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2014 SESSION
Be it enacted by the General Assembly of Virginia:
1. That §§ 38.2-1414 and 38.2-1433 of the Code of Virginia are amended and reenacted as follows:
§ 38.2-1414. Limits by type of investment.
A. The portion of a domestic insurer's total admitted assets in the following types of investments shall not exceed:
1. Ten percent for the aggregate of investments made eligible by §§ 38.2-1416 and 38.2-1417;
2. Five percent for the investments in each agency made
eligible by § 38.2-1418, and ten 10 percent for the aggregate of
investments made eligible by § 38.2-1418;
3. Ten percent for the investments made eligible by § 38.2-1419;
4. Ten percent for the investments made eligible by § 38.2-1420;
5. For the aggregate of investments made eligible under §§
38.2-1421 and 38.2-1422, (i) ninety 90 percent for any life
insurer and (ii) forty 40 percent for all other insurers;
6. Ten percent for the investments made eligible by subsection B of § 38.2-1421; and two percent for the investments made eligible by subsection C of § 38.2-1421;
7. Twenty percent for the investments made eligible by § 38.2-1422;
8. Ten percent for the investments made eligible by § 38.2-1423;
9. Five percent for the investments made eligible by § 38.2-1424;
10. Five percent for the investments made eligible by § 38.2-1425;
11. The lesser of fifteen 15 percent or the
amount by which an insurer's surplus to policyholders exceeds its minimum
capital and surplus for the aggregate of investments made eligible by §§
38.2-1427, 38.2-1427.1 and 38.2-1427.2, of which no more than five percent of
the total admitted assets shall be in investments made eligible by §
38.2-1427.1;
12. For the aggregate of investments made eligible by §
38.2-1427.3, when combined with the insurer's total investment in affiliates,
the lesser of ten 10 percent of the insurer's admitted assets or
fifty 50 percent of the insurer's surplus to policyholders in excess
of its minimum capital and surplus, provided that total investments in
affiliates do not include investments made by the insurer in money market
mutual funds made eligible by § 38.2-1432;
13. Ten Fifteen percent for investments made
eligible by subsection B of § 38.2-1433, and an amount equal to its deposit and
reserve obligations incurred in a foreign country for the investments made
eligible by subsection A of § 38.2-1433;
14. Two percent for the investments made eligible (including those that the insurer is obligated to make as well as those made) by subdivision 3 of § 38.2-1434;
15. Two percent for the investments made eligible by § 38.2-1435;
16. Ten percent for the investments made eligible by § 38.2-1436;
17. For the aggregate of investments made eligible by §
38.2-1437.1, when combined with the insurer's investments in mortgages under §§
38.2-1434 through 38.2-1436 and § 38.2-1439, (i) sixty 60 percent
for any life insurer and (ii) thirty 30 percent for all other
insurers;
18. Two percent for the investments made eligible by § 38.2-1440; and
19. Twenty-five percent for the total of investments made eligible by § 38.2-1441, of which no more than five percent of the total admitted assets shall be in investments in real property to be used primarily for hotel purposes.
B. The amount loaned under § 38.2-1430 shall be subject to the limitations of this section applicable to the kinds of securities or obligations pledged in connection with the loan.
§ 38.2-1433. Foreign securities.
A. A domestic insurer transacting the business of insurance in a foreign country may invest in securities of or issued in that country of substantially the same kinds, classes, and investment grades as the insurer may acquire in the United States.
B. A domestic insurer may invest in securities of or issued in
a foreign country of substantially the same kinds, classes and investment
grades as the insurer may acquire in the United States, provided (i) all such
securities are rated medium grade or higher by the Securities Valuation Office
of the National Association of Insurance Commissioners or by a national rating
agency recognized by the Commission and no more than one percent of the
insurer's admitted assets are invested in such securities which are rated
medium grade, and (ii) the aggregate amount of foreign investment held by the
insurer under this section for a single foreign jurisdiction does not exceed
three (a) five percent of the insurer's admitted assets as to a
foreign jurisdiction that has a sovereign debt rating of SVO 1 by the
Securities Valuation Office of the National Association of Insurance
Commissioners or (b) three percent of the insurer's admitted assets as to any
other foreign jurisdiction.
C. These investments Investments made eligible by
this section shall be payable in lawful currency of the United States,
except (i) where payment in other lawful currencies is required to match
obligations denominated in such other lawful currencies or (ii) if the
investment is denominated in other lawful currency, the investment is
effectively hedged, substantially in its entirety, against the lawful currency
of the United States in accordance with § 38.2-1428.