Florida Regulations 69O-162.011: Investments
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Every domestic life insurance company which issues variable annuity contracts shall be permitted to invest and reinvest amounts received in connection with such variable contracts in common stocks, subject to the following limitations:
(1) All such common stock investments shall be in stock which is listed or admitted to trading on a securities exchange located in the United States of America, or which is publicly held and has been traded in the “”over the counter market”” for not less than one year preceding the date of purchase of such stock and as to which stock market quotations have been readily available for such one year period.
(2) No domestic life insurance company which issues variable annuity contracts shall invest more than five percent of all of the amounts received in connection with such contracts in the securities of any one corporation or issuer.
(3) No domestic life insurance company which issues variable annuity contracts shall as a result of investing any or all of the amounts received in connection with such contracts, beneficially own or hold, together with the investments permitted under Section 625.305(2)(a), Florida Statutes, more than fifteen percent of the outstanding securities of any one corporation or issuer. Any foreign life insurance company which issues variable annuity contracts in this state and which invests the amounts received in connection with such contracts in accordance with the laws of its state of domicile, shall be held to be in compliance with this section.
(4) No domestic life insurance company shall invest in the common stock of any corporation if such investment shall create a conflict of interest between officers and directors of the investing company and those of the corporation whose stock is purchased.
Specific Authority 627.805 FS. Law Implemented 625.302, 625.305, 627.804 FS. History-Repromulgated 12-24-74, Formerly 4-10.11, 4-10.011, 4-162.011.
Terms Used In Florida Regulations 69O-162.011
- Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
(2) No domestic life insurance company which issues variable annuity contracts shall invest more than five percent of all of the amounts received in connection with such contracts in the securities of any one corporation or issuer.
(3) No domestic life insurance company which issues variable annuity contracts shall as a result of investing any or all of the amounts received in connection with such contracts, beneficially own or hold, together with the investments permitted under Section 625.305(2)(a), Florida Statutes, more than fifteen percent of the outstanding securities of any one corporation or issuer. Any foreign life insurance company which issues variable annuity contracts in this state and which invests the amounts received in connection with such contracts in accordance with the laws of its state of domicile, shall be held to be in compliance with this section.
(4) No domestic life insurance company shall invest in the common stock of any corporation if such investment shall create a conflict of interest between officers and directors of the investing company and those of the corporation whose stock is purchased.
Specific Authority 627.805 FS. Law Implemented 625.302, 625.305, 627.804 FS. History-Repromulgated 12-24-74, Formerly 4-10.11, 4-10.011, 4-162.011.