§ 56-3-304 — Foreign investments

Tennessee § 56-3-304

• Jurisdiction: Tennessee
• Title: 56

Text

(a) Domestic life insurance companies may, directly or indirectly through an investment affiliate, invest in investments and enter into transactions in Canada that are substantially of the same kinds, classes and investment grades as those eligible for investment under § 56-3-303(a) ; but the aggregate amount of the investments and transactions that are held at any time by the company shall not exceed ten percent (10%) of its admitted assets, except where a greater amount is permitted pursuant to subsection (b), in which case, this subsection (a) shall not be applicable. (b) Any domestic life insurance company that is authorized to do business in a foreign country or that has outstanding insurance, annuity or reinsurance contracts on lives or risks resident or located in a foreign country may invest in investments and enter into transactions in the foreign country that are substantially of the same kinds, classes and investment grades as those authorized under § 56-3-303(a) ; but the aggregate amount of the investments and transactions in a foreign country and of cash in the currency of the country that is at any time held by the company shall not, except as provided in subsection (a), exceed one and one half (1.5) times the amount of its reserves and other obligations under the contracts or the amount which the company is required by law to invest in the country, whichever is greater. (c) In addition to the foreign investments authorized under subsections (a) and (b), any domestic life insurance company may, directly or indirectly through an investment affiliate, invest in investments and enter into transactions in foreign jurisdictions that are substantially of the same kinds, classes and investment grades as those authorized under § 56-3-303(a) ; but the aggregate amount of the investments made and transactions entered into pursuant to this subsection (c) shall not exceed the lesser of five percent (5%) of its admitted assets or the amount by which the capital and surplus of the company exceeds the minimum capital and surplus required for the kind or kinds of insurance the company is authorized to transact in this state. (d) The commissioner may approve a plan for an insurer to make foreign investments and enter into foreign transactions not to exceed an additional fifteen percent (15%) of its admitted assets, if the commissioner determines that the plan contains adequate quality and diversification standards. (e) Investments and transactions authorized under subsections (a)-(d) shall be subject to the limitations on investments in and transactions with any one (1) issuing business entity, or as to asset-backed securities, secured by or evidencing an interest in a single asset or pool of assets, set forth in § 56-3-303(a)(3), (4), (16), (18) and (19) and to the limitations on the aggregate amount of any insurance company's investments and transactions under § 56-3-303(a)(3), (4), (10), (14) -(16), (18), (20) and (23). (f) No more than ten percent (10%) of the insurer's admitted assets may be in foreign investments and transactions made under subsections (c) and (d) in the aggregate that are denominated in foreign currency that are not hedged pursuant to § 56-3-303(a)(21) .

Legislative History

Acts 1907, ch. 458, § 2; Shan., § 3348a29; Code 1932, § 6204; Acts 1935, ch. 105, § 1; 1937, ch. 76, § 1; 1939, ch. 121, § 1; 1945, ch. 106, §§ 1, 2; 1947, ch. 120, § 1; C. Supp. 1950, § 6204; Acts 1951, ch. 77, § 1; T.C.A. (orig. ed.), § 56-217; Acts 1961, ch. 224, § 1; 1961, ch. 229, § 1; 1965, ch. 63, § 1; modified; T.C.A., § 56-306; Acts 1986, ch. 527, § 1; 1995, ch. 363, § 15; 1998, ch. 678, § 2.