CHAPTER 524
H.P. 1475 - L.D. 1976
An Act to Modify Investment-related Insurance Company Provisions of the Maine Insurance Code
Be it enacted by the People of the State of Maine as follows:
Sec. 1. 24-A MRSA §901-A, sub-§1, as enacted by PL 2001, c. 72, §7, is repealed and the following enacted in its place:
1. Principles; admitted assets. In evaluating the financial condition of an insurer, the superintendent shall determine which assets may be recognized as admitted assets and shall value the insurer's admitted assets and the insurer's liabilities:
A. In accordance with recognized statutory accounting principles as codified by the National Association of Insurance Commissioners or its successor organization and reflected in the association's accounting practices and procedures manual and valuation of securities manual and their successor publications; and
B. In accordance with any additional accounting practices permitted by the superintendent upon the request of the insurer.
Sec. 2. 24-A MRSA §1106, sub-§4, as amended by PL 1993, c. 313, §21, is further amended to read:
4. Except as otherwise expressly provided, an insurer may not invest more than 10% of its assets in the securities of any one person, other than investments eligible under the following sections:
A. 1107 (public obligations); and
B. 1108 (obligations, stock of certain federal and international agencies).; and
C. 1120 (common trust funds, mutual funds), but as to this exception, only with the prior approval of the superintendent and only in index mutual funds in an amount up to 20% of the insurer's assets.
Sec. 3. 24-A MRSA §1155, sub-§2, as amended by PL 1999, c. 715, §11, is further amended to read:
2. Government obligations; policy loans; other limitations. Except as otherwise expressly provided, an insurer may not invest in or may not incur counter-party exposure to any one person if, after giving effect to those investments and that counter-party exposure, the aggregate of those investments in and that counter-party exposure to that person would exceed 10% of the insurer's admitted assets, other than investments eligible under with the following sections exceptions:
A. Government obligations, pursuant to section 1156, subsection 2, paragraph A; and
B. Policy loans, pursuant to section 1158.; and
C. Index mutual funds, but as to this exception, only with the prior approval of the superintendent and limited to 20% of the insurer's admitted assets.
Effective July 25, 2002, unless otherwise indicated.
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