§ 26-44-102 — Subsidiaries of insurers

(a) Any domestic insurer, either by itself or in
cooperation with one (1) or more persons, may organize or
acquire one (1) or more subsidiaries provided the stock of the
insurer's subsidiaries are valued in accordance with the
provisions of W.S. 26-6-302. Subsidiaries may conduct any kind
of business or businesses and their authority to do so shall not
be limited by reason of the fact that they are subsidiaries of a
domestic insurer.
(b) In addition to investments in common stock, debt
obligations and other securities permitted under all other
sections of this chapter, a domestic insurer may also:
(i) Invest in common stock, preferred stock, debt
obligations and other securities of one (1) or more
subsidiaries, amounts which do not exceed the lesser of ten
percent (10%) of the insurer's assets or fifty percent (50%) of
the insurer's surplus as regards policyholders, provided that
after the investments, the insurer's surplus as regards
policyholders will be reasonable in relation to the insurer's
outstanding liabilities and adequate to its financial needs. In
calculating the amount of the investments, investments in
domestic or foreign insurance subsidiaries and health
maintenance organizations shall be excluded, and there shall be
included:
(A) Total net monies or other consideration
expended and obligations assumed in the acquisition or formation
of a subsidiary, including all organizational expenses and
contributions to capital and surplus of the subsidiary whether
or not represented by the purchase of capital stock or issuance
of other securities; and
(B) All amounts expended in acquiring additional
common stock, preferred stock, debt obligations and other
securities and all contributions to the capital or surplus, of a
subsidiary subsequent to its acquisition or formation.
(ii) Invest any amount in common stock, preferred
stock, debt obligations and other securities of one (1) or more
subsidiaries engaged or organized to engage exclusively in the
ownership and management of assets authorized as investments for
the insurer, provided that each subsidiary agrees to limit its
investments in any asset so that the investments will not cause
the amount of the total investment of the insurer to exceed any
of the investment limitations specified in paragraph (i) of this
subsection or in W.S. 26-7-102 through 26-7-116 applicable to
the insurer. For the purposes of this paragraph, "the total
investment of the insurer" shall include:
(A) Any direct investment by the insurer in an
asset; and
(B) The insurer's proportionate share of any
investment in an asset by any subsidiary of the insurer, which
shall be calculated by multiplying the amount of the
subsidiary's investment by the percentage of the ownership of
the subsidiary.
(iii) With the approval of the commissioner, invest
any greater amount in common stock, preferred stock, debt
obligations or other securities of one (1) or more subsidiaries,
provided that after the investment the insurer's surplus as
regards policyholders will be reasonable in relation to the
insurer's outstanding liabilities and adequate to its financial
needs.
(c) Whether any investment pursuant to subsection (b) of
this section meets the applicable requirements is to be
determined before the investment is made by calculating the
applicable investment limitations as though the investment had
already been made, taking into account the then outstanding
principal balance on all previous investments in debt
obligations and the value of all previous investments in equity
securities as of the day they were made, net of any return of
capital invested, not including dividends.
(d) If an insurer ceases to control a subsidiary, it shall
dispose of any investment in the subsidiary made pursuant to
this section within three (3) years from the time of the
cessation of control or within any further time the commissioner
may prescribe, unless the investment meets the requirements for
investment under any other section of this title and the insurer
so notifies the commissioner.