Sec. 38a-102a. Nonadmitted investment assets. Divestiture order, notice and hearing.
Sec. 38a-102a. Nonadmitted investment assets. Divestiture order, notice and
hearing. (a) Investments made in excess of the limits prescribed in sections 38a-102 to
38a-102h, inclusive, shall be considered nonadmitted assets of an insurance company
only to the extent of such excess and then only to the extent all such excess investments
in the aggregate exceed fifty per cent of the amount by which capital and surplus exceeds
the minimum requirements for such company.
(b) Whenever a domestic insurer, as defined in section 38a-1, holds nonadmitted
investment assets exceeding fifty per cent of the amount by which capital and surplus
exceeds the minimum requirements for such company or whenever the investments in
any category exceed twice the limitations imposed thereon, the Insurance Commissioner
may, after reasonable notice to and hearing of such company, direct the orderly divestiture of any or all of such excess. In addition to such an order, the Insurance Commissioner
may require the chief investment officer, or in the absence of any such designee, the
chief executive officer, of such company to affix to each financial statement required
to be filed with the commissioner, a certification that any such order has been complied
with or containing the details and explanation of any noncompliance.
(P.A. 91-262, S. 2, 19.)