§ 58-7-188. Time limit for disposal of ineligible property and securities; effect of failure to dispose.
§58‑7‑188. Time limit for disposal of ineligible property andsecurities; effect of failure to dispose.
(a) Any property orsecurities lawfully acquired by an insurer that it could not otherwise haveinvested in or lent its funds upon at the time of the acquisition shall bedisposed of within three years from the date of acquisition, unless within thatperiod the security has attained to the standard of eligibility; except thatany security or property acquired under any agreement of bulk reinsurance, merger,or consolidation may be retained for a longer period if so provided in the planfor the reinsurance, merger, or consolidation as approved by the Commissionerunder this Chapter. Upon application by the insurer and proof that forced saleof any such property or security would materially injure the insurer'sinterests, the Commissioner may extend the disposal period for an additionalreasonable time.
(b) Any property orsecurities lawfully acquired and held by an insurer after expiration of theperiod for their disposal or any extension of the period granted by theCommissioner shall not be allowed as an asset of the insurer. (1991,c. 681, s. 29.)