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<law><site_title>Virginia Decoded</site_title><site_url>https://vacode.org</site_url><law_id>81959</law_id><section_number>38.2-1414</section_number><catch_line>Limits by type of investment</catch_line><edition url="https://vacode.org/2025/" slug="2025" current="TRUE" last_updated="">2025</edition><referred_to_by><reference>38.2-1443.1</reference></referred_to_by><structure><unit label="title" level="1" order_by="1" identifier="38.2">Insurance</unit><unit label="chapter" level="2" order_by="1" identifier="14">Investments</unit><unit label="article" level="3" order_by="1" identifier="2">Category 1 Investments</unit></structure><text>
						<section id="A"><p><span class="prefix-number">A.</span> The portion of a domestic <span class="dictionary">insurer</span>&#x2019;s total admitted <span class="dictionary">assets</span> in the following types of investments shall not exceed: <a id="paragraph-293664" class="section-permalink" href="https://vacode.org/38.2-1414/#A"><i class="fa fa-link"/></a></p></section>
						<section id="A1" class="indent-1"><p><span class="prefix-number">1.</span> Ten percent for the aggregate of investments made eligible by &#xA7;&#xA7; <a class="law" title="Canadian governmental obligations" href="/38.2-1416/">38.2-1416</a> and <a class="law" title="Canadian corporate obligations" href="/38.2-1417/">38.2-1417</a>; <a id="paragraph-293665" class="section-permalink" href="https://vacode.org/38.2-1414/#A1"><i class="fa fa-link"/></a></p></section>
						<section id="A2" class="indent-1"><p><span class="prefix-number">2.</span> Five percent for the investments in each agency made eligible by &#xA7; <a class="law" title="Obligations of certain international agencies" href="/38.2-1418/">38.2-1418</a>, and 10 percent for the aggregate of investments made eligible by &#xA7; <a class="law" title="Obligations of certain international agencies" href="/38.2-1418/">38.2-1418</a>; <a id="paragraph-293666" class="section-permalink" href="https://vacode.org/38.2-1414/#A2"><i class="fa fa-link"/></a></p></section>
						<section id="A3" class="indent-1"><p><span class="prefix-number">3.</span> Ten percent for the investments made eligible by &#xA7; <a class="law" title="Railroad terminal and other securities" href="/38.2-1419/">38.2-1419</a>; <a id="paragraph-293667" class="section-permalink" href="https://vacode.org/38.2-1414/#A3"><i class="fa fa-link"/></a></p></section>
						<section id="A4" class="indent-1"><p><span class="prefix-number">4.</span> Ten percent for the investments made eligible by &#xA7; <a class="law" title="Transportation equipment trust certificates" href="/38.2-1420/">38.2-1420</a>; <a id="paragraph-293668" class="section-permalink" href="https://vacode.org/38.2-1414/#A4"><i class="fa fa-link"/></a></p></section>
						<section id="A5" class="indent-1"><p><span class="prefix-number">5.</span> For the aggregate of investments made eligible under &#xA7;&#xA7; <a class="law" title="Business entity obligations" href="/38.2-1421/">38.2-1421</a> and <a class="law" title="Obligations secured by certain leases" href="/38.2-1422/">38.2-1422</a>, (i) 90 percent for any <span class="dictionary">life insurer</span> and (ii) 40 percent for all other <span class="dictionary">insurers</span>; <a id="paragraph-293669" class="section-permalink" href="https://vacode.org/38.2-1414/#A5"><i class="fa fa-link"/></a></p></section>
						<section id="A6" class="indent-1"><p><span class="prefix-number">6.</span> Ten percent for the investments made eligible by subsection B of &#xA7; <a class="law" title="Business entity obligations" href="/38.2-1421/">38.2-1421</a>; and two percent for the investments made eligible by subsection C of &#xA7; <a class="law" title="Business entity obligations" href="/38.2-1421/">38.2-1421</a>; <a id="paragraph-293670" class="section-permalink" href="https://vacode.org/38.2-1414/#A6"><i class="fa fa-link"/></a></p></section>
						<section id="A7" class="indent-1"><p><span class="prefix-number">7.</span> Twenty percent for the investments made eligible by &#xA7; <a class="law" title="Obligations secured by certain leases" href="/38.2-1422/">38.2-1422</a>; <a id="paragraph-293671" class="section-permalink" href="https://vacode.org/38.2-1414/#A7"><i class="fa fa-link"/></a></p></section>
						<section id="A8" class="indent-1"><p><span class="prefix-number">8.</span> Ten percent for the investments made eligible by &#xA7; <a class="law" title="Preferred stocks" href="/38.2-1423/">38.2-1423</a>; <a id="paragraph-293672" class="section-permalink" href="https://vacode.org/38.2-1414/#A8"><i class="fa fa-link"/></a></p></section>
						<section id="A9" class="indent-1"><p><span class="prefix-number">9.</span> Five percent for the investments made eligible by &#xA7; <a class="law" title="Guaranteed stocks" href="/38.2-1424/">38.2-1424</a>; <a id="paragraph-293673" class="section-permalink" href="https://vacode.org/38.2-1414/#A9"><i class="fa fa-link"/></a></p></section>
						<section id="A10" class="indent-1"><p><span class="prefix-number">10.</span> Five percent for the investments made eligible by &#xA7; <a class="law" title="Common stock of banks or trust companies" href="/38.2-1425/">38.2-1425</a>; <a id="paragraph-293674" class="section-permalink" href="https://vacode.org/38.2-1414/#A10"><i class="fa fa-link"/></a></p></section>
						<section id="A11" class="indent-1"><p><span class="prefix-number">11.</span> The lesser of 15 percent or the amount by which an insurer&#x2019;s <span class="dictionary">surplus to policyholders</span> exceeds its <span class="dictionary">minimum capital and surplus</span> for the aggregate of investments made eligible by &#xA7;&#xA7; <a class="law" title="Common stock; covered call options" href="/38.2-1427/">38.2-1427</a>, <a class="law" title="Limited partnerships" href="/38.2-1427.1/">38.2-1427.1</a> and <a class="law" title="Investment company shares and units of beneficial interest" href="/38.2-1427.2/">38.2-1427.2</a>, of which no more than five percent of the total admitted <span class="dictionary">assets</span> shall be in investments made eligible by &#xA7; <a class="law" title="Limited partnerships" href="/38.2-1427.1/">38.2-1427.1</a>; <a id="paragraph-293675" class="section-permalink" href="https://vacode.org/38.2-1414/#A11"><i class="fa fa-link"/></a></p></section>
						<section id="A12" class="indent-1"><p><span class="prefix-number">12.</span> For the aggregate of investments made eligible by &#xA7; <a class="law" title="Investment authority; subsidiary corporations" href="/38.2-1427.3/">38.2-1427.3</a>, when combined with the insurer&#x2019;s total investment in affiliates, the lesser of 10 percent of the insurer&#x2019;s admitted <span class="dictionary">assets</span> or 50 percent of the insurer&#x2019;s <span class="dictionary">surplus to policyholders</span> in excess of its <span class="dictionary">minimum capital and surplus</span>, provided that total investments in affiliates do not include investments made by the insurer in money market mutual funds made eligible by &#xA7; <a class="law" title="Savings, certificates, etc" href="/38.2-1432/">38.2-1432</a>; <a id="paragraph-293676" class="section-permalink" href="https://vacode.org/38.2-1414/#A12"><i class="fa fa-link"/></a></p></section>
						<section id="A13" class="indent-1"><p><span class="prefix-number">13.</span> Fifteen percent for investments made eligible by subsection B of &#xA7; <a class="law" title="Foreign securities" href="/38.2-1433/">38.2-1433</a>, and an amount equal to its deposit and reserve <span class="dictionary">obligations</span> incurred in a foreign country for the investments made eligible by subsection A of &#xA7; <a class="law" title="Foreign securities" href="/38.2-1433/">38.2-1433</a>; <a id="paragraph-293677" class="section-permalink" href="https://vacode.org/38.2-1414/#A13"><i class="fa fa-link"/></a></p></section>
						<section id="A14" class="indent-1"><p><span class="prefix-number">14.</span> Two percent for the investments made eligible (including those that the insurer is obligated to make as well as those made) by subdivision 3 of &#xA7; <a class="law" title="Mortgage loans" href="/38.2-1434/">38.2-1434</a>; <a id="paragraph-293678" class="section-permalink" href="https://vacode.org/38.2-1414/#A14"><i class="fa fa-link"/></a></p></section>
						<section id="A15" class="indent-1"><p><span class="prefix-number">15.</span> Two percent for the investments made eligible by &#xA7; <a class="law" title="Second mortgages; wrap-around mortgages" href="/38.2-1435/">38.2-1435</a>; <a id="paragraph-293679" class="section-permalink" href="https://vacode.org/38.2-1414/#A15"><i class="fa fa-link"/></a></p></section>
						<section id="A16" class="indent-1"><p><span class="prefix-number">16.</span> Ten percent for the investments made eligible by &#xA7; <a class="law" title="Mortgage participations" href="/38.2-1436/">38.2-1436</a>; <a id="paragraph-293680" class="section-permalink" href="https://vacode.org/38.2-1414/#A16"><i class="fa fa-link"/></a></p></section>
						<section id="A17" class="indent-1"><p><span class="prefix-number">17.</span> For the aggregate of investments made eligible by &#xA7; <a class="law" title="Mortgage pass-through securities" href="/38.2-1437.1/">38.2-1437.1</a>, when combined with the insurer&#x2019;s investments in mortgages under &#xA7;&#xA7; <a class="law" title="Mortgage loans" href="/38.2-1434/">38.2-1434</a> through <a class="law" title="Mortgage participations" href="/38.2-1436/">38.2-1436</a> and &#xA7; <a class="law" title="Chattel mortgages" href="/38.2-1439/">38.2-1439</a>, (i) 60 percent for any <span class="dictionary">life insurer</span> and (ii) 30 percent for all other <span class="dictionary">insurers</span>; <a id="paragraph-293681" class="section-permalink" href="https://vacode.org/38.2-1414/#A17"><i class="fa fa-link"/></a></p></section>
						<section id="A18" class="indent-1"><p><span class="prefix-number">18.</span> Two percent for the investments made eligible by &#xA7; <a class="law" title="Investment in personal property" href="/38.2-1440/">38.2-1440</a>; and <a id="paragraph-293682" class="section-permalink" href="https://vacode.org/38.2-1414/#A18"><i class="fa fa-link"/></a></p></section>
						<section id="A19" class="indent-1"><p><span class="prefix-number">19.</span> Twenty-five percent for the total of investments made eligible by &#xA7; <a class="law" title="Real estate" href="/38.2-1441/">38.2-1441</a>, of which no more than five percent of the total admitted <span class="dictionary">assets</span> shall be in investments in real property to be used primarily for hotel purposes. <a id="paragraph-293683" class="section-permalink" href="https://vacode.org/38.2-1414/#A19"><i class="fa fa-link"/></a></p></section>
						<section id="B"><p><span class="prefix-number">B.</span> The amount loaned under &#xA7; <a class="law" title="Collateral loans" href="/38.2-1430/">38.2-1430</a> shall be subject to the limitations of this section applicable to the kinds of securities or <span class="dictionary">obligations</span> pledged in connection with the loan. <a id="paragraph-293684" class="section-permalink" href="https://vacode.org/38.2-1414/#B"><i class="fa fa-link"/></a></p></section></text><history>1983, c. 457, &#xA7; 38.1-217.17; 1986, c. 562; 1992, c. 588; 1993, c. 47; 1995, c. 60; 1998, c. 414; 2014, cc. 159, 206.</history><metadata></metadata></law>
