402:29-d Quantitative Limitations. –
I. Except for investments in subsidiaries, an insurer shall not acquire:
(a) Directly or indirectly through an investment subsidiary, an investment under this chapter if, as a result of and after giving effect to the investment, the insurer would hold more than 5 percent of its admitted assets in investments of all kinds issued, assumed, accepted, insured, or guaranteed by a single person; provided, that this subparagraph shall not apply to general obligations of, or obligations guaranteed by, the United States, its agencies or government-sponsored enterprises, or obligations of any state, or of Canada or any province thereof; or
(b) Equity interests in business entities if, as a result of and after giving effect to the investment, the aggregate amount of investments then held by the insurer under this section would exceed the greater of 25 percent of its admitted assets or 100 percent of its surplus as regards policyholders. An insurer shall not acquire, under this paragraph, any investments that the insurer may acquire under RSA 402:28, I(g), (h), or (i), and any investments made under RSA 402:28, I(g), (h), or (i) shall be subject to the limitations established in paragraphs IV-VI.
II. The 5 percent limitation established in subparagraph I(a) shall not apply to the aggregate amounts insured by a single financial guaranty insurer with the highest generic rating issued by a nationally recognized statistical rating organization. In addition, asset-backed securities shall not be subject to the limitations of subparagraph I(a), except that an insurer shall not acquire an asset-backed security if, as a result of and after giving effect to the investment, the aggregate amount of asset-backed securities secured by or evidencing an interest in a single asset or single pool of assets held by a trust or other business entity, then held by the insurer would exceed 5 percent of its admitted assets.
III.Equity interests, as used in subparagraph I(b), shall mean common stock, general, preferred or limited partnership interest, trust certificate, investment in an investment company other than a money market mutual fund, investment in a common trust fund of a bank regulated by a federal or state agency, warrant, or other similar right to acquire an equity interest, member interests in limited liability companies, or any other similar interest.
IV. An insurer shall not acquire an investment in obligations secured by mortgages on real estate under RSA 402:28, I(g) if, as a result of and after giving effect to the investment, the aggregate amount of all investments then held by the insurer under RSA 402:28, I(g) would exceed:
(a) One percent of its admitted assets in mortgage loans covering any one secured location;
(b) One quarter of one percent of its admitted assets in construction loans covering any one secured location; or
(c) One percent of its admitted assets in construction loans in the aggregate.
V. An insurer shall not acquire an investment in income producing real estate under RSA 402:28, I(i) if, as a result of and after giving effect to the investment and any outstanding guarantees made by the insurer in connection with the investment, the aggregate amount of investments then held by the insurer under RSA 402:28, I(i) plus the guarantees then outstanding would exceed:
(a) One percent of its admitted assets in one parcel or group of contiguous parcels of real estate, except that this limitation shall not apply to that portion of real estate for the direct provision of health care services by an insurer whose insurance premiums and required statutory reserves for accident and health insurance constitute at least 95 percent of total premium considerations or total statutory required reserves, respectively, such as hospitals, medical clinics, medical professional buildings, or other health facilities used for the purpose of providing health services; or
(b) The lesser of 10 percent of its admitted assets or 40 percent of its surplus as regards policyholders in the aggregate, except for an insurer whose insurance premiums and required statutory reserves for accident and health insurance constitute at least 95 percent of total premium considerations or total statutory required reserves, respectively, this limitation shall be increased to 15 percent of its admitted assets in the aggregate.
VI. An insurer shall not acquire an investment in obligations secured by mortgages on real estate under RSA 402:28, I(g) or in income producing real estate under RSA 402:28, I(i) if, as a result of and after giving effect to the investment and any guarantees it has made in connection with the investment, the aggregate amount of all investments then held by the insurer under RSA 402:28, I(g) and RSA 402:28, I(i) plus the guarantees then outstanding would exceed 25 percent of its admitted assets.
VII. The limitations of paragraph I(a) shall not apply to an insurer's acquisition of real estate for the accommodation of business under RSA 402:28, I(j). An insurer shall not acquire real estate under RSA 402:28, I(j) if, as a result of and after giving effect to the acquisition, the aggregate amount of real estate then held by the insurer under RSA 402:28, I(j) would exceed 10 percent of its admitted assets. With the permission of the commissioner, additional amounts of real estate may be acquired under RSA 402:28, I(j).
VIII. Each investment or asset held by an insurer on January 1, 1994, which was eligible as an admitted asset at the time it was acquired, committed for, or engaged in, and any refinancing, modification, or extension thereof, shall be deemed to be eligible as an admitted asset under this chapter but shall be included as part of the limitation described above.
IX. Investments exceeding the limitation established by this section shall not be permitted under any other provision of this chapter including, but not limited to, RSA 402:28, I (q) and shall not be considered admitted assets of the insurer.
X. An insurer may invest in mutual funds in excess of the limits set forth in this section, provided the insurer shall not invest:
(a) More than 10 percent of its admitted assets in equity interests of a single mutual fund; or
(b) More than the greater of 25 percent of its admitted assets or 100 percent of its capital and surplus in equity interests held either directly by the insurer or indirectly through interests in mutual funds.
XI. An insurer shall not acquire under this section any investments that the insurer may acquire under RSA 402:29-a.