(B)(1) The reinsurance agreement may provide that the | 38 |
domiciliary
liquidator or statutory receiver shall give written | 39 |
notice
to the assuming insurer that a
claim is pending against | 40 |
the
domestic ceding insurer on the
policy or contract reinsured. | 41 |
The notice shall be given within a
reasonable amount of time after | 42 |
the claim is filed with the
liquidator or statutory receiver. | 43 |
During the pendency of the claim, any assuming insurer may | 44 |
investigate the claim and interpose, at its own expense, in the | 45 |
proceeding where the claim is to be adjudicated any defenses which | 46 |
it deems to be available to the ceding insurer or its liquidator. | 47 |
Sec. 3903.32. The amount recoverable by the liquidator from | 57 |
reinsurers shall
not be reduced as a result of delinquency | 58 |
proceedings, regardless of any
provision in the reinsurance | 59 |
contract or other agreement. Payment made
by a reinsurer
directly | 60 |
to an insured or other creditor does not diminish the reinsurer's | 61 |
obligation to the insurer's estate except when the reinsurance | 62 |
contract, and
anyor other written agreement
that provides | 63 |
security for the payment
of the obligations under
the contract, | 64 |
provides
for direct
coverage of a named insured and the payment
is | 65 |
made in discharge
of that obligation and the contract or agreement | 66 |
has been
approved
pursuant to division (A)(3) of section 3901.341 | 67 |
or section 3907.12
or
3925.33 of the Revised Codefor direct | 68 |
payment of the
reinsurance to the insured or beneficiary of the | 69 |
insurance policy in the event of the
insolvency of the ceding | 70 |
insurer. | 71 |
(5) Which is acquired, owned, or held for the purpose of | 90 |
developing, improving, or otherwise utilizing such real estate
for | 91 |
the production of income, without restriction or limitation
as to | 92 |
time, and may acquire, lease, hold, and manage personal
property | 93 |
used in connection therewith. No investments in real
estate to be | 94 |
used primarily for recreational, agricultural, or
mining purposes | 95 |
shall be made under authority of division
(A)(5) of this section | 96 |
and except for investments authorized under divisions
(A)(1), (2), | 97 |
(3), and (4) of this section, no domestic life
insurance company | 98 |
shall invest in real estate under divisions
(A)(5) and (R) of this | 99 |
section a sum exceeding in the
aggregate ten per cent of its | 100 |
admitted assets on the preceding
thirty-first day of December. | 101 |
All real estate specified in divisions (A)(3) and (4) of
this | 102 |
section, which is not necessary for its accommodation in the | 103 |
convenient transaction of its business, shall be sold by the | 104 |
company and disposed of within five years after it has acquired | 105 |
the title to such real estate or within five years after such
real | 106 |
estate has ceased to be necessary for the accommodation of
its | 107 |
business, unless the company procures the certificate of the | 108 |
superintendent of insurance that its interests will suffer | 109 |
materially by a forced sale of the real estate, in which event
the | 110 |
time for the sale may be extended to such time as the | 111 |
superintendent directs in such certificate. | 112 |
(E) In equipment trust obligations or certificates,
security | 133 |
agreements, or other evidences of indebtedness entered
into | 134 |
directly or guaranteed by any company operating wholly or
partly | 135 |
within the United States or Canada, provided that the debt | 136 |
obligation is secured by a first lien on tangible personal | 137 |
property which is purchased or secured for payment thereof and
the | 138 |
debt obligation is repayable within twenty years from the
date of | 139 |
issue in annual, semiannual, or more frequent
installments | 140 |
beginning not later than the first year after such
date; | 141 |
(I)(1)(a) In bonds or other evidences of indebtedness, not | 152 |
in default as to principal or interest, which are valid | 153 |
obligations issued, assumed or guaranteed by the United States,
by | 154 |
any state thereof, by the Commonwealth of Puerto Rico, by any | 155 |
territory or insular possession of the United States, or by the | 156 |
District of Columbia, or which are valid obligations issued, | 157 |
assumed, or guaranteed by any county, municipal corporation, | 158 |
district, or political subdivision, or by any civil division or | 159 |
public instrumentality of such governmental units, if by
statutory | 160 |
or other legal requirements such obligations are
payable, as to | 161 |
both principal and interest, from taxes levied
upon all taxable | 162 |
property within the jurisdiction of such
governmental unit; | 163 |
(b) In bonds or other obligations issued by or for account | 164 |
of any such governmental unit having a population of five
thousand | 165 |
or more by the latest official federal or state census,
which are | 166 |
payable as to both principal and interest from revenues
or | 167 |
earnings from the whole or any part of a publicly owned
utility | 168 |
supplying water, gas, sewage disposal facility, or
electricity, or | 169 |
any or all of them, provided that by statute or
other applicable | 170 |
legal requirements, rates from the service or
operation of such | 171 |
utility must be fixed, maintained, and
collected at all times so | 172 |
as to produce sufficient revenues or
earnings to pay both | 173 |
principal and interest of such bonds or
obligations as they become | 174 |
due; | 175 |
(c) In any bonds or obligations payable from and secured
by | 176 |
revenues of the United States, the Commonwealth of Puerto
Rico, or | 177 |
any state or instrumentality of any of them, or of the
District of | 178 |
Columbia or of any commission, board, or other
instrumentality of | 179 |
one or more of them, provided there is a
specific pledge of | 180 |
revenues, and provided that there is adequate
provision for | 181 |
payment of interest prior to completion of
construction and that | 182 |
rates, fees, tolls, or charges fixed are,
after completion of | 183 |
construction, sufficient to pay all expenses
of operation and | 184 |
maintenance and the principal and interest when
due. | 185 |
(3) In bonds or other evidence of indebtedness, not in | 195 |
default as to principal or interest, which are valid obligations | 196 |
issued, assumed, or guaranteed by the United States, by any state | 197 |
thereof, the Commonwealth of Puerto Rico, or by the District of | 198 |
Columbia, if by statutory or other legal requirements such | 199 |
obligations are payable, as to both principal and interest, from | 200 |
selective taxes levied by such governmental unit. | 201 |
(J)(1) In mortgage bonds which are the direct obligation
of | 202 |
a railroad, and which are the first lien on a substantial
portion | 203 |
of its property, situated wholly in the United States or
partly in | 204 |
the United States and partly in Canada, the average net
yearly | 205 |
earnings of which, after deducting proper charges for
maintenance | 206 |
of way and equipment, for the five fiscal years
preceding such | 207 |
investments, have been at least one and one-half
times the average | 208 |
yearly interest for the same period on its
mortgages, bonds, and | 209 |
funded debts, and in the junior mortgage
bond issues of such | 210 |
railroad corporations of the same character
and under the same | 211 |
conditions where the average net yearly
earnings for the five | 212 |
fiscal years preceding such investment,
after deducting proper | 213 |
charges for maintenance of way and
equipment, have been at least | 214 |
three times the average yearly
interest charges on such issues and | 215 |
all prior liens; or in the
mortgage bonds of any incorporated | 216 |
railroad company which have
been assumed or guaranteed, both as to | 217 |
principal and interest, by
any incorporated railroad company whose | 218 |
bonds constitute a legal
investment under division (J)(1) of this | 219 |
section. In
applying the earnings test to any issuing, assuming, | 220 |
or
guaranteeing company, whether or not in legal existence during | 221 |
the whole of such five years next preceding the date of
investment | 222 |
by such insurer, which has at any time during such
five-year | 223 |
period acquired the assets of any other company by
purchase, | 224 |
merger, consolidation, or otherwise, substantially as
an entirety, | 225 |
or has been reorganized pursuant to the bankruptcy
law, the | 226 |
earnings of such other predecessor or constituent
companies, or of | 227 |
the company so reorganized, available for
interest for such | 228 |
portion of such period that has preceded such
acquisition, or such | 229 |
reorganization, may be included in the
earnings of such issuing, | 230 |
assuming, or guaranteeing company for
such portion of such period | 231 |
as is determined in accordance with
adjusted or pro forma | 232 |
consolidated earnings statements covering
such portion of such | 233 |
period. In such cases the requirements as
to earnings shall be | 234 |
based upon the mortgages, bonds, and funded
debts as they exist | 235 |
immediately after such acquisitions or such
reorganizations. | 236 |
(4) In mortgage bonds which are the direct obligation of
and | 248 |
first lien upon the property of a corporation engaged
directly and | 249 |
primarily in the production and sale of, or in the
purchase and | 250 |
sale of electricity or gas, or in the operation of
telephone or | 251 |
telegraph systems or waterworks, or in some
combination of them, | 252 |
and situated wholly in the United States, or
the Commonwealth of | 253 |
Puerto Rico, or partly in the United States
and partly in Canada, | 254 |
the average net yearly earnings of which,
after deducting proper | 255 |
charges for replacements, depreciation,
and obsolescence, for the | 256 |
five fiscal years preceding such
investment, have been at least | 257 |
one and one-half times the average
yearly interest for the same | 258 |
period on its mortgages, bonds, and
funded debts; | 259 |
(5) Any such corporation, or any of its predecessors, | 260 |
constituent, or successor corporations, must have been in
business | 261 |
not less than ten years prior to the date of the
purchase of such | 262 |
bonds, and must not have defaulted on the
interest or principal of | 263 |
any of its bonds or funded debts
outstanding during the five years | 264 |
immediately preceding the date
of purchase, provided that division | 265 |
(J)(5) of this section
does not preclude investments in mortgage | 266 |
bonds of railroads
reorganized through purchase of assets, merger, | 267 |
consolidation,
bankruptcy proceedings, or otherwise if such bonds | 268 |
are eligible
for investment under division (J)(1) of this section; | 269 |
In the event the amount loaned under division (K)(1)
of this | 286 |
section exceeds eighty per cent of the actual market
value of the | 287 |
land, the structures on the land must be insured by
an authorized | 288 |
fire insurance company or covered by other
comparable | 289 |
indemnification, and the policies or indemnifications
shall be | 290 |
payable or assigned to the mortgagee or to a trustee in its
behalf | 291 |
and shall be held by the mortgagee or an agent of the mortgagee
or | 292 |
by such trustee; or in lieu of holding such policies or | 293 |
indemnifications, the
mortgagee may purchase a policy or policies | 294 |
of mortgage
protection insurance, payable to the mortgagee or a | 295 |
trustee in
its behalf, insuring the mortgagee against loss | 296 |
resulting from
the failure of the mortgagor to acquire and | 297 |
maintain, from such
an authorized fire insurance company or other | 298 |
comparable source,
insurance or indemnification. | 299 |
(3) In bonds or notes secured by mortgages or deeds of
trust | 302 |
which are a first lien on leasehold estates in wholly or
partly | 303 |
improved real property, unencumbered, except rentals
accruing from | 304 |
the property to the owner of the fee, provided that
any loan | 305 |
secured by a leasehold estate must provide for
amortization by | 306 |
repayment of principal at least once in each year
in amounts | 307 |
sufficient to repay the loan within a period of
four-fifths of the | 308 |
unexpired term of the leasehold but within a
period of not more | 309 |
than thirty years, and further provided that
the amount loaned on | 310 |
the leasehold estate does not exceed
seventy-five per cent of | 311 |
total market value of the leasehold
estate determined by | 312 |
appraisements in writing made under oath by
two real estate | 313 |
owners, residents of the county or local district
in which the | 314 |
real estate is located, or by a qualified land
appraiser; if the | 315 |
amount loaned exceeds seventy-five per cent of
the value of that | 316 |
portion of the leasehold estate represented by
the value of the | 317 |
land, exclusive of improvements on the land,
such improvements | 318 |
shall be insured against fire for the benefit
of the mortgagee in | 319 |
an amount not less than the difference
between seventy-five per | 320 |
cent of the value of such land,
exclusive of buildings, and the | 321 |
amount loaned; the policies for
such amount shall be payable to | 322 |
and held by the mortgagee or a
trustee named in the lease who | 323 |
shall be required by the terms of
said lease to use and apply the | 324 |
proceeds of such insurance for
repairing, restoring, or rebuilding | 325 |
such buildings; | 326 |
(L) In bonds, notes, or other evidences of indebtedness of | 339 |
corporations, trusts, partnerships, or similar business entities | 340 |
organized
under the laws of the United
States, or any state | 341 |
thereof, the Commonwealth of Puerto Rico,
the District of | 342 |
Columbia, or Canada or any province of Canada,
secured by | 343 |
assignment of lease or leases or the rentals payable
under such | 344 |
leases, of real or personal property or both to (1)
the United | 345 |
States or any instrumentality thereof, or any state of
the United | 346 |
States, the Commonwealth of Puerto Rico, or the
District of | 347 |
Columbia, or any county, city, town, school, or water
district, | 348 |
authority, or other political subdivision in any such
government, | 349 |
or Canada, any province of Canada, or any municipal
corporation of | 350 |
Canada that has a population of fifty thousand or
more by the | 351 |
latest official census; or (2) one or more
corporations, trusts, | 352 |
partnerships, or similar business entities
organized under the | 353 |
laws of the United States, any state thereof,
the Commonwealth of | 354 |
Puerto Rico, the District of Columbia, or
Canada or any province | 355 |
of Canada, provided that (a) the fixed
rentals assigned shall be | 356 |
sufficient to repay the indebtedness
within the unexpired term of | 357 |
the lease, exclusive of the term
which may be provided by an | 358 |
enforceable option of renewal; (b)
such lessee has not defaulted | 359 |
in payment of interest or principal
on any of its bonds, notes, | 360 |
debentures, or other evidences of
indebtedness during the five | 361 |
years immediately preceding the date
of the investment, and | 362 |
provided the average net earnings
available for fixed charges of | 363 |
such lessee under division (L)(2)
of this section for not less | 364 |
than five fiscal years preceding
such investment have been at | 365 |
least one and one-half times average
fixed charges for that period | 366 |
and during either of the last two
years of such period, the net | 367 |
earnings available for fixed
charges shall have been not less than | 368 |
one and one-half times
fixed charges for such year, except that | 369 |
railroad companies and
utility companies may qualify as lessees | 370 |
herein by application of
the earnings test provided for railroads | 371 |
under division (J)(1) of
this section and for utilities under | 372 |
division (J)(4) of this
section; and (c) a first lien on the | 373 |
interest of the lessor in
the unencumbered property so leased | 374 |
shall be obtained as
additional security for the indebtedness; | 375 |
(M) In ground rents, land trust certificates, or fee | 376 |
ownership certificates representing or evidencing beneficial | 377 |
ownership of or interest in improved real estate under lease for | 378 |
not less than twenty-five years from the date of such lease, in | 379 |
which it must be provided that the lessee shall pay all taxes and | 380 |
assessments levied on or assessed against said real estate, shall | 381 |
maintain the improvements on the real estate in good repair, and | 382 |
shall provide and maintain fire insurance in an amount equal to | 383 |
the insurable value of the building on the real estate; provided: | 384 |
(P)(1) In the preferred stocks of any company organized | 418 |
under the laws of the United States or of any state thereof | 419 |
engaged directly and primarily in the production and sale of, or | 420 |
in the purchase and sale of electricity or gas, or in the | 421 |
operation of telephone or telegraph systems or water works, or in | 422 |
some combination of them, if the average annual net earnings of | 423 |
such company, for not less than five fiscal years preceding | 424 |
purchase thereof, after deduction of interest on all mortgages, | 425 |
bonds, debentures, and funded debts and after deduction of the | 426 |
proper charges for replacements, depreciation, and obsolescence, | 427 |
have been at least two times the average yearly amount which is | 428 |
required to pay the dividends or distributions on all preferred | 429 |
stocks; and in which the mortgages, bonds, debentures, funded | 430 |
debts, and preferred stocks shall not in the aggregate exceed | 431 |
seventy per cent of the total capitalization of such company, | 432 |
including mortgages, bonds, debentures, funded debts, and | 433 |
preferred and common stocks; | 434 |
(2) In the preferred stocks of any other company organized | 435 |
under the laws of the United States, or of any state thereof if | 436 |
the average annual net earnings of such company for a period of | 437 |
not less than five fiscal years preceding purchase thereof, after | 438 |
deduction of interest on all mortgages, bonds, debentures, and | 439 |
funded debts and after deduction of the proper charges for | 440 |
replacements, depreciation, and obsolescence, have been at least | 441 |
four times the amount which is required to pay the dividends or | 442 |
distributions on all preferred stocks, and in which the
mortgages, | 443 |
bonds, debentures, funded debts, and preferred stocks
shall not in | 444 |
the aggregate exceed sixty per cent of the total
capitalization of | 445 |
such company, including mortgages, bonds,
debentures, funded | 446 |
debts, and preferred and common stocks; | 447 |
(3) A domestic life insurance company shall not purchase
any | 448 |
preferred stocks when the total market values of such stocks
then | 449 |
owned with those purchased exceed in the aggregate of book
values | 450 |
and purchase price the capital, surplus, and contingency
funds, | 451 |
excluding all reserves required by law, of such company on
the | 452 |
thirty-first day of December preceding the date of such
purchase, | 453 |
or contemplated purchase, provided that in case of
appreciations | 454 |
in values of stocks owned the cost rather than the
market values | 455 |
shall be used in arriving at such aggregate; the
purpose being to | 456 |
restrict the investments of such company in all
preferred stocks | 457 |
to capital, surplus, and contingency funds. | 458 |
(b) The corporation, trust,
partnership, or similar business | 468 |
entity has not defaulted in payment of
interest or principal on | 469 |
any of its bonds, notes, debentures, or other
evidences of | 470 |
indebtedness during the five years immediately
preceding the date | 471 |
of purchase, and
the average annual net earnings of such | 472 |
corporation, trust,
partnership, or similar business entity that | 473 |
are available for fixed
charges for not
less than five fiscal | 474 |
years preceding such purchase have been at
least one and one-half | 475 |
times the average fixed
charges of such corporation, trust, | 476 |
partnership, or similar business
entity for that period and during | 477 |
either of the last two years
of such period, the net earnings | 478 |
available for fixed charges
shall have been not less than one and | 479 |
one-half times
the fixed charges of such corporation, trust, | 480 |
partnership, or
similar business entity for such year. | 481 |
(5) In common stocks or shares of any solvent incorporated | 482 |
company organized under the laws of the United States, or of any | 483 |
state, district, or territory thereof, or the Commonwealth of | 484 |
Puerto Rico, provided that a dividend or distribution has been | 485 |
paid by the
corporation in the preceding twelve months upon such | 486 |
stock to be purchased, or
that such corporation, together with its | 487 |
predecessor corporation or
corporations, has been in existence for | 488 |
a period of at least five years.
No domestic company shall invest | 489 |
in common stock or
shares under divisions (P)(5) and (R) of this | 490 |
section a sum exceeding in the aggregate ten per cent of its | 491 |
admitted assets on the preceding thirty-first day of December. | 492 |
(6) In the stocks
or limited liability company membership | 493 |
interests of insurance
corporations, financial
corporations, | 494 |
investment
corporations, and investment management companies, | 495 |
which investment
management companies are registered with the | 496 |
securities and exchange
commission under the "Investment Company | 497 |
Act of
1940," 54 Stat. 789, 15 80a-1, as
amended, except its own | 498 |
stock, but no domestic
life insurance company shall invest in such | 499 |
stocks
or limited liability company membership interests under | 500 |
division
(P)(6) of this section, exclusive of its investments in | 501 |
stocks
or limited liability company membership interests of | 502 |
insurance company subsidiaries or subsidiaries engaged exclusively | 503 |
in the
ownership of insurance company subsidiaries, a sum | 504 |
exceeding the lesser
of fifty per cent of its policyholder surplus | 505 |
or
ten per cent of its admitted assets as of the preceding | 506 |
thirty-first day of
December unless the approval of the | 507 |
superintendent of insurance is first
obtained. Whenever the | 508 |
superintendent has reason to believe that
the retention, | 509 |
investment, or acquisition of the stock
or limited liability | 510 |
company membership interest of any
such
corporationcompany | 511 |
substantially lessens competition generally in
the business of | 512 |
insurance or creates a monopoly therein the
superintendent shall | 513 |
proceed under section 3901.13 of the Revised Code to cause such | 514 |
domestic insurance company to divest itself of such stock
or | 515 |
limited liability company membership interest. | 516 |
(7)(a) In bonds, notes, debentures, or other evidences of | 517 |
indebtedness issued, assumed, or guaranteed by a solvent | 518 |
corporation, trust,
or partnership formed or existing under the | 519 |
laws of a foreign jurisdiction,
provided each such foreign | 520 |
investment is of the same kind and quality as
United States | 521 |
investments authorized under this section; or
in common or | 522 |
preferred stock or shares of any solvent corporation formed or | 523 |
existing under the laws of a foreign jurisdiction provided each | 524 |
such foreign
investment is of the same kind and quality as United | 525 |
States
investments authorized under this section; or in bonds or | 526 |
other evidences of
indebtedness issued, assumed, or guaranteed by | 527 |
a foreign jurisdiction. | 528 |
(8) An insurer may invest without limitation in investments | 553 |
of government
money market funds. As used in division (P)(8) of | 554 |
this section,
"government money market fund" means a mutual fund | 555 |
that at all times invests
in obligations issued, guaranteed, or | 556 |
insured by the federal government of the
United States, or | 557 |
collateralized repurchase agreements
comprised of these | 558 |
obligations, and that qualifies for investment without a
reserve | 559 |
pursuant to the purposes and procedures of the securities | 560 |
valuation
office of the national association of insurance | 561 |
commissioners. | 562 |
(Q) In loans upon the pledge of any securities in which
such | 563 |
companies are authorized by this section to invest, provided
that | 564 |
any loan upon such a pledge shall not exceed eighty per cent
of | 565 |
the cash market value of the collateral at the time of the
making | 566 |
of such loan and at the end of each twelve-month period | 567 |
thereafter, and such company, through the collateral pledged to | 568 |
it, shall not exceed the amounts which it may, under this
section, | 569 |
invest in one corporation so that, in the stocks and
securities | 570 |
which may be owned and those which are pledged to it,
the | 571 |
limitations in this section might be indirectly evaded; | 572 |
(R)(1) Any domestic legal reserve life insurance company
may | 573 |
loan or invest its funds, to an extent not exceeding in the | 574 |
aggregate five per cent of its total admitted assets, in loans or | 575 |
investments not permitted under this section. Any such company | 576 |
may also invest up to an additional five per cent of its total | 577 |
admitted assets, in loans or investments in small businesses | 578 |
having more than half of their assets or employees in this state | 579 |
and in venture capital firms having an office within this state, | 580 |
provided that, as a condition of a company making an investment
in | 581 |
a venture capital firm, the firm must agree to use its best | 582 |
efforts to make investments, in an aggregate amount at least
equal | 583 |
to the investment to be made by the company in that venture | 584 |
capital firm, in small businesses having their principal offices | 585 |
within this state and having either more than one-half of their | 586 |
assets within this state or more than one-half of their employees | 587 |
employed within this state. | 588 |
(S)(1) No domestic life insurance company shall subscribe
to | 614 |
or participate in any underwriting for the purchase or sale of | 615 |
securities or property, nor shall it enter into any such | 616 |
transaction for purchase or sale on account of said company | 617 |
jointly with any other person, nor shall any such company enter | 618 |
into any agreement to withhold from sale any of its property, but | 619 |
the disposition of its property shall be at all times within the | 620 |
control of its board of directors. Nothing contained in
division | 621 |
(S)(1) of this section shall be construed to invalidate
or | 622 |
prohibit an agreement by an insurance company for the purchase
for | 623 |
its own account of an entire issue of the securities of a | 624 |
corporation or to invalidate or prohibit an agreement by an | 625 |
insurance company and one or more other investors to join and | 626 |
share in the purchase of investments for their individual
accounts | 627 |
and for bona fide investment purposes. | 628 |
(7) No domestic life insurance company shall at any time | 669 |
have invested in or loaned upon the security of the obligations, | 670 |
property, or securities of a particular corporation, trust, | 671 |
partnership, or similar business entity a sum exceeding the | 672 |
greater of two
per cent of its admitted assets as
of the preceding | 673 |
thirty-first day of December or twenty-five per
cent of that | 674 |
portion of its capital and surplus, or its surplus
in the case of | 675 |
a mutual company, that exceeds the minimum
required capital and | 676 |
surplus under section 3907.05 of the Revised
Code unless the | 677 |
approval of the superintendent of insurance is
first obtained.
The | 678 |
restrictions of division (S)(7) of this section do not
apply
to | 679 |
divisions (C), (F), (G), (H), (P)(6), and (R) of this
section
or | 680 |
to any valid obligation issued, assumed, or guaranteed
by the | 681 |
United States, or any state thereof, the Commonwealth of
Puerto | 682 |
Rico, the District of Columbia, or Canada or any province
of | 683 |
Canada. For purposes of division (S)(7) of this section, such | 684 |
company
may, at its option, consider either the lessor or the | 685 |
lessee
under division (L) of this section to be the person to whom | 686 |
any
such investment or loan is made. | 687 |
(A)(1) Bonds and mortgages on unencumbered real estate | 698 |
within this or any other state worth twenty-five per cent more | 699 |
than the sum loaned thereon, exclusive of buildings, unless such | 700 |
buildings are insured in some company authorized to do business
in | 701 |
this state, and the policy is transferred to the company
making | 702 |
the investment; or, in lieu of transferring such policies,
the | 703 |
mortgagee may purchase a policy or policies of mortgage
protection | 704 |
insurance, payable to the mortgagee or a trustee in
its behalf, | 705 |
insuring the mortgagee against loss resulting from
the failure of | 706 |
the mortgagor to acquire and maintain, from such
an authorized | 707 |
insurance company, insurance in the amount required
by this | 708 |
section; | 709 |
(B)(1) Legally authorized and executed bonds, notes, | 717 |
warrants, and securities which are the direct obligation of or
are | 718 |
guaranteed as to both principal and interest by Canada, or
which | 719 |
are the direct obligation of or are guaranteed as to both | 720 |
principal and interest by any province of Canada, or which are
the | 721 |
direct obligation of or are guaranteed as to both principal
and | 722 |
interest by any municipal corporation of Canada having a | 723 |
population of one hundred thousand or more by the latest official | 724 |
census, and which are not in default as to principal or interest; | 725 |
(C) Bonds or other evidences of indebtedness, not in
default | 733 |
as to principal or interest, which are valid obligations
issued, | 734 |
assumed, or guaranteed by the United States, by any state
thereof, | 735 |
the Commonwealth of Puerto Rico, by any territory or
insular | 736 |
possession of the United States, or by the District of
Columbia, | 737 |
or which are valid obligations issued, assumed, or
guaranteed by | 738 |
any county, municipal corporation, district, or
political | 739 |
subdivision, or by any civil division or public
instrumentality of | 740 |
such governmental units, if by statutory or
other legal | 741 |
requirements such obligations are payable, as to both
principal | 742 |
and interest, from taxes levied upon all taxable
property within | 743 |
the jurisdiction of such governmental unit, or in
bonds or other | 744 |
obligations issued by or for account of any such
governmental unit | 745 |
having a population of five thousand or more by
the latest | 746 |
official federal or state census, which are payable as
to both | 747 |
principal and interest from revenues or earnings from the
whole or | 748 |
any part of a publicly owned utility, provided that by
statute or | 749 |
other applicable legal requirements, rates from the
service or | 750 |
operation of such utility must be fixed, maintained,
and collected | 751 |
at all times so as to produce sufficient revenues
or earnings to | 752 |
pay both principal and interest of such bonds or
obligations as | 753 |
they become due, and in any bonds or obligations
issued or | 754 |
guaranteed by the United States, any state, the
District of | 755 |
Columbia, the Commonwealth of Puerto Rico, any
county, municipal | 756 |
corporation, district, political subdivision,
civil division, | 757 |
commission, board, authority, agency, or other
instrumentality of | 758 |
one or more of them, provided there is a
specific pledge of | 759 |
revenues, earnings, or other adequate security
and provided that | 760 |
no prior or parity obligation of the same
issuer, payable from | 761 |
revenues or earnings from the same source,
has been in default as | 762 |
to principal or interest during the five
years next preceding the | 763 |
date of such investment, but such issuer
need not have been in | 764 |
existence for that period, and obligations
acquired under this | 765 |
section may be newly issued, and further
provided that there is | 766 |
adequate provision for payment of expenses
of operation and | 767 |
maintenance and the principal and interest on
all obligations when | 768 |
due; | 769 |
(D)(1) Bonds or other evidences of indebtedness, bearing
or | 770 |
accruing interest, issued, assumed, or guaranteed by any solvent | 771 |
corporation, trust, partnership, or similar business entity | 772 |
organized and existing under the laws of this or any other state, | 773 |
or of the
United States, the Commonwealth of Puerto Rico, or of | 774 |
the
District of Columbia, or of Canada or any province of Canada, | 775 |
upon which there is no existing interest or principal
default, | 776 |
provided that either: | 777 |
(2) Stocks
or limited liability company membership interests | 785 |
of any insurance
corporation, financial
corporation, investment | 786 |
corporation, and investment
management
companycompanies, which | 787 |
investment management
company iscompanies are registered with the | 788 |
securities and exchange commission under the "Investment
Company | 789 |
Act of 1940," 54 Stat. 789, 15 U.S.C. 80a-1, as amended,
except | 790 |
its own stock, and stocks
or limited liability company membership | 791 |
interests, bonds, notes, and
debentures of any
corporationcompany | 792 |
which is organized for, and limited
in its operations to, the | 793 |
financing of insurance premiums, upon
approval of such investments | 794 |
by the superintendent of insurance;
except that approval shall not | 795 |
be required for the purchase of
the outstanding stocks
or limited | 796 |
liability company membership interests of any such
corporation | 797 |
company, if investment
in each such
corporationcompany does not | 798 |
exceed in the
aggregate two and one-half per
cent of the total | 799 |
admitted assets of the company making the
investment as of the | 800 |
preceding thirty-first day of December.
Whenever the | 801 |
superintendent has reason to believe that the
retention, | 802 |
investment, or acquisition of the stock
or limited liability | 803 |
company membership interest of any such
corporationcompany | 804 |
substantially lessens competition generally in the
business of | 805 |
insurance or creates a monopoly therein
hethe
superintendent | 806 |
shall
proceed under section 3901.13 of the Revised Code to cause | 807 |
such
domestic insurance company to divest itself of such stock
or | 808 |
limited liability company membership interest. | 809 |
(5) In equipment trust obligations or certificates,
security | 823 |
agreements, or other evidences of indebtedness entered
into | 824 |
directly or guaranteed by any company operating wholly or
partly | 825 |
within the United States or Canada, provided
that such debt | 826 |
obligation is secured by a first lien on tangible personal | 827 |
property which is purchased or secured for payment thereof and | 828 |
such debt
obligation is repayable within twenty years from the | 829 |
date of issue in
annual, semiannual, or more frequent installments | 830 |
beginning not later than
the first year after such date. | 831 |
(F)(1) Repurchase agreements with, and interest-bearing | 847 |
obligations, including savings accounts and time certificates of | 848 |
deposit of, a national bank of the United States, a commonwealth | 849 |
bank of Puerto Rico, a chartered bank of Canada, or a state bank, | 850 |
provided such bank is either a member of the federal deposit | 851 |
insurance corporation created pursuant to the "Banking Act of | 852 |
1933," as amended, or the Canada deposit insurance corporation | 853 |
created pursuant to the act of parliament known as the "Canada | 854 |
Deposit Insurance Corporation Act," as amended. | 855 |
(H)(1) In bonds, notes, debentures, or other evidences of | 872 |
indebtedness
issued, assumed, or guaranteed by a solvent | 873 |
corporation, trust, or partnership
formed or existing under the | 874 |
laws of a foreign jurisdiction, provided each such
foreign | 875 |
investment is of the same kind and quality as United
States | 876 |
investments authorized under this section; or in common or | 877 |
preferred stock or shares of any solvent corporation formed or | 878 |
existing under
the laws of a foreign jurisdiction, provided each | 879 |
such foreign investment is of
the same kind and quality as United | 880 |
States investments
authorized under this section; or in bonds or | 881 |
other evidences of indebtedness
issued, assumed, or guaranteed by | 882 |
a foreign jurisdiction. | 883 |
(I)(1) Any securities or other property not permitted
under | 908 |
section 3925.05, 3925.06, 3925.08, or 3925.20 of the
Revised Code | 909 |
to an extent not exceeding in the aggregate six per
cent of the | 910 |
total admitted assets of such company on the
preceding | 911 |
thirty-first day of December, within the limitations
prescribed in | 912 |
division (J) of this section. Any such company may
also invest up | 913 |
to an additional five per cent of the total
admitted assets of | 914 |
such company on the preceding thirty-first day
of December, within | 915 |
the limitations prescribed in division
(J) of this section, in | 916 |
loans or investments in small
businesses having
more than half of | 917 |
their assets or employees in this state and in
venture capital | 918 |
firms having an office within this state,
provided that, as a | 919 |
condition of a company making an investment
in a venture capital | 920 |
firm, the firm must agree to use its best
efforts to make | 921 |
investments, in an aggregate amount at least
equal to the | 922 |
investment to be made by the company in that venture
capital firm, | 923 |
in small businesses having their principal offices
within this | 924 |
state and having either more than one-half of their
assets within | 925 |
this state or more than one-half of their employees
employed | 926 |
within this state. | 927 |
(J) No domestic insurance company shall at any time have | 953 |
invested a sum exceeding five per cent of its admitted assets as | 954 |
of the preceding thirty-first day of December in the bonds,
notes, | 955 |
debentures, other evidences of indebtedness, and stocks
of a | 956 |
particular corporation, trust, partnership, or similar business | 957 |
entity, except
for investments authorized under divisions (A) and | 958 |
(D)(2) of this
section, and no domestic insurance company together | 959 |
with its
subsidiary, if any, shall at any time own directly or | 960 |
indirectly
more than twenty-five per cent of the outstanding | 961 |
bonds, notes,
debentures, other evidences of indebtedness, and | 962 |
stocks of any
corporation, except for investments
authorized under | 963 |
divisions (A) and (D)(2) of this section. | 964 |