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HOUSE BILL 1296

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State of Washington      57th Legislature     2001 Regular Session

By Representatives Hatfield, Benson and McIntire; by request of Insurance Commissioner

Read first time 01/23/2001.  Referred to Committee on Financial Institutions & Insurance.

_1      AN ACT Relating to restricting the investment of insurers in

_2  depository institutions or any company which controls a depository

_3  institution; and amending RCW 48.13.030.

_4  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

_5      Sec. 1.  RCW 48.13.030 and 1993 c 92 s 1 are each amended to read

_6  as follows:

_7      (1) Except as set forth in RCW 48.13.273, an insurer shall not,

_8  except with the consent of the commissioner, have at any time any

_9  combination of investments in or loans upon the security of the

10  obligations, property, and securities of any one person,

11  institution, or municipal corporation aggregating an amount

12  exceeding four percent of the insurer's assets.  This section shall

13  not apply to investments in, or loans upon the security of general

14  obligations of the government of the United States or of any state

15  of the United States, nor to investments in foreign securities

16  pursuant to ((subsection (1) of)) RCW 48.13.180(1), nor include

17  policy loans made pursuant to RCW 48.13.190.

18      (2) An insurer shall not, except with the consent of the

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_1  commissioner, have at any time investments in the voting

_2  securities of a depository institution or any company which

_3  controls a depository institution aggregating an amount exceeding

_4  five percent of the insurer's admitted assets.

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