Section 376.294

Title XXIV BUSINESS AND FINANCIAL INSTITUTIONS

Chapter 376

Effective - 28 Aug 2007   

  376.294.  Prohibited acts. — 1.  An insurer shall not directly or indirectly:

  (1)  Invest in an obligation or security or make a guarantee for the benefit of or in favor of an officer or director of the insurer except as provided in section 376.295;

  (2)  Invest in an obligation or security, make a guarantee for the benefit of or in favor of, or make other investments in a business entity of which ten percent or more of the voting securities or equity interests are owned directly or indirectly by or for the benefit of one or more officers or directors in the insurer except under a transaction entered into in compliance with section 382.195 or provided in section 376.295;

  (3)  Engage on its own behalf or through one or more affiliates in a transaction or series of transactions designed to evade the prohibitions of section 375.345 and sections 376.291 to 376.307, or section 376.311;

  (4)  Invest in a partnership as a general partner, except that an insurer may make an investment as a general partner:

  (a)  If all other partners in the partnership are subsidiaries of the insurer or other insurance company affiliates of the insurer;

  (b)  For the purpose of:

  a.  Meeting cash calls committed to prior to August 28, 2007;

  b.  Completing those specific projects or activities of the partnership in which the insurer was a general partner as of August 28, 2007, that had been undertaken as of that date; or

  c.  Making capital improvements to property owned by the partnership on August 28, 2007, if the insurer was a general partner as of that date; or

  (c)  In accordance with subdivision (3) of subsection 1 of section 376.293; or

  (5)  Invest or lend its funds upon the security of shares of its own stock, except as authorized by other provisions of this chapter.  However, no such shares shall be admitted assets of the insurer.

  2.  Subdivision (4) of subsection 1 of this section shall not prohibit a subsidiary or other affiliate of the insurer from becoming a general partner.

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(L. 2007 S.B. 66)