2005 Idaho Code - 41-731 — PROHIBITED INVESTMENTS AND INVESTMENT UNDERWRITING

                                  TITLE  41
                                  INSURANCE
                                  CHAPTER 7
                                 INVESTMENTS
    41-731.  PROHIBITED INVESTMENTS AND INVESTMENT UNDERWRITING. (1) In
addition to investments excluded under other provisions of this code, an
insurer shall not directly or indirectly invest in or loan its funds upon the
security of:
    (a)  Issued shares of its own capital stock, except for the purpose of
    mutualization under section 41-2854, Idaho Code, or in connection with a
    plan approved by the director for purchase of such shares by the insurer's
    officers, employees, or agents, or for other reasonable purposes under a
    plan filed with and approved by the director. No such stock shall,
    however, constitute an asset of the insurer in any determination of its
    financial condition.
    (b)  Except with the director's consent, any security issued by any
    corporation or enterprise the controlling interest of which is, or will
    after such acquisition by the insurer be, held directly or indirectly by
    the insurer or any combination of the insurer and the insurer's directors,
    officers, parent corporation, subsidiaries, controlling stockholders, and
    the spouses and children of any of the foregoing individuals. Investments
    in subsidiaries under sections 41-706(2), 41-715 and 41-3801B, Idaho Code,
    shall not be subject to this provision.
    (c)  Any note or other evidence of indebtedness of any director, officer,
    or controlling stockholder of the insurer, or the spouse or child of any
    of the foregoing individuals, except as to policy loans authorized under
    section 41-718, Idaho Code.
    (d)  Any investment or security which is found by the director to be
    designed to evade any prohibition of this chapter.
    (2)  No insurer shall underwrite or participate in the underwriting of an
offering of securities or property by any other person.