1996 Alaska Statutes
TITLE 21 INSURANCE
Chapter 21.21. INVESTMENTS
Sec. 21.21.370. Investments in medium grade and lower grade obligations.
(a) A domestic insurer may acquire, directly or indirectly, a medium grade or lower grade obligation of an institution if, after giving effect to the acquisition,
(1) the aggregate amount of all medium grade and lower grade obligations held by the domestic insurer does not exceed 20 percent of its admitted assets and if not more than
(A) 10 percent of its admitted assets consist of obligations rated four, five, or six by the securities valuation office;
(B) three percent of its admitted assets consist of obligations rated five or six by the securities valuation office; and
(C) one percent of its admitted assets consist of obligations rated six by the securities valuation office; and
(2) the aggregate amount of all medium grade and lower grade obligations held by the domestic insurer does not exceed 30 percent of its policyholders' surplus account as shown by the insurer's most recent report filed under AS 21.06.150 , AS 21.09.200 , or 21.09.205.
(b) Attaining or exceeding the limit of one category does not preclude an insurer from acquiring an obligation in another category subject to the specific or multi-category limits.
(c) A domestic insurer may not invest in medium grade and lower grade obligations issued, guaranteed, or insured by a single institution in an aggregate amount greater than
(1) one percent of its admitted assets in medium grade obligations;
(2) one-half of one percent of its admitted assets in lower grade obligations; and
(3) one percent of its admitted assets in a combination of medium grade or lower grade obligations.
(d) The investment limitations in this section apply in addition to the limits on investments under AS 21.21.050 and 21.21.250.
(e) The investment limitations in this section and AS 21.21.380 (b) shall be calculated after including, as though they were already owned, the medium grade and lower grade obligations that the domestic insurer is committed to acquire at the time of the calculation.
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