§ 27-11.1-4 - Maximum investments in affiliated or subsidiary companies. - Rhode Island Statutes

SECTION 27-11.1-4

   § 27-11.1-4  Maximum investments inaffiliated or subsidiary companies. – A domestic insurance company may invest in securities of affiliated insurancecompanies or subsidiary insurance companies; provided, that any investment insecurities of affiliated insurance companies or subsidiary insurance companiesshall not exceed in the aggregate fifty percent (50%) of the domestic insurancecompany's surplus. A domestic insurance company may invest in securities ofaffiliated noninsurance companies or subsidiary noninsurance companies inamounts which do not exceed the lesser of ten percent (10%) of the insurer'sassets or fifty percent (50%) of the insurer's surplus as regardspolicyholders; provided, that after the investments, the insurer's surplus asregards policyholders will be reasonable in relation to the insurer'soutstanding liabilities and adequate to its financial needs. In no event maythe aggregate investment in securities of insurance or noninsurance affiliatesor subsidiary companies exceed fifty percent (50%) of the domestic insurancecompany's surplus.