§ 27-11.1-8 - Investment standards. - Rhode Island Statutes

SECTION 27-11.1-8

   § 27-11.1-8  Investment standards. –(a) All domestic insurance companies and United States branches of alieninsurers entered through this state shall protect the interests of insured bypromoting insurer solvency and financial strength through the application ofinvestment standards that facilitate a reasonable balance of the followingobjectives:

   (1) To preserve principal;

   (2) To assure reasonable diversification as to type ofinvestment, issuer and credit quality; and

   (3) To allow insurers to allocate investments in a mannerconsistent with principles of prudent investment management to achieve anadequate return so that obligations to insured are adequately met and financialstrength is sufficient to cover reasonably foreseeable contingencies.

   (b) All investments, including, but not limited to, thosereferred to in this chapter, shall be made and held in accordance with theobjectives in subsection (a) subject to the limitations set forth in thischapter and in regulations promulgated pursuant to this chapter. Investmentsnot conforming to this chapter and any regulations promulgated pursuant to thischapter shall not be considered admitted assets.