31A-18-105 - Permitted classes of investments.
31A-18-105. Permitted classes of investments.
The following classes of investment may be counted for the purposes specified underChapter 17, Part 6, Risk-Based Capital:
(1) a bond or other evidence of indebtedness of:
(a) a governmental unit in the United States or Canada;
(b) an instrumentality of a governmental unit described in Subsection (1)(a); or
(c) a private corporation domiciled in the United States;
(2) an equipment trust obligation or certificate that is an adequately secured instrument:
(a) evidencing an interest in transportation equipment that is located wholly or in partwithin the United States; and
(b) with a right to receive determined portions of the rental, or to purchase other fixedobligatory payments for the use or purchase of the transportation equipment;
(3) a loan secured by:
(a) one or more mortgages;
(b) one or more trust deeds; or
(c) another statutorily authorized type of security interest in real estate located in theUnited States;
(4) a loan secured by a pledged security or evidence of debt eligible for investment underthis section;
(5) a preferred stock of a United States corporation;
(6) (a) a common stock of a United States corporation; or
(b) an American depository receipt if traded on one of the following exchanges:
(i) New York;
(ii) American; or
(iii) NASDAQ;
(7) real estate that is used as the home office or branch office of the insurer;
(8) real estate in the United States that produces substantial income;
(9) a loan upon the security of the insurer's own policies in an amount that:
(a) is adequately secured by the policies; and
(b) does not exceed the surrender value of the policies;
(10) a financial futures contract used for hedging and not for speculation, as approvedunder rules adopted by the commissioner;
(11) an investment in a foreign security of a class permitted under this section as requiredfor compliance with Section 31A-18-103;
(12) an investment permitted under Subsection 31A-18-102(2);
(13) an American depository receipt not traded on one of the following exchanges:
(a) New York;
(b) American; or
(c) NASDAQ;
(14) an investment other than those listed in Subsections (1) through (13) that isdetermined to be admitted in the Accounting Practices and Procedures Manual, published by theNational Association of Insurance Commissioners;
(15) cash; and
(16) another investment the commissioner authorizes by rule.
Amended by Chapter 257, 2008 General Session