§ 58-27-62 — Loan secured by own stock as collateral.

In addition to investments excluded pursuant to other provisions of this title, an insurer shall not invest in or lend its funds upon the security of any note or other evidence of indebtedness secured by its own stock as collateral or other than as authorized by §§ 58-27-31 , 58-27-36 , and 58-27-37 , either directly or indirectly, to any of its officers, directors, or affiliates, except that it may make loans of the type described in §§ 58-27-32 to 58-27-40 , inclusive, to corporate affiliates, provided that no such loan or loans to an affiliate or affiliates, so made or acquired, shall in the aggregate exceed forty percent of the surplus of the insurer, and no single loan shall exceed twenty percent of such surplus. The real estate involved in any such loan to an affiliate shall be worth at least double the amount loaned thereon, as justified by the appraisal report of an independent, competent, and recognized appraiser or appraisers. The investments authorized by this section may be made notwithstanding the provisions of §§ 47-1A-830 to 47-1A-833.1 , inclusive, to the contrary and without liability on the part of the officers and directors specified therein.

Legislative History

SL 1966, ch 111, ch 6, § 34 (1) (c); SL 2005, ch 202, § 25.