Sec. 16.
(1) An investment fiduciary may invest in annuity investment contracts or participations in separate real estate, mortgage, bond, stock, or other special investment accounts of a life insurance company authorized to do business in this state. An investment in such a separate account shall be considered an investment in stock under section 14 only to the extent that the separate account's assets include stock, and then only for the purpose of determining the 70% maximum investment limit under section 14. An investment in such a separate account shall also be considered an investment in real or personal property under section 19(1), but only to the extent that the separate account's assets include real or personal property, and then only for the purpose of determining the 5% maximum investment limit under section 19(1).
(2) An investment fiduciary may invest in the general account of a life insurer authorized to do business in this state under the insurance code of 1956, 1956 PA 218, MCL 500.100 to 500.8302, but the total amount of assets of any 1 system invested in any 1 insurer shall not exceed 50% of the capital and surplus of the insurer.
(3) A life insurance company under this section shall have been in operation for at least 5 years and have assets under management of more than $500,000,000.00. The insurance company shall have a claims-paying ability rating no less than single A according to A.M. Best & company or AA- according to Duff & Phelps credit rating corp., and an overall company financial strength rating no less than Aa3 according to Moody's investors service, inc. or AA- according to Standard & Poor's ratings group.
History: Add. 1982, Act 55, Imd. Eff. Apr. 6, 1982 ;-- Am. 1996, Act 485, Imd. Eff. Dec. 27, 1996 ;-- Am. 2000, Act 307, Imd. Eff. Oct. 16, 2000
Structure Michigan Compiled Laws
Chapter 38 - Civil Service and Retirement
Act 314 of 1965 - Public Employee Retirement System Investment Act (38.1121 - 38.1141)
Section 38.1121-38.1131 - Repealed. 1982, Act 55, Imd. Eff. Apr. 6, 1982.
Section 38.1132 - Short Title; Meanings of Words and Phrases.
Section 38.1132a - Definitions; A.
Section 38.1132b - Definitions; D to G.
Section 38.1132c - Definitions; I to L.
Section 38.1132d - Definitions; N to P.
Section 38.1132e - Definitions; S.
Section 38.1132f - Definitions; V.
Section 38.1133b - Repealed. 1993, Act 214, Imd. Eff. Oct. 27, 1993.
Section 38.1134 - Investment in Stock or Global Security.
Section 38.1135 - Investment in Investment Companies.
Section 38.1137 - Other Authorized Investments; Prohibited Investments.
Section 38.1138 - Investment in Real Estate or Mortgages on Certain Leased Real Property.
Section 38.1139 - Investment in Real Estate Investment Trust or Real or Personal Property.
Section 38.1140b - Deposits by Investment Fiduciary.
Section 38.1140d - Investments Not Qualified Under Act.
Section 38.1140e - Loan of Securities by Investment Fiduciary.
Section 38.1140f - Transferring and Holding Securities.
Section 38.1140g - Investment in Securities Exempt From Taxes.
Section 38.1140i - Repealed. 2000, Act 307, Imd. Eff. Oct. 16, 2000.
Section 38.1140j - Investment in Derivatives.
Section 38.1140k - Investment in Global Securities; Prohibited Conduct.
Section 38.1140l - Financial or Proprietary Information.