§ 27-20-11 - Investment standards. - Rhode Island Statutes

SECTION 27-20-11

   § 27-20-11  Investment standards. –(a) All nonprofit medical service corporations shall protect the interests ofsubscribers by promoting company solvency and financial strength through theapplication of investment standards that facilitate a reasonable balance of thefollowing objectives:

   (1) To preserve principal;

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

   (3) To allow the nonprofit medical service corporation toallocate 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.