3 AAC 21.330. Rated credit instruments for a property and casualty insurer

(a) Notwithstanding 3 AAC 21.325(a) , a property and casualty insurer may

(1) acquire, hold, or invest in a rated credit instrument that is issued, assumed, guaranteed, or insured by

(A) the United States;

(B) a government-sponsored enterprise of the United States if the instrument of the government-sponsored enterprise is assumed, guaranteed, or insured by the United States or is otherwise backed or supported by the full faith and credit of the United States;

(D) a government-sponsored enterprise of Canada, if the instrument of the government-sponsored enterprise is assumed, guaranteed, or insured by Canada or is otherwise backed or supported by the full faith and credit of Canada; and

(2) acquire a rated credit instrument, other than an asset-backed security, if the rated credit instrument is

(A) issued by a government money market mutual fund, a class one money market mutual fund, or a class one bond mutual fund;

(B) issued, assumed, guaranteed, or insured by a government-sponsored enterprise of the United States other than those eligible under (1)(A) or (B) of this subsection;

(D) issued by a multilateral development bank.

(b) A property and casualty insurer may not acquire an instrument

(1) under (a)(1)(C) or (D) of this section if, as a result of and after giving effect to the investment, the aggregate amount of investments then held by the property and casualty insurer under this subsection would exceed 40 percent of the property and casualty insurer's admitted assets; or

(2) of any one fund, any one enterprise or entity, or any one state under (a)(2) of this section if, as a result of and after giving effect to the investment, the aggregate amount of investments then held in any one fund, enterprise, entity, or state under (a)(2) of this section would exceed 10 percent of the property and casualty insurer's admitted assets.

(c) A property and casualty insurer may acquire a preferred stock that is not a foreign investment and that meets the requirements for a rated credit instrument in 3 AAC 21.395 if, as a result of and after giving effect to the investment, the aggregate amount of preferred stocks then held by the property and casualty insurer under this subsection

(1) does not exceed 20 percent of the property and casualty insurer's admitted assets; and

(2) that are not sinking fund stocks or not rated P1 or P2 by the securities valuation office does not exceed 10 percent of the property and casualty insurer's admitted assets.

(d) In addition to an investment eligible under (a) - (c) of this section, a property and casualty insurer may acquire, hold, or invest in a rated credit instrument that is not a foreign investment. A property and casualty insurer may not acquire an instrument under this subsection if, as a result of and after giving effect to the investment, the aggregate amount of investments then held by the property and casualty insurer under this subsection would exceed 40 percent of the property and casualty insurer's admitted assets.

(e) A property and casualty insurer may not acquire a special rated credit instrument under this section if, as a result of and after giving effect to the investment, the aggregate amount of special rated credit instruments then held by the property and casualty insurer would exceed five percent of the property and casualty insurer's admitted assets.

History: Eff. 12/28/2001, Register 160

Authority: AS 21.06.090

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