24-A §1155. Diversification - Maine Statutes

Title 24-A: MAINE INSURANCE CODE

Chapter 13-A: INVESTMENTS OF LIFE INSURERS AND LIFE AND HEALTH INSURERS HEADING: PL 1987, C. 399, §14 (NEW)

§1155. Diversification

Investments of an insurer shall be subject to the following diversification requirements and limitations. [1987, c. 399, §14 (NEW).]

1. Real estate; personal property; equity interests; subsidiaries. Not more than 40% of the insurer's assets in aggregate amount may consist of investments described in the following subdivisions:

A. Real estate, section 1156, subsection 2, paragraph D, subparagraph (1); [1987, c. 399, §14 (NEW).]

B. Personal property, section 1156, subsection 2, paragraph E; [1987, c. 399, §14 (NEW).]

C. Equity interests, section 1156, subsection 2, paragraph F; and [1987, c. 399, §14 (NEW).]

D. Subsidiaries, section 1157, except as provided in that section. [1987, c. 399, §14 (NEW).]

If, on or after the effective date of this subsection, the insurer makes investments of those types in institutions or property located within the State aggregating 1% or more of its assets, the 40% limitation in this subsection shall be increased by an equal amount up to 45%, exclusive of those investments in institutions or property located within the State, thus providing for a maximum limit on the investments described in those subdivisions of 50% of the insurer's assets.

[ 1987, c. 399, §14 (NEW) .]

2. Government obligations; policy loans; other limitations. Except as otherwise expressly provided, an insurer may not invest in or may not incur counter-party exposure to any one person if, after giving effect to those investments and that counter-party exposure, the aggregate of those investments in and that counter-party exposure to that person would exceed 10% of the insurer's admitted assets, with the following exceptions:

A. Government obligations pursuant to section 1156, subsection 2, paragraph A; [2001, c. 524, §3 (AMD).]

B. Policy loans pursuant to section 1158; and [2001, c. 524, §3 (AMD).]

C. Index mutual funds, but as to this exception, only with the prior approval of the superintendent and limited to 20% of the insurer's admitted assets. [2001, c. 524, §3 (NEW).]

[ 2001, c. 524, §3 (AMD) .]

3. Other investment limitations shall be as provided in particular sections of this chapter.

[ 1987, c. 399, §14 (NEW) .]

SECTION HISTORY

1987, c. 399, §14 (NEW). 1999, c. 715, §11 (AMD). 2001, c. 524, §3 (AMD).