§ 36-1652. Subsidiaries of insurer - Investments in securities.

A.  Any domestic insurer, either by itself or in cooperation with one or more persons, may organize or acquire one or more subsidiaries to the extent permitted by Article 16 of the Insurance Code.  Such subsidiaries may conduct any type of business or businesses and their authority to do so will not be limited by the fact that they are subsidiaries of a domestic insurer.

B.  Any domestic insurer, in addition to other investments permitted by this article, may invest in common stock, preferred stock, debt obligations, and other securities of one or more subsidiaries in amounts which do not exceed the lesser of ten percent (10%) of the assets of the insurer or fifty percent (50%) of the surplus of the insurer in regard to policyholders except instances where a greater investment has been approved by the Commissioner.  However, investments by domestic insurers in insurance subsidiaries shall not be limited by this subsection.

Added by Laws 1970, c. 166, § 2, emerg. eff. April 9, 1970.  Amended by Laws 2007, c. 125, § 18, eff. July 1, 2007.