-902 2., Idaho Code,
    shall not exceed:
         (i)   Twenty-five percent (25%) from July 1, 2001, to June 30, 2003;
         (ii)  Twenty percent (20%) from July 1, 2003, to June 30, 2004; and
         (iii) Fifteen percent (15%) on July 1, 2004, and each year
         thereafter.
    (3)  An insurer may lease to others part of real property otherwise
occupied by it for home office and other purposes under subsection (1)(a) of
this section, but the value of the entire property must be included for the
purposes of the limitation upon aggregate real estate investments provided in
subsection (2)(a) of this section.