Title 58, INSURANCE

The extent to which a mortgage loan made under § 58-27-36 or 58-27-37 is guaranteed by the administrator of veterans' affairs may be deducted before application of the limitations contained in § 58-27-42 . The provisions of § 58-27-42 shall not apply to the bonds or notes describ…

The fair value of property shall be determined by appraisal by a competent appraiser at the time of the making or acquisition of a mortgage loan or investing in a contract for the deed thereon; except, that as to bonds or notes secured by mortgage or trust deed guaranteed or insu…

In connection with a mortgage loan on the security of real estate designed and used primarily for residential purposes only, which mortgage loan was acquired pursuant to §§ 58-27-32 to 58-27-40 , inclusive, an insurer may lend or invest an amount not exceeding twenty percent of t…

For the purposes of § 58-27-45 , the term "durable equipment" shall include only mechanical refrigerators, air conditioning equipment, mechanical laundering machines, heating and cooking stoves and ranges, and, in addition, in the case of apartment houses, motels and hotels, room…

Prior to the acquisition of a chattel mortgage under § 58-27-45 , items of property to be included therein shall be separately appraised by a qualified appraiser and the fair market value thereof determined. No such chattel mortgage loan shall exceed in amount the same ratio of l…

Sections 58-27-45 to 58-27-47 , inclusive, shall not prohibit an insurer from taking liens on personal property as additional security for any investment otherwise eligible under this chapter. Source: SL 1966, ch 111 , ch 6, § 29 (4).

Notwithstanding any other provision of law, any institution, including an insurance company or other insuring organization, organized under the laws of this state, which has as one of its principal purposes the making or purchasing of loans secured by real estate mortgages, is au…

No provision of this chapter shall prohibit the acquisition by an insurer of other or additional securities or property if received as a dividend or as a lawful distribution of assets, or under a lawful and bona fide agreement of bulk reinsurance, merger, or consolidation. Any in…

An insurer may invest in real estate only if used for the purposes or acquired in the manners and within the limits as follows: (1) The land and the building thereon in which it has its principal office and such other real estate including regional home offices as shall be requis…

Notwithstanding the aggregate limitations set forth in chapter 58-27 , an insurer may exceed such limitations if it does not invest, in the aggregate, an amount in excess of fifty percent of its capital and surplus in excess of four hundred thousand dollars, if such investment ot…

In addition to the authority provided under § 58-27-51 , an insurer authorized to write life or health insurance, or both, may invest a percentage of the amount by which the insurer's total adjusted capital equals or exceeds two hundred percent of its company action level risk - …

In addition to the authority provided under § 58-27-51 , an insurer authorized to write property and casualty insurance may invest a percentage of the amount by which the insurer's total adjusted capital equals or exceeds two hundred percent of its company action level risk - bas…

Any investment purchased and held pursuant to § 58-27-51.1 or 58-27-51.2 shall be valued in accordance with chapters 58-26 and 58-27 or in accordance with the methods established by the National Association of Insurance Commissioners. If valuation methods are not prescribed by ch…

Except as otherwise provided in this chapter, an insurer shall invest in or hold as admitted assets categories of investments only within applicable limits as prescribed by §§ 58-27-53 to 58-27-60 , inclusive. Source: SL 1966, ch 111 , ch 6, § 5; SL 1997, ch 294 , § 14.

An insurer may not, except with the consent of the director, have any combination of investments in or loans upon the security of the obligations, property, or securities of any one person, institution, corporation, or municipal corporation aggregating an amount exceeding five pe…

An insurer may not invest in or hold at any one time more than ten percent of the outstanding voting stock of any corporation, except with respect to voting rights of preference stock during default and of dividends; this section does not apply to stock of a majority owned subsid…

An insurer, other than title insurer, shall invest and maintain invested funds not less in amount than the minimum paid - in capital stock required under this title of a domestic stock insurer transacting like kinds of insurance, only in cash and the securities provided for under…

A life insurer shall also invest and keep invested its funds in amount not less than the reserves under its life insurance policies and annuity contracts in force, in cash or investments provided for under this chapter. Source: SL 1966, ch 111 , ch 6, § 5 (4).

Except with the director's consent, no insurer may have invested at any one time more than forty percent of its assets in the class of securities described in subdivisions 58-27-17(1), (2), (3), and (4) and in § 58-27-28 , exclusive of obligations of the Student Loan Marketing As…

An insurer may invest and have invested at any one time in aggregate amount not more than twenty percent of its assets in all investments under §§ 58-27-23 and 58-27-24 and not more than twenty - five percent of its assets in all investments under subdivisions 58-27-17(4) and (5)…

Unless otherwise specified, any investment limitation based upon the amount of the insurer's admitted assets, risk based capital, or capital and surplus, shall relate to such admitted assets, risk based capital, or capital and surplus as shown by the insurer's annual statement as…

Limits as to investments in the category of real estate shall be as provided in § 58-27-50 . Source: SL 1966, ch 111 , ch 6, § 5 (8).

In addition to investments excluded pursuant to other provisions of this title, no insurer may invest in or lend its funds upon the security of issued shares of its own capital stock except out of unborrowed surplus, or except in connection with a pension plan approved by the dir…

In addition to investments excluded pursuant to other provisions of this title, an insurer shall not invest in or lend its funds upon the security of any note or other evidence of indebtedness secured by its own stock as collateral or other than as authorized by §§ 58-27-31 , 58-…

The term "affiliate" when used in §§ 58-27-62 to 58-27-66 , inclusive, shall mean any person, firm, trust, corporation, or other business entity, which by stock ownership or by any contractual arrangement whatsoever, has the power, either directly or indirectly, to control twenty…

In addition to investments excluded pursuant to other provisions of this title, an insurer shall not invest in or lend its funds upon the security of any investment or security which is found by the director to be designed to evade any prohibition of this chapter. Source: SL 1966…

The provisions of §§ 58-27-62 and 58-27-65 shall not be construed to prohibit the making of pension or profit - sharing trust agreements involving the employees of affiliates or consolidations, mergers, or other transactions otherwise authorized by this title. Source: SL 1966, ch…

No insurer shall underwrite or participate in the underwriting of an offering of securities or property by any other person. Source: SL 1966, ch 111 , ch 6, § 34 (2).

The investment portfolio of a foreign insurer shall be as permitted by the laws of its domicile but shall be of a quality substantially as high as that required under this chapter for similar funds of like domestic insurers. For the purposes of this provision, the domicile of an …

An insurer may not make any investment or loan, other than policy loans or annuity contract loans of a life insurer, unless the same is authorized, approved, or ratified by the insurer's board of directors or by a committee authorized by such board and charged with the supervisio…

No security or investment, other than real and personal property acquired under § 58-27-50 ; common shares of solvent institutions acquired under § 58-27-23 , 58-27-25 , 58-27-26 , or 58-27-51 ; investments acquired under § 58-27-103 , 58-27-104 , or 58-27-111 ; and mutual funds …

Except as stated in § 58-27-72 , the insurer shall dispose of real estate acquired under subdivision 58-27-50(1) within five years after it has ceased to be necessary for the convenient accommodation of the insurer in the transaction of its business. Source: SL 1966, ch 111 , ch …

Except as stated in § 58-27-72 , the insurer shall dispose of real estate acquired under subdivisions 58-27-50(2), (3), and (4) within five years after the date of acquisition. The insurer may agree to sell such real estate by contract for deed upon the best terms obtainable. Sou…

Upon proof satisfactory to him that the interests of the insurer will suffer materially by the forced sale thereof, the director may by order grant a reasonable extension of the period, as specified in such order, within which the insurer shall dispose of any particular parcel of…

Any ineligible property or security unlawfully acquired by an insurer shall be disposed of forthwith, and for failure so to do within thirty days after order of the director requiring such disposal, the director may suspend or revoke the insurer's certificate of authority. Source…

Any personal property or securities lawfully acquired by an insurer which it could not otherwise have invested in or loaned its funds upon at the time of such acquisition, shall be disposed of by the insurer within one year from date of acquisition, unless within such period the …

While any property or security described in § 58-27-74 remains so ineligible it shall not be allowed as an asset of the insurer. Source: SL 1966, ch 111 , ch 6, § 32 (2).

Any real estate, personal property, or securities acquired and held by an insurer after expiration of the period for disposal thereof or any extension of such period granted by the director, as provided in §§ 58-27-50 and 58-27-70 to 58-27-75 , inclusive, shall not be allowed as …

The insurer shall forthwith dispose of any ineligible investment unlawfully acquired by it, and the director may suspend or revoke the insurer's certificate of authority if the insurer fails to dispose of the investment within such reasonable time as the director may, by his orde…

Terms used in §§ 58-27-78 to 58-27-84 , inclusive, mean: (1) "Clearing corporation," a corporation as defined in subdivision 57A-8-102(5); (2) "Custodian bank," any bank or trust company which is supervised or examined by a state or federal authority having supervision over banks…

A company's investments shall be held in its own name or the name of its nominee. However, this provision does not apply under the circumstances outlined in §§ 58-27-80 to 58-27-83 , inclusive. Source: SL 1983, ch 377 , § 2.

No security or investment shall be eligible for purchase or exchange at a price above its market value. Source: SL 1966, ch 111 , ch 6, § 3 (2).

Investments may be held in the name of a clearing corporation or of a custodian bank or in the name of the nominee of either under the following conditions: (1) The clearing corporation, custodian bank, or nominee is legally authorized to hold the particular investment for the ac…

An insurer may enter into securities lending, repurchase, reverse repurchase, and dollar roll transactions subject to the following requirements: (1) A written plan or investment policy that specifies guidelines and objectives relating to such transactions shall be adopted by the…

A company may participate through a member bank in the federal reserve book - entry system and the records of the member bank shall at all times show that the investments are held for the company or for specific accounts of the company. Source: SL 1983, ch 377 , § 5.

An investment may consist of an individual interest in a pool of obligations or a fractional interest in a single obligation if the certificate of participation or interest or the confirmation of participation or interest in the investment is issued in the name of the company or …