Virginia Code 38.2-1424: Guaranteed stocks.
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A domestic insurer may invest in stocks guaranteed by a solvent company incorporated under the laws of the United States or of any state if for the past three years the guarantor‘s net earnings available for meeting fixed charges is at least 1 1/4 times the sum of (i) the fixed charges of the guarantor and (ii) the dividends on the guaranteed stock.
Terms Used In Virginia Code 38.2-1424
- Company: means any association, aggregate of individuals, business, corporation, individual, joint-stock company, Lloyds type of organization, organization, partnership, receiver, reciprocal or interinsurance exchange, trustee or society. See Virginia Code 38.2-100
- fixed charges: includes contingent interest payments. See Virginia Code 38.2-1401
- Guarantor: A party who agrees to be responsible for the payment of another party's debts should that party default. Source: OCC
- Insurer: means a company licensed pursuant to Chapter 10 (§ Virginia Code 38.2-1401
- State: means any commonwealth, state, territory, district or insular possession of the United States. See Virginia Code 38.2-100
- United States: includes the 50 states, the District of Columbia the Commonwealth of Puerto Rico, Guam, the Northern Mariana Islands and the United States Virgin Islands. See Virginia Code 1-255
1983, c. 457, § 38.1-217.27; 1986, c. 562.