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2014 SESSION
14102348DBe 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.