31A-18-111. Limitations generally applicable.
(1) For purposes of determining compliance with Section: 31A-18-109 securities of a single issuer and the single issuer's affiliates, other than the government of the United States and subsidiaries authorized under Section, may not exceed: 31A-16-102.5 5% of admitted assets; or 10% of admitted assets, if the securities are secured by real property and the insurer demonstrates a prudent investment policy regarding the investments described in Section; and 31A-18-105 investments in the voting securities of a depository institution, or any company that controls a depository institution, may not exceed 5% of the insurer's admitted assets.
(2) For purposes of Section, the following limitations on classes of investments apply: 31A-18-109 for an investment authorized under Subsection, and an investment authorized by Subsectionthat is a type of investment described in Subsection, the aggregate amount of: 31A-18-110(2) 31A-18-110(7) 31A-18-110(2) medium and lower grade investments may not exceed 20% of the insurer's admitted assets; lower grade investments may not exceed 10% of the insurer's admitted assets; investments rated 5 or 6 by the Securities Valuation Office of the NAIC, may not exceed 5% of the insurer's admitted assets; investments rated 6 by the Securities Valuation Office of the NAIC, may not exceed 1% of the insurer's admitted assets; or medium and lower grade investments that receive, as cash income, less than the equivalent yield for Treasury issues with a comparative average life, may not exceed 1% of the insurer's admitted assets; for an investment authorized under Subsection: 31A-18-110(3) 50% of admitted assets, if the insurer is a life insurer; and 25% of admitted assets if the insurer is a non-life insurer; for an investment authorized under Subsection, other than subsidiaries of the type authorized in Section: 31A-18-110(4) 31A-16-102.5 20% of admitted assets, if the insurer is a life insurer; and 35% of admitted assets, if the insurer is a non-life insurer; for an investment authorized under Subsection, 10% of admitted assets; 31A-18-110(5) for an investment authorized under Subsection: 31A-18-110(6) 20% of admitted assets, if the insurer is a life insurer; and 10% of admitted assets, if the insurer is a non-life insurer; for an investment authorized under Subsection, 20% of admitted assets; 31A-18-110(7) for an investment authorized under Subsection, 2% of admitted assets; 31A-18-110(8) for an investment authorized under Subsection, 2% of admitted assets; and 31A-18-110(10) for an investment authorized under Subsection, that is considered an investment in a kind of security or evidence of debt pledged, the investment is subject to the class limitations applicable to the pledged security or evidence of debt. 31A-18-110(11)
(3) For purposes of determining compliance with the limitations of this section, the admitted portion of assets of subsidiaries under Sectionare deemed to be owned directly by the insurer and any other investors in proportion to the market value, or, if there is no market, the reasonable value of the investors' interest in the subsidiaries. 31A-15-102.5
(4) To the extent an investment exceeds the limitations described in Subsections (1) and (2), the insurer may assign the excess to the investment class authorized in Subsection, until that limit is exhausted. 31A-18-110(13)
(5) If the commissioner determines necessary to get a proper evaluation of an insurer's investment portfolio, the commissioner may require that an investment in a mutual fund, pooled investment vehicle, or other investment company be treated, for purposes of this chapter, as if the investor directly owned the investor's proportional share of the assets owned by the mutual fund, pooled investment vehicle, or investment company.
(6) Unless otherwise specified, an investment limitation computed on the basis of an insurer's admitted assets or capital and surplus is the amount the insurer stated on the insurer's statutory balance sheet that the insurer most recently filed with the commissioner.