376.298. Acquisition of rate credit instruments, when.
Acquisition of rate credit instruments, when.
376.298. 1. Subject to the limitations of subsection 6 of thissection and subsection 2 of section 376.297, an insurer may acquire ratedcredit instruments issued, assumed, guaranteed or issued by:
(1) The United States; or
(2) A government-sponsored enterprise of the United States if theinstruments of the government-sponsored enterprise are assumed, guaranteed,or insured by the United States or are otherwise backed or supported by thefull faith and credit clause of the United States.
2. Subject to the limitations of subsection 6* of this section andsubsection 2 of section 376.297, an insurer may acquire rated creditinstruments issued, assumed, guaranteed, or insured by:
(1) Canada; or
(2) A government-sponsored enterprise of Canada if the instruments ofthe government-sponsored enterprise are assumed, guaranteed, or insured byCanada or are otherwise backed or supported by the full faith and creditclause of Canada.
An insurer shall not acquire an instrument under this subsection if as aresult of and after giving effect to the investment the aggregate amount ofinvestments then held by the insurer under this subsection would exceedforty percent of its admitted assets.
3. Subject to the limitations of subsection 6 of this section andsubsection 2 of section 376.297, an insurer may acquire rated creditinstruments excluding asset-backed securities:
(1) Issued by a government money market mutual fund, a class onemoney market mutual fund, or a class one bond mutual fund;
(2) Issued, assumed, guaranteed, or insured by a government-sponsoredenterprise of the United States other than those eligible under subsection1 of this section;
(3) Issued, assumed, guaranteed, or insured by a state if theinstruments are general obligations of the state; or
(4) Issued by a multilateral development bank.
An insurer shall not acquire an instrument of any one fund, any oneenterprise or entity, or any one state under this subsection if as a resultof and after giving effect to the investment the aggregate amount ofinvestments then held by the insurer in any one fund, enterprise, entity,or state under this subsection would exceed ten percent of its admittedassets.
4. Subject to the limitations of subsection 6 of this section andsection 376.297, an insurer may acquire preferred stocks that are notforeign investments and that meet the requirement of rated creditinstruments if as a result of and after giving effect to the investment:
(1) The aggregate amount of preferred stocks then held by the insurerunder this subsection does not exceed twenty percent of its admittedassets; and
(2) The aggregate amount of preferred stocks then held by the insurerunder this subsection which are not sinking fund stocks or rated "P1" or"P2" by the SVO does not exceed ten percent of its admitted assets.
5. Subject to the limitations of subsection 6 of this section andsection 376.297, in addition to those investments eligible undersubsections 1 to 4 of this section, an insurer may acquire rated creditinstruments that are not foreign investments.
6. An insurer shall not acquire special rated credit instrumentsunder this section if as a result of and after giving effect to theinvestment the aggregate amount of special rated credit instruments thenheld by the insurer would exceed five percent of its admitted assets. Thedirector may by rule under section 376.305 identify certain special ratedcredit instruments that will be exempt from the limitation imposed by thissubsection.
(L. 2007 S.B. 66)*Words "subdivision (6)" appear in original rolls.