Revision: Jan. 6, 2016, midnight
\t \t\tSB 450 - AS INTRODUCED
2016 SESSION
\t16-2719
\t01/04
SENATE BILL\t450
AN ACT\trelative to investments by insurance companies.
SPONSORS:\tSen. Hosmer, Dist 7; Sen. Little, Dist 8; Sen. D'Allesandro, Dist 20
COMMITTEE:\tCommerce
-----------------------------------------------------------------
ANALYSIS
\tThis bill clarifies investments made by insurance companies.
\tThis bill is a request of the insurance department.
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Explanation:\tMatter added to current law appears in bold italics.
\t\tMatter removed from current law appears [in brackets and struckthrough.]
\t\tMatter which is either (a) all new or (b) repealed and reenacted appears in regular type.
\t16-2719
\t01/04
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Sixteen
AN ACT\trelative to investments by insurance companies.
Be it Enacted by the Senate and House of Representatives in General Court convened:
\t1 Insurance Companies and Agents; Types of Investments. RSA 402:28, I is repealed and reenacted to read as follows:
\t\tI. Except for those investments which are authorized by RSA 401-B:2, which investments shall be governed exclusively by those sections respectively, every domestic insurance company, other than a life insurance company, shall invest and keep invested all its funds in investments enumerated below, except such cash as may be required in the transaction of its business. Such investments shall include:
\t\t\t(a) Government Obligations. Bonds, notes, or obligations issued, assumed, guaranteed or insured by the United States, or by any state, territory or possession thereof, the District of Columbia or by any county, city, town, village, municipality or district therein or by any political subdivision or public instrumentality of one or more of the foregoing.
\t\t\t(b) Government Agencies. Bonds, notes, obligations, or stock issued, assumed, guaranteed or insured by the following agencies of the United States or in which such government is a participant, whether or not such obligations are guaranteed by such government:
\t\t\t\t(1) Farm loan bank.
\t\t\t\t(2) Commodity credit corporation.
\t\t\t\t(3) Federal intermediate credit banks.
\t\t\t\t(4) Federal land banks.
\t\t\t\t(5) Central bank for cooperatives.
\t\t\t\t(6) Federal home loan banks and stock of such banks.
\t\t\t\t(7) Federal national mortgage association and stock of such association.
\t\t\t\t(8) Government national mortgage association.
\t\t\t\t(9) Federal home loan mortgage corporation.
\t\t\t\t(10) International bank for reconstruction and development.
\t\t\t\t(11) Inter-American development bank.
\t\t\t\t(12) Asian development bank.
\t\t\t\t(13) African development bank.
\t\t\t\t(14) Any other similar agency of, or in which there is participation by, the government of the United States, and the instruments are of similar financial quality.
\t\t\t(c) Business Obligations and Equity Interests. Stock, warrants, rights or other securities, bonds, notes or obligations issued, assumed, guaranteed, insured or accepted by any solvent corporation, joint-stock association, trust, partnership, joint venture or other entity or combination of entities incorporated or existing under the laws of the United States or of any state, district or territory thereof, and any interest in any of the foregoing. An insurer shall not short sell equity investments unless the insurer covers the short sale by owning the equity investment or an unrestricted right to the equity instrument exercisable within 6 months of the short sale.
\t\t\t(d) Limited Partnerships. A domestic company may become a limited partner in a limited partnership on the following conditions:
\t\t\t\t(1) The partnership shall be organized under the limited partnership laws of the state of the partnership formation.
\t\t\t\t(2) The company’s interest in any one limited partnership shall be subject to the general 5 percent diversification requirement in RSA 402:29-d, I(a).
\t\t\t\t(3) All investments in limited partnerships shall be subject, as applicable, to the limitations on equity interests in RSA 402:29-d, I(b) and the limitations on interests in mortgage loans and real estate in RSA 402:29-d, IV-VII.
\t\t\t(e) Bank Obligations. Interest-bearing deposits, banks’ and bankers’ acceptances, including bills of exchange, or certificates of deposit in banks, bank and trust companies, savings banks, savings associations, savings and loan associations or national banking associations, incorporated or existing under the laws of the United States or any state, district or territory thereof, including branches of any of the foregoing, or foreign banking institutions or branches of such institutions located in the United States or any state, district or territory thereof.
\t\t\t(f) Revenue Obligations. Obligations or participations in obligations which are not issued, assumed, guaranteed or accepted by any person described under subparagraph I(c), but are:
\t\t\t\t(1) Adequately secured by an assignment or right to receive rent, or other payment or revenues payable or guaranteed by any one or more persons or entities; or adequately secured by a mortgage, interest in a mortgage pool, or mortgage participation, or lien or security interest in real or personal property or any interest therein.
\t\t\t\t(2) The obligations or participations in such obligations of any person or entity whose principal assets are any one of the foregoing obligations or participations secured in accordance with subparagraph (f)(1).
\t\t\t(g) Mortgage Backed Securities. Mortgage backed securities include, but are not limited to: mortgage pass through securities; mortgage backed bonds; collateralized mortgage obligations; and real estate mortgage investments conduits, adequately secured by a pool of mortgages and served by a governmental unit or instrumentality of the United States or any entity incorporated under the laws of the United States or of any state thereof.
\t\t\t(h) Mortgage Loans.
\t\t\t\t(1) Subject to the limitations of RSA 402:29-d, I(a), an insurer may acquire, either directly, indirectly through limited partnership interests, joint ventures, stock of an investment subsidiary or membership interests in a limited liability company, trust certificates, or other similar instruments, obligations secured by mortgages on real estate situated within a domestic jurisdiction, but a mortgage loan which is secured by other than a first lien shall not be acquired unless the insurer is the holder of the first lien. The obligations held by the insurer and any obligations with an equal lien priority, shall not, at the time of acquisition of the obligation, exceed:
\t\t\t\t\t(A) Ninety percent of the fair market value of the real estate, if the mortgage loan is secured by a purchase money mortgage or like security received by the insurer upon disposition of the real estate;
\t\t\t\t\t(B) Eighty percent of the fair market value of the real estate, if the mortgage loan requires immediate scheduled payment in periodic installments of principal and interest, has an amortization period of 30 years or less and periodic payments made no less frequently than annually. Each periodic payment shall be sufficient to assure that at all times the outstanding principal balance of the mortgage loan shall not be greater than the outstanding principal balance that would be outstanding under a mortgage loan with the same original principal balance, with the same interest rate and requiring equal payments of principal and interest with the same frequency over the same amortization period. Mortgage loans permitted under this subparagraph are permitted notwithstanding the fact that they provide for a payment of the principal balance prior to the end of the period of amortization of the loan. For residential mortgage loans, the 80 percent limitation may be increased to 97 percent if acceptable private mortgage insurance has been obtained; or
\t\t\t\t\t(C) Seventy-five percent of the fair market value of the real estate for mortgage loans that do not meet the requirements of subparagraphs (1) and (2).
\t\t\t\t(2) For the purposes of subparagraph (1), the amount of an obligation required to be included in the calculation of the loan-to-value ratio may be reduced to the extent the obligation is insured by the Federal Housing Administration or guaranteed by the Administrator of Veterans Affairs, or their successors.
\t\t\t\t(3) A mortgage loan that is held by an insurer as an admitted asset on December 31 2016 and is restructured in a manner that meets the requirements of a restructured mortgage loan in accordance with the NAIC Accounting Practices and Procedures Manual or successor publication shall continue to qualify as a mortgage loan under this subparagraph.
\t\t\t\t(4) Subject to the limitations of RSA 402:29-d, I(a), credit lease transactions that do not qualify as rated securities under RSA 402:28, I(n) with the following characteristics shall be exempt from the provisions of subparagraph (1).
\t\t\t\t\t(A) The loan amortizes over the initial fixed lease term at least in an amount sufficient so that the loan balance at the end of the lease term does not exceed the original appraised value of the real estate;
\t\t\t\t\t(B) The lease payments cover or exceed the total debt service over the life of the loan;
\t\t\t\t\t(C) A tenant or its affiliated entity whose rated credit instruments have a SVO 1 or 2 designation from the Securities Valuation Office of the National Association of Insurance Commissioners or a comparable rating from a nationally recognized statistical rating organization recognized by the Securities Valuation Office has a full faith and credit obligation to make the lease payments;
\t\t\t\t\t(D) The insurer holds or is the beneficial holder of the first lien mortgage on the real estate;
\t\t\t\t\t(E) The expenses of the real estate are passed through to the tenant, excluding exterior, structural, parking and heating, ventilation and air conditioning replacement expenses, unless annual escrow contributions, from cash flows derived from the lease payments, cover the expense shortfall; and
\t\t\t\t\t(F) There is a perfected assignment of the rents due pursuant to the lease to, or for the benefit of, the insurer.
\t\t\t(i) Income Producing Real Estate.
\t\t\t\t(1) An insurer may acquire, manage and dispose of real estate situated in a domestic jurisdiction either directly or indirectly through limited partnership interests, joint ventures, stock of an investment subsidiary or membership interests in a limited liability company, trust certificates, or other similar instruments. The real estate shall be income producing or intended for improvement or development for investment purposes under an existing program in which case the real estate shall be deemed to be income producing.
\t\t\t\t(2) The real estate may be subject to mortgages, liens, or other encumbrances, the amount of which shall, to the extent that the obligations secured by the mortgages, liens or encumbrances are without recourse to the insurer, be deducted from the amount of the investment of the insurer in the real estate for purposes of determining compliance with RSA 402:29-d, IV and V.
\t\t\t(j) Real Estate for the Accommodation of Business. An insurer may acquire, manage, and dispose of real estate for the convenient accommodation of the insurer’s, which may include its affiliates, business operations, including home office, branch office and field office operations.
\t\t\t\t(1) Real estate acquired under this subparagraph may include excess space for rent to others, if the excess space, valued at its fair market value, would otherwise be a permitted investment under subparagraph II of this section and is so qualified by the insurer;
\t\t\t\t(2) The real estate acquired under this subparagraph may be subject to one or more mortgages, liens or other encumbrances, the amount of which shall, to the extent that the obligations secured by the mortgages, liens or encumbrances are without recourse to the insurer, be deducted from the amount of the investment of the insurer in the real estate for purposes of determining compliance with RSA 402:29-d, V(d); and
\t\t\t\t(3) For purposes of this subparagraph, business operations shall not include that portion of real estate used for the direct provision of health care services by an insurer whose insurance premiums and required statutory reserves for accident and health insurance constitute at least 95 percent of total premium considerations or total statutory required reserves, respectively. An insurer may acquire real estate used for these purposes under RSA 402:28, I(h) and subject to the limitations set out in RSA 402:29-d, V.
\t\t\t(k) Collateral Loans. Direct obligations for the payment of money adequately secured by the pledge of any property which would be authorized as an investment under this subdivision.
\t\t\t(l) Exchange Traded Financial Futures Contracts. The investment practice of financial futures contracts issued under terms and conditions regulated by a federal regulatory agency is authorized on the following conditions:
\t\t\t\t(1) A company shall not enter into a financial futures contract except as a hedging transaction as that term is defined in a rule adopted pursuant to this subdivision.
\t\t\t\t(2) A company shall not have initial or maintenance margin outstanding under this paragraph of more than 10 percent of the excess of its capital and surplus over the minimum requirements of a new stock or mutual company to qualify for a certificate of authority to write the kind of insurance which the company is authorized to write.
\t\t\t(m) Exchange Traded Put and Call Options. The investment practice of put options and call options issued under terms and conditions regulated by, or substantially similar to those terms and conditions required by, a National Securities Exchange registered under the Securities Exchange Act of 1934, as amended, or any board of trade designated as a contract market by the Commodity Futures Trading Commission under the Commodity Exchange Act, as amended, is authorized on the following conditions:
\t\t\t\t(1) A company shall not sell a call option on either:
\t\t\t\t\t(A) Securities it does not own, or
\t\t\t\t\t(B) In an amount greater than securities which it presently owns.
\t\t\t\t(2) In the case of financial futures contracts and stock or bond index contracts where it is not feasible to own the underlying security, a company may sell a call option only in connection with a hedging transaction.
\t\t\t\t(3) A company shall not sell a put option unless its obligations under such put option are fully secured by a deposit by the company with a bank or other custodian of cash or cash equivalents.
\t\t\t\t(4) A company shall not purchase as opening transactions under this paragraph more than 10 percent of the excess of its capital and surplus over the minimum requirements of a new stock or mutual company to qualify for a certificate of authority to write the kind of insurance which the company is authorized to write.
\t\t\t(n) Options and Futures Contracts. Options or futures contracts traded in markets regulated under the laws of the United States, or by an agency thereof, and other contracts or instruments for the purpose of reducing the company’s economic risk in connection with potential changes in the value of specifically identified assets which the company owns or could reasonably expect to acquire, or specifically identified liabilities which the company has or reasonably expects to incur. The aggregate cost of investments held under this paragraph shall not exceed 5 percent of the company’s admitted assets.
\t\t\t(o) Securities Lending. The investment practice of lending securities, and entering into repurchase agreements and reverse repurchase agreements is authorized on the following conditions:
\t\t\t\t(1) “Lending of securities” means an investment other than a repurchase agreement, whereby an agreement is entered into which transfers ownership rights and possession of securities to the borrower of such securities with the agreement providing for a return of ownership rights and possession of the securities to the lender at a specified date or upon demand.
\t\t\t\t(2) “Repurchase agreement” means a bilateral agreement whereby a company purchases securities with a related agreement that the seller will purchase or repurchase at a specified price the equivalent or similar securities within a specified period of time or on demand.
\t\t\t\t(3) “Reverse repurchase agreement” means a bilateral agreement whereby a company:
\t\t\t\t\t(A) Sells securities with a related agreement to purchase or repurchase at a specified price the equivalent or similar securities within a specified period of time or upon demand, or
\t\t\t\t\t(B) Borrows funds and transfers securities to the lender with a related agreement that equivalent or similar securities shall be returned to the company upon repayment of the loan within a specified period of time or on demand.
\t\t\t\t(4) Lending of securities, repurchase agreements and reverse repurchase agreements are authorized on the following conditions:
\t\t\t\t\t(A) The agreement for each transaction or the master agreement for a series of transactions shall be reduced to writing.
\t\t\t\t\t(B) Securities acquired by a company owned subject to reacquisition pursuant to an outstanding repurchase agreement may not be sold pursuant to a reverse repurchase agreement nor lent pursuant to a lending of securities agreement. Consideration, or collateral, received from a reverse repurchase agreement or lending of securities agreement may be used to acquire securities which are equivalent or similar to the securities transferred pursuant to such repurchase agreement or lending of securities agreement; however, such acquired securities may not be sold pursuant to a reverse repurchase agreement nor lent pursuant to a lending of securities agreement.
\t\t\t\t\t(C) A company is limited to no more than 10 percent of its admitted assets being subject to lending of securities, repurchase agreements or reverse repurchase agreements transactions outstanding with any one entity under this paragraph.
\t\t\t\t\t(D) A company may engage in lending its securities or repurchase or reverse repurchase agreements not to exceed 40 percent of its admitted assets, provided, however, that such transactions are collateralized 102 percent of the market value of loaned securities at the close of every business day in which such agreement remains open.
\t\t\t(p) Rated Securities. Obligations which are rated by a securities rating agency, which agency is acceptable to the commissioner, and which securities are rated so as to be in one of the highest 4 generic lettered rating classifications, or awarded a “yes” rating by the Securities Valuation Office of the National Association of Insurance Commissioners.
\t\t\t(q) Basket Provision. Any investment of any kind not otherwise authorized by this subdivision up to an amount not exceeding in the aggregate 10 percent of such company’s admitted assets.
\t\t\t(r) Mutual Funds. Equity interest in an open-ended investment company registered with the United States Securities and Exchange Commission under the Investment Company Act of 1940 (15 U.S.C. 80a-1 et seq.) as amended, provided that substantially all the investments of such mutual funds are traded on a nationally recognized stock exchange or on the NASDAQ system.
\t\t\t(s) With approval of the commissioner, funds loaned to the New Hampshire Insurance Guaranty Association pursuant to RSA 404-H:8, II(b).
\t2 Insurance Companies and Agents; Quantitative Limitations. RSA 402:29-d is repealed and reenacted to read as follows:
\t402:29-d Quantitative Limitations.
\t\tI. Except for investments in subsidiaries, an insurer shall not acquire:
\t\t\t(a) Directly or indirectly through an investment subsidiary, an investment under this chapter if, as a result of and after giving effect to the investment, the insurer would hold more than 5 percent of its admitted assets in investments of all kinds issued, assumed, accepted, insured or guaranteed by a single person; or
\t\t\t(b) Equity interests in business entities if, as a result of and after giving effect to the investment, the aggregate amount of investments then held by the insurer under this section would exceed the greater of 25 percent of its admitted assets or 100 percent of its surplus as regards policyholders. An insurer shall not acquire, under this paragraph, any investments that the insurer may acquire under RSA 402:28, I(g), (h), or (i), and any investments made under RSA 402:28, I(g), (h), or (i) shall be subject to the limitations established in paragraphs IV-VI.
\t\tII. The 5 percent limitation established in subparagraph I(a) shall not apply to the aggregate amounts insured by a single financial guaranty insurer with the highest generic rating issued by a nationally recognized statistical rating organization. In addition, asset-backed securities shall not be subject to the limitations of subparagraph I(a), except that an insurer shall not acquire an asset-backed security if, as a result of and after giving effect to the investment, the aggregate amount of asset-backed securities secured by or evidencing an interest in a single asset or single pool of assets held by a trust or other business entity, then held by the insurer would exceed 5 percent of its admitted assets.
\t\tIII. Equity interests, as used in subparagraph I(b), shall mean common stock, general, preferred or limited partnership interest, trust certificate, investment in an investment company other than a money market mutual fund, investment in a common trust fund of a bank regulated by a federal or state agency, warrant, or other similar right to acquire an equity interest, member interests in limited liability companies, or any other similar interest.
\t\tIV. An insurer shall not acquire an investment in obligations secured by mortgages on real estate under RSA 402:28, I(g) if, as a result of and after giving effect to the investment, the aggregate amount of all investments then held by the insurer under RSA 402:28, I(g) would exceed:
\t\t\t(a) One percent of its admitted assets in mortgage loans covering any one secured location;
\t\t\t(b) One quarter of one percent of its admitted assets in construction loans covering any one secured location; or
\t\t\t(c) One percent of its admitted assets in construction loans in the aggregate.
\t\tV. An insurer shall not acquire an investment in income producing real estate under RSA 402:28, I(h) if, as a result of and after giving effect to the investment and any outstanding guarantees made by the insurer in connection with the investment, the aggregate amount of investments then held by the insurer under RSA 402:28, I(h) plus the guarantees then outstanding would exceed:
\t\t\t(a) One percent of its admitted assets in one parcel or group of contiguous parcels of real estate, except that this limitation shall not apply to that portion of real estate for the direct provision of health care services by an insurer whose insurance premiums and required statutory reserves for accident and health insurance constitute at least 95 percent of total premium considerations or total statutory required reserves, respectively, such as hospitals, medical clinics, medical professional buildings or other health facilities used for the purpose of providing health services; or
\t\t\t(b) The lesser of 10 percent of its admitted assets or 40 percent of its surplus as regards policyholders in the aggregate, except for an insurer whose insurance premiums and required statutory reserves for accident and health insurance constitute at least 95 percent of total premium considerations or total statutory required reserves, respectively, this limitation shall be increased to 15 percent of its admitted assets in the aggregate.
\t\tVI. An insurer shall not acquire an investment in obligations secured by mortgages on real estate under RSA 402:28, I(g) or in income producing real estate under RSA 402:28, I(h) if, as a result of and after giving effect to the investment and any guarantees it has made in connection with the investment, the aggregate amount of all investments then held by the insurer under RSA 402:28, I(g) and RSA 402:28, I(h) plus the guarantees then outstanding would exceed 25 percent of its admitted assets.
\t\tVII. The limitations of paragraph I(a) shall not apply to an insurer’s acquisition of real estate for the accommodation of business under RSA 402:28, I(i). An insurer shall not acquire real estate under RSA 402:28, I(i) if, as a result of and after giving effect to the acquisition, the aggregate amount of real estate then held by the insurer under RSA 402:28, I(i) would exceed 10 percent of its admitted assets. With the permission of the commissioner, additional amounts of real estate may be acquired under paragraph III.
\t\tVIII. Each investment or asset held by an insurer on January 1, 1994, which was eligible as an admitted asset at the time it was acquired, committed for or engaged in, and any refinancing, modification or extension thereof, shall be deemed to be eligible as an admitted asset under this chapter but shall be included as part of the limitation described above.
\t\tIX. Investments exceeding the limitation established by this section shall not be permitted under any other provision of this chapter including, but not limited to, RSA 402:28, I(o) and shall not be considered admitted assets of the insurer.
\t\tX. An insurer may invest in mutual funds in excess of the limits set forth in this section, provided the insurer shall not invest:
\t\t\t(a) More than 10 percent of its admitted assets in equity interests of a single mutual fund; or
\t\t\t(b) More than the greater of 25 percent of its admitted assets or 100 percent of its capital and surplus in equity interests held either directly by the insurer or indirectly through interests in mutual funds.
\t\tXI. An insurer shall not acquire under this section any investments that the insurer may acquire under RSA 402:29-a.
\t3 Regulation of Investments of Life Insurance Companies; Investments in Foreign Countries. RSA 411-A:29 is repealed and reenacted to read as follows:
\t411-A:29 Foreign Investments and Foreign Currency Exposure.
\t\tI. Subject to the limitations of RSA 411-A:6, an insurer may acquire foreign investments, or engage in investment practices with persons of or in foreign jurisdictions, of substantially the same types as those that an insurer is permitted to acquire under this chapter, if, as a result and after giving effect to the investment:
\t\t\t(a) The aggregate amount of foreign investments then held by the insurer under this subsection does not exceed 20 percent of its admitted assets; and
\t\t\t(b) The aggregate amount of foreign investments then held by the insurer under this subparagraph in a single foreign jurisdiction does not exceed 10 percent of its admitted assets as to a foreign jurisdiction that has a sovereign debt rating of SVO 1 from the Securities Valuation Office of the National Association of Insurance Commissioners or 3 percent of its admitted assets as to any other foreign jurisdiction.
\t\tII. Subject to the limitations of RSA 411-A:6, an insurer may acquire investments, or engage in investment practices denominated in foreign currencies, whether or not they are foreign investments acquired under paragraph I, or additional foreign currency exposure as a result of the termination or expiration of a hedging transaction with respect to investments denominated in a foreign currency, if:
\t\t\t(a) The aggregate amount of investments then held by the insurer under this subparagraph denominated in foreign currencies does not exceed 10 percent of its admitted assets; and
\t\t\t(b) The aggregate amount of investments then held by the insurer under this subparagraph denominated in the foreign currency of a single foreign jurisdiction does not exceed 10 percent of its admitted assets as to a foreign jurisdiction that has a sovereign debt rating of SVO 1 from the Securities Valuation Office of the National Association of Insurance Commissioners or 3 percent of its admitted assets as to any other foreign jurisdiction.
\t\tIII. In addition to investments permitted under paragraphs I and II, an insurer that is authorized to do business in a foreign jurisdiction, and that has outstanding insurance, annuity or reinsurance contracts on lives or risks resident or located in that foreign jurisdiction and denominated in foreign currency of that jurisdiction, may acquire foreign investments respecting that foreign jurisdiction, and may acquire investments denominated in the currency of that jurisdiction, subject to the limitations of RSA 411-A:6. However, investments made under this paragraph in obligations of foreign governments, their political subdivisions and government sponsored enterprises shall not be subject to the limitations of RSA 411-A:6 if those investments carry an SVO rating of 1 or 2 from the Securities Valuation Office of the National Association of Insurance Commissioners. The aggregate amount of investments acquired by the insurer under this paragraph shall not exceed the greater of:
\t\t\t(a) The amount the insurer is required by the law of the foreign jurisdiction to invest in the foreign jurisdiction; or
\t\t\t(b) One hundred fifteen percent of the amount of its reserves, net of reinsurance, and other obligations under the contracts on lives or risks resident or located in the foreign jurisdiction.
\t\tIV. In addition to investments permitted under paragraphs I and II, an insurer that is not authorized to do business in a foreign jurisdiction, but which has outstanding insurance, annuity or reinsurance contracts on lives or risks resident or located in that foreign jurisdiction and denominated in foreign currency of that jurisdiction, may acquire foreign investments respecting that foreign jurisdiction, and may acquire investments denominated in the currency of that jurisdiction subject to the limitations of RSA 411-A:6. However, investments made under this paragraph in obligations of foreign governments, their political subdivisions and government sponsored enterprises shall not be subject to the limitations of RSA 411-A:6 if those investments carry an SVO rating of 1 or 2 from the Securities Valuation Office of the National Association of Insurance Commissioners. The aggregate amount of investments acquired by the insurer under this paragraph shall not exceed 105 percent of the amount of its reserves, net of reinsurance, and other obligations under the contracts on lives or risks resident or located in the foreign jurisdiction.
\t\tV. Investments acquired under this section shall be aggregated with investments of the same types made under all other sections of this chapter, and in a similar manner, for purposes of determining compliance with the limitations, if any, contained in the other sections. Investments in obligations of foreign governments, their political subdivisions and government sponsored enterprises of these persons, except for those exempted under paragraphs III and IV, shall be subject to the limitations of RSA 411-A:6.
\t4 Effective Date. This act shall take effect 60 days after its passage.