LA Rev Stat § 22:601.2 (2021)
2021 Louisiana Laws|Revised Statutes|Title 22 - Insurance|§601.2. General investment qualifications

RS 601.2 - General investment qualifications  A. Insurers may acquire, hold, or invest in investments or engage in investment practices as set forth in this Subpart only. Investments not conforming to this Subpart shall not be admitted assets.  B. No security or other investment shall be eligible for purchase or acquisition pursuant to this Subpart unless it is interest bearing or interest accruing or dividend or income paying or eligible for dividends or income, is not then in default in any respect, and the insurer is entitled to receive for its exclusive account and benefit, the interest or income accruing thereon; except that it may acquire immovable property for occupancy by the insurer for home and branch office purposes. No security shall be eligible for purchase at a price above its market value.  C. Except as provided in Subsections D and E of this Section, an investment shall qualify pursuant to this Subpart if, on the date the insurer committed to acquire the investment or on the date of its acquisition, it would have qualified pursuant to this Subpart. For the purposes of determining limitations contained in this Subpart, an insurer shall give appropriate recognition to any commitments to acquire investments.  D.(1) An investment held as an admitted asset by an insurer on January 1, 2022, which qualified pursuant to this Title shall remain qualified as an admitted asset pursuant to this Subpart.  (2) Each specific transaction constituting an investment practice of the type described in this Subpart that was lawfully executed by an insurer and was in effect on January 1, 2022, shall continue to be permitted pursuant to this Subpart until its expiration or termination under its terms.  E. An investment qualified, in whole or in part, for acquisition or holding as an admitted asset may be qualified or requalified at the time of acquisition or a later date, in whole or in part, pursuant to any other Section in this Subpart, if the relevant conditions contained in the other Section are satisfied at the time of qualification or requalification.  F. An insurer may acquire or hold as admitted assets any of the following investments that do not otherwise qualify as provided in this Subpart if the insurer has not acquired them for the purpose of circumventing any limitations contained in this Subpart, if the insurer acquires the investments in the following circumstances, and the insurer complies with the provisions of R.S. 22:601.5 and 601.18 as to the investments:  (1) As payment on account of existing indebtedness or in connection with the refinancing, restructuring, or workout of existing indebtedness, if taken to protect the insurer's interest in that investment.  (2) As realization on collateral for an obligation.  (3) In connection with an otherwise qualified investment or investment practice, as interest on or a dividend or other distribution related to the investment or investment practice or in connection with the refinancing of the investment, in each case for no additional or only nominal consideration.  (4) Under a lawful and bona fide agreement of recapitalization or voluntary or involuntary reorganization in connection with an investment held by the insurer.  (5) Under a bulk reinsurance, merger, or consolidation transaction approved by the commissioner if the assets constitute admissible investments for the ceding, merged, or consolidated companies.  G. An investment or portion of an investment acquired by an insurer pursuant to Subsection F of this Section shall become a nonadmitted asset three years, or five years in the case of mortgage loans and real estate, from the date of its acquisition, unless within that period the investment has become a qualified investment pursuant to this Subpart, except as provided in Subsection F of this Section, but an investment acquired under an agreement of bulk reinsurance, merger, or consolidation may be qualified for a longer period if provided in the plan for reinsurance, merger, or consolidation as approved by the commissioner. Upon application by the insurer and a showing that the nonadmission of an asset held pursuant to Subsection F of this Section would materially injure the interests of the insurer, the commissioner may extend the period for admissibility for an additional reasonable period. An aggrieved party affected by the commissioner's decision, act, or order may demand a hearing in accordance with R.S. 22:2191 et seq.  H. The investments of a foreign or alien insurer shall be as permitted by the laws of its domicile but shall be of a quality substantially as high as those required pursuant to this Subpart for similar funds of like domestic insurers.  I. Unless otherwise specified, an investment limitation computed on the basis of an insurer's admitted assets or capital and surplus shall relate to the amount required to be shown on the statutory balance sheet of the insurer most recently required to be filed with the commissioner.  J. An insurer shall maintain documentation demonstrating that investments were acquired in accordance with this Subpart and specifying the Section of this Subpart under which they were acquired.  K. An insurer shall not execute an agreement to purchase securities in advance of their issuance for resale to the public as part of a distribution of the securities by the issuer or otherwise guarantee the distribution, except that an insurer may acquire privately placed securities with registration rights.  L. Notwithstanding the provisions of this Subpart, the commissioner, for good cause, may order, pursuant to rules or regulations promulgated and adopted in accordance with the Administrative Procedure Act, an insurer to nonadmit, limit, dispose of, withdraw from, or discontinue an investment or investment practice. The authority of the commissioner under this Subsection shall be in addition to any other authority of the commissioner.  M. Insurance futures and insurance futures options shall not be considered investments or investment practices for purposes of this Subpart.  N. The commissioner may retain at the insurer's expense attorneys, actuaries, accountants, and other experts not otherwise a part of the commissioner's staff as may be reasonably necessary to assist in reviewing the insurer's investments. These persons retained shall be under the direction and control of the commissioner and shall act in a purely advisory capacity.  O. If the commissioner determines that an insurer's investment practices do not comply with the provisions of this Subpart, the commissioner may, after notification to the insurer of the commissioner's findings, order the insurer to make changes necessary to comply with the provisions of this Subpart.  P. If the commissioner determines that by reason of the financial condition, current investment practice, or current investment plan of an insurer, the interests of insureds, creditors, or the general public are or may be endangered, the commissioner may impose reasonable additional restrictions upon the admissibility or valuation of investments or may impose restrictions on the investment practices of an insurer, including prohibition or divestment.  Q. The commissioner may count toward satisfaction of the minimum asset requirement any assets in which an insurer is required to invest under the laws of a country other than the United States as a condition for doing business in that country if the commissioner determines that counting them does not endanger the interests of insureds, creditors, or the general public.  Acts 2021, No. 165, §1, eff. Jan. 1, 2022.