Terms Used In Louisiana Revised Statutes 22:601.6

  • 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
  • Asset-backed security: means a security or other instrument, excluding a mutual fund and mortgage-backed securities, evidencing an interest in, or the right to receive payments from, or payable from distributions on, an asset, a pool of assets or specifically divisible cash flows which are legally transferred to a trust or another special purpose bankruptcy-remote business entity, on both of the following conditions:

                (a) The trust or other business entity is established solely for the purpose of acquiring specific types of assets or rights to cash flows, issuing securities and other instruments representing an interest in or right to receive cash flows from those assets or rights, and engaging in activities required to service the assets or rights and any credit enhancement or support features held by the trust or other business entity. 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
  • Government sponsored enterprise: means any of the following:

                (a) Governmental agency. See Louisiana Revised Statutes 22:601.1

  • Listed bond fund: means a mutual fund, or an exchange-traded fund, that at all times is listed as eligible for reporting as a long-term bond within the Purposes and Procedures Manual of the NAIC Investment Analysis Office or any successor publication. See Louisiana Revised Statutes 22:601.1
  • Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
  • Multilateral development bank: means an international development organization of which the United States is a member. See Louisiana Revised Statutes 22:601.1
  • Person: means an individual, a business entity, a multilateral development bank, or a government or quasi-governmental body, such as a political subdivision or a government-sponsored enterprise. See Louisiana Revised Statutes 22:601.1
  • State: means a state, territory, or possession of the United States of America, the District of Columbia, or the Commonwealth of Puerto Rico. See Louisiana Revised Statutes 22:601.1

            A. Except as otherwise specified in this Subpart, no insurer shall acquire, except with the consent of the commissioner, an investment pursuant to this Subpart if, as a result of and after giving effect to the investment, the insurer would hold more than five percent of its admitted assets in investments of all kinds issued, assumed, accepted, insured, or guaranteed by a single person.

            B. The limitations of Subsection A of this Section shall not apply to the following items:

            (1) Investments issued, assumed, guaranteed, or insured by the United States, or a government sponsored enterprise of the United States, if the instruments are otherwise backed or supported by the full faith and credit of the United States.

            (2) Investments in, or loans upon the security of, general obligations of any state or territory of the United States, or the District of Columbia.

            (3) Investments issued by a listed bond fund.

            (4) Investments issued by a multilateral development bank pursuant to La. Rev. Stat. 22:601.12(E).

            (5) Mortgage loans as provided in La. Rev. Stat. 22:601.9.

            (6) Investments in foreign securities pursuant to La. Rev. Stat. 22:601.12(D).

            (7) Policy loans made pursuant to La. Rev. Stat. 22:601.16(3).

            (8) Subsidiaries authorized under La. Rev. Stat. 22:691.3.

            (9) Mutual funds and exchange-traded funds pursuant to La. Rev. Stat. 22:601.8(C)(2).

            C. Asset-backed securities shall not be subject to the limitations of Subsection A of this Section. No insurer shall acquire an asset-backed security if, as a result of and after giving effect to the investment, the aggregate amount of asset-backed securities secured by or evidencing an interest in a single asset or single pool of assets held by a trust or other business entity, then held by the insurer would exceed five percent of its admitted assets.

            Acts 2021, No. 165, §1, eff. Jan. 1, 2022.

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