(a) (1) A domestic insurer, subject to this subchapter, either by itself or in cooperation with one (1) or more persons, may organize or acquire one (1) or more subsidiaries.(2) (A) The subsidiaries under subdivision (a)(1) of this section may conduct any kind of business authorized by state law.(B) Being a subsidiary of a domestic insurer does not limit the authority of the subsidiary to conduct business.
(1) A domestic insurer, subject to this subchapter, either by itself or in cooperation with one (1) or more persons, may organize or acquire one (1) or more subsidiaries.
(2) (A) The subsidiaries under subdivision (a)(1) of this section may conduct any kind of business authorized by state law.(B) Being a subsidiary of a domestic insurer does not limit the authority of the subsidiary to conduct business.
(A) The subsidiaries under subdivision (a)(1) of this section may conduct any kind of business authorized by state law.
(B) Being a subsidiary of a domestic insurer does not limit the authority of the subsidiary to conduct business.
(b) In addition to investments in common stock, preferred stock, debt obligations, and other securities permitted under this subchapter, a domestic insurer may:(1) (A) Invest in common stock, preferred stock, debt obligations, and other securities of one (1) or more subsidiaries in amounts that do not exceed the lesser of ten percent (10%) of the domestic insurer's assets or fifty percent (50%) of the insurer's surplus in relation to policyholders if after the investments, the domestic insurer's surplus is:(i) Reasonable in relation to the domestic insurer's outstanding liabilities; and(ii) Adequate to meet the domestic insurer's financial needs.(B) In calculating the amounts of investments under subdivision (b)(1)(A) of this section, the investments shall include:(i) The total net moneys or other consideration expended and obligations assumed in the acquisition or formation of a subsidiary, including all organizational expenses and contributions to capital and surplus of the subsidiary, whether or not represented by the purchase of capital stock or issuance of other securities; and(ii) All amounts expended in acquiring additional common stock, preferred stock, debt obligations, and other securities and all contributions to the capital or surplus of a subsidiary after the acquisition or formation of a subsidiary.(C) In calculating the amount of investments under subdivision (b)(1)(A) of this section, the investments in the domestic insurer's or foreign insurance company's subsidiaries and health maintenance organizations are excluded;(2) (A) Invest any amount in common stock, preferred stock, debt obligations, and other securities of one (1) or more subsidiaries engaged or organized to engage exclusively in the ownership and management of assets authorized as investments for the domestic insurer if each subsidiary agrees to limit its investments in any asset so that the investments will not cause the amount of the total investment of the domestic insurer to exceed any of the investment limitations specified in subdivision (b)(1)(A) of this section or in § 23-63-801 et seq., if applicable to the insurer.(B) As used in subdivision (b)(2)(A) of this section, “the total investment of the domestic insurer” includes:(i) Any direct investment by the domestic insurer in an asset; and(ii) The domestic insurer's proportionate share of any investment in an asset by a subsidiary of the domestic insurer, which shall be calculated by multiplying the amount of the subsidiary's investment by the percentage of the ownership of the subsidiary; and(3) With the approval of the Insurance Commissioner, invest any greater amount in common stock, preferred stock, debt obligations, or other securities of one (1) or more subsidiaries, if after the investments the domestic insurer's surplus is:(A) Reasonable in relation to the domestic insurer's outstanding liabilities; and(B) Adequate to meet the domestic insurer's financial needs.
(1) (A) Invest in common stock, preferred stock, debt obligations, and other securities of one (1) or more subsidiaries in amounts that do not exceed the lesser of ten percent (10%) of the domestic insurer's assets or fifty percent (50%) of the insurer's surplus in relation to policyholders if after the investments, the domestic insurer's surplus is:(i) Reasonable in relation to the domestic insurer's outstanding liabilities; and(ii) Adequate to meet the domestic insurer's financial needs.(B) In calculating the amounts of investments under subdivision (b)(1)(A) of this section, the investments shall include:(i) The total net moneys or other consideration expended and obligations assumed in the acquisition or formation of a subsidiary, including all organizational expenses and contributions to capital and surplus of the subsidiary, whether or not represented by the purchase of capital stock or issuance of other securities; and(ii) All amounts expended in acquiring additional common stock, preferred stock, debt obligations, and other securities and all contributions to the capital or surplus of a subsidiary after the acquisition or formation of a subsidiary.(C) In calculating the amount of investments under subdivision (b)(1)(A) of this section, the investments in the domestic insurer's or foreign insurance company's subsidiaries and health maintenance organizations are excluded;
(A) Invest in common stock, preferred stock, debt obligations, and other securities of one (1) or more subsidiaries in amounts that do not exceed the lesser of ten percent (10%) of the domestic insurer's assets or fifty percent (50%) of the insurer's surplus in relation to policyholders if after the investments, the domestic insurer's surplus is:(i) Reasonable in relation to the domestic insurer's outstanding liabilities; and(ii) Adequate to meet the domestic insurer's financial needs.
(i) Reasonable in relation to the domestic insurer's outstanding liabilities; and
(ii) Adequate to meet the domestic insurer's financial needs.
(B) In calculating the amounts of investments under subdivision (b)(1)(A) of this section, the investments shall include:(i) The total net moneys or other consideration expended and obligations assumed in the acquisition or formation of a subsidiary, including all organizational expenses and contributions to capital and surplus of the subsidiary, whether or not represented by the purchase of capital stock or issuance of other securities; and(ii) All amounts expended in acquiring additional common stock, preferred stock, debt obligations, and other securities and all contributions to the capital or surplus of a subsidiary after the acquisition or formation of a subsidiary.
(i) The total net moneys or other consideration expended and obligations assumed in the acquisition or formation of a subsidiary, including all organizational expenses and contributions to capital and surplus of the subsidiary, whether or not represented by the purchase of capital stock or issuance of other securities; and
(ii) All amounts expended in acquiring additional common stock, preferred stock, debt obligations, and other securities and all contributions to the capital or surplus of a subsidiary after the acquisition or formation of a subsidiary.
(C) In calculating the amount of investments under subdivision (b)(1)(A) of this section, the investments in the domestic insurer's or foreign insurance company's subsidiaries and health maintenance organizations are excluded;
(2) (A) Invest any amount in common stock, preferred stock, debt obligations, and other securities of one (1) or more subsidiaries engaged or organized to engage exclusively in the ownership and management of assets authorized as investments for the domestic insurer if each subsidiary agrees to limit its investments in any asset so that the investments will not cause the amount of the total investment of the domestic insurer to exceed any of the investment limitations specified in subdivision (b)(1)(A) of this section or in § 23-63-801 et seq., if applicable to the insurer.(B) As used in subdivision (b)(2)(A) of this section, “the total investment of the domestic insurer” includes:(i) Any direct investment by the domestic insurer in an asset; and(ii) The domestic insurer's proportionate share of any investment in an asset by a subsidiary of the domestic insurer, which shall be calculated by multiplying the amount of the subsidiary's investment by the percentage of the ownership of the subsidiary; and
(A) Invest any amount in common stock, preferred stock, debt obligations, and other securities of one (1) or more subsidiaries engaged or organized to engage exclusively in the ownership and management of assets authorized as investments for the domestic insurer if each subsidiary agrees to limit its investments in any asset so that the investments will not cause the amount of the total investment of the domestic insurer to exceed any of the investment limitations specified in subdivision (b)(1)(A) of this section or in § 23-63-801 et seq., if applicable to the insurer.
(B) As used in subdivision (b)(2)(A) of this section, “the total investment of the domestic insurer” includes:(i) Any direct investment by the domestic insurer in an asset; and(ii) The domestic insurer's proportionate share of any investment in an asset by a subsidiary of the domestic insurer, which shall be calculated by multiplying the amount of the subsidiary's investment by the percentage of the ownership of the subsidiary; and
(i) Any direct investment by the domestic insurer in an asset; and
(ii) The domestic insurer's proportionate share of any investment in an asset by a subsidiary of the domestic insurer, which shall be calculated by multiplying the amount of the subsidiary's investment by the percentage of the ownership of the subsidiary; and
(3) With the approval of the Insurance Commissioner, invest any greater amount in common stock, preferred stock, debt obligations, or other securities of one (1) or more subsidiaries, if after the investments the domestic insurer's surplus is:(A) Reasonable in relation to the domestic insurer's outstanding liabilities; and(B) Adequate to meet the domestic insurer's financial needs.
(A) Reasonable in relation to the domestic insurer's outstanding liabilities; and
(B) Adequate to meet the domestic insurer's financial needs.
(c) Whether any investment under subsection (a) of this section meets the applicable requirements of subsection (a) of this section is to be determined immediately after the investment is made, taking into account the then-outstanding principal balance on all previous investments in debt obligations and the value of all previous investments in equity securities as of the date they were made.
(d) If an insurer ceases to control a subsidiary, it shall dispose of any investment in the subsidiary made under this section within three (3) years from the time of the cessation of control or within such further time as the commissioner may prescribe unless, at any time after the investment has been made, the investment shall have met the requirements for investment under any other section of this subchapter and the insurer has notified the commissioner that those requirements for investments have been met.