(a) Domestic life insurance companies may, directly or indirectly through an investment affiliate, invest in investments and enter into transactions in Canada that are substantially of the same kinds, classes and investment grades as those eligible for investment under § 56-3-303(a); but the aggregate amount of the investments and transactions that are held at any time by the company shall not exceed ten percent (10%) of its admitted assets, except where a greater amount is permitted pursuant to subsection (b), in which case, this subsection (a) shall not be applicable.
Terms Used In Tennessee Code 56-3-304
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: (A) Excluding the assets of separate accounts, the investments of which are not subject to this part. See Tennessee Code 56-3-302
Affiliate: means , as to any person, another person that, directly or indirectly through one (1) or more intermediaries, controls, is controlled by, or is under common control with the person. See Tennessee Code 56-3-302
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.
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, general or limited partnership, joint stock company, joint venture, mutual fund, bank, trust, real estate investment trust, joint tenancy or other similar form of business organization, whether organized for-profit or not-for-profit. See Tennessee Code 56-3-302
Capital and surplus: means the sum of the capital and surplus of the insurer required to be shown on the statutory financial statement of the insurer most recently required to be filed with the commissioner. See Tennessee Code 56-3-302
Foreign: when used without limitation, includes all companies formed by authority of any other state or government. See Tennessee Code 56-1-102
State: includes the several states, the District of Columbia, the Commonwealth of Puerto Rico and the possessions of the United States. See Tennessee Code 56-3-302
(b) Any domestic life insurance company that is authorized to do business in a foreign country or that has outstanding insurance, annuity or reinsurance contracts on lives or risks resident or located in a foreign country may invest in investments and enter into transactions in the foreign country that are substantially of the same kinds, classes and investment grades as those authorized under § 56-3-303(a); but the aggregate amount of the investments and transactions in a foreign country and of cash in the currency of the country that is at any time held by the company shall not, except as provided in subsection (a), exceed one and one half (1.5) times the amount of its reserves and other obligations under the contracts or the amount which the company is required by law to invest in the country, whichever is greater.(c) In addition to the foreign investments authorized under subsections (a) and (b), any domestic life insurance company may, directly or indirectly through an investment affiliate, invest in investments and enter into transactions in foreign jurisdictions that are substantially of the same kinds, classes and investment grades as those authorized under § 56-3-303(a); but the aggregate amount of the investments made and transactions entered into pursuant to this subsection (c) shall not exceed the lesser of five percent (5%) of its admitted assets or the amount by which the capital and surplus of the company exceeds the minimum capital and surplus required for the kind or kinds of insurance the company is authorized to transact in this state.(d) The commissioner may approve a plan for an insurer to make foreign investments and enter into foreign transactions not to exceed an additional fifteen percent (15%) of its admitted assets, if the commissioner determines that the plan contains adequate quality and diversification standards.(e) Investments and transactions authorized under subsections (a)-(d) shall be subject to the limitations on investments in and transactions with any one (1) issuing business entity, or as to asset-backed securities, secured by or evidencing an interest in a single asset or pool of assets, set forth in § 56-3-303(a)(3), (4), (16), (18) and (19) and to the limitations on the aggregate amount of any insurance company’s investments and transactions under § 56-3-303(a)(3), (4), (10), (14)-(16), (18), (20) and (23).(f) No more than ten percent (10%) of the insurer’s admitted assets may be in foreign investments and transactions made under subsections (c) and (d) in the aggregate that are denominated in foreign currency that are not hedged pursuant to § 56-3-303(a)(21).
