SSB 3108

This bill relates to the investment of funds by life insurance companies and associations. “Credit instrument” is defined in the bill as an investment that is qualified as a bond under the accounting practices and procedures manual, and includes asset-backed securities, bank loans, and SVO-listed funds that have an SVO designation, and that qualify as a bond under the manual.8(1) and (9) to conform with that definition. The bill prohibits an insurer that files an annual statement and completes the NAIC health statement test from acquiring an investment if, as a result of the investment, the aggregate amount of investments held by the insurer will exceed percent of the insurer’s assets. 8(12)(a). Under the bill, an insurer may acquire such obligations either directly or through a business entity where the sole purpose of the business entity is to hold mortgages that qualify for investment. The bill permits an insurer to acquire collateral loans or other debt securities secured by collateral consisting of any permitted assets or investments provided that the amount of the loan is not in excess of percent of the value of the collateral at the time of acquisition.33A.