Delaware General Assembly


CHAPTER 261

FORMERLY

HOUSE BILL NO. 225

AN ACT TO AMEND TITLE 18, DELAWARE CODE TO LIMIT INVESTMENTS MADE BY INSURANCE COMPANIES IN ANY SINGLE INVESTMENT.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:

Section 1. Amend §1305(2), Chapter 13, Title 18, Delaware Code by adding thereto the following sentence to appear immediately before the last sentence of that paragraph:

"The cost of such investments in any one corporation shall not exceed 3% of the insurer's assets."

Section 2. Amend §1305(3), Chapter 13, Title 18, Delaware Code by adding thereto a new subparagraph to read as follows:

"c. The cost of such investments in any one corporation shall not exceed 3% of the insurer's assets."

Section 3. Amend §1305(4), Chapter 13, Title 18, Delaware Code by adding thereto a second sentence to read as follows:

"The investment by an insurer in any one property shall not exceed 3% of the insurer's assets."

Section 4. Amend §1305(5), Chapter 13, Title 18, Delaware Code by adding thereto a second sentence to read as follows:

"Upon a request in writing the Commissioner may permit an insurer to invest an amount up to 5% in excess of any specific investment limitation if determined by•him to be a sound and prudent investment.

Section 5. Amend §1305, Chapter 13, Title 18, Delaware Code by renumbering the present paragraphs (5) and (6) accordingly and inserting a new paragraph (5) to read as follows:

"(5) Certain mortgage pools. An insurer may invest in and hold at any time up to 50% of its assets in certificates or other instruments evidencing participating interests in mortgage loans or pools thereof issued by the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation. The cost of such investment in any one mortgage pool shall not exceed 7% of the insurer's assets."

Section 6. Any insurer which at the time of adoption of this Act has investments which exceed the limits set forth herein shall dispose of such investments pursuant to Section 1325 of this title if real estate or pursuant to Section 1326 of this title if other than real estate.

Section 7. This Act shall become effective 60 days after its adoption.

Approved June 16, 1992.