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§4530
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§4530 . Optional Investment Authority.
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§4530(a)
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(a) An authorized society meeting the requirements set forth in (this §) is authorized to invest its funds in, or otherwise acquire, or loan upon, the types of investments specified in §1402 , §1403 , §1405 , §1406 , §1410 , and §4240 of this chapter, subject to the limitations contained therein. The provisions of §1404 of this chapter shall not have any application to investments of such societies, except to the extent provided in paragraph §1402(b)(4) of this chapter.
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§4530(b)
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(b) In addition to other requirements of this article, an authorized society investing pursuant to (this §) shall meet the following requirements:
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§4530(b)(1)
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(1) Prior to investing pursuant to (this §) ,the society shall submit notice to the superintendent that the board of directors of the society has approved investment pursuant to (this §) and that the society meets the requirements of (this §) and intends to invest hereunder;
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§4530(b)(2)
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(2) The society shall be subject to the provisions of §1322 of this chapter establishing risk-based capital (RBC) requirements for life insurance and accident and health insurance companies, unless the superintendent shall by rule establish a separate set of RBC instructions and a separate RBC formula for fraternal benefit societies that adjusts the instructions and formula otherwise determined under paragraph §1322(c)(2) of this chapter for the special structural and organizational characteristics of a fraternal benefit society;
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§4530(b)(3)
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(3) The society shall: (A) have been in continuous operation for a minimum of 5 years; and (B) have total admitted assets of at least $2,000,000,000 for a period of 5 continuous years as of the immediately preceding calendar year; and
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§4530(b)(4)
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(4) For each calendar year during which (this §) applies to the society, the society shall have, as of the end of the immediately preceding calendar year:
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§4530(b)(4)(A)
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(A) had a risk based capital level of at least 6 times authorized control level RBC as defined by the provisions of §1322 of this chapter; and
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§4530(b)(4)(B)
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(B) maintained a minimum claims-paying, financial strength or equivalent rating from at least 1 nationally recognized statistical rating organization in 1 of the organization's 3 highest rating categories for the time period during which (this §) applies to the society provided that the rating shall not depend on a guarantee or other credit enhancement from another entity; and shall not be modified or otherwise qualified to show dependence of the rating on the performance or a contractual obligation of, or the society's affiliation with, another society.
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§4530(c)
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(c) Whenever a society fails to meet the requirements set forth in (this §) ,the superintendent may, in his or her discretion, prohibit or limit the society from engaging in new investments under (this §) . Source Data downloaded: 2009-04-09 15: 15: 34; Processed: 2009-05-08 15: 36: 13
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