Subdivision 1. Authorization. In addition to the Canadian investments permitted by this chapter, a domestic life insurance company may make foreign investments authorized by subdivision 2, subject to the limitations contained in subdivision 3. Investments authorized by this section are restricted to countries where the obligations of the sovereign government are rated in one of the two highest rating categories by at least one nationally recognized statistical rating organization in the United States. All investments must be made as provided under foreign investment guidelines established and maintained by the company under section 60A.112.
Subd. 2. Authorized investments. A company may invest in (i) foreign assets denominated in United States dollars; (ii) foreign assets denominated in foreign currency; and (iii) United States assets denominated in foreign currency. The investments may be made in any combination of the following:
(a) Obligations of sovereign governments and political subdivisions thereof and obligations issued or fully guaranteed by a supranational bank or organization, other than those described in section 61A.28, subdivision 2, paragraph (e), provided that the obligations are rated in one of the two highest rating categories by at least one nationally recognized statistical rating organization in the United States. For purposes of this section, "supranational bank" means a bank owned by a number of sovereign nations and engaging in international borrowing and lending.
(b) Obligations of a foreign business entity, provided that the obligation (i) is rated in one of the four highest rating categories by at least one nationally recognized statistical rating organization in the United States or by a similarly recognized statistical rating organization, as approved by the commissioner, in the country where the investment is made; or (ii) is rated in one of the two highest categories established by the Securities Valuation Office of the National Association of Insurance Commissioners.
(c) Stock or stock equivalents issued by a foreign entity if the stock or stock equivalents are regularly traded and subject to oversight by the government of the country in which the regular trading occurs.
(d) Financial transactions for the sole purpose of managing the foreign currency risk of investments made under this subdivision, provided that the financial transactions are entered into under a detailed plan maintained by the company. For purposes of this paragraph, "financial transactions" include, but are not limited to, the purchase or sale of currency swaps, forward agreements, and currency futures.
Subd. 3. Investment limitations. Investments authorized by subdivision 2 are subject to the following limitations:
(a) A company shall not make an investment under this section if the investment causes the company's aggregate investments authorized under this section to exceed ten percent of its total admitted assets.
(b) Investments made under subdivision 2 must be aggregated with United States investments in determining compliance with percentage concentration limitations, if any, contained in this chapter.
(c) A company shall not invest in the obligations of one issuer under subdivision 2 in an amount greater than authorized for investments of the same class under this chapter. A company shall not invest more than two percent of its total admitted assets in the direct or guaranteed obligations of a sovereign government or political subdivision thereof, or of a supranational bank.
1967 c 395 art 2 s 29; 1969 c 494 s 20; 1981 c 211 s 37; 1983 c 340 s 15; 1991 c 325 art 9 s 11; 2001 c 131 s 14
Structure Minnesota Statutes
Chapters 59A - 79A — Insurance
Section 61A.01 — Life Insurance Company Defined.
Section 61A.011 — Interest On Unpaid Benefits.
Section 61A.02 — Forms Of Policy.
Section 61A.021 — Sale Of Life Insurance And Annuity As Single Policy Prohibited.
Section 61A.03 — Required Provisions; Life Insurance Policies.
Section 61A.031 — Suicide Provisions.
Section 61A.04 — Spendthrift Provisions.
Section 61A.05 — Life Policies To Contain Entire Contract.
Section 61A.06 — Aviation And War Risk Exclusion Permitted.
Section 61A.07 — Prohibited Provisions.
Section 61A.071 — Applications.
Section 61A.072 — Accelerated Benefits.
Section 61A.09 — Group Life Insurance.
Section 61A.091 — Employee Group Life Insurance Plans.
Section 61A.092 — Continuation Of Coverage For Life Insurance.
Section 61A.093 — Certificate Of Insurance.
Section 61A.10 — Extension Of Time For Payment Of Premiums.
Section 61A.11 — Misstatement, When Not To Invalidate Policy.
Section 61A.12 — Beneficiaries.
Section 61A.14 — Companies Entitled To Issue Contracts; Accounts; Investments.
Section 61A.15 — Contract Provisions.
Section 61A.16 — Contract Provisions.
Section 61A.17 — Filing Of Contracts.
Section 61A.18 — Disapproval Of Contracts.
Section 61A.19 — Company Requirements.
Section 61A.21 — Application Of Other Laws.
Section 61A.22 — Contracts To Specify Benefits And Consideration.
Section 61A.23 — Provisions In Policies; Laws Of Other States.
Section 61A.24 — Standard Nonforfeiture Law For Life Insurance.
Section 61A.245 — Standard Nonforfeiture Law For Individual Deferred Annuities.
Section 61A.25 — Standard Valuation Law.
Section 61A.255 — Smoker And Nonsmoker Mortality Tables.
Section 61A.257 — Preferred Mortality Tables For Use In Determining Minimum Reserve Liabilities.
Section 61A.27 — Contingency Reserve; Limitations.
Section 61A.276 — Funding Agreements.
Section 61A.28 — Domestic Companies, Investments.
Section 61A.281 — Investments; Subsidiaries.
Section 61A.282 — Investments In Name Of Company Or Nominee And Prohibitions.
Section 61A.283 — Admitted Assets.
Section 61A.284 — Investments; Capital Stock Of Other Insurance Companies.
Section 61A.29 — Foreign Investments.
Section 61A.30 — Joint Investments.
Section 61A.31 — Real Estate Holdings.
Section 61A.315 — Investments And Holdings; Limitations.
Section 61A.39 — Cooperative Life And Casualty Companies.
Section 61A.40 — Qualifications For License; Number Of Members.
Section 61A.41 — Reserve Fund; Reciprocal Provisions.
Section 61A.42 — Payments; Liens; Assessments; Policies To Be Labeled.
Section 61A.43 — Accumulations; Amendment To Articles Or Bylaws.
Section 61A.44 — Limitation On Expenses; Life Insurance.
Section 61A.45 — Limitation On Expenses; Companies With Reserve Deposits.
Section 61A.46 — Net Rates; Reserve Fund; Limitation Of Expenses.
Section 61A.47 — Reinsurance Or Consolidation.
Section 61A.48 — Change To Legal Reserve Or Level Premium Companies.
Section 61A.52 — Reserve Required.
Section 61A.55 — Duties Of Agents And Brokers.
Section 61A.56 — Duties Of All Insurers.
Section 61A.57 — Duties Of Insurers That Use Agents Or Brokers.
Section 61A.58 — Duties Of Insurers With Respect To Direct Response Sales.
Section 61A.59 — Enforcement; Effect Of Compliance.
Section 61A.60 — Required Replacement Notice And Form.
Section 61A.70 — Applicability And Scope.
Section 61A.705 — Definitions.
Section 61A.71 — Policies To Be Illustrated.
Section 61A.715 — General Rules And Prohibitions.
Section 61A.72 — Standards For Basic Illustrations.
Section 61A.725 — Standards For Supplemental Illustrations.
Section 61A.73 — Delivery Of Illustration And Record Retention.
Section 61A.735 — Annual Report; Notice To Policy Owners.