Section 1155 - DiversificationInvestments of an insurer shall be subject to the following diversification requirements and limitations. [1987, c. 399, §14(NEW).]
1.Real estate; personal property; equity interests; subsidiaries. Not more than 40% of the insurer's assets in aggregate amount may consist of investments described in the following paragraphs:A. Real estate, section 1156, subsection 2, paragraph D, subparagraph (1); [1987, c. 399, §14(NEW).]B. Personal property, section 1156, subsection 2, paragraph E; [1987, c. 399, §14(NEW).]C. Equity interests, section 1156, subsection 2, paragraph F; and [1987, c. 399, §14(NEW).]D. Subsidiaries, section 1157, except as provided in that section. [1987, c. 399, §14(NEW).] If, on or after the effective date of this subsection, the insurer makes investments of those types in institutions or property located within the State aggregating 1% or more of its assets, the 40% limitation in this subsection must be increased by an equal amount up to 45%, exclusive of those investments in institutions or property located within the State, thus providing for a maximum limit on the investments described in those paragraphs of 50% of the insurer's assets.
[2023, c. 59, §3(AMD).]
2.Counter-party limitations. Except as otherwise expressly provided, an insurer may not invest in or may not incur counter-party exposure to any one person if, after giving effect to those investments and that counter-party exposure, the aggregate of those investments in and that counter-party exposure to that person would exceed 10% of the insurer's admitted assets, with the following exceptions: A. Government obligations pursuant to section 1156, subsection 2, paragraph A; [2001, c. 524, §3(AMD).]B. Policy loans pursuant to section 1158; and [2001, c. 524, §3(AMD).]C. Index mutual funds, but as to this exception, only with the prior approval of the superintendent and limited to 20% of the insurer's admitted assets. [2001, c. 524, §3(NEW).] [2023, c. 59, §3(AMD).]
3.Other investment limitations. Other investment limitations are as provided in particular sections of this chapter. [2023, c. 59, §3(AMD).]
Amended by 2023SP1, c. 59,§ 3, eff. 10/25/2023.1987, c. 399, § 14 (NEW) . 1999, c. 715, § 11 (AMD) . 2001, c. 524, § 3 (AMD) .