Kentucky Statutes 304.7-461 – Equity interests in business entities
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(1) Subject to the limitations of KRS § 304.7-455, 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 investments then held by the insurer under this section would exceed the greater of twenty-five percent (25%) of its admitted assets or one hundred percent (100%) of its surplus as regards policyholders.
(3) An insurer shall not acquire under this section any investments that the insurer may acquire under KRS § 304.7-465.
(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. 24, 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 investments then held by the insurer under this section would exceed the greater of twenty-five percent (25%) of its admitted assets or one hundred percent (100%) of its surplus as regards policyholders.
Terms Used In Kentucky Statutes 304.7-461
- 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.
(3) An insurer shall not acquire under this section any investments that the insurer may acquire under KRS § 304.7-465.
(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. 24, effective July 14, 2000.