Kentucky Revised Statutes Title XXV. Business and Financial Institutions § 304.7-405.Rated credit instruments

(a) The United States; or

(b) A government sponsored enterprise of the United States, if the instruments of the government sponsored enterprise are assumed, guaranteed, or insured by the United States, or are otherwise backed or supported by the full faith and credit of the United States.

(2) (a) Subject to the limitations of KRS 304.7-403(2), but not to the limitations of KRS 304.7-403(1), an insurer may acquire rated credit instruments issued, assumed, guaranteed, or insured by:

(b) However, an insurer shall not acquire an instrument under this subsection if, as a result of and after giving effect to the investment, the aggregate amount of investments then held by the insurer under this subsection would exceed forty percent (40%) of its admitted assets.

(3) (a) Subject to the limitations of KRS 304.7-403(2), but not to the limitations of KRS 304.7-403(1), an insurer may acquire rated credit instruments, excluding asset-backed securities:

(b) However, an insurer shall not acquire an instrument of any one (1) fund, any one (1) enterprise or entity, or any one (1) state under this subsection if, as a result of and after giving effect to the investment, the aggregate amount of investments then held in any one (1) fund, enterprise, entity, or state under this subsection would exceed ten percent (10%) of its admitted assets.

(a) The aggregate amount of preferred stocks then held by the insurer under this subsection does not exceed twenty percent (20%) of its admitted assets; and

(b) The aggregate amount of preferred stocks then held by the insurer under this subsection which are not sinking fund stocks or rated P1 or P2 by the SVO does not exceed ten percent (10%) of its admitted assets.