17:46B-23 - Statutory premium reserve - New Jersey Statutes

17:46B-23.  Statutory premium reserve
    The statutory premium reserve of a title insurance company may be held as cash on hand or on deposit in banks, or shall be invested only in those classes  of investments authorized by subsections a. through f., i., j., k., m., n. and    o.  , of section 21 of this act, except that not more than 25% of such  reserve may be invested in preferred or guaranteed stock or shares of any  solvent corporation or business trust, incorporated or existing under the laws  of the United States, or of any state, district or territory thereof, whose net  earnings available for its fixed charges during each of the 2 years next  preceding the date of such investment have been, and during the 5 years next  preceding such date shall have averaged, not less than one and one-half times  the sum of its average annual fixed charges, if any, as such fixed charges are  defined in subsection d. of section 21 of this act and its average annual  preferred dividend requirements.  For the purpose of this section such  computation shall refer to the calendar or other fiscal year or years of such  solvent corporation and the term "preferred dividend requirements"  shall  include cumulative and noncumulative dividends.

     L.1975, c. 106, s. 23, eff. May 29, 1975.