Section 375.532

Title XXIV BUSINESS AND FINANCIAL INSTITUTIONS

Chapter 375

Effective - 28 Aug 2007, 2 histories   

  375.532.  Investment in debt of institution permitted, when. — 1.  The capital, reserve and surplus of a domestic insurer may be invested in bonds, notes or other evidences of indebtedness, or preferred or guaranteed stocks or shares, issued, assumed or guaranteed by an institution organized under the laws of the United States, any state, territory or possession of the United States, or the District of Columbia, if such bonds, notes or other evidences of indebtedness, or preferred or guaranteed stocks or shares, shall carry at least the second highest designation or quality rating conferred by the Securities Valuation Office of the National Association of Insurance Commissioners, or some similar or equivalent rating by a nationally recognized rating agency which has been approved by the director.

  2.  As used in this section, the term "institution" means a corporation, a joint stock company, an association, a trust, a business partnership, a business joint venture or similar entity.

  3.  This section shall not apply to an insurer organized under chapter 376.

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(L. 1991 H.B. 385, et al. § 21, A.L. 1992 S.B. 831, A.L. 2005 H.B. 69 merged with S.B. 131, A.L. 2007 S.B. 66)