SB 696

DOMESTIC INSURANCE COMPANY INVESTMENT In addition to the foreign investments permitted by certain state laws regarding the acquisition of stock , present law authorizes any domestic insurance company to invest in, or otherwise acquire or loan upon, securities and investments in for eign countries that are substantially of the same kinds, classes and investment grades as those eligible for investment of assets by certain domestic insurance companies as long as the aggregate amount of such investments do not exceed 1% of its admitted a ssets. This bill increases the percentage limit from 1% to 20% of its admitted assets. Additionally, present law prohibits the aggregate of the insurance company's loans and investments from exceed ing 5% of the company's admitted asset s. This bill incr eases the percentage limit from 5% to 10% of its admitted assets. MONEY MARKET FUND INVESTMENTS PERMITTED This bill authorizes domestic insurance companies to invest their assets in a money market fund that may be either of the following:  A government money market fund that is a money market fund that invests only in obligations issued, guaranteed, or insured by the federal government of the United States or collateralized repurchase agreements composed of these obligations and qualifies for investment without a reserve under the Purposes and Procedures Manual of the of the National Association of Insurance Commissioners (NAIC) Investment Analysis Office; or, if it is no longer being published, the successor publication to the Purposes and Procedures Manual of the NAIC Investment Analysis Office .  A Class 1 money market fund that is a money market fund that qualifies for investment using the bond Class 1 reserve factor under the Purposes and Procedures Manual of the NAIC Investment Analysis Office or, if it is no longer being published, the successor publication to the Purposes and Procedures Manual of the NAIC Investment Analysis Office. This bill clarifies that money market funds qualifying for listing within these categories must conform to the Purposes and Procedures Manual of the NAIC Investment Analysis Office , or, if it is no longer being published, the successor publication to the Purposes and Procedures Manual of the NAIC Investment Analysis Office.