§ 58-7-185. Prohibited investments and investment underwriting. - North Carolina Statutes

§ 58‑7‑185. Prohibited investments and investment underwriting.

(a)        In addition toinvestments excluded under other provisions of this Chapter, except with priorapproval by the Commissioner, an insurer shall not directly or indirectlyinvest in or lend its funds upon the security of:

(1)        Issued shares of itsown capital stock, except in connection with a plan for purchase of the sharesby the insurer's officers, employees, or agents. No such stock shall, however,constitute an asset of the insurer in any determination of its financialcondition.

(2)        Except with theCommissioner's consent, securities issued by any corporation or enterprise, thecontrolling interest of which is or will after acquisition by the insurer beheld directly or indirectly by the insurer or any combination of the insurerand the insurer's directors, officers, parent corporation, subsidiaries, orcontrolling stockholders. Investments in subsidiaries under G.S. 58‑19‑10are not subject to this provision.

(3)        Repealed by SessionLaws 2001‑223, s. 8.13.

(b)        No insurer shallunderwrite or participate in the underwriting of an offering of securities orproperty by any other person. (1991, c. 681, s. 29; 2001‑223, ss. 8.12, 8.13.)