§ 38.2-1407. Prohibited investments
A. No domestic insurer shall invest in or loan funds secured by:
1. Issued shares of its own capital stock without the Commission's approval. This approval shall be based on an evaluation that indicates the investment does not adversely affect the insurer or its policyholders. The insurer shall not invest in or own more than twenty percent of its outstanding issued stock, except for the purpose of mutualization;
2. Securities of an insolvent entity;
3. Securities that, by their terms, will subject the insurer to any assessment other than for taxes or for wages;
4. Investments that, as determined by the Commission, are designed to evade any prohibition of this title; or
5. Any obligation or investment prohibited by § 38.2-1411.2.
B. Notwithstanding the provisions of this chapter, the Commission may order a domestic insurer to limit or withdraw from certain investments, or discontinue certain investment practices, to the extent the Commission finds that such investment or investment practice endangers the solvency of the insurer or is otherwise hazardous to policyholders, creditors or the public in this Commonwealth.
(1983, c. 457, § 38.1-217.8; 1986, c. 562; 1992, c. 588.)
Sections: Previous 38.2-1400 38.2-1401 38.2-1402 38.2-1403 38.2-1404 38.2-1405 38.2-1406 38.2-1407 38.2-1408 38.2-1409 38.2-1410 38.2-1411 38.2-1411.1 38.2-1411.2 38.2-1412 NextLast modified: April 16, 2009