CERTIFICATION OF ENROLLMENT

                        SENATE BILL 5433

                        54th Legislature

                      1995 Regular Session

Passed by the Senate March 7, 1995   YEAS 46   NAYS 0 President of the Senate Passed by the House April 6, 1995   YEAS 96   NAYS 0

CERTIFICATE I, Marty Brown, Secretary of the Senate of the State of Washington, do hereby certify that the attached is SENATE BILL 5433 as passed by the Senate and the House of Representatives on the dates hereon set forth.

Speaker of the       House of Representatives

Secretary

Approved Place Style On Codes above, and Style Off Codes below.

FILED

Governor of the State of Washington

Secretary of State                   State of Washington

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                         SENATE BILL 5433

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             Passed Legislature - 1995 Regular Session

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.

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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