40-2b24. Investment companies; money market mutual funds.

40-2b24

Chapter 40.--INSURANCE
Article 2b.--INVESTMENTS BY LIFE INSURANCE COMPANIES

      40-2b24.   Investment companies; money market mutual funds.(a) Any life insurance company heretofore or hereafter organized under any lawof this state may investwith the direction or approval of a majority of its board of directors orauthorized committee thereof, any of its funds, or any part thereof in sharesof a corporation registered and operated as an open-end regulated investmentcompany in accordance with the investment company act of 1940, asamended.

      (b)   Investments under this section, other than investments inmoney market mutual funds as described in subsection (c), shall befurther limited as follows:

      (1)   The insurance company's aggregate investment under thisprovision and K.S.A. 40-2b07, and amendments thereto, combined shallnot exceed 25% of its admitted assets as shown by the company'slast annual report as filed with the commissioner of insurance or a morerecent quarterly financial statement as filed with the commissioner, on aform prescribed by the national association of insurance commissioners,within 45 days following the end of the calendar quarter to which theinterim statement pertains;

      (2)   the investment company in which the insurance company acquires sharesshall have assets of not less than $25,000,000 at the date of purchase;

      (3)   the insurance company shall not acquire more than15% of the outstandingshares of any one investment company;

      (4)   investments in the shares of any one investment company shall notexceed 10% of the admitted assets of the insurance company as shown by thecompany's last annual report as filed with the commissioner of insurance,as determined on the basis of the cost of such shares to the insurance companyat time of purchase.

      (c)   Investments in money market mutual funds shall not be subject tothe limitations contained in subsection (b) when the assets of the fundrepresent qualified investments described in K.S.A. 40-2b01, 40-2b02, 40-2b03,40-2b04, 40-2b05 and 40-2b21 and amendments thereto.Investments in money marketmutual funds shall be further limited as follows:

      (1)   The investment company in which the insurance company acquires sharesshall have assets of not less than $25,000,000 at the date of purchase; and

      (2)   investments in the shares of any one investment company shall notexceed 20% of the admitted assets of the insurance company as shown by thecompany's last annual report as filed with the commissioner of insurance,or a more recent quarterly financial statement as filed with theinsurance commissioner, on a form prescribed by the national association ofinsurance commissioners, within 45 days following the end of the calendarquarter to which the interim statement pertains,as determined on the basis of the cost of such shares to the insurance companyat the time of purchase.

      History:   L. 1983, ch. 156, § 14;L. 1985, ch. 162, § 2;L. 1987, ch. 160, § 12;L. 1995, ch. 96, § 2; July 1.