Louisiana Revised Statutes 22:601.8 – A. An insurer may acquire preferred stocks in any United States business entity if, as a result of and after giving effect to the investment:
Terms Used In Louisiana Revised Statutes 22:601.8
- Admitted assets: means assets permitted to be reported as admitted assets on the statutory financial statement of the insurer most recently required to be filed with the commissioner, but excluding assets of separate accounts, the investments of which are not subject to the provisions of this Subpart. See Louisiana Revised Statutes 22:601.1
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Business entity: includes a sole proprietorship, corporation, limited liability company, association, partnership, joint stock company, joint venture, mutual fund, trust, joint tenancy, or other similar form of business organization, whether organized for-profit or not-for-profit. See Louisiana Revised Statutes 22:601.1
- directly: when used in connection with an obligation, means that the designated obligor is primarily liable on the instrument representing the obligation. See Louisiana Revised Statutes 22:601.1
- Exchange-traded fund: means funds registered as open-end investment companies or unit investment trusts under 15 U. See Louisiana Revised Statutes 22:601.1
- Investment company: means an investment company as defined in 15 U. See Louisiana Revised Statutes 22:601.1
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
- Mutual fund: means an investment company or, in the case of an investment company that is organized as a series company, an investment company series, that, in either case, is registered with the United States Securities and Exchange Commission under 15 U. See Louisiana Revised Statutes 22:601.1
- Qualified exchange: means any of the following:
(a) A securities exchange registered as a national securities exchange or a securities market regulated under 15 U. See Louisiana Revised Statutes 22:601.1
A. An insurer may acquire preferred stocks in any United States business entity if, as a result of and after giving effect to the investment:
(1) Securities of a single issuer and its affiliates, other than the government of the United States and subsidiaries authorized pursuant to La. Rev. Stat. 22:691.3, shall not exceed three percent of admitted assets.
(2) The aggregate amount of preferred stocks then held by the insurer under this Subsection does not exceed twenty-five percent of its admitted assets.
B. An insurer may acquire equity interests in solvent business entities meeting any of the following criteria:
(1) Domiciled in the United States.
(2) Domiciled in a foreign jurisdiction if listed on a qualified exchange.
(3) Permitted pursuant to La. Rev. Stat. 22:601.12.
C. An insurer shall not acquire an investment pursuant to this Section if, as a result of and after giving effect to the investment:
(1) The aggregate amount of investments then held by the insurer under this Section, excluding exchange-traded funds and mutual funds, would exceed fifty percent of its admitted assets, or the amount of equity interests then held by the insurer that are not listed on a qualified exchange would exceed five percent of its admitted assets.
(2) The aggregate amount of exchange-traded fund and mutual fund investments then held by the insurer under this Section would exceed the greater of fifty percent of its admitted assets or one hundred percent of its surplus as regards policyholders. The investment in any one fund shall be limited to ten percent of admitted assets.
D. If the commissioner considers it desirable in order to properly evaluate the investment portfolio of an insurer, the commissioner may require that investments in exchange-traded funds, mutual funds, pooled investment vehicles, or other investment companies be treated for purposes of this Subpart as if the investor owned directly its proportional share of the assets owned by the exchange-traded fund, mutual fund, pooled investment vehicle, or investment company.
Acts 2021, No. 165, §1, eff. Jan. 1, 2022.