(a) Any domesticinsurer, either by itself or in cooperation with one or more persons, mayorganize or acquire one or more subsidiaries engaged in the following kinds ofbusiness:
(1) Any kind ofinsurance business authorized by the jurisdiction in which it is incorporated.
(2) Acting as aninsurance broker or as an insurance agent for its parent or for any of itsparent's insurer subsidiaries.
(3) Investing,reinvesting, or trading in securities for its own account, that of its parent,any subsidiary of its parent, or any affiliate or subsidiary.
(4) Management of anyinvestment company subject to or registered pursuant to the federal InvestmentCompany Act of 1940, as amended, including related sales and services.
(5) Acting as a broker‑dealersubject to or registered pursuant to the federal Securities Exchange Act of1934, as amended.
(6) Rendering investmentadvice to governments, government agencies, corporations, or otherorganizations or groups.
(7) Rendering otherservices related to the operations of an insurance business, includingactuarial, loss prevention, safety engineering, data processing, accounting,claims, appraisal, and collection services.
(8) Ownership andmanagement of assets that the parent corporation could itself own or manage.
(9) Acting as anadministrative agent for a governmental instrumentality that is performing aninsurance function.
(10) Financing ofinsurance premiums, agents, and other forms of consumer financing.
(11) Any other businessactivity that is reasonably ancillary to an insurance business.
(12) Owning a corporationor corporations engaged or organized to engage exclusively in one or more ofthe businesses specified in this section.
(b) In addition toinvestments in common stock, preferred stock, debt obligations, and othersecurities permitted under this Chapter, a domestic insurer may also:
(1) Invest, in commonstock, preferred stock, debt obligations, and other securities of one or moresubsidiaries, amounts that do not exceed the lesser of ten percent (10%) of theinsurer's admitted assets or fifty percent (50%) of the insurer's policyholders' surplus, provided that after those investments, the insurer'spolicyholders' surplus will be reasonable in relation to the insurer's outstandingliabilities and adequate to its financial needs. In calculating the amount ofthe investments, investments in domestic or foreign insurance subsidiaries andhealth maintenance organizations shall be excluded, and there shall beincluded: (i) total net monies or other consideration expended and obligationsassumed in the acquisition or formation of a subsidiary, including allorganizational expenses and contributions to capital and surplus of thesubsidiary whether or not represented by the purchase of capital stock orissuance of other securities; and (ii) all amounts expended in acquiringadditional common stock, preferred stock, debt obligations, and othersecurities, and all contributions to the capital or surplus, of a subsidiarysubsequent to its acquisition or formation;
(2) Invest any amount incommon stock, preferred stock, debt obligations and other securities of one ormore subsidiaries engaged or organized to engage exclusively in the ownershipand management of assets authorized as investments for the insurer; providedthat such subsidiary agrees to limit its investments in any asset so that suchinvestments will not cause the amount of the total investment of the insurer toexceed any of the investment limitations specified in subdivision (b)(1) ofthis section or in Article 7 of this Chapter applicable to the insurer. For thepurposes of this section, "the total investment of the insurer"includes: (i) any direct investment by the insurer in an asset; and (ii) theinsurer's proportionate share of any investment in an asset by any subsidiaryof the insurer, which shall be calculated by multiplying the amount of thesubsidiary's investment by the percentage of the ownership of such subsidiary.
(3) With the approval ofthe Commissioner, invest any greater amount in common stock, preferred stock,debt obligations, or other securities of one or more subsidiaries; providedthat after such investment the insurer's policyholders' surplus will bereasonable in relation to the insurer's outstanding liabilities and adequate toits financial needs.
(c) Investments incommon stock, preferred stock, debt obligations, or other securities ofsubsidiaries made pursuant to subsection (b) of this section are not subject toany of the otherwise applicable restrictions or prohibitions contained in thisChapter applicable to such investments of insurers.
(d) Whether anyinvestment pursuant to subsection (b) of this section meets the applicablerequirements of that subsection is to be determined, before such investment ismade, by calculating the applicable investment limitations as though theinvestment had already been made, taking into account the then outstandingprincipal balance on all previous investments in debt obligations, and thevalue of all previous investments in equity securities as of the day they weremade, net of any return of capital invested, not including dividends.
(e) If an insurerceases to control a subsidiary, it shall dispose of any investment therein madepursuant to this section within three years from the time of the cessation ofcontrol or within such further time as the Commissioner may prescribe, (i)unless after cessation of control such investment meets the requirements forinvestment under any other provision of Articles 1 through 64 of this Chapter,or (ii) unless the Commissioner authorizes the insurer to continue theinvestment. (1989,c. 722, s. 1; 1993, c. 504, s. 11; 2001‑223, ss. 16.2, 16.3, 16.4.)
(a) Any domesticinsurer, either by itself or in cooperation with one or more persons, mayorganize or acquire one or more subsidiaries engaged in the following kinds ofbusiness:
(1) Any kind ofinsurance business authorized by the jurisdiction in which it is incorporated.
(2) Acting as aninsurance broker or as an insurance agent for its parent or for any of itsparent's insurer subsidiaries.
(3) Investing,reinvesting, or trading in securities for its own account, that of its parent,any subsidiary of its parent, or any affiliate or subsidiary.
(4) Management of anyinvestment company subject to or registered pursuant to the federal InvestmentCompany Act of 1940, as amended, including related sales and services.
(5) Acting as a broker‑dealersubject to or registered pursuant to the federal Securities Exchange Act of1934, as amended.
(6) Rendering investmentadvice to governments, government agencies, corporations, or otherorganizations or groups.
(7) Rendering otherservices related to the operations of an insurance business, includingactuarial, loss prevention, safety engineering, data processing, accounting,claims, appraisal, and collection services.
(8) Ownership andmanagement of assets that the parent corporation could itself own or manage.
(9) Acting as anadministrative agent for a governmental instrumentality that is performing aninsurance function.
(10) Financing ofinsurance premiums, agents, and other forms of consumer financing.
(11) Any other businessactivity that is reasonably ancillary to an insurance business.
(12) Owning a corporationor corporations engaged or organized to engage exclusively in one or more ofthe businesses specified in this section.
(b) In addition toinvestments in common stock, preferred stock, debt obligations, and othersecurities permitted under this Chapter, a domestic insurer may also:
(1) Invest, in commonstock, preferred stock, debt obligations, and other securities of one or moresubsidiaries, amounts that do not exceed the lesser of ten percent (10%) of theinsurer's admitted assets or fifty percent (50%) of the insurer's policyholders' surplus, provided that after those investments, the insurer'spolicyholders' surplus will be reasonable in relation to the insurer's outstandingliabilities and adequate to its financial needs. In calculating the amount ofthe investments, investments in domestic or foreign insurance subsidiaries andhealth maintenance organizations shall be excluded, and there shall beincluded: (i) total net monies or other consideration expended and obligationsassumed in the acquisition or formation of a subsidiary, including allorganizational expenses and contributions to capital and surplus of thesubsidiary whether or not represented by the purchase of capital stock orissuance of other securities; and (ii) all amounts expended in acquiringadditional common stock, preferred stock, debt obligations, and othersecurities, and all contributions to the capital or surplus, of a subsidiarysubsequent to its acquisition or formation;
(2) Invest any amount incommon stock, preferred stock, debt obligations and other securities of one ormore subsidiaries engaged or organized to engage exclusively in the ownershipand management of assets authorized as investments for the insurer; providedthat such subsidiary agrees to limit its investments in any asset so that suchinvestments will not cause the amount of the total investment of the insurer toexceed any of the investment limitations specified in subdivision (b)(1) ofthis section or in Article 7 of this Chapter applicable to the insurer. For thepurposes of this section, "the total investment of the insurer"includes: (i) any direct investment by the insurer in an asset; and (ii) theinsurer's proportionate share of any investment in an asset by any subsidiaryof the insurer, which shall be calculated by multiplying the amount of thesubsidiary's investment by the percentage of the ownership of such subsidiary.
(3) With the approval ofthe Commissioner, invest any greater amount in common stock, preferred stock,debt obligations, or other securities of one or more subsidiaries; providedthat after such investment the insurer's policyholders' surplus will bereasonable in relation to the insurer's outstanding liabilities and adequate toits financial needs.
(c) Investments incommon stock, preferred stock, debt obligations, or other securities ofsubsidiaries made pursuant to subsection (b) of this section are not subject toany of the otherwise applicable restrictions or prohibitions contained in thisChapter applicable to such investments of insurers.
(d) Whether anyinvestment pursuant to subsection (b) of this section meets the applicablerequirements of that subsection is to be determined, before such investment ismade, by calculating the applicable investment limitations as though theinvestment had already been made, taking into account the then outstandingprincipal balance on all previous investments in debt obligations, and thevalue of all previous investments in equity securities as of the day they weremade, net of any return of capital invested, not including dividends.
(e) If an insurerceases to control a subsidiary, it shall dispose of any investment therein madepursuant to this section within three years from the time of the cessation ofcontrol or within such further time as the Commissioner may prescribe, (i)unless after cessation of control such investment meets the requirements forinvestment under any other provision of Articles 1 through 64 of this Chapter,or (ii) unless the Commissioner authorizes the insurer to continue theinvestment. (1989,c. 722, s. 1; 1993, c. 504, s. 11; 2001‑223, ss. 16.2, 16.3, 16.4.)
(a) Any domesticinsurer, either by itself or in cooperation with one or more persons, mayorganize or acquire one or more subsidiaries engaged in the following kinds ofbusiness:
(1) Any kind ofinsurance business authorized by the jurisdiction in which it is incorporated.
(2) Acting as aninsurance broker or as an insurance agent for its parent or for any of itsparent's insurer subsidiaries.
(3) Investing,reinvesting, or trading in securities for its own account, that of its parent,any subsidiary of its parent, or any affiliate or subsidiary.
(4) Management of anyinvestment company subject to or registered pursuant to the federal InvestmentCompany Act of 1940, as amended, including related sales and services.
(5) Acting as a broker‑dealersubject to or registered pursuant to the federal Securities Exchange Act of1934, as amended.
(6) Rendering investmentadvice to governments, government agencies, corporations, or otherorganizations or groups.
(7) Rendering otherservices related to the operations of an insurance business, includingactuarial, loss prevention, safety engineering, data processing, accounting,claims, appraisal, and collection services.
(8) Ownership andmanagement of assets that the parent corporation could itself own or manage.
(9) Acting as anadministrative agent for a governmental instrumentality that is performing aninsurance function.
(10) Financing ofinsurance premiums, agents, and other forms of consumer financing.
(11) Any other businessactivity that is reasonably ancillary to an insurance business.
(12) Owning a corporationor corporations engaged or organized to engage exclusively in one or more ofthe businesses specified in this section.
(b) In addition toinvestments in common stock, preferred stock, debt obligations, and othersecurities permitted under this Chapter, a domestic insurer may also:
(1) Invest, in commonstock, preferred stock, debt obligations, and other securities of one or moresubsidiaries, amounts that do not exceed the lesser of ten percent (10%) of theinsurer's admitted assets or fifty percent (50%) of the insurer's policyholders' surplus, provided that after those investments, the insurer'spolicyholders' surplus will be reasonable in relation to the insurer's outstandingliabilities and adequate to its financial needs. In calculating the amount ofthe investments, investments in domestic or foreign insurance subsidiaries andhealth maintenance organizations shall be excluded, and there shall beincluded: (i) total net monies or other consideration expended and obligationsassumed in the acquisition or formation of a subsidiary, including allorganizational expenses and contributions to capital and surplus of thesubsidiary whether or not represented by the purchase of capital stock orissuance of other securities; and (ii) all amounts expended in acquiringadditional common stock, preferred stock, debt obligations, and othersecurities, and all contributions to the capital or surplus, of a subsidiarysubsequent to its acquisition or formation;
(2) Invest any amount incommon stock, preferred stock, debt obligations and other securities of one ormore subsidiaries engaged or organized to engage exclusively in the ownershipand management of assets authorized as investments for the insurer; providedthat such subsidiary agrees to limit its investments in any asset so that suchinvestments will not cause the amount of the total investment of the insurer toexceed any of the investment limitations specified in subdivision (b)(1) ofthis section or in Article 7 of this Chapter applicable to the insurer. For thepurposes of this section, "the total investment of the insurer"includes: (i) any direct investment by the insurer in an asset; and (ii) theinsurer's proportionate share of any investment in an asset by any subsidiaryof the insurer, which shall be calculated by multiplying the amount of thesubsidiary's investment by the percentage of the ownership of such subsidiary.
(3) With the approval ofthe Commissioner, invest any greater amount in common stock, preferred stock,debt obligations, or other securities of one or more subsidiaries; providedthat after such investment the insurer's policyholders' surplus will bereasonable in relation to the insurer's outstanding liabilities and adequate toits financial needs.
(c) Investments incommon stock, preferred stock, debt obligations, or other securities ofsubsidiaries made pursuant to subsection (b) of this section are not subject toany of the otherwise applicable restrictions or prohibitions contained in thisChapter applicable to such investments of insurers.
(d) Whether anyinvestment pursuant to subsection (b) of this section meets the applicablerequirements of that subsection is to be determined, before such investment ismade, by calculating the applicable investment limitations as though theinvestment had already been made, taking into account the then outstandingprincipal balance on all previous investments in debt obligations, and thevalue of all previous investments in equity securities as of the day they weremade, net of any return of capital invested, not including dividends.
(e) If an insurerceases to control a subsidiary, it shall dispose of any investment therein madepursuant to this section within three years from the time of the cessation ofcontrol or within such further time as the Commissioner may prescribe, (i)unless after cessation of control such investment meets the requirements forinvestment under any other provision of Articles 1 through 64 of this Chapter,or (ii) unless the Commissioner authorizes the insurer to continue theinvestment. (1989,c. 722, s. 1; 1993, c. 504, s. 11; 2001‑223, ss. 16.2, 16.3, 16.4.)
