376.307. Limits on acquisition of certain investments.
Limits on acquisition of certain investments.
376.307. 1. Solely for the purpose of acquiring investments thatexceed the quantitative limitations of sections 376.297 to 376.304, aninsurer may acquire under this subsection an investment or engage ininvestment practices described in section 376.303, but an insurer shall notacquire an investment, or engage in investment practices described insection 376.303, under this subsection if as a result of and after givingeffect to the transaction:
(1) The aggregate amount of investments then held by an insurer underthis subsection would exceed three percent of its admitted assets; or
(2) The aggregate amount of investments as to one limitation insections 376.297 to 376.304 then held by the insurer under this subsectionwould exceed one percent of its admitted assets.
2. In addition to the authority provided in subsection 1 of thissection, an insurer may acquire under this subsection an investment of anykind or engage in investment practices described in section 376.303 thatare not specifically prohibited by this chapter without regard to thecategories, conditions, standards, or other limitations of sections 376.297to 376.304 if as a result of and after giving effect to the transaction theaggregate amount of investments then held under this subsection would notexceed the lesser of:
(1) Ten percent of its admitted assets; or
(2) Seventy-five percent of its capital and surplus.
An insurer shall not acquire any investment or engage in any investmentpractice under this subsection if as a result of and after giving effect tothe transaction the aggregate amount of all investments in any one personthen held by the insurer under this subsection would exceed three percentof its admitted assets.
3. In addition to the investments acquired under subsections 1 and 2of this section, an insurer may acquire under this subsection an investmentof any kind or engage in investment practices described in section 376.303that are not specifically prohibited by this chapter without regard to anylimitations of sections 376.297 to 376.304 if:
(1) The director grants prior approval;
(2) The insurer demonstrates that its investments are being made in aprudent manner and that the additional amounts will be invested in aprudent manner; and
(3) As a result of and after giving effect to the transaction, theaggregate amount of investments then held by the insurer under thissubsection does not exceed the greater of:
(a) Twenty-five percent of its capital and surplus; or
(b) One hundred percent of its capital and surplus less ten percentof its admitted assets.
4. Under this section, an insurer shall not acquire or engage in aninvestment practice prohibited under section 376.294 or an investment thatis a derivative transaction.
(L. 1961 p. 175 § 1, A.L. 1982 S.B. 726, A.L. 2002 H.B. 1518 merged with S.B. 1009, A.L. 2007 S.B. 66)