                                 CODE OF VIRGINIA

INVESTMENT LIMITS FOR ONE OBLIGOR, ONE ISSUE OR ONE LOAN (§ 38.2-1413)

A. No domestic insurer shall have at any one time any combination of investments
in or loans upon the security of the property and securities of any one obligor
or issuer aggregating an amount exceeding the lesser of five percent of the
insurer&#8217;s total admitted assets or twenty percent of the insurer&#8217;s
surplus to policyholders. The limitations prescribed by this section shall not
apply to the following:

   1. Investments in or loans upon the security of general obligations of the
   United States;

   2. Investments in foreign securities made eligible by subsection A of &#xA7;
   38.2-1433;

   3. Investments in mortgage pass-through securities made eligible by &#xA7;
   38.2-1437.1;

   4. Deposits in institutions insured by a federal deposit insuring agency to
   the extent of coverage by such deposit insuring agency;

   5. Investments in subsidiaries made eligible by &#xA7; 38.2-1427.3;

   6. Investments in obligations of an agency or instrumentality of the United
   States made eligible by subsection B of &#xA7; 38.2-1415; provided that at no
   time shall the insurer invest pursuant to subsection B of &#xA7; 38.2-1415 in
   excess of ten percent of its total admitted assets in any one obligor or
   issuer of such obligations; or

   7. Other assets defined or classified by the National Association of Insurance
   Commissioners accounting practices and procedure manual, or any successor
   publication, as cash or cash equivalents or as a short term investment that is
   rated &#8220;AAA&#8221; or better or the equivalent rating by Moody&#8217;s
   Investors Service, Inc., Standard &amp; Poor&#8217;s or Fitch IBCA, or any
   successor to the rating business of any of them, provided that at no time
   shall the amount of any such asset placed for or by the insurer in or with any
   one depository, issue, obligor, or issuer exceed the lesser of ten percent of
   the insurer&#8217;s total admitted assets or twenty percent of the
   insurer&#8217;s surplus to policyholders.

B. No domestic insurer shall invest in excess of one percent of its total
admitted assets in any one issue of any obligations made eligible for investment
under &#xA7; 38.2-1423 or &#xA7; 38.2-1424.

C. No domestic insurer shall invest in excess of one-half of one percent of its
total admitted assets in any one loan made eligible by subdivision 3 of &#xA7;
38.2-1434.

D. The principal loan amount disbursed, excluding advances made to enforce or
protect the security for the loan, by a domestic insurer under any single
wrap-around mortgage made pursuant to &#xA7; 38.2-1435 shall not exceed one
percent of its total admitted assets.

E. The amount loaned under &#xA7; 38.2-1430 shall be subject to the limitations
of this section applicable to the kinds of securities or obligations pledged in
connection with the loan.

HISTORY: 1983, c. 457, § 38.1-217.16; 1986, c. 562; 1990, c. 893; 1992, c. 588;
1995, c. 60; 1998, c. 414; 2002, c. 73.