Kentucky Statutes 304.7-409 – Equity interests in business entities
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(1) Subject to the limitations of KRS § 304.7-403, an insurer may acquire equity interests in business entities organized under the laws of any domestic jurisdiction.
(2) An insurer shall not acquire an investment under this section if, as a result of and after giving effect to the investment, the aggregate amount of investment then held by the insurer under this section would exceed twenty percent (20%) of its admitted assets, or the amount of equity interests then held by the insurer that are not listed on a qualified exchange would exceed five percent (5%) of its admitted assets. An accident and health insurer shall not be subject to this section but shall be subject to the same aggregate limitation on equity interests as a property and casualty insurer under KRS § 304.7-461 and also to the provisions of KRS § 304.7-453.
(3) An insurer shall not acquire under this section any investment that the insurer may acquire under KRS § 304.7-413.
(4) An insurer shall not short sell equity investments unless the insurer covers the short sale by owning the equity investment or an unrestricted right to the equity instrument exercisable within six (6) months of the short sale.
Effective: July 14, 2000
History: Created 2000 Ky. Acts ch. 388, sec. 11, effective July 14, 2000.
(2) An insurer shall not acquire an investment under this section if, as a result of and after giving effect to the investment, the aggregate amount of investment then held by the insurer under this section would exceed twenty percent (20%) of its admitted assets, or the amount of equity interests then held by the insurer that are not listed on a qualified exchange would exceed five percent (5%) of its admitted assets. An accident and health insurer shall not be subject to this section but shall be subject to the same aggregate limitation on equity interests as a property and casualty insurer under KRS § 304.7-461 and also to the provisions of KRS § 304.7-453.
Terms Used In Kentucky Statutes 304.7-409
- Accident and health insurer: means a licensed life or health insurer or health service corporation whose insurance premiums and required statutory reserves for accident and health insurance constitute at least ninety-five percent (95%) of total premium considerations or total statutory required reserves, respectively. See Kentucky Statutes 304.7-012
- 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.
- Domestic: when applied to a corporation, partnership, business trust, or limited liability company, means all those incorporated or formed by authority of this state. See Kentucky Statutes 446.010
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
- Qualified exchange: means :
(a) A securities exchange registered as a national securities exchange, or a securities market regulated under the Securities Exchange Act of 1934 (15
U. See Kentucky Statutes 304.7-012
(3) An insurer shall not acquire under this section any investment that the insurer may acquire under KRS § 304.7-413.
(4) An insurer shall not short sell equity investments unless the insurer covers the short sale by owning the equity investment or an unrestricted right to the equity instrument exercisable within six (6) months of the short sale.
Effective: July 14, 2000
History: Created 2000 Ky. Acts ch. 388, sec. 11, effective July 14, 2000.