§601.8. Equity interests
A. An insurer may acquire preferred stocks in any United States business entity if,
as a result of and after giving effect to the investment:
(1) Securities of a single issuer and its affiliates, other than the government of the
United States and subsidiaries authorized pursuant to R.S. 22:691.3, shall not exceed three
percent of admitted assets.
(2) The aggregate amount of preferred stocks then held by the insurer under this
Subsection does not exceed twenty-five percent of its admitted assets.
B. An insurer may acquire equity interests in solvent business entities meeting any
of the following criteria:
(1) Domiciled in the United States.
(2) Domiciled in a foreign jurisdiction if listed on a qualified exchange.
(3) Permitted pursuant to R.S. 22:601.12.
C. An insurer shall not acquire an investment pursuant to this Section if, as a result
of and after giving effect to the investment:
(1) The aggregate amount of investments then held by the insurer under this Section,
excluding exchange-traded funds and mutual funds, would exceed fifty percent of its
admitted assets, or the amount of equity interests then held by the insurer that are not listed
on a qualified exchange would exceed five percent of its admitted assets.
(2) The aggregate amount of exchange-traded fund and mutual fund investments then
held by the insurer under this Section would exceed the greater of fifty percent of its admitted
assets or one hundred percent of its surplus as regards policyholders. The investment in any
one fund shall be limited to ten percent of admitted assets.
D. If the commissioner considers it desirable in order to properly evaluate the
investment portfolio of an insurer, the commissioner may require that investments in
exchange-traded funds, mutual funds, pooled investment vehicles, or other investment
companies be treated for purposes of this Subpart as if the investor owned directly its
proportional share of the assets owned by the exchange-traded fund, mutual fund, pooled
investment vehicle, or investment company.
Acts 2021, No. 165, §1, eff. Jan. 1, 2022.