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      RS 22:601.16     

  

§601.16. Other admitted assets

            For the purposes of this Subpart, the following assets are admitted assets:

            (1) Cash in the direct possession of the insurer or in transit under its control, and including cash on deposit with a financial institution regulated by any federal or state agency of the United States.

            (2) Loans secured by first liens on interest in oil, gas, or condensate properties or leaseholds in the United States and Canada on which there are fully completed commercially producing wells. The present value of the proved oil and gas reserves, as determined by a registered petroleum engineer, shall not be less than one hundred fifty percent of the loans thereon. Notwithstanding the provisions of R.S. 22:601.17, the total of loans and investments made pursuant to this Paragraph shall not exceed five percent of the insurer's admitted assets.

            (3) A life insurer may lend to a policyholder on the security of the cash surrender value of the policyholder's policy a sum not exceeding the legal reserve that the insurer is required to maintain on the policy.

            (4) A domestic insurer may invest in venture or seed capital investments offered by a professionally managed capital company which are certified under R.S. 51:1921 et seq., in a small business investment company (SBIC), or in a minority small business investment company (MSBIC) domiciled in this state, or in any such company itself, investments of bonds or investments provided through the Louisiana Science and Technology Foundation, any university research or incubator venture and opportunity, the Louisiana Small Business Development Center, the Louisiana Small Business Equity Corporation, and the rural relief fund, or any combination of investments and companies thereof. No insurer shall invest in excess of one percent of its available admitted assets, nor more than ten percent of the allowable one percent investment in any one venture, investment, offering, or company. No insurer shall make any such investment under this Paragraph unless its statutorily mandated capitalization and surplus level is one million dollars or more, or if it is under any supervisory action or administration of the Department of Insurance. Any investment authorized by this Paragraph shall be eligible for a reduction of taxes as stipulated by R.S. 22:832 provided that either the investment or the company is in Louisiana.

            (5) A domestic insurer may purchase for its own benefit life insurance policies, which comply with 26 U.S.C. 7702, in which the insurer is the owner and beneficiary.

            (6) Investments, securities, properties, and loans acquired, or held, in accordance with this Subpart and in connection therewith the following items:

            (a) Interest due or accrued on any bond or evidence of indebtedness which is not in default and which is not valued on a basis including accrued interest.

            (b) Declared and unpaid dividends on stock and shares, unless such amount has otherwise been allowed as an asset.

            (c) Interest due or accrued upon a collateral loan in an amount not to exceed one year of interest thereon.

            (d) Interest due or accrued on deposits in solvent banks and trust companies, and interest due or accrued on other assets, if such interest is in the judgment of the commissioner a collectible asset.

            (e) Interest due or accrued on a mortgage loan, in an amount not exceeding in any event the amount, if any, of the excess of the value of the property less delinquent taxes thereon over the unpaid principal, but in no event shall interest accrued for a period in excess of twelve months be allowed as an asset.

            (f) Rent due or accrued on immovable property, if such rent is not in arrears for more than three months, and rent more than three months in arrears, if the payment of such rent is adequately secured by property held in the name of the tenant and conveyed to the insurer as collateral.

            (g) The unaccrued portion of taxes paid prior to the due date on immovable property.

            (7) Premium notes, except as specifically excluded by R.S. 22:601.18(9), policy loans, and other policy assets and liens on policies and certificates of life insurance and annuity contracts, and accrued interest thereon, in an amount not exceeding the legal reserve and other policy liabilities carried on each individual policy.

            (8) The net amount of uncollected and deferred premiums and annuity considerations in the case of a life insurer.

            (9) Premiums in the course of collection, other than for life insurance, not more than three months due, less commissions payable thereon. The foregoing limitation shall not apply to premiums payable, directly or indirectly, by the United States government or by any of its instrumentalities.

            (10) Installment premiums, other than life insurance premiums, to the extent of the unearned premium reserve carried on the policy to which premiums apply.

            (11) Notes and life written obligations not past due taken for premiums, other than life insurance premiums, on policies permitted to be issued on such basis, to the extent of the unearned premium reserves carried thereon.

            (12) The full amount of reinsurance recoverable by a ceding insurer from a solvent reinsurer and which reinsurance is authorized pursuant to this Title.

            (13) Amounts receivable by an assuming insurer representing funds withheld by a solvent ceding insurer under a reinsurance agreement.

            (14) Deposits or equities recoverable from underwriting associations, syndicates and reinsurance funds, or from any suspended banking institution, to the extent considered by the commissioner, available for the payment of losses and claims and at values to be determined by him.

            (15) Electronic data processing equipment as defined by the NAIC Accounting Practices and Procedures Manual.

            (16) Other assets, not inconsistent with the provisions of this Section, considered by the commissioner to be available for the payment of losses and claims, at values to be determined by him.

            (17) Goodwill purchased by a domestic life insurance company possessing twice the required capital and surplus. Goodwill shall be the same as defined in the Accounting Practices and Procedures Manual of the NAIC. Goodwill shall be amortized in accordance with the instructions set forth in the same manual, and amounts in excess of ten percent of an insurer's capital and surplus shall be written off immediately by a direct charge to surplus.

            (18) Except as provided elsewhere in this Subpart, an insurer may invest in, acquire debt obligations of, or otherwise acquire and hold an interest in any limited partnership, limited liability company, or master limited partnership, which is formed pursuant to the laws of any state of the United States and which invests in assets otherwise permitted pursuant to this Subpart subject to the same limits applicable to each investment within the limited partnership, limited liability company, or master limited partnership as is provided in this Title for investment.

            Acts 2021, No. 165, §1, eff. Jan. 1, 2022.



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