N.M. Admin. Code § 13.9.3.10 - INVESTMENTS
A. Except as may be
provided with respect to reserves for guaranteed benefits and funds referred to
in 13 NMAC 9.3.10.2 [now Subsection B of
13.9.3.10 NMAC]:
(1) amounts allocated to a separate account
and its accumulations may be invested and reinvested without regard to any
requirements or limitations prescribed by the laws of this state governing the
investments of life insurance companies; and
(2) the investments in the separate account
or accounts shall not be taken into account in applying the investment
limitations otherwise applicable to the investments of the company.
B. Reserves for benefits
guaranteed as to dollar amount and duration and funds guaranteed as to
principal amount or stated rate of interest may be maintained in a separate
account if a portion of the assets of the separate account at least equal to
the reserve liability is invested in accordance with the laws and rules of this
state governing the investments of life insurance companies. That portion of
the assets also shall not be taken into account in applying the investment
limitations otherwise applicable to the investments of the company.
C. With respect to seventy-five percent (75%)
of the market value of the total assets in a separate account a company shall
not purchase or otherwise acquire the securities of an issuer, other than
securities issued or guaranteed as to principal or interest by the United
States, if immediately after the purchase or acquisition the market value of
the investment, together with prior investments of the separate account in the
security taken at market, would exceed ten percent (10%) of the market value of
the assets of the separate account. The superintendent, may waive this
limitation if, in the opinion of the superintendent, the waiver will not render
the operation of the separate account hazardous to the public or policyholders
in this state.
D. Unless otherwise
permitted by law or approved by the superintendent, a company shall not
purchase or otherwise acquire for its separate accounts the voting securities
of an issuer if, as a result of the acquisition, the insurance company and its
separate accounts, in the aggregate, will own more than ten percent (10%) of
the total issued and outstanding voting securities of the issuer. This shall
not apply with respect to securities held in separate accounts where the voting
rights are exercisable only in accordance with instructions from persons having
interest in the accounts.
E. The
limitations provided in 13 NMAC 9.3.10.3 and 9.3.10.4 [now Subsections C and D
of 13.9.3.10 NMAC] of this subsection
shall not apply to investments with respect to a separate account in the
securities of an investment company registered under the Investment Company Act
of 1940, if the investments of the investment company comply in substance with
13 NMAC 9.3.10.3 and 9.3.10.4 [now Subsections C and D of
13.9.3.10 NMAC].
Notes
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