3 AAC 21.340. Equity interests for a property and casualty insurer

(a) A property and casualty insurer may acquire, hold, or invest in an equity interest in a business entity organized under the laws of a domestic jurisdiction.

(b) A property and casualty insurer may not acquire an investment under this section if, as a result of and after giving effect to the investment, the aggregate amount of investments then held by the property and casualty insurer under this section would exceed the greater of 25 percent of the property and casualty insurer's admitted assets or 100 percent of its policyholder surplus.

(c) A property and casualty insurer may not acquire an investment under this section that the property and casualty insurer may acquire under 3 AAC 21.350.

(d) A property and casualty insurer may not short sell equity investments unless the property and casualty insurer covers the short sale by owning the equity investment or an unrestricted right to the equity instrument exercisable within six months after the short sale.

History: Eff. 12/28/2001, Register 160

Authority: AS 21.06.090

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