This text of Louisiana § 22:601.6 (General limitation on investment in obligations of a single person) is published on Counsel Stack Legal Research, covering Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
§601.6. General limitation on investment in obligations of a single person
A. Except as otherwise specified in this Subpart, no insurer shall acquire, except with
the consent of the commissioner, an investment pursuant to this Subpart if, as a result of and
after giving effect to the investment, the insurer would hold more than five percent of its
admitted assets in investments of all kinds issued, assumed, accepted, insured, or guaranteed
by a single person.
B. The limitations of Subsection A of this Section shall not apply to the following
items:
(1)Investments issued, assumed, guaranteed, or insured by the United States, or a
government sponsored enterprise of the United States, if the instruments are otherwise
backed or supported by the full faith and credit of the United States.
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§601.6. General limitation on investment in obligations of a single person
A. Except as otherwise specified in this Subpart, no insurer shall acquire, except with
the consent of the commissioner, an investment pursuant to this Subpart if, as a result of and
after giving effect to the investment, the insurer would hold more than five percent of its
admitted assets in investments of all kinds issued, assumed, accepted, insured, or guaranteed
by a single person.
B. The limitations of Subsection A of this Section shall not apply to the following
items:
(1) Investments issued, assumed, guaranteed, or insured by the United States, or a
government sponsored enterprise of the United States, if the instruments are otherwise
backed or supported by the full faith and credit of the United States.
(2) Investments in, or loans upon the security of, general obligations of any state or
territory of the United States, or the District of Columbia.
(3) Investments issued by a listed bond fund.
(4) Investments issued by a multilateral development bank pursuant to R.S.
22:601.12(E).
(5) Mortgage loans as provided in R.S. 22:601.9.
(6) Investments in foreign securities pursuant to R.S. 22:601.12(D).
(7) Policy loans made pursuant to R.S. 22:601.16(3).
(8) Subsidiaries authorized under R.S. 22:691.3.
(9) Mutual funds and exchange-traded funds pursuant to R.S. 22:601.8(C)(2).
C. Asset-backed securities shall not be subject to the limitations of Subsection A of
this Section. No insurer shall acquire an asset-backed security if, as a result of and after
giving effect to the investment, the aggregate amount of asset-backed securities secured by
or evidencing an interest in a single asset or single pool of assets held by a trust or other
business entity, then held by the insurer would exceed five percent of its admitted assets.