Z-0328.1 _______________________________________________
SENATE BILL 5433
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State of Washington 54th Legislature 1995 Regular Session
By Senators Prentice, Hale and Fraser; by request of Insurance Commissioner
Read first time 01/23/95. Referred to Committee on Financial Institutions & Housing.
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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