Kentucky Statutes 304.7-473 – Investment practices that are allowed without regard to limitations of KRS 304.7-451 to 304.7-473
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(1) An insurer may acquire under this section investments, or engage in investment practices, of any kind that are not specifically prohibited by this subtitle, or engage in investment practices, without regard to any limitation in KRS § 304.7-455, 304.7-
457, 304.7-459, 304.7-461, 304.7-463, 304.7-465, 304.7-467, and 304.7-469, but an insurer shall not acquire an investment or engage in an investment practice under this section if, as a result of and after giving effect to the transaction, the aggregate amount of the investments then held by the insurer under this section would exceed the greater of:
(a) Its unrestricted surplus; or
(b) The lesser of:
1. Ten percent (10%) of its admitted assets; or
2. Fifty percent (50%) of its surplus as regards policyholders.
(2) An insurer shall not acquire any investment or engage in any investment practice under paragraph (b) of subsection (1) of this section if, as a result of and after giving effect to the transaction, the aggregate amount of all investments in any one (1) person then held by the insurer under that subsection would exceed five percent (5%) of its admitted assets.
Effective: July 14, 2000
History: Created 2000 Ky. Acts ch. 388, sec. 30, effective July 14, 2000.
457, 304.7-459, 304.7-461, 304.7-463, 304.7-465, 304.7-467, and 304.7-469, but an insurer shall not acquire an investment or engage in an investment practice under this section if, as a result of and after giving effect to the transaction, the aggregate amount of the investments then held by the insurer under this section would exceed the greater of:
Terms Used In Kentucky Statutes 304.7-473
- Admitted assets: means assets permitted to be reported as admitted assets in accordance with Subtitle 6 of KRS Chapter 304 on the statutory financial statement of the insurer most recently required to be filed with the commissioner, but excluding assets of separate accounts. See Kentucky Statutes 304.7-012
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Investment practices: means transactions of the types described in KRS §. See Kentucky Statutes 304.7-012
- Person: means an individual, a business entity, a multilateral development bank, or a government or quasi-governmental body, such as a political subdivision or a government sponsored enterprise. See Kentucky Statutes 304.7-012
- Unrestricted surplus: means the amount by which total admitted assets exceed one hundred twenty-five percent (125%) of the insurer's required liabilities. See Kentucky Statutes 304.7-012
(a) Its unrestricted surplus; or
(b) The lesser of:
1. Ten percent (10%) of its admitted assets; or
2. Fifty percent (50%) of its surplus as regards policyholders.
(2) An insurer shall not acquire any investment or engage in any investment practice under paragraph (b) of subsection (1) of this section if, as a result of and after giving effect to the transaction, the aggregate amount of all investments in any one (1) person then held by the insurer under that subsection would exceed five percent (5%) of its admitted assets.
Effective: July 14, 2000
History: Created 2000 Ky. Acts ch. 388, sec. 30, effective July 14, 2000.