§ 58-7-167. General qualifications. - North Carolina Statutes

§58‑7‑167.  General qualifications.

(a)        No security orinvestment, other than real or personal property acquired under G.S. 58‑7‑187,is eligible for acquisition unless it is interest‑bearing or interest‑accruing,is entitled to receive dividends if and when declared and paid, or is otherwiseincome‑producing, is not then in default in any respect, and the insureris entitled to receive for its exclusive account and benefit the interest orincome accruing thereon.

(b)        No security orinvestment shall be eligible for purchase at a price above its market valueunless it is approved by the Commissioner and is valued in accordance withvaluation procedures of the NAIC that have been adopted by the Commissioner.

(c)        This Chapter doesnot prohibit the acquisition by an insurer of other or additional securities orproperty if received as a dividend, as a lawful distribution of assets, orunder a lawful and bona fide agreement of bulk reinsurance, merger, orconsolidation.  Any investment so acquired that is not otherwise eligible underthis Chapter shall be disposed of under G.S. 58‑7‑188 if theinvestment is in property or securities. (1991, c. 681, s. 29.)