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2007 Minnesota Statutes

This is a historical version of this statute section. Also view the most recent published version.

60L.01 DEFINITIONS.
    Subdivision 1. Application. For purposes of sections 60L.01 to 60L.15, the definitions in
subdivisions 2 to 15 have the meanings given them.
    Subd. 2. Admitted assets. "Admitted assets" means the assets as shown by an insurer's
financial statement most recently required to be filed with the commissioner, or such other financial
statement required to be filed with the commissioner as the context may require, but excluding
assets allocated to separate accounts. For these purposes, assets must be valued according to
valuation regulations prescribed by the National Association of Insurance Commissioners and
procedures adopted by the National Association of Insurance Commissioners' Financial Condition
Ex.4 Subcommittee if not addressed in another section, unless the commissioner requires or finds
another method of valuation reasonable under the circumstances. For purposes of any other
investment limitation based on the amount of the admitted assets of a life insurer governed by
sections 60L.01 to 60L.15, "admitted assets" has the meaning given under this subdivision.
    Subd. 3. Commissioner. "Commissioner" means the commissioner of commerce.
    Subd. 4. Derivative instrument. "Derivative instrument" means an item appropriately
reported in schedule DB, derivative instruments, or schedule DC, insurance futures and insurance
futures options, of an insurer's statutory financial statement, or successor schedules, as provided
under applicable annual statement instructions or statutory accounting guidelines.
    Subd. 5. Derivative transaction. "Derivative transaction" means a transaction involving
the use of one or more derivative instruments.
    Subd. 6. Government sponsored enterprise. "Government sponsored enterprise" means
a governmental agency, a corporation, limited liability company, association, partnership, joint
stock company, joint venture, trust, or other entity or instrumentality organized under the laws of
the United States to accomplish a public policy or other governmental purpose.
    Subd. 7. Income generation. "Income generation" means a derivative transaction involving
the writing of covered options, caps, or floors that is intended to generate income or enhance
return.
    Subd. 8. Insurer. "Insurer" means a domestic insurance company, including a fraternal
benefit society.
    Subd. 9. Lower grade investment. "Lower grade investment" means a rated credit
instrument or debt-like preferred stock rated 4, 5, or 6 by the Securities Valuation Office of the
National Association of Insurance Commissioners or any successor office.
    Subd. 10. Medium grade investment. "Medium grade investment" means a rated credit
instrument or debt-like preferred stock rated 3 by the Securities Valuation Office of the National
Association of Insurance Commissioners or any successor office.
    Subd. 11. Minimum asset requirement. "Minimum asset requirement" means: (1) in the
case of an insurer other than a life insurer, the sum of an insurer's liabilities and its minimum
financial security benchmark; and (2) in the case of a life insurer, the sum of the insurer's
liabilities, other than the asset valuation reserve, voluntary investment reserves and liabilities on
separate accounts, and its minimum financial security benchmark.
    Subd. 12. Minimum financial security benchmark. "Minimum financial security
benchmark" means the amount an insurer is required to have under section 60L.03.
    Subd. 13. Nationally recognized statistical rating organization. "Nationally recognized
statistical rating organization" means a rating organization so designated by the Securities
and Exchange Commission of the United States and that has applied to, and whose status as
a nationally recognized statistical rating organization has been confirmed by, the Securities
Valuation Office of the National Association of Insurance Commissioners, or any other rating
organization approved by the commissioner as a nationally recognized statistical rating
organization for purposes of sections 60L.01 to 60L.15.
    Subd. 13a. Replicated investment position. "Replicated investment position" means the
statement value of the position reported under the heading "Replicated (Synthetic) Asset" on
Schedule DB, Part F, of the annual statement of the insurer, or any successor provision.
    Subd. 14. Replication transaction. "Replication transaction" means a derivative transaction
that is intended to replicate the performance of one or more assets that an insurer is authorized to
acquire under sections 60L.01 to 60L.15. A derivative transaction that is entered into as a hedging
transaction is not considered a replication transaction.
    Subd. 15. SVO listed mutual fund. "SVO listed mutual fund" means a money market
mutual fund or short-term bond fund that is registered with the United States Securities and
Exchange Commission under the Investment Company Act of 1940, and that has been determined
by the Securities Valuation Office of the National Association of Insurance Commissioners to be
eligible for special reserve and reporting treatment other than as common stock.
History: 1998 c 319 s 1; 2001 c 131 s 7,8

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