40-2b10. Real estate.
40-2b10
40-2b10. Real estate.No life insurance company organized under the laws of this state shallpurchase, hold or convey real estate, except for the purposes and in themanner herein set forth:
(a) Such as shall be requisite for its convenient present and futureaccommodation in thetransaction of its business. In the erection or purchase of any buildings for suchpurpose, additional space may be included for home office rental income;
(b) such as shall have been mortgaged to it in good faith, by way ofsecurity for loans previously contracted or for money due;
(c) such as shall have been conveyed to it in satisfaction of debtspreviously contracted in their legitimate business or for money due;
(d) such as shall have been purchased at sales upon judgments, decreesor mortgages obtained or made for such debts; or
(e) such as shall have been acquired for development or income purposes.
It shall not be lawful for any such company to purchase, hold or conveyreal estate in any other case or for any other purpose, except nothing inthis section shall be deemed to prohibit any such company from purchasingthe principal residence owned and inhabited by an employee or prospectiveemployee who is being transferred by the company to a different community;and all such realestate as may be acquired as aforesaid, and which shall not be necessaryfor the accommodation of such company in the transaction of its business,except real estate acquired for development or incomepurposes, shall be sold anddisposed of within five years after such company shall have acquiredtitle thereto, unless the company shall procure a certificate from thecommissioner of insurance that the interests of the company will suffermaterially by a forced sale thereof in which event the sale may bepostponed for such period as the commissioner of insurance shall directin such certificate. If the company so elects, real estate other than farmproperties, which has been acquired under subsections (c) and (d) may beheld by it for income purposes. The company's aggregateinvestment in real estate as herein providedshall not exceed 20% of the admittedassets of the company, as shown by its last annual report as filed withthe commissioner of insurance or a more recent quarterly financialstatement as filed with the commissioner, on a form prescribed by thenational association of insurance commissioners, within 45 days followingthe end of the calendar quarter to which the interim statement pertains.
History: L. 1972, ch. 179, § 10; L. 1982, ch. 201, § 3; L. 1983,ch. 156, § 9;L. 1987, ch. 160, § 11; July 1.