38.2-1423 - Preferred stocks. - Virginia Statutes

§ 38.2-1423. Preferred stocks.

A domestic insurer may invest in preferred stocks of any company incorporatedunder the laws of the United States or any state if:

1. a. The preferred stock under consideration is not in arrears as todividends if cumulative, or

b. Full dividends on the preferred stock under consideration have been paidin the last three years, or since issue if issued less than three yearsbefore the date of investment, if noncumulative;

2. Required sinking fund payments are on a current basis; and

3. The preferred stock is rated highest quality, high quality, or mediumquality by the Securities Valuation Office of the National Association ofInsurance Commissioners, or if not rated by the Securities Valuation Office,is rated in an equivalent grade by a national rating agency recognized by theCommission.

(1983, c. 457, § 38.1-217.26; 1986, c. 562; 1998, c. 414; 2008, c. 93.)