§ 38.2-1415. Obligations of domestic governmental entities.
A. United States obligations. A domestic insurer may invest in any bonds,notes, warrants, and other evidences of indebtedness which are directobligations of the United States or for which the full faith and credit ofthe United States are pledged for the payment of principal and interest.
B. United States agencies obligations. A domestic insurer may invest in anybonds, notes, warrants and other evidence of indebtedness which are directobligations for the payment of money, issued by an agency or instrumentalityof the United States, or obligations for the payment of money to the extentguaranteed or insured as to the payment of principal and interest by anagency or instrumentality of the United States.
C. State government obligations. A domestic insurer may invest in direct,general obligations of any state of the United States for the payment ofmoney, or obligations for the payment of money to the extent guaranteed orinsured as to the payment of principal and interest by any state of theUnited States, on the following conditions:
1. The state has the power to levy taxes for the prompt payment of theprincipal and interest of its obligations;
2. The state is not in default in the payment of principal or interest on anyof its direct, guaranteed or insured obligations as of the date of investment;
3. An insurer shall not invest under this subsection more than five percentof its admitted assets in obligations issued or guaranteed by any one state;and
4. An insurer shall not invest under this subsection more than thirty percentof its admitted assets.
D. Local government obligations. A domestic insurer may invest in direct,general obligations of any political subdivision, of any state of the UnitedStates, for the payment of money, or obligations for the payment of money, tothe extent guaranteed as to the payment of principal and interest, by anysuch political subdivision, on the following conditions:
1. The obligations are payable or guaranteed from ad valorem taxes;
2. Such political subdivision is not in default in the payment of principalor interest on any of its direct or guaranteed obligations;
3. No investment shall be made under this subsection in obligations which aresecured only by special assessments for local improvements;
4. An insurer shall not invest more than five percent of its admitted assetsin obligations issued or guaranteed by any one such political subdivision; and
5. An insurer shall not invest more than thirty percent of its admittedassets under this subsection.
E. Anticipation obligations. An insurer may invest in the anticipationobligations of any political subdivision of any state, all within the UnitedStates, including but not limited to bond anticipation notes, taxanticipation notes, preliminary loan anticipation notes, revenue anticipationnotes and construction anticipation notes, for the payment of money withintwelve months from the issuance of the obligation, on the followingconditions:
1. The anticipation notes must be a direct obligation of the issuer underconditions set forth in subsection D of § 38.2-1415;
2. The political subdivision is not in default in the payment of theprincipal or interest on any of its direct general obligations or anyobligation guaranteed by such political subdivision;
3. The anticipation funds shall be specifically pledged to secure theobligation;
4. An insurer shall not invest more than two percent of its admitted assetsin the anticipation obligations issued by any one such political subdivision;and
5. An insurer shall not invest more than ten percent of its admitted assetsunder this subsection.
F. State or municipal revenue obligations. A domestic insurer may invest inobligations of any state of the United States, a political subdivisionthereof, or a public instrumentality of any one or more of the foregoing, forthe payment of money, on the following conditions:
1. The obligations are payable from revenues or earnings of a public utilityof such state, political subdivision, or public instrumentality which arespecifically pledged therefor;
2. The law under which the obligations are issued requires that rates forservice shall be charged and collected at all times such that they willproduce sufficient revenue or earnings which, together with any otherrevenues or moneys pledged, are sufficient to pay all operating andmaintenance charges of the public utility and all principal and interest onsuch obligations;
3. No prior or parity obligations payable from the revenues or earnings ofthat public utility are in default as of the date of the investment;
4. An insurer shall not invest under this subsection more than two percent ofits admitted assets in the revenue obligations issued in connection with anyone facility;
5. An insurer shall not invest under this subsection more than two percent ofits admitted assets in revenue obligations payable from revenue or earningsources which are the contractual responsibility of any one single creditrisk; and
6. An insurer shall not invest under this subsection more than twenty-fivepercent of its admitted assets.
G. Other revenue obligations of state and local governments. A domesticinsurer may invest in other state and local government revenue obligations ofany state of the United States, a political subdivision thereof, or a publicinstrumentality of any of the foregoing, for the payment of money, on thefollowing conditions:
1. The obligations are payable from revenues or earnings, excluding revenuesor earnings from public utilities, specifically pledged therefor by suchstate, political subdivision, or public instrumentality;
2. An insurer shall not invest under this subsection more than two percent ofits admitted assets in the revenue obligations issued in connection with anyone facility;
3. No prior or parity obligation of the same issuer payable from revenues orearnings from the same source has been in default as to principal or interestduring the five years next preceding the date of such investment, but theissuer need not have been in existence for that period, and obligationsacquired under this subsection may have been newly issued;
4. An insurer shall not invest under this subsection more than two percent ofits admitted assets in revenue obligations payable from sources which are thecontractual responsibility of any one single credit risk; and
5. An insurer shall not invest under this subsection more than twenty-fivepercent of its admitted assets.
(1983, c. 457, § 38.1-217.18; 1986, c. 562; 1992, c. 588; 1998, c. 414.)
§ 38.2-1415. Obligations of domestic governmental entities.
A. United States obligations. A domestic insurer may invest in any bonds,notes, warrants, and other evidences of indebtedness which are directobligations of the United States or for which the full faith and credit ofthe United States are pledged for the payment of principal and interest.
B. United States agencies obligations. A domestic insurer may invest in anybonds, notes, warrants and other evidence of indebtedness which are directobligations for the payment of money, issued by an agency or instrumentalityof the United States, or obligations for the payment of money to the extentguaranteed or insured as to the payment of principal and interest by anagency or instrumentality of the United States.
C. State government obligations. A domestic insurer may invest in direct,general obligations of any state of the United States for the payment ofmoney, or obligations for the payment of money to the extent guaranteed orinsured as to the payment of principal and interest by any state of theUnited States, on the following conditions:
1. The state has the power to levy taxes for the prompt payment of theprincipal and interest of its obligations;
2. The state is not in default in the payment of principal or interest on anyof its direct, guaranteed or insured obligations as of the date of investment;
3. An insurer shall not invest under this subsection more than five percentof its admitted assets in obligations issued or guaranteed by any one state;and
4. An insurer shall not invest under this subsection more than thirty percentof its admitted assets.
D. Local government obligations. A domestic insurer may invest in direct,general obligations of any political subdivision, of any state of the UnitedStates, for the payment of money, or obligations for the payment of money, tothe extent guaranteed as to the payment of principal and interest, by anysuch political subdivision, on the following conditions:
1. The obligations are payable or guaranteed from ad valorem taxes;
2. Such political subdivision is not in default in the payment of principalor interest on any of its direct or guaranteed obligations;
3. No investment shall be made under this subsection in obligations which aresecured only by special assessments for local improvements;
4. An insurer shall not invest more than five percent of its admitted assetsin obligations issued or guaranteed by any one such political subdivision; and
5. An insurer shall not invest more than thirty percent of its admittedassets under this subsection.
E. Anticipation obligations. An insurer may invest in the anticipationobligations of any political subdivision of any state, all within the UnitedStates, including but not limited to bond anticipation notes, taxanticipation notes, preliminary loan anticipation notes, revenue anticipationnotes and construction anticipation notes, for the payment of money withintwelve months from the issuance of the obligation, on the followingconditions:
1. The anticipation notes must be a direct obligation of the issuer underconditions set forth in subsection D of § 38.2-1415;
2. The political subdivision is not in default in the payment of theprincipal or interest on any of its direct general obligations or anyobligation guaranteed by such political subdivision;
3. The anticipation funds shall be specifically pledged to secure theobligation;
4. An insurer shall not invest more than two percent of its admitted assetsin the anticipation obligations issued by any one such political subdivision;and
5. An insurer shall not invest more than ten percent of its admitted assetsunder this subsection.
F. State or municipal revenue obligations. A domestic insurer may invest inobligations of any state of the United States, a political subdivisionthereof, or a public instrumentality of any one or more of the foregoing, forthe payment of money, on the following conditions:
1. The obligations are payable from revenues or earnings of a public utilityof such state, political subdivision, or public instrumentality which arespecifically pledged therefor;
2. The law under which the obligations are issued requires that rates forservice shall be charged and collected at all times such that they willproduce sufficient revenue or earnings which, together with any otherrevenues or moneys pledged, are sufficient to pay all operating andmaintenance charges of the public utility and all principal and interest onsuch obligations;
3. No prior or parity obligations payable from the revenues or earnings ofthat public utility are in default as of the date of the investment;
4. An insurer shall not invest under this subsection more than two percent ofits admitted assets in the revenue obligations issued in connection with anyone facility;
5. An insurer shall not invest under this subsection more than two percent ofits admitted assets in revenue obligations payable from revenue or earningsources which are the contractual responsibility of any one single creditrisk; and
6. An insurer shall not invest under this subsection more than twenty-fivepercent of its admitted assets.
G. Other revenue obligations of state and local governments. A domesticinsurer may invest in other state and local government revenue obligations ofany state of the United States, a political subdivision thereof, or a publicinstrumentality of any of the foregoing, for the payment of money, on thefollowing conditions:
1. The obligations are payable from revenues or earnings, excluding revenuesor earnings from public utilities, specifically pledged therefor by suchstate, political subdivision, or public instrumentality;
2. An insurer shall not invest under this subsection more than two percent ofits admitted assets in the revenue obligations issued in connection with anyone facility;
3. No prior or parity obligation of the same issuer payable from revenues orearnings from the same source has been in default as to principal or interestduring the five years next preceding the date of such investment, but theissuer need not have been in existence for that period, and obligationsacquired under this subsection may have been newly issued;
4. An insurer shall not invest under this subsection more than two percent ofits admitted assets in revenue obligations payable from sources which are thecontractual responsibility of any one single credit risk; and
5. An insurer shall not invest under this subsection more than twenty-fivepercent of its admitted assets.
(1983, c. 457, § 38.1-217.18; 1986, c. 562; 1992, c. 588; 1998, c. 414.)
§ 38.2-1415. Obligations of domestic governmental entities.
A. United States obligations. A domestic insurer may invest in any bonds,notes, warrants, and other evidences of indebtedness which are directobligations of the United States or for which the full faith and credit ofthe United States are pledged for the payment of principal and interest.
B. United States agencies obligations. A domestic insurer may invest in anybonds, notes, warrants and other evidence of indebtedness which are directobligations for the payment of money, issued by an agency or instrumentalityof the United States, or obligations for the payment of money to the extentguaranteed or insured as to the payment of principal and interest by anagency or instrumentality of the United States.
C. State government obligations. A domestic insurer may invest in direct,general obligations of any state of the United States for the payment ofmoney, or obligations for the payment of money to the extent guaranteed orinsured as to the payment of principal and interest by any state of theUnited States, on the following conditions:
1. The state has the power to levy taxes for the prompt payment of theprincipal and interest of its obligations;
2. The state is not in default in the payment of principal or interest on anyof its direct, guaranteed or insured obligations as of the date of investment;
3. An insurer shall not invest under this subsection more than five percentof its admitted assets in obligations issued or guaranteed by any one state;and
4. An insurer shall not invest under this subsection more than thirty percentof its admitted assets.
D. Local government obligations. A domestic insurer may invest in direct,general obligations of any political subdivision, of any state of the UnitedStates, for the payment of money, or obligations for the payment of money, tothe extent guaranteed as to the payment of principal and interest, by anysuch political subdivision, on the following conditions:
1. The obligations are payable or guaranteed from ad valorem taxes;
2. Such political subdivision is not in default in the payment of principalor interest on any of its direct or guaranteed obligations;
3. No investment shall be made under this subsection in obligations which aresecured only by special assessments for local improvements;
4. An insurer shall not invest more than five percent of its admitted assetsin obligations issued or guaranteed by any one such political subdivision; and
5. An insurer shall not invest more than thirty percent of its admittedassets under this subsection.
E. Anticipation obligations. An insurer may invest in the anticipationobligations of any political subdivision of any state, all within the UnitedStates, including but not limited to bond anticipation notes, taxanticipation notes, preliminary loan anticipation notes, revenue anticipationnotes and construction anticipation notes, for the payment of money withintwelve months from the issuance of the obligation, on the followingconditions:
1. The anticipation notes must be a direct obligation of the issuer underconditions set forth in subsection D of § 38.2-1415;
2. The political subdivision is not in default in the payment of theprincipal or interest on any of its direct general obligations or anyobligation guaranteed by such political subdivision;
3. The anticipation funds shall be specifically pledged to secure theobligation;
4. An insurer shall not invest more than two percent of its admitted assetsin the anticipation obligations issued by any one such political subdivision;and
5. An insurer shall not invest more than ten percent of its admitted assetsunder this subsection.
F. State or municipal revenue obligations. A domestic insurer may invest inobligations of any state of the United States, a political subdivisionthereof, or a public instrumentality of any one or more of the foregoing, forthe payment of money, on the following conditions:
1. The obligations are payable from revenues or earnings of a public utilityof such state, political subdivision, or public instrumentality which arespecifically pledged therefor;
2. The law under which the obligations are issued requires that rates forservice shall be charged and collected at all times such that they willproduce sufficient revenue or earnings which, together with any otherrevenues or moneys pledged, are sufficient to pay all operating andmaintenance charges of the public utility and all principal and interest onsuch obligations;
3. No prior or parity obligations payable from the revenues or earnings ofthat public utility are in default as of the date of the investment;
4. An insurer shall not invest under this subsection more than two percent ofits admitted assets in the revenue obligations issued in connection with anyone facility;
5. An insurer shall not invest under this subsection more than two percent ofits admitted assets in revenue obligations payable from revenue or earningsources which are the contractual responsibility of any one single creditrisk; and
6. An insurer shall not invest under this subsection more than twenty-fivepercent of its admitted assets.
G. Other revenue obligations of state and local governments. A domesticinsurer may invest in other state and local government revenue obligations ofany state of the United States, a political subdivision thereof, or a publicinstrumentality of any of the foregoing, for the payment of money, on thefollowing conditions:
1. The obligations are payable from revenues or earnings, excluding revenuesor earnings from public utilities, specifically pledged therefor by suchstate, political subdivision, or public instrumentality;
2. An insurer shall not invest under this subsection more than two percent ofits admitted assets in the revenue obligations issued in connection with anyone facility;
3. No prior or parity obligation of the same issuer payable from revenues orearnings from the same source has been in default as to principal or interestduring the five years next preceding the date of such investment, but theissuer need not have been in existence for that period, and obligationsacquired under this subsection may have been newly issued;
4. An insurer shall not invest under this subsection more than two percent ofits admitted assets in revenue obligations payable from sources which are thecontractual responsibility of any one single credit risk; and
5. An insurer shall not invest under this subsection more than twenty-fivepercent of its admitted assets.
(1983, c. 457, § 38.1-217.18; 1986, c. 562; 1992, c. 588; 1998, c. 414.)
