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  • Acts
  • 2006
  • Chapter 448 AN ACT RELATIVE TO LIFE INSURANCE COMPANIES.

Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same as follows:

Section 63 of chapter 175 of the General Laws, as appearing in the 2004 Official Edition, is hereby amended by inserting after paragraph 14F the following paragraph:-

14G. In bonds, notes, evidences of indebtedness or contractual obligations for the payment of money issued, assumed or guaranteed by institutions as defined in paragraph (1) of section 63A organized under the laws of the United States, or any state thereof, or of the Dominion of Canada or any province thereof; if the bonds, notes, evidences of indebtedness or contractual obligations for the payment of money or the long-term debt of the institution or institutions issuing, assuming or guaranteeing the bonds, notes, evidences of indebtedness or contractual obligations for the payment of money are either:

(1) initially rated at least BBB- or Baa3 or the equivalent thereof by any of the nationally recognized statistical rating organizations recognized by the Securities Valuation Office of the National Association of Insurance Commissioners hereinafter referred to as NAIC-SVO;

(2) initially rated NAIC 1 or NAIC 2 subsequent to such acquisition, either by the NAIC-SVO or by the insurer pursuant to a filing exemption in accordance with the requirements of the NAIC-SVO; or

(3) are provisionally rated NAIC 1Z or NAIC 2Z by the insurer in accordance with the requirements of the NAIC-SVO. In the event that the provisionally rated bonds, notes, evidences of indebtedness or contractual obligations for the payment of money or the long-term debt of the institution or institutions issuing, assuming or guaranteeing the bonds, notes, evidences of indebtedness or contractual obligations for the payment of money subsequently fail to qualify under clause (1) or clause (2) after any appeal by the insurer within the applicable time periods specified by the NAIC-SVO, then the bonds, notes, evidences of indebtedness or contractual obligations for the payment of money shall no longer qualify as permitted investments under this paragraph; but no company may invest more than an aggregate of 2 per cent of its admitted assets in bonds, notes, evidences of indebtedness or contractual obligations for the payment of money issued, guaranteed or insured by any one institution pursuant to this paragraph.

Approved January 3, 2007.