58-7-185. Prohibited investments and investment underwriting.
(a) In addition to investments excluded under other provisions of this Chapter, except with prior approval by the Commissioner, an insurer shall not directly or indirectly invest in or lend its funds upon the security of:
(1) Issued shares of its own capital stock, except in connection with a plan for purchase of the shares by the insurer's officers, employees, or agents. No such stock shall, however, constitute an asset of the insurer in any determination of its financial condition.
(2) Except with the Commissioner's consent, securities issued by any corporation or enterprise, the controlling interest of which is or will after acquisition by the insurer be held directly or indirectly by the insurer or any combination of the insurer and the insurer's directors, officers, parent corporation, subsidiaries, or controlling stockholders. Investments in subsidiaries under G.S. 58-19-10 are not subject to this provision.
(3) Repealed by Session Laws 2001-223, s. 8.13.
(b) No insurer shall underwrite or participate in the underwriting of an offering of securities or property by any other person. (1991, c. 681, s. 29; 2001-223, ss. 8.12, 8.13.)
Structure North Carolina General Statutes
North Carolina General Statutes
Article 7 - General Domestic Companies.
§ 58-7-1 - Application of this Chapter and general laws.
§ 58-7-5 - Extension of existing charters.
§ 58-7-10 - Certificate required before issuing policies.
§ 58-7-15 - Kinds of insurance authorized.
§ 58-7-16 - Funding agreements authorized.
§ 58-7-21 - Credit allowed a domestic ceding insurer.
§ 58-7-22 - Term and universal life insurance reserve financing.
§ 58-7-30 - Insolvent ceding insurer.
§ 58-7-31 - Life and health reinsurance agreements.
§ 58-7-33 - Minimum policyholders' surplus to assume property or casualty reinsurance.
§ 58-7-35 - Manner of creating such corporations.
§ 58-7-37 - Background of incorporators and proposed management personnel.
§ 58-7-40 - First meeting; organization; license.
§ 58-7-45 - Bylaws; classification and election of directors; amendments.
§ 58-7-46 - Notification to Commissioner for president or chief executive officer changes.
§ 58-7-50 - Maintenance and removal of records and assets.
§ 58-7-55 - Exceptions to requirements of G.S58-7-50.
§ 58-7-60 - Approval as a domestic insurer.
§ 58-7-65 - Conversion to foreign insurer.
§ 58-7-70 - Effects of redomestication.
§ 58-7-73 - Dissolutions of insurers.
§ 58-7-75 - Amount of capital and/or surplus required; impairment of capital or surplus.
§ 58-7-80 - Capital stock fully paid in cash.
§ 58-7-95 - Establishment of separate accounts by life insurance companies.
§ 58-7-105 - Authority to increase or reduce capital stock.
§ 58-7-110 - Assessment of shares; revocation of license.
§ 58-7-115 - Increase of capital stock.
§ 58-7-120 - Reduction of capital stock.
§ 58-7-130 - Dividends and distributions to stockholders.
§ 58-7-140 - Certain officers debarred from commissions.
§ 58-7-145 - Restrictions on purchase and sale of equity securities of domestic companies.
§ 58-7-160 - Investments unlawfully acquired.
§ 58-7-162 - Allowable or admitted assets.
§ 58-7-163 - Assets not allowed.
§ 58-7-165 - Eligible investments.
§ 58-7-167 - General qualifications.
§ 58-7-168 - Authorization of investment.
§ 58-7-172 - Cash and deposits.
§ 58-7-173 - Permitted insurer investments.
§ 58-7-178 - Foreign or territorial investments.
§ 58-7-180 - Chattel mortgages.
§ 58-7-182 - Special investments by title insurers.
§ 58-7-183 - Special consent investments.
§ 58-7-185 - Prohibited investments and investment underwriting.
§ 58-7-187 - Real estate, in general.
§ 58-7-192 - Valuation of securities and investments.
§ 58-7-193 - Valuation of property.
§ 58-7-197 - Replacing certain assets; reporting certain liabilities.
§ 58-7-198 - Assets of foreign or alien insurers.