V.I. Code tit. 22, § 322 (2019)
2019 US Virgin Islands Code|Title 22 - Insurance|Chapter 14 - Virgin Islands Insurance Holding Company System Regulation|§ 322. Subsidiaries of insurers

 (a) Any domestic insurer, either by itself or in cooperation with one or more persons. may organize or acquire one or more subsidiaries engaged in the following kinds of business: (1) any kind of insurance business authorized by the jurisdiction in which it is incorporated; (2) acting as an insurance broker or as an insurance agent for its parent or for any of its parent’s insurer subsidiaries; (3) investing, reinvesting or trading in securities for its own account, that of its parent, a subsidiary of its parent, or an affiliate or subsidiary; (4) management of an investment company subject to or registered pursuant to the Investment Company Act of 1940, 15 U.S.C. §§ 80a-1-80a-64, as amended, including related sales and services; (5) acting as a broker-dealer subject to or registered pursuant to the Securities Exchange Act of 1934, 15 U.S.C. 78a et seq., as amended; (6) rendering investment advice to governments, government agencies, corporations or other organizations or groups; (7) rendering other services related to the operations of an insurance business, such as actuarial, loss prevention, safety engineering, data processing, accounting, claims, appraisal and collection services; (8) ownership and management of assets that the parent corporation could itself own or manage; (9) acting as administrative agent for a governmental instrumentality that is performing an insurance function; (10) financing of insurance premiums, agents and other forms of consumer financing; (11) any other business activity determined by the Commissioner to be reasonably ancillary to an insurance business; and (12) owning a corporation or corporations engaged or organized to engage exclusively in one or more of the businesses specified in this section. (b) The aggregate investment by the insurer and its subsidiaries acquired or organized pursuant to this subsection must not exceed the limitations applicable to such investments by the insurer. (c) In addition to investments in common stock, preferred stock, debt obligations and other securities permitted under all other sections of this title, a domestic insurer may also: (1) invest in common stock, preferred stock, debt obligations, and other securities of one or more subsidiaries, amounts which do not exceed the lesser of 10 percent of the insurer’s assets or 50 percent of the insurer’s surplus as regards policyholders, if after these investments, the insurer’s surplus as regards policyholders is reasonable in relation to the insurer’s outstanding liabilities and adequate to meet its financial needs. In calculating the amount of those investments, investments in domestic or foreign insurance subsidiaries and health maintenance organizations are excluded, and included are: (A) total net monies or other consideration expended and obligations assumed in the acquisition or formation of a subsidiary, including all organizational expenses and contributions to capital and surplus of the subsidiary whether or not represented by the purchase of capital stock or issuance of other securities, and (B) all amounts expended in acquiring additional common stock, preferred stock, debt obligations, and other securities; and all contributions to the capital or surplus of a subsidiary subsequent to its acquisition or formation; (2) invest any amount in common stock, preferred stock, debt obligations and other securities of one or more subsidiaries engaged or organized to engage exclusively in the ownership and management of assets authorized as investments for the insurer if each subsidiary agrees to limit its investments in any asset so that such investments may not cause the amount of the total investment of the insurer to exceed any of the investment limitations specified in paragraph (1) of this subsection or in chapter 23 of this title applicable to the insurer. For the purpose of this subsection, “the total investment of the insurer” includes: (A) any direct investment by the insurer in an asset, and (B) the insurer’s proportionate share of any investment in an asset by any subsidiary of the insurer, that are calculated by multiplying the amount of the subsidiary’s investment by the percentage of the ownership of the subsidiary; (3) With the approval of the Commissioner, invest any greater amount in common stock, preferred stock, debt obligations, or other securities of one or more subsidiaries; if after the investment the insurer’s surplus as regards policyholders will be reasonable in relation to the insurer’s outstanding liabilities and adequate to its financial needs. (d) Investments in common stock, preferred stock, debt obligations or other securities of subsidiaries made pursuant to subsection (c) may not be subject to any of the otherwise applicable restrictions or prohibitions contained in this title applicable to such investments of insurers. (e) Whether any investment made pursuant to subsection (c) meets the applicable requirements of that subsection is determined before the investment is made, by calculating the applicable investment limitations as though the investment had already been made, taking into account the then outstanding principal balance on all previous investments in debt obligations, and the value of all previous investments in equity securities as of the day they were made, net of any return of capital invested, not including dividends. (f) If an insurer ceases to control a subsidiary, it shall dispose of any investment made pursuant to this section within three years after the cessation of control or within such further time as the Commissioner may prescribe, unless at any time after the investment is made, the investment meets the requirements for investment under any other section of this chapter, and the insurer has so notified the Commissioner.