38.2-1407 - Prohibited investments. - Virginia Statutes

§ 38.2-1407. Prohibited investments.

A. No domestic insurer shall invest in or loan funds secured by:

1. Issued shares of its own capital stock without the Commission's approval.This approval shall be based on an evaluation that indicates the investmentdoes not adversely affect the insurer or its policyholders. The insurer shallnot invest in or own more than twenty percent of its outstanding issuedstock, except for the purpose of mutualization;

2. Securities of an insolvent entity;

3. Securities that, by their terms, will subject the insurer to anyassessment other than for taxes or for wages;

4. Investments that, as determined by the Commission, are designed to evadeany prohibition of this title; or

5. Any obligation or investment prohibited by § 38.2-1411.2.

B. Notwithstanding the provisions of this chapter, the Commission may order adomestic insurer to limit or withdraw from certain investments, ordiscontinue certain investment practices, to the extent the Commission findsthat such investment or investment practice endangers the solvency of theinsurer or is otherwise hazardous to policyholders, creditors or the publicin this Commonwealth.

(1983, c. 457, § 38.1-217.8; 1986, c. 562; 1992, c. 588.)