§ 27-19-11. Investment standards.
(a) All nonprofit hospital service corporations shall protect the interests of subscribers
by promoting company solvency and financial strength through the application of investment
standards that facilitate a reasonable balance of the following objectives:
(1) To preserve principal;
(2) To assure reasonable diversification as to type of investment, issuer, and credit
quality; and
(3) To allow the nonprofit hospital service corporation to allocate investments in a manner
consistent with p
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§ 27-19-11. Investment standards.
(a) All nonprofit hospital service corporations shall protect the interests of subscribers
by promoting company solvency and financial strength through the application of investment
standards that facilitate a reasonable balance of the following objectives:
(1) To preserve principal;
(2) To assure reasonable diversification as to type of investment, issuer, and credit
quality; and
(3) To allow the nonprofit hospital service corporation to allocate investments in a manner
consistent with principles of prudent investment management to achieve an adequate
return so that obligations to subscribers are adequately met and financial strength
is sufficient to cover reasonably foreseeable contingencies.
(b) All investments, including, but not limited to, those referred to in this chapter,
shall be made and held in accordance with the objectives in subsection (a) of this
section subject to the limitations set forth in this chapter and in regulations promulgated
pursuant to this chapter. Investments not conforming to this chapter and any regulations
promulgated pursuant to this chapter shall not be considered admitted assets.