33-2-806. Diversification of investments. An insurer shall invest in or hold as admitted assets categories of investments only within applicable limits as follows:
     (1) An insurer may not, except with the consent of the commissioner, have at any one time any combination of investments in or loans upon the security of the obligations, property, or securities of any one person or insurer aggregating an amount exceeding 5% of the insurer's assets. This restriction does not apply as to general obligations of the United States of America or of any state or include policy loans made under 33-2-825.
     (2) An insurer may not invest in or hold at any one time more than 10% of the outstanding voting stock of any corporation, except with the consent of the commissioner. This provision does not apply as to stock of a wholly owned subsidiary of the insurer or to controlling stock of an insurer acquired under 33-2-821.
     (3) An insurer, other than title insurer, shall invest and maintain invested funds not less in amount than the minimum paid-in capital stock required under this code of a domestic stock insurer transacting like kinds of insurance, only in cash and the securities provided for in 33-2-811(1), 33-2-812, and 33-2-830.
     (4) A life insurer shall also invest and keep invested its funds in an amount not less than the reserves under its life insurance policies and annuity contracts, other than variable annuities, in force in cash, in securities, in both cash and securities, or in investments provided for in 33-2-531.
     (5) Except with the commissioner's consent, an insurer may not have invested at any one time more than 20% of its assets in the class of securities described in 33-2-818, exclusive of obligations of public utilities.
     (6) Except with the commissioner's consent, an insurer may not invest and have invested at any one time in aggregate amount more than 15% of its assets in all stocks provided for in 33-2-820 and 33-2-821. Determination of the amount that an insurer has invested in common stocks for the purposes of this provision must be based on the cost of the stocks to the insurer. This provision does not apply to stock of a controlled or subsidiary insurance corporation or other corporations provided for in 33-2-821 and 33-2-822.
     (7) Except with the commissioner's consent, an insurer may not have invested at any one time more than 5% of its assets in securities allowed in 33-2-824. Money market funds, as defined by the commissioner by rule, are exempt from the 5% limitation of this subsection.
     (8) Except with the commissioner's consent, an insurer may not have invested at any one time more than 10% of its assets in the class of securities described in 33-2-814, 33-2-819, and 33-2-823.
     (9) Limits of investments in real estate must be as provided in 33-2-832. Other specific limits apply as stated in the sections dealing with other respective kinds of investments.

     History: En. Sec. 102, Ch. 286, L. 1959; R.C.M. 1947, 40-3105; amd. Sec. 4, Ch. 534, L. 1987; amd. Sec. 24, Ch. 379, L. 1995; amd. Sec. 9, Ch. 531, L. 1997.