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Senate File 2279

Partial Bill History

Bill Text

PAG LIN
  1  1                                          SENATE FILE 2279
  1  2 
  1  3                             AN ACT
  1  4 RELATING TO AUTHORIZED INVESTMENTS BY INSURANCE COM-
  1  5    PANIES IN OBLIGATIONS OF FOREIGN GOVERNMENTS AND 
  1  6    FOREIGN CORPORATIONS.
  1  7 
  1  8 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 
  1  9 
  1 10    Section 1.  Section 511.8, subsection 19, unnumbered
  1 11 paragraph 1, Code 1997, is amended to read as follows:
  1 12    Bonds or other evidences of indebtedness, not to include
  1 13 currency, issued, assumed, or guaranteed by a foreign
  1 14 government other than Canada, or by a corporation incorporated
  1 15 under the laws of a foreign government other than Canada.  Any
  1 16 such Such governmental obligations must be valid, legally
  1 17 authorized and issued, and on the date of acquisition have
  1 18 predominantly investment qualities and characteristics as
  1 19 provided by rule.  Any such Such corporate obligations must
  1 20 meet the qualifications established in subsection 5 of this
  1 21 section for bonds and other evidences of indebtedness issued,
  1 22 assumed, or guaranteed by a corporation incorporated under the
  1 23 laws of the United States or Canada.  Foreign investments
  1 24 authorized by this subsection are not eligible in excess of
  1 25 two ten percent of the legal reserve of the life insurance
  1 26 company or association.  Investments in obligations of a
  1 27 foreign government other than Canada are not eligible in
  1 28 excess of two percent of the legal reserve in the securities
  1 29 of foreign governments of any one foreign nation.  Investments
  1 30 in a corporation incorporated under the laws of a foreign
  1 31 government other than Canada are not eligible in excess of two
  1 32 percent of the legal reserve in the securities of any one
  1 33 foreign corporation.
  1 34    Sec. 2.  Section 515.35, subsection 4, paragraph i, Code
  1 35 Supplement 1997, is amended to read as follows:
  2  1    i.  FOREIGN INVESTMENTS.  Obligations of and investments in
  2  2 foreign countries, as follows:
  2  3    (1)  A company may acquire and hold other investments in
  2  4 foreign countries that are required to be held as a condition
  2  5 of doing business in those countries, so long as such
  2  6 investments are of substantially the same types as those
  2  7 eligible for investment under this section.
  2  8    (2)  A company may shall not invest not more than two
  2  9 percent of its admitted assets in the obligations of foreign
  2 10 governments, corporations, or business trusts, or in the
  2 11 stocks or stock equivalents of foreign corporations or
  2 12 business trusts, other than the stocks or stock equivalents of
  2 13 foreign corporations or business trusts incorporated or formed
  2 14 under the laws of Canada, and then only if the obligations,
  2 15 stocks, or stock equivalents of such foreign corporations or
  2 16 business trusts are regularly traded on the New York, London,
  2 17 Paris, Zurich, Hong Kong, Toronto, or Tokyo stock exchange, or
  2 18 a similar exchange approved by the commissioner by rule or
  2 19 order.
  2 20    (3)  A company may invest in the obligations of a foreign
  2 21 government other than Canada or of a corporation incorporated
  2 22 under the laws of a foreign government other than Canada.  Any
  2 23 such governmental obligation must be valid, legally authorized
  2 24 and issued, and on the date of acquisition have predominantly
  2 25 investment qualities and characteristics as provided by rule.
  2 26 Any such corporate obligation must on the date of acquisition
  2 27 have investment qualities and characteristics, and must not
  2 28 have speculative elements which are predominant, as provided
  2 29 by rule.  A company shall not invest more than two percent of
  2 30 its admitted assets in the obligations of a foreign government
  2 31 other than Canada.  A company shall not invest more than two
  2 32 percent of its admitted assets in the obligations of a
  2 33 corporation incorporated under the laws of a foreign
  2 34 government other than a corporation incorporated under the
  2 35 laws of Canada.
  3  1    (4)  A company shall not invest more than ten percent of
  3  2 its admitted assets in foreign investments pursuant to this
  3  3 paragraph.  
  3  4 
  3  5 
  3  6                                                             
  3  7                               MARY E. KRAMER
  3  8                               President of the Senate
  3  9 
  3 10 
  3 11                                                             
  3 12                               RON J. CORBETT
  3 13                               Speaker of the House
  3 14 
  3 15    I hereby certify that this bill originated in the Senate and
  3 16 is known as Senate File 2279, Seventy-seventh General Assembly.
  3 17 
  3 18 
  3 19                                                             
  3 20                               MARY PAT GUNDERSON
  3 21                               Secretary of the Senate
  3 22 Approved                , 1998
  3 23 
  3 24 
  3 25                         
  3 26 TERRY E. BRANSTAD
  3 27 Governor
     
Text: SF02278                           Text: SF02280
Text: SF02200 - SF02299                 Text: SF Index
Bills and Amendments: General Index     Bill History: General Index

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