2006 Utah Code - 31A-18-105 — Permitted classes of investments.

     31A-18-105.   Permitted classes of investments.
     The following classes of investment may be counted for the purposes specified under Chapter 17, Part 6, Risk-Based Capital:
     (1) bonds or other evidences of indebtedness of:
     (a) (i) governmental units in the United States or Canada;
     (ii) instrumentalities of the governmental units described in Subsection (1)(a)(i); or
     (iii) private corporations domiciled in the United States; and
     (b) including demand deposits and certificates of deposits in solvent banks and savings and loan institutions;
     (2) equipment trust obligations or certificates that are adequately secured instruments evidencing an interest in transportation equipment that is located wholly or in part within the United States, with a right to receive determined portions of the rental, or to purchase other fixed obligatory payments for the use or purchase of the transportation equipment;
     (3) loans secured by:
     (a) mortgages;
     (b) trust deeds; or
     (c) other statutorily authorized types of security interests in real estate located in the United States;
     (4) loans secured by pledged securities or evidences of debt eligible for investment under this section;
     (5) preferred stocks of United States corporations;
     (6) (a) common stocks of United States corporations; or
     (b) American depository receipts if traded on one of the following exchanges:
     (i) New York;
     (ii) American; or
     (iii) NASDAQ;
     (7) real estate which is used as the home office or branch office of the insurer;
     (8) real estate in the United States which produces substantial income;
     (9) loans upon the security of the insurer's own policies in amounts that are adequately secured by the policies and that do not exceed the surrender value of the policies;
     (10) financial futures contracts used for hedging and not for speculation, as approved under rules adopted by the commissioner;
     (11) investments in foreign securities of the classes permitted under this section as required for compliance with Section 31A-18-103;
     (12) investments permitted under Subsection 31A-18-102(2);
     (13) American depository receipts not traded on one of the following exchanges:
     (a) New York;
     (b) American; or
     (c) NASDAQ;
     (14) investments other than those listed in Subsections (1) through (13) that are determined to be admitted in the Accounting Practices and Procedures Manual, published by the National Association of Insurance Commissioners; and
     (15) other investments as the commissioner authorizes by rule.

Amended by Chapter 176, 2006 General Session