A. A domestic insurer may invest in real estate, as set forth in subsectionsB, C and D of this section, unless the property is to be used primarily foragricultural, horticultural, ranch, recreational, amusement or club purposes.The term "real estate" as used in this section shall include a leasehold ofreal estate having an unexpired term of not less than twenty years.
B. A domestic insurer may invest in dwellings, offices and other properties(including leasehold estates) for the production of income, other than realestate which is the subject of subsection C, situated in the United States,and the construction thereon of improvements, under the following conditions:
1. The insurer shall either directly or through a land trust own the entireproperty, except that it may share ownership with one or more insurersauthorized to do business in this state, or other business entities,excluding sole proprietorships, having a net worth of at least five milliondollars under agreements that will assume concerted action in management andcontrol of the property in case of the insolvency of any participatingcompany, provided that each investment made pursuant to this subsection bythe insurer and by each participant shall not be less than $100,000;
2. The insurer alone or in conjunction with participants qualified undersubdivision B 1 may let contracts for construction and pay costs ofconstruction and leasing, hold, maintain, lease, and manage the property,collect rents and other income therefrom, and sell the property in whole orin part;
3. The property may be encumbered by lease to tenants and by rights-of-way,easements, mineral reservations, building restrictions, and restrictivecovenants, provided none of them can interfere substantially with the use ofthe property or result in a forfeiture of the property, unless a policy oftitle insurance, issued by a responsible title insurer qualified to dobusiness in the state wherein the property is located, insures the insureragainst loss or damage arising from such encumbrances or reversionary rights;and
4. An insurer shall not invest under this subsection more than four percentof its admitted assets in any one property or in any one grouping ofcontiguous properties.
C. A domestic insurer may invest in real estate, including leasehold estates,for the convenient accommodation of the insurer's business operations,including home office, branch office and field office operations, under thefollowing conditions:
1. Any parcel of real estate acquired under this subsection may includeexcess space for rent to others if it is reasonably anticipated that theexcess will be required by the insurer for expansion or if the excess isreasonably required in order to have one or more buildings that will functionas an economic unit;
2. The real estate may be subject to a mortgage;
3. An insurer shall not invest under this subsection more than ten percent ofthe insurer's admitted assets, except with the permission of the Commissionif it is found that such percentage of the insurer's admitted assets isinsufficient to provide convenient accommodation for the insurer's business;and
4. The permission of the Commission shall be obtained by an insurer prior tothe purchase of any real estate under this subsection if the insurer has beenauthorized in this Commonwealth for a period of less than five years.
D. Real property serving as the residence of an employee of any domesticinsurer, other than a director or trustee of the insurer, may be acquiredonly in connection with the (i) relocation by the insurer of the place ofemployment of the employee, or (ii) any relocation in connection with theinitial employment of the employee. The purchase price shall not exceed thefair market value of the property as determined by written appraisals of atleast two competent independent real estate appraisers for the purpose of theacquisition. The employee shall have made reasonable efforts otherwise todispose of the property for a period of not less than one month immediatelyprior to the acquisition.
(1983, c. 457, § 38.1-217.44; 1986, c. 562; 1992, c. 588.)
A. A domestic insurer may invest in real estate, as set forth in subsectionsB, C and D of this section, unless the property is to be used primarily foragricultural, horticultural, ranch, recreational, amusement or club purposes.The term "real estate" as used in this section shall include a leasehold ofreal estate having an unexpired term of not less than twenty years.
B. A domestic insurer may invest in dwellings, offices and other properties(including leasehold estates) for the production of income, other than realestate which is the subject of subsection C, situated in the United States,and the construction thereon of improvements, under the following conditions:
1. The insurer shall either directly or through a land trust own the entireproperty, except that it may share ownership with one or more insurersauthorized to do business in this state, or other business entities,excluding sole proprietorships, having a net worth of at least five milliondollars under agreements that will assume concerted action in management andcontrol of the property in case of the insolvency of any participatingcompany, provided that each investment made pursuant to this subsection bythe insurer and by each participant shall not be less than $100,000;
2. The insurer alone or in conjunction with participants qualified undersubdivision B 1 may let contracts for construction and pay costs ofconstruction and leasing, hold, maintain, lease, and manage the property,collect rents and other income therefrom, and sell the property in whole orin part;
3. The property may be encumbered by lease to tenants and by rights-of-way,easements, mineral reservations, building restrictions, and restrictivecovenants, provided none of them can interfere substantially with the use ofthe property or result in a forfeiture of the property, unless a policy oftitle insurance, issued by a responsible title insurer qualified to dobusiness in the state wherein the property is located, insures the insureragainst loss or damage arising from such encumbrances or reversionary rights;and
4. An insurer shall not invest under this subsection more than four percentof its admitted assets in any one property or in any one grouping ofcontiguous properties.
C. A domestic insurer may invest in real estate, including leasehold estates,for the convenient accommodation of the insurer's business operations,including home office, branch office and field office operations, under thefollowing conditions:
1. Any parcel of real estate acquired under this subsection may includeexcess space for rent to others if it is reasonably anticipated that theexcess will be required by the insurer for expansion or if the excess isreasonably required in order to have one or more buildings that will functionas an economic unit;
2. The real estate may be subject to a mortgage;
3. An insurer shall not invest under this subsection more than ten percent ofthe insurer's admitted assets, except with the permission of the Commissionif it is found that such percentage of the insurer's admitted assets isinsufficient to provide convenient accommodation for the insurer's business;and
4. The permission of the Commission shall be obtained by an insurer prior tothe purchase of any real estate under this subsection if the insurer has beenauthorized in this Commonwealth for a period of less than five years.
D. Real property serving as the residence of an employee of any domesticinsurer, other than a director or trustee of the insurer, may be acquiredonly in connection with the (i) relocation by the insurer of the place ofemployment of the employee, or (ii) any relocation in connection with theinitial employment of the employee. The purchase price shall not exceed thefair market value of the property as determined by written appraisals of atleast two competent independent real estate appraisers for the purpose of theacquisition. The employee shall have made reasonable efforts otherwise todispose of the property for a period of not less than one month immediatelyprior to the acquisition.
(1983, c. 457, § 38.1-217.44; 1986, c. 562; 1992, c. 588.)
A. A domestic insurer may invest in real estate, as set forth in subsectionsB, C and D of this section, unless the property is to be used primarily foragricultural, horticultural, ranch, recreational, amusement or club purposes.The term "real estate" as used in this section shall include a leasehold ofreal estate having an unexpired term of not less than twenty years.
B. A domestic insurer may invest in dwellings, offices and other properties(including leasehold estates) for the production of income, other than realestate which is the subject of subsection C, situated in the United States,and the construction thereon of improvements, under the following conditions:
1. The insurer shall either directly or through a land trust own the entireproperty, except that it may share ownership with one or more insurersauthorized to do business in this state, or other business entities,excluding sole proprietorships, having a net worth of at least five milliondollars under agreements that will assume concerted action in management andcontrol of the property in case of the insolvency of any participatingcompany, provided that each investment made pursuant to this subsection bythe insurer and by each participant shall not be less than $100,000;
2. The insurer alone or in conjunction with participants qualified undersubdivision B 1 may let contracts for construction and pay costs ofconstruction and leasing, hold, maintain, lease, and manage the property,collect rents and other income therefrom, and sell the property in whole orin part;
3. The property may be encumbered by lease to tenants and by rights-of-way,easements, mineral reservations, building restrictions, and restrictivecovenants, provided none of them can interfere substantially with the use ofthe property or result in a forfeiture of the property, unless a policy oftitle insurance, issued by a responsible title insurer qualified to dobusiness in the state wherein the property is located, insures the insureragainst loss or damage arising from such encumbrances or reversionary rights;and
4. An insurer shall not invest under this subsection more than four percentof its admitted assets in any one property or in any one grouping ofcontiguous properties.
C. A domestic insurer may invest in real estate, including leasehold estates,for the convenient accommodation of the insurer's business operations,including home office, branch office and field office operations, under thefollowing conditions:
1. Any parcel of real estate acquired under this subsection may includeexcess space for rent to others if it is reasonably anticipated that theexcess will be required by the insurer for expansion or if the excess isreasonably required in order to have one or more buildings that will functionas an economic unit;
2. The real estate may be subject to a mortgage;
3. An insurer shall not invest under this subsection more than ten percent ofthe insurer's admitted assets, except with the permission of the Commissionif it is found that such percentage of the insurer's admitted assets isinsufficient to provide convenient accommodation for the insurer's business;and
4. The permission of the Commission shall be obtained by an insurer prior tothe purchase of any real estate under this subsection if the insurer has beenauthorized in this Commonwealth for a period of less than five years.
D. Real property serving as the residence of an employee of any domesticinsurer, other than a director or trustee of the insurer, may be acquiredonly in connection with the (i) relocation by the insurer of the place ofemployment of the employee, or (ii) any relocation in connection with theinitial employment of the employee. The purchase price shall not exceed thefair market value of the property as determined by written appraisals of atleast two competent independent real estate appraisers for the purpose of theacquisition. The employee shall have made reasonable efforts otherwise todispose of the property for a period of not less than one month immediatelyprior to the acquisition.
(1983, c. 457, § 38.1-217.44; 1986, c. 562; 1992, c. 588.)
