§ 10-3-240 — Approval of investments

(1) Except for investments made under
sections 10-3-802 and 10-7-402, a domestic insurance company shall not, directly
or indirectly, invest more than two percent of the company's admitted assets in
stocks, bonds, debentures, notes, or other securities of its affiliates, as defined in
section 10-3-801, without the prior approval of the commissioner.

(2) Notwithstanding the provisions of subsection (1) of this section, the
commissioner may, upon written notice, require a domestic insurance company to
obtain his prior approval for all investments in its affiliates if, based on past
transactions of the insurance company, he determines that such investments might
render the company's operation hazardous, or its condition unsound, to the public or
its policyholders.

(3) Any domestic insurance company proposing to make an investment
subject to approval under subsection (1) or (2) of this section shall give written
notice thereof to the commissioner. If the commissioner has not approved or
disapproved such investment within thirty days after receipt of such notice, the
investment shall be deemed approved at the end of such thirty-day period.

Legislative History

Source: L. 75: Entire section added, p. 337, � 5, effective July 1. L. 2020: (1) amended, (HB 20-1136), ch. 87, p. 353, � 8, effective September 14.