No company shall invest its funds in, or loan them on its own stock without the prior approval of the insurance commissioner. This section shall not prohibit a company from investing its funds in the stock or obligations of its parent company provided that:
I. Such stock shall be valued according to the Securities Valuation Manual of the National Association of Insurance Commissioners.

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II. No company shall hold, at any one time, more than 10 percent of its policyholder surplus, in such stock or obligations.
III. Such stock, in order to qualify under this section, shall be traded on a nationally recognized stock exchange or on the NASDAQ system.