Minnesota Administrative Rules

2750.3400 LIMITATIONS ON OWNERSHIP.

Subpart 1.

Securities.

A separate account shall not purchase or otherwise acquire the securities of any issuer, other than securities issued or guaranteed as to principal and interest by the United States, if immediately after the purchase or acquisition the value of the investment, together with prior investments of the account in the security valued as required by parts 2750.3000 to 2750.3700, would exceed ten percent of the value of the assets of the separate account. The commissioner shall waive this limitation in writing if the commissioner believes the waiver will not render the operation of the separate account hazardous to the public or the policyholders in this state.

Subp. 2.

Voting securities.

No separate account shall purchase or otherwise acquire the voting securities of any issuer if as a result of the acquisition the insurer and its separate accounts, in the aggregate, will own more than ten percent of the total issued and outstanding voting securities of the issuer. The commissioner shall waive this limitation in writing if the commissioner believes the waiver will not render the operation of the separate account hazardous to the public or the policyholders in this state or jeopardize the independent operation of the issuer of the securities.

Subp. 3.

Investments allowed.

The percentage limitation specified in subpart 1 shall not be construed to preclude the investment of the assets of separate accounts in shares of investment companies registered pursuant to the Investment Company Act of 1940 or other pools of investment assets if the investments and investment policies of the investment companies or asset pools comply substantially with part 2750.3300 and other applicable portions of parts 2750.3000 to 2750.3700.

Statutory Authority:

MS s 61A.20

History:

8 SR 1948; 17 SR 1279

Published Electronically:

September 14, 2007