§ 27-20.3-7 - Investment standards. - Rhode Island Statutes

SECTION 27-20.3-7

   § 27-20.3-7  Investment standards. –(a) All nonprofit prepaid legal service corporations shall protect theinterests of subscribers by promoting company solvency and financial strengththrough the application of investment standards that facilitate a reasonablebalance of the following objectives:

   (1) To preserve principal;

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

   (3) To allow the nonprofit prepaid legal service corporationto allocate investments in a manner consistent with principles of prudentinvestment management to achieve an adequate return so that obligations tosubscribers are adequately met and financial strength is sufficient to coverreasonably 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) of this section subject to the limitations setforth in this chapter and in regulations promulgated pursuant to this chapter.Investments not conforming to this chapter and any regulations promulgatedpursuant to this chapter are not considered admitted assets.