An insurer may invest in:

(1) Bonds, debentures, notes, and other evidences of indebtedness, or participations thereon, issued, assumed, or guaranteed by any solvent institution existing under the laws of the United States of America or Canada, or any state or province thereof, and which bear or accrue interest at a fixed or floating rate;

(2) Secured and unsecured obligations of institutions described in subdivision (1) of this section, bearing or accruing interest at a fixed or floating rate, with mandatory principal and interest due at specified times;

(3) Adjustment, income, or other contingent interest obligations of institutions described in subdivision (1) of this section;

(4) Securities of any (a) open–end or closed–end management type investment company or investment trust fund registered under the Investment Company Act of 1940, as adopted by the director pursuant to rules promulgated pursuant to chapter 1-26, or (b) issuer meeting the requirements of Section 3(c)(1) of the Investment Company Act of 1940, as adopted by the director pursuant to rules promulgated pursuant to chapter 1-26; and

(5) Preferred shares of any solvent institution existing under the laws of the United States of America or Canada, or of any state or province thereof.

If an insurer has an investment in violation of this section, it shall divest itself of the investment pursuant to § 58-27-74.

Source: SL 1966, ch 111, ch 6, § 12 (1); SL 1992, ch 350, § 13; SL 1994, ch 384, § 2; SL 1997, ch 294, § 7.