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Louisiana Revised Statutes Tit. 22, § 601.6. General limitation on investment in obligations of a single person

Current as of January 01, 2023 | Updated by Findlaw Staff

A. Except as otherwise specified in this Subpart, no insurer shall acquire, except with the consent of the commissioner, an investment pursuant to this Subpart if, as a result of and after giving effect to the investment, the insurer would hold more than five percent of its admitted assets in investments of all kinds issued, assumed, accepted, insured, or guaranteed by a single person.

B. The limitations of Subsection A of this Section shall not apply to the following items:

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

(2) Investments in, or loans upon the security of, general obligations of any state or territory of the United States, or the District of Columbia.

(3) Investments issued by a listed bond fund.

(4) Investments issued by a multilateral development bank pursuant to R.S. 22:601.12(E).

(5) Mortgage loans as provided in R.S. 22:601.9.

(6) Investments in foreign securities pursuant to R.S. 22:601.12(D).

(7) Policy loans made pursuant to R.S. 22:601.16(3).

(8) Subsidiaries authorized under R.S. 22:691.3.

(9) Mutual funds and exchange-traded funds pursuant to R.S. 22:601.8(C)(2).

C. Asset-backed securities shall not be subject to the limitations of Subsection A of this Section. No insurer shall acquire an asset-backed security if, as a result of and after giving effect to the investment, the aggregate amount of asset-backed securities secured by or evidencing an interest in a single asset or single pool of assets held by a trust or other business entity, then held by the insurer would exceed five percent of its admitted assets.

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Cite this article: FindLaw.com - Louisiana Revised Statutes Tit. 22, § 601.6. General limitation on investment in obligations of a single person - last updated January 01, 2023 | https://codes.findlaw.com/la/revised-statutes/la-rev-stat-tit-22-sect-601-6/

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