376.304. Acquisition of foreign investments, when.
Acquisition of foreign investments, when.
376.304. 1. Subject to the limitations of section 376.297, aninsurer may acquire foreign investments or engage in investment practiceswith persons of or in foreign jurisdictions of substantially the same typesas those that an insurer is permitted to acquire under this chapter, otherthan the type permitted under section 376.311 if as a result and aftergiving effect to the investment:
(1) The aggregate amount of foreign investments then held by theinsurer under this subsection does not exceed twenty percent of theadmitted assets; and
(2) The aggregate amount of foreign investments then held by theinsurer under this subsection in a single foreign jurisdiction does notexceed ten percent of its admitted assets as to a foreign jurisdiction thathas a sovereign debt rating of SVO "1" or three percent of its admittedassets as to any other foreign jurisdiction.
2. Subject to the limitations of section 376.297, an insurer mayacquire investments or engage in investment practice denominated in foreigncurrencies whether or not they are foreign investments acquired undersubsection 1 of this section or additional foreign currency exposure as aresult of the termination or expiration of a hedging transaction withrespect to investments denominated in a foreign currency if as a result ofand after giving effect to the transaction:
(1) The aggregate amount of investments then held by the insurerunder this subsection denominated in foreign currencies does not exceed tenpercent of its admitted assets; and
(2) The aggregate amount of investments then held by the insurerunder this subsection denominated in the foreign currency of a singleforeign jurisdiction does not exceed ten percent of its admitted assets asto a foreign jurisdiction that has a sovereign debt rating of SVO "1" orthree percent of its admitted assets as to any other foreign jurisdiction.
3. An investment shall not be considered denominated in a foreigncurrency if the acquiring insurer enters into one or more contracts intransactions permitted under section 375.345, RSMo, in which the businessentity counterparty agrees to exchange or grants to the insurer the optionto exchange all payments made on the foreign currency denominatedinvestment, or amounts equivalent to the payments that are or will be dueto the insurer in accordance with the terms of such investment, for UnitedStates currency during the period the contract or contracts are in effectto insulate the insurer from loss caused by diminution of the value ofpayments owed to the insurer due to future changes in currency exchangerates.
4. In addition to investments permitted under subsections 1 to 3 ofthis section, an insurer that is authorized to do business in a foreignjurisdiction and that has an outstanding insurance, annuity, or reinsurancecontract on lives or risks resident or located in that foreign jurisdictionand denominated in foreign currency of that jurisdiction may acquireinvestments denominated in the currency of that jurisdiction subject to thelimitations of section 376.297. However, investments made under thissubsection in obligations of foreign governments, their politicalsubdivisions, and government-sponsored enterprises shall not be subject tothe limitations of section 376.297 if those investments carry an SVO ratingof "1" or "2". The aggregate amount of investments acquired by the insurerunder this subsection shall not exceed the greater of:
(1) The amount the insurer is required by the law of the foreignjurisdiction to invest in the foreign jurisdiction; or
(2) One hundred fifteen percent of the amount of its reserves, net ofreinsurance, and other obligations under the contracts on lives or risksresident or located in the foreign jurisdiction.
5. In addition to investments permitted under subsections 1 to 3 ofthis section, an insurer that is not authorized to do business in a foreignjurisdiction but which has outstanding insurance, annuity, or reinsurancecontracts on lives or risks resident or located in that foreignjurisdiction and denominated in foreign currency of that jurisdiction mayacquire foreign investments respecting that foreign jurisdiction and mayacquire investments denominated in the currency of that jurisdiction,subject to the limitations of section 376.297. However, investments madeunder this subsection in obligations of foreign governments, theirpolitical subdivisions, and government sponsored enterprises shall not besubject to the limitations of section 376.297 if those investments carry anSVO rating of "1" or "2". The aggregate amount of investments acquired bythe insurer under this subsection shall not exceed one hundred five percentof the amount of its reserves, net of reinsurance, and other obligationsunder the contracts on lives and risks resident or located in the foreignjurisdiction.
6. Investments acquired under this section shall be aggregated withinvestments of the same type made under this chapter and in a similarmanner for purposes of determining compliance with the limitations, if any,contained in this chapter. Investments in obligations of foreigngovernments, their political subdivisions, and government sponsoredenterprises of these persons, except for those exempted under subsections 4and 5 of this section, shall be subject to the limitations of section376.297.
(L. 2007 S.B. 66)