2006 Code of Virginia § 38.2-1413 - Investment limits for one obligor, one issue or one loan

38.2-1413. Investment limits for one obligor, one issue or one loan.

A. No domestic insurer shall have at any one time any combination ofinvestments in or loans upon the security of the property and securities ofany one obligor or issuer aggregating an amount exceeding the lesser of fivepercent of the insurer's total admitted assets or twenty percent of theinsurer's surplus to policyholders. The limitations prescribed by thissection shall not apply to the following:

1. Investments in or loans upon the security of general obligations of theUnited States;

2. Investments in foreign securities made eligible by subsection A of 38.2-1433;

3. Investments in mortgage pass-through securities made eligible by 38.2-1437.1;

4. Deposits in institutions insured by a federal deposit insuring agency tothe extent of coverage by such deposit insuring agency;

5. Investments in subsidiaries made eligible by 38.2-1427.3;

6. Investments in obligations of an agency or instrumentality of the UnitedStates made eligible by subsection B of 38.2-1415; provided that at no timeshall the insurer invest pursuant to subsection B of 38.2-1415 in excess often percent of its total admitted assets in any one obligor or issuer of suchobligations; or

7. Other assets defined or classified by the National Association ofInsurance Commissioners accounting practices and procedure manual, or anysuccessor publication, as cash or cash equivalents or as a short terminvestment that is rated "AAA" or better or the equivalent rating byMoody's Investors Service, Inc., Standard & Poor's or Fitch IBCA, or anysuccessor to the rating business of any of them, provided that at no timeshall the amount of any such asset placed for or by the insurer in or withany one depository, issue, obligor, or issuer exceed the lesser of tenpercent of the insurer's total admitted assets or twenty percent of theinsurer's surplus to policyholders.

B. No domestic insurer shall invest in excess of one percent of its totaladmitted assets in any one issue of any obligations made eligible forinvestment under 38.2-1423 or 38.2-1424.

C. No domestic insurer shall invest in excess of one-half of one percent ofits total admitted assets in any one loan made eligible by subdivision 3 of 38.2-1434.

D. The principal loan amount disbursed, excluding advances made to enforce orprotect the security for the loan, by a domestic insurer under any singlewrap-around mortgage made pursuant to 38.2-1435 shall not exceed onepercent of its total admitted assets.

E. The amount loaned under 38.2-1430 shall be subject to the limitations ofthis section applicable to the kinds of securities or obligations pledged inconnection with the loan.

(1983, c. 457, 38.1-217.16; 1986, c. 562; 1990, c. 893; 1992, c. 588; 1995,c. 60; 1998, c. 414; 2002, c. 73.)