(a) Except as otherwise limited or prohibited by sections 38a-102 to 38a-102h, inclusive, or by regulation adopted by the Insurance Commissioner pursuant hereto, a domestic insurance company may make or acquire such investments as are prudent in respect of the business of said insurance company and diversification considerations.
(b) Eligibility of an investment shall be determined at the time of its making or acquisition. Any instrument, including any extension or modification thereof, or collateral taken by a domestic insurer as a result of adverse financial circumstances affecting an investment shall not be considered a new investment for purposes of sections 38a-102 to 38a-102h, inclusive.
(c) Any investment limitation based on the amount of an insurance company's admitted assets or capital and surplus shall relate to such assets or capital and surplus as shown by the insurance company's annual statement as of December thirty-first next preceding the date of acquisition.
(d) In the case of a domestic life insurance company, the investment limitations set forth in section 38a-102c shall apply to a separate account only to the extent that reserves for guarantees with respect to (1) benefits guaranteed as to dollar amount and duration or (2) funds guaranteed as to principal amount or stated rate of interest are held in a separate account in accordance with subdivision (3) of subsection (a) of section 38a-433.
(e) Any limitation or prohibition appearing in sections 38a-102 to 38a-102h, inclusive, shall apply only with respect to the section in which it appears and shall not constitute a general prohibition applicable to any other section unless specifically stated. The qualification or disqualification of an investment under one section shall not prevent its qualification in whole or in part under another section and an investment authorized by more than one section may be held under whichever authorizing section the company first elects.
(f) (1) A domestic insurance company doing business in this state may enter into derivative financial transactions, including swaps, options, forwards, futures, caps, floors and collars or similar instruments or combinations thereof, in accordance with subsection (a) of this section. Any such company shall include with its audited financial report a statement by the independent certified public accountant conducting such audit that describes such accountant's assessment of the internal controls of such company relative to such transactions.
(2) If the independent certified public accountant determines the internal controls relative to such derivative financial transactions to be deficient, such company shall include with the statement set forth in subdivision (1) of this subsection such accountant's report of such deficiencies and a description of remedial actions taken or proposed to be taken to correct such deficiencies, if such actions are not already described in the accountant's assessment.
(g) The provisions of sections 38a-102 to 38a-102h, inclusive, shall not apply in whole or in part to any activity which the Insurance Commissioner shall exempt therefrom as consistent with the purpose of preserving the financial integrity of insurance companies for their policyholders. The Insurance Commissioner may adopt such regulations, in accordance with chapter 54, as the commissioner deems necessary to carry out the purposes of sections 38a-102 to 38a-102h, inclusive.
(P.A. 91-262, S. 1, 19; P.A. 09-48, S. 1; P.A. 10-5, S. 7.)
History: P.A. 09-48 made a technical change in Subsec. (d), added new Subsec. (f) re filing and internal controls requirements for derivative financial transactions and redesignated existing Subsec. (f) as Subsec. (g) and made technical changes therein, effective May 20, 2009; P.A. 10-5 amended Subsec. (d) to change “subsection (a)(iii)” to “subdivision (3) of subsection (a)” re reference to Sec. 38a-433, effective May 5, 2010.
Structure Connecticut General Statutes
Section 38a-52. (Formerly Sec. 38-54). - Appeal from assessment.
Section 38a-52a. - Insurance Fund established.
Section 38a-54. - Audited reports.
Section 38a-55. - Hypothecation of assets.
Section 38a-56. (Formerly Sec. 38-19). - False returns to commissioner.
Section 38a-57. (Formerly Sec. 38-26a). - Retention of records and assets in state.
Section 38a-58. (Formerly Sec. 38-40). - Change of location of domestic insurance company.
Section 38a-58b. - Definitions.
Section 38a-58c. - Applicability of state laws to alien insurer's United States branch.
Section 38a-58e. - Annual and quarterly statements by United States branch.
Section 38a-58g. - Domestication of alien insurer's United States branch.
Section 38a-60. (Formerly Sec. 38-27a). - Continuity of management during national emergencies.
Section 38a-61. (Formerly Sec. 38-134). - Limitation of use of power of attorney.
Section 38a-63. - Limitation of liability of director of mutual insurance company.
Section 38a-64. (Formerly Sec. 38-41). - Donations by domestic mutual companies.
Section 38a-65. (Formerly Sec. 38-48). - Disposition of unclaimed dividends of insolvent company.
Section 38a-69. - Scope of provisions.
Section 38a-70. - Accounting standards.
Section 38a-71. - Minimum asset requirements. Minimum capital and minimum surplus requirements.
Section 38a-72. (Formerly Sec. 38-93). - Financial requirements to license an insurance company.
Section 38a-72a. - Regulations.
Section 38a-73. (Formerly Sec. 38-110). - Limitation of risks.
Section 38a-76. (Formerly Sec. 38-25). - Reserves.
Section 38a-77. (Formerly Sec. 38-130). - Valuation of reserve.
Section 38a-78a. - NAIC Valuation Manual. Operative date changes. Requirements.
Section 38a-79. (Formerly Sec. 38-26). - Valuation of securities.
Section 38a-79a. - Short title: Standard Valuation Law.
Section 38a-81. (Formerly Sec. 38-132). - Sale of property taken for debts.
Section 38a-82. (Formerly Sec. 38-133). - Improvement of real estate.
Section 38a-84. (Formerly Sec. 38-47). - Securities to be delivered to receiver.
Section 38a-85a. - Certification as a reinsurer. Regulations.
Section 38a-87. - Qualified United States financial institutions.
Section 38a-88. - Regulations.
Section 38a-88b. - Applicability of section 38a-88a.
Section 38a-89. - Reinsurance agreements affected.
Section 38a-90. - Short title: Managing General Agents Act.
Section 38a-90a. - Definitions.
Section 38a-90b. - Licensing of managing general agents.
Section 38a-90d. - Duties of the insurer.
Section 38a-90g. - Regulations.
Section 38a-90h. - Utilization of managing general agent's services. Exceptions.
Section 38a-91. - Definitions.
Section 38a-91a. - Insurers affected.
Section 38a-91aa. - Captive insurance companies. Definitions.
Section 38a-91b. - Controlled insurers. Applicability. Minimum provisions.
Section 38a-91bb. - Captive insurance companies. Licenses. Fees.
Section 38a-91c. - Disclosure to insured by controlling producer. Exception.
Section 38a-91cc. - Same or deceptively similar name prohibited.
Section 38a-91d. - Noncompliance: Remedies allowed.
Section 38a-91dd. - Capital and surplus requirements.
Section 38a-91ee. - Payment of dividends and other distributions.
Section 38a-91ff. - Incorporation and formation. Transfer of domicile.
Section 38a-91gg. - Annual reports.
Section 38a-91k. - Captive insurers: Information to be submitted to commissioner.
Section 38a-91kk. - Reinsurance.
Section 38a-91ll. - Rating organization.
Section 38a-91mm. - Guaranty association and insolvency fund exclusion.
Section 38a-91oo. - Applicability of insurance statutes.
Section 38a-91pp. - Conversions and mergers. Approval by commissioner.
Section 38a-91qq. - Regulations.
Section 38a-91uu. - Dormant captive insurance company. Certificate of dormancy. Capital and surplus.
Section 38a-91ww. - Agency captive insurance companies. Corporate form.
Section 38a-91xx. - Agency captive insurance companies. Authority to do business.
Section 38a-92. - Financial Guaranty Insurance Act, generally.
Section 38a-92a. - Definitions.
Section 38a-92b. - Licensing of financial guaranty insurance corporations. Reinsurance.
Section 38a-92c. - Contingency reserves.
Section 38a-92d. - Reserves against unpaid losses and loss expense.
Section 38a-92e. - Unearned premium reserve.
Section 38a-92f. - Disclosures in prospectus or other offering document.
Section 38a-92g. - Financial guaranty insurance transactions. Exceptions.
Section 38a-92h. - Copies of relevant materials.
Section 38a-92i. - Net liability. Kinds of obligations.
Section 38a-92j. - Limiting of exposure to loss on any one risk.
Section 38a-92m. - Credit for reinsurance as an asset or as a reduction from liability, when.
Section 38a-92n. - Filing of policy forms and amendments with commissioner.
Section 38a-102. - Investments. Derivative financial transactions. Regulations.
Section 38a-102a. - Nonadmitted investment assets. Divestiture order, notice and hearing.
Section 38a-102b. - Definitions.
Section 38a-102c. - Investments of admitted assets. Limitations.
Section 38a-102d. - Affiliate relationships in the investment of admitted assets. Limitations.
Section 38a-102e. - Loan or investment prohibition.
Section 38a-102f. - Prohibition of compensation for negotiating a loan.
Section 38a-102g. - Investments of foreign and alien insurers.
Section 38a-102h. - Policies and procedures re use of special knowledge or information.
Section 38a-102i. - Exceptions.
Section 38a-117. (Formerly Sec. 38-68a). - Insider trading of equity securities. Definitions.
Section 38a-120. (Formerly Sec. 38-68d). - Sales of securities restricted.
Section 38a-121. (Formerly Sec. 38-68e). - Excepted transactions.
Section 38a-122. (Formerly Sec. 38-68f). - Foreign or domestic arbitrage transactions.
Section 38a-123. (Formerly Sec. 38-68g). - Securities of certain companies not covered.
Section 38a-124. (Formerly Sec. 38-68h). - Regulations.
Section 38a-129a. - Presumption of control.
Section 38a-132. (Formerly Sec. 38-39d). - Approval of acquisitions. Hearing. Expenses.
Section 38a-133. (Formerly Sec. 38-39e). - Exemptions.
Section 38a-134. (Formerly Sec. 38-39f). - Nonvotable securities. Injunctive relief.
Section 38a-137. (Formerly Sec. 38-39i). - Confidentiality of information.
Section 38a-138. (Formerly Sec. 38-39j). - Regulations.
Section 38a-139. (Formerly Sec. 38-39k). - Appeals.
Section 38a-140. (Formerly Sec. 38-39l). - Remedial and penal provisions.
Section 38a-147. (Formerly Sec. 38-37a). - Solicitation of proxies.
Section 38a-149. (Formerly Sec. 38-38). - Interlocking directorate.
Section 38a-150. (Formerly Sec. 38-39). - Monopoly. Complaint and hearing. Cease and desist order.
Section 38a-151. (Formerly Sec. 38-34). - Reduction of capital stock.
Section 38a-153. (Formerly Sec. 38-42). - Merger or consolidation of companies.
Section 38a-156. - Definitions.
Section 38a-156b. - Mutual holding company requirements.
Section 38a-156c. - Amendments to articles of incorporation and plan of reorganization.
Section 38a-156e. - Requirements of reorganizing mutual life insurer. Report.
Section 38a-156f. - Voting stock offerings.
Section 38a-156g. - Restrictions on stock offerings and stock ownership.
Section 38a-156k. - Proceedings and actions.
Section 38a-156m. - Regulations.
Section 38a-156n to 38a-156q. - Reserved for future use.
Section 38a-156r. - Definitions.
Section 38a-156s. - Division of domestic insurer. Plan of division. Amendment and abandonment.
Section 38a-156t. - Plan of division. Approval by interest holders and governors.
Section 38a-156v. - Certificate of division.
Section 38a-156w. - Effect of division.
Section 38a-156x. - Responsibility and liability of resulting insurers.
Section 38a-156y. - Appraisal rights.
Section 38a-156z. - Regulations.
Section 38a-160. (Formerly Sec. 38-290). - Exceptions.
Section 38a-161. (Formerly Sec. 38-291). - Definitions.
Section 38a-162. (Formerly Sec. 38-292). - License required. Expiration. Fee. Required information.
Section 38a-165. (Formerly Sec. 38-295). - Records of licensee.
Section 38a-166. (Formerly Sec. 38-296). - Regulations.
Section 38a-167. (Formerly Sec. 38-297). - Insurance premium finance agreement requirements.
Section 38a-168. (Formerly Sec. 38-298). - Service charge.
Section 38a-169. (Formerly Sec. 38-299). - Delinquency charge.
Section 38a-170. (Formerly Sec. 38-300). - Cancellation of insurance contract on default of insured.