Maine Revised Statutes Title 24-A Sec. 1155 – Diversification
Current as of: 2023 | Check for updates
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Investments of an insurer shall be subject to the following diversification requirements and limitations. [PL 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); [PL 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.
[PL 2023, c. 59, §3 (AMD).]
Terms Used In Maine Revised Statutes Title 24-A Sec. 1155
- Admitted assets: means assets recognized by the superintendent pursuant to section 901?A. See Maine Revised Statutes Title 24-A Sec. 1151-A
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Counter-party: means a business entity that is the other party to an investment practices transaction with an insurer or, as to a securities lending transaction, the custodian bank or agent, if any, acting on behalf of an insurer. See Maine Revised Statutes Title 24-A Sec. 1151-A
- Person: means an individual, business entity, multilateral development bank or a government or quasi-governmental body, such as a political subdivision or a government-sponsored enterprise. See Maine Revised Statutes Title 24-A Sec. 1151-A
- Personal property: All property that is not real property.
- Real estate: includes lands and all tenements and hereditaments connected therewith, and all rights thereto and interests therein. See Maine Revised Statutes Title 1 Sec. 72
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; [PL 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. [PL 2001, c. 524, §3 (NEW).]
[PL 2023, c. 59, §3 (AMD).]
3. Other investment limitations. Other investment limitations are as provided in particular sections of this chapter.
[PL 2023, c. 59, §3 (AMD).]
SECTION HISTORY
PL 1987, c. 399, §14 (NEW). PL 1999, c. 715, §11 (AMD). PL 2001, c. 524, §3 (AMD). PL 2023, c. 59, §3 (AMD).