Section 411-A:35 Prohibited Investment and Investments Underwriting.
I. In addition to investments excluded pursuant to other provisions of this chapter, an insurer shall not invest in or lend its funds upon the security of:
(a) Issued shares of its own capital stock, except:
(1) For the purpose of mutualization; or
(2) For retirement; or
(3) Pursuant to a written plan for such investment or loan which plan shall be subject to the approval of the commissioner.
(b) Securities issued by any corporation or enterprise the controlling interest of which is, or will after such acquisition by the insurer be, held directly or indirectly by the insurer or any combination of the insurer and the insurer's directors, officers, subsidiaries, or controlling stockholders, and the spouses and children of any of the foregoing individuals. For purposes of this section, ""controlling interest'' shall be deemed to mean ownership of more than 50 percent of a corporation's stock. Investments in controlled insurance corporations or subsidiaries under RSA 411-A:12 and 411-A:13 are not subject to this provision.
(c) Any note or other evidence of indebtedness of any director, officer or controlling stockholder of the insurer or of the spouse or child of any of the foregoing except as to policy loans authorized under RSA 411-A:27 and except as to mortgage loans authorized under RSA 402:28.
II. No insurer shall underwrite or participate in the underwriting of an offering of securities or property of any other person. This provision shall not be deemed to prohibit:
(a) The acquisition and ownership by the insurer of its subsidiary corporation acting as investment adviser or principal underwriter of a management company or investment company registered with the Securities and Exchange Commission under the Investment Company Act of 1940, as amended.
(b) The registration by the insurer, under the Securities Act of 1933 or other applicable law, of restricted or other securities acquired and owned by it in regular course of business.
III. No insurer shall enter into any agreement to withhold from sale any of its securities or property, and the disposition of its assets shall at all times be within the control of the insurer.
Source. 1978, 11:1, eff. July 1, 1978.