Z-0701.1  _______________________________________________

 

                          HOUSE BILL 1371

          _______________________________________________

 

State of Washington      54th Legislature     1995 Regular Session

 

By Representatives L. Thomas, Wolfe, Kessler, Dyer and Jacobsen; by request of Insurance Commissioner

 

Read first time 01/23/95.  Referred to Committee on Financial Institutions & Insurance.

 

Regulating investments by insurers.



    AN ACT Relating to prohibited investments by insurers; and amending RCW 48.13.270.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

 

    Sec. 1.  RCW 48.13.270 and 1993 c 92 s 4 are each amended to read as follows:

    An insurer shall not, except with the commissioner's approval in advance, invest in or loan its funds upon the security of, or hold:

    (1) Issued shares of its own capital stock, except for the purpose of mutualization in accordance with RCW 48.08.080;

    (2) ((Securities issued by any corporation, except as specifically authorized by this chapter directly or by exception, if a majority of the outstanding stock of such corporation, or a majority of its stock having voting powers, is or will be after such acquisition, directly or indirectly owned by the insurer, or by any combination of the insurer and the insurer's directors, officers, parent corporation, and subsidiaries;

    (3))) Securities issued by any corporation if a majority of its stock having voting power is owned directly or indirectly by or for the benefit of any one or more of the insurer's officers and directors;

    (((4))) (3) Any investment or loan ineligible under the provisions of RCW 48.13.030;

    (((5))) (4) Securities issued by any insolvent corporation;

    (((6))) (5) Obligations contrary to the provisions of RCW 48.13.273; or

    (((7))) (6) Any investment or security which is found by the commissioner to be designed to evade any prohibition of this code.

 


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