38.2-1406 - Investment conversions. - Virginia Statutes

§ 38.2-1406. Investment conversions.

Investments converted to a new form and resulting in a different investmentclassification under § 38.2-1402, at the election of the insurer, shallretain their previous investment classification for a period not exceedingthree years unless the Commission prescribes in writing that a longer periodis reasonable. Any prohibited investments shall be divested within thatperiod. The investment conversions shall include those resulting (i) frominvestments acquired in satisfaction of or on account of loans, mortgages,liens, judgments, or other debts previously owing to the insurer in thecourse of its business, or (ii) from investments acquired through lawfuldistributions of assets, lawful plans of reorganization, or lawful and bonafide agreements of bulk reinsurance or of consolidation.

(1983, c. 457, § 38.1-217.7; 1986, c. 562.)