Section 26-7-102 - Definitions of terms used in chapter; determination of net earnings(a) As used in this chapter: (i) "Fixed charges" means interest on funded and unfunded debt amortization of debt discount and rentals for leased properties;(ii) "Institution" means corporations, joint-stock associations and business trusts;(iii) "Net earnings available for fixed charges" means net income after deducting operating and maintenance expenses, taxes, other than federal and state income taxes, depreciation and depletion, but excluding extraordinary nonrecurring items of income or expense appearing in the regular financial statements of the institutions involved;(iv) "Obligations" means bonds, debentures, notes or other evidences of indebtedness;(v) "Domestic jurisdiction" means the United States and Canada and includes any state, province or political subdivision of the United States or Canada;(vi) "Foreign jurisdiction" means a jurisdiction other than a domestic jurisdiction;(vii) "Foreign investment" means an investment in a foreign jurisdiction, or an investment in a person, real estate or asset domiciled in a foreign jurisdiction. Each of the following apply to this paragraph:(A) An investment shall not be deemed to be foreign if the issuing person, qualified primary credit source or qualified guarantor is a domestic jurisdiction or a person domiciled in a domestic jurisdiction, unless: (I) The issuing person is a shell business entity; and(II) The investment is not assumed, accepted, guaranteed or insured or otherwise backed by a domestic jurisdiction or a person, that is not a shell business entity, domiciled in a domestic jurisdiction.(B) For purposes of this paragraph: (I) "Qualified guarantor" means a guarantor against which an insurer has a direct claim for full and timely payment, evidenced by a contractual right for which an enforcement action can be brought in a domestic jurisdiction;(II) "Qualified primary credit source" means the credit source to which an insurer looks for payment as to an investment and against which an insurer has a direct claim for full and timely payment, evidenced by a contractual right for which an enforcement action can be brought in a domestic jurisdiction;(III) "Shell business entity" means a business entity having no economic substance except as a vehicle for owning interests in assets issued, owned or previously owned by a person domiciled in a foreign jurisdiction.(viii) "High grade investment" means a credit instrument rated one (1) or two (2) by the securities valuation office;(ix) "Securities valuation office" means the securities valuation office of the National Association of Insurance Commissioners, or any successor office established by the National Association of Insurance Commissioners.(b) If net earnings are determined in reliance upon consolidated earnings statements of parent and subsidiary institutions, those net earnings shall be determined after provision for income taxes of subsidiaries and after proper allowance for minority stock interest if any. The required coverage of fixed charges shall be computed on a basis including fixed charges and preferred dividends of subsidiaries other than those payable by the subsidiaries to the parent corporation or to any other of the subsidiaries, except that if the minority common stock interest in the subsidiary corporation is substantial, the fixed charges and preferred dividends may be apportioned in accordance with regulations the commissioner prescribes.Amended by Laws 2022 , ch. 23, § 1, eff. 7/1/2022.