Vermont Statutes Title 8 Sec. 3461c
Terms Used In Vermont Statutes Title 8 Sec. 3461c
- Admitted assets: means assets permitted to be reported as admitted assets on the annual statutory financial statement of the insurer for the next preceding year or as shown by a current financial statement. See
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Canada: means Canada, any province of Canada, or any political subdivision of Canada. See
- Guaranteed: means that the guarantor will perform the obligation of the obligor or will purchase the obligation to the extent of the guaranty. See
- Listed bond mutual fund: means a mutual fund that at all times qualifies for inclusion on the "bond fund list" within the Purposes and Procedures of the NAIC Investment Analysis Office or any successor publication. See
- Money market mutual fund: means a mutual fund that meets the conditions of 17 C. See
- State: when applied to the different parts of the United States may apply to the District of Columbia and any territory and the Commonwealth of Puerto Rico. See
- SVO: means the Securities Valuation Office of the NAIC or any successor office established by the NAIC. See
§ 3461c. Rated credit investments
Subject to the limitations of subdivision (6) of this section, an insurer may acquire rated credit instruments.
(1) Subject to applicable limitations of subsection 3461a(b) or 3461b(b) of this subchapter, but not the limitations of subsection 3461a(a) or 3461b(a), an insurer may acquire rated credit instruments issued, assumed, guaranteed or insured by:
(A) the United States; or
(B) a government-sponsored enterprise of the United States, if the instruments of the government-sponsored enterprise are assumed, guaranteed, or insured by the United States or are otherwise backed or supported by the full faith and credit of the United States.
(2) Subject to applicable limitations of subsection 3461a(b) or 3461b(b) of this subchapter, but not the limitations of subsection 3461a(a) or 3461b(a), an insurer may acquire rated credit instruments issued, assumed, guaranteed or insured by:
(A) Canada; or
(B) a government-sponsored enterprise of Canada, if the instruments of the government-sponsored enterprise are assumed, guaranteed, or insured by Canada or are otherwise backed or supported by the full faith and credit of Canada;
(C) an insurer shall not acquire an instrument under this subdivision if, as a result of and after giving effect to the investment, the aggregate amount of investments then held by the insurer under this subdivision would exceed 40 percent of its admitted assets.
(3)(A) Subject to applicable limitations of subsection 3461a(b) or 3461b(b) of this subchapter, but not the limitations of subsection 3461a(a) or 3461b(a), an insurer may acquire rated credit instruments, excluding asset-backed securities:
(i) issued by a government money market mutual fund or a listed bond mutual fund;
(ii) issued, assumed, guaranteed, or insured by a government-sponsored enterprise of the United States other than those eligible under subdivision (i) of this subdivision (3)(A);
(iii) issued, assumed, guaranteed, or insured by a state, if the instruments are general obligations of the state; or
(iv) issued by a multilateral development bank.
(B) However, an insurer shall not acquire an instrument of any one fund, any one enterprise or entity or any one state under this section if, as a result of and after giving effect to the investment, the aggregate amount of investments then held in any one fund, enterprise, or entity or state under this subdivision would exceed 10 percent of its admitted assets.
(4) Subject to the applicable limitations of section 3461a or 3461b of this subchapter, an insurer may acquire preferred stocks that are not foreign investments and that meet the requirements of rated credit instruments if, as a result of and after giving effect to the investment:
(A) the aggregate amount of preferred stocks then held by the insurer under this subdivision does not exceed 20 percent of its admitted assets; and
(B) the aggregate amount of preferred stocks then held by the insurer under this subdivision which are not sinking fund stocks or rated P1 or P2 by the SVO does not exceed 10 percent of its admitted assets or does not meet or continue not to meet the conditions for exemption as provided in section 3461d of this title.
(5) Subject to the applicable limitations of section 3461a or 3461b of this subchapter, in addition to those investments eligible under subdivisions (1), (2), (3), and (4) of this section, an insurer may acquire rated credit instruments that are not foreign investments.
(6) An insurer shall not acquire special rated credit instruments under this section if, as a result of and after giving effect to the investment, the aggregate amount of special rated credit instruments then held by the insurer would exceed five percent of its admitted assets. (Added 1999, No. 84 (Adj. Sess.), § 4, eff. April 19, 2000; amended 2017, No. 134 (Adj. Sess.), § 3.)