US Laws, Codes, Statutes & Cases

                                  TITLE  41
                                  INSURANCE
                                  CHAPTER 28
                    ORGANIZATION AND CORPORATE PROCEDURES
                         OF STOCK AND MUTUAL INSURERS
    41-2871.  USE OF BOOK-ENTRY SYSTEMS. (1) A domestic insurer may deposit or
arrange for the deposit of securities held in or purchased for its general
account and its separate accounts in a clearing corporation or the federal
reserve book-entry system. When securities are deposited with a clearing
corporation, certificates representing securities of the same class of the
same issuer may be merged and held in bulk in the name of the nominee of such
clearing corporation with any other securities deposited with such clearing
corporation by any person, regardless of the ownership of such securities, and
certificates representing securities of small denominations may be merged into
one or more certificates of larger denominations. The records of any member
bank through which an insurer holds securities in the federal reserve
book-entry system, and the records of any custodian banks through which an
insurer holds securities in a clearing corporation, shall at all times show
that such securities are held for such insurer and for which accounts thereof.
Ownership of, and other interests in, such securities may be transferred by
bookkeeping entry on the books of such clearing corporation or in the federal
reserve book-entry system without, in either case, physical delivery of
certificates representing such securities.
    (2)  The director of the department of insurance is authorized to
promulgate rules and regulations governing the deposit by insurers of
securities with clearing corporations and in the federal reserve book-entry
system.