Browse Arkansas Code titles and sections
23-63-824. Foreign securities.
Arkansas Code — all titles (historical 2020) · legal_authorities
23-63-824. Foreign securities.
(a) An insurer may acquire investments or engage in investment practices with entities or institutions of or in foreign jurisdictions of substantially the same type that an insurer may acquire under this subchapter for investments in the United States if, as a result of and after giving effect to the investment:
(1) The aggregate amount of foreign domiciled investments held by the insurer under this subsection does not exceed twenty percent (20%) of the insurer's admitted assets;
(2) The aggregate amount of foreign investments held by the insurer under this subsection, domiciled in a single foreign jurisdiction, does not exceed:
(A) Ten percent (10%) of its admitted assets to a foreign jurisdiction that has a sovereign debt rating of “1” by the Securities Valuation Office of the National Association of Insurance Commissioners; or
(B) Three percent (3%) of its admitted assets to any other foreign jurisdiction; and
(3) The insurer does not hold more than three percent (3%) of its admitted assets in investments of any kind issued, assumed, accepted, insured, or guaranteed by a single foreign entity or institution.
(b) Except as provided in § 23-63-805, an insurer may acquire investments or engage in investment practices denominated in foreign currencies when the investments are foreign investments under subsection (a) of this section or the investments are limited to foreign currency exposure as a result of the termination or expiration of a hedging transaction concerning investments denominated in a foreign currency if, as a result of and after giving effect to the investment:
(1) The aggregate amount of investments held by the insurer under this subsection denominated in foreign currencies does not exceed ten percent (10%) o
Source: Arkansas Code — historical release 78 (November 6, 2020) · 23-63-824
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. A text match is a research starting point; applicability is not established.
Issuing source page ↗
Authority boundary: historical statutory source snapshot not current law.
Open the recorded source website ↗
Record provenance
Stable record: arkansas_code:legal_authorities:23-63-824
Source file: gov.ar.code.title.23.odt
Pages: Not recorded – Not recorded
Passage SHA-256: c0d95cb152f2c77d1821c3accae7bac0d62cd5f2f8b1eee95e10caac6bcf31b5
Source location: content.xml paragraph 32548
Stored source content
23-63-824. Foreign securities.
(a) An insurer may acquire investments or engage in investment practices with entities or institutions of or in foreign jurisdictions of substantially the same type that an insurer may acquire under this subchapter for investments in the United States if, as a result of and after giving effect to the investment:
(1) The aggregate amount of foreign domiciled investments held by the insurer under this subsection does not exceed twenty percent (20%) of the insurer's admitted assets;
(2) The aggregate amount of foreign investments held by the insurer under this subsection, domiciled in a single foreign jurisdiction, does not exceed:
(A) Ten percent (10%) of its admitted assets to a foreign jurisdiction that has a sovereign debt rating of “1” by the Securities Valuation Office of the National Association of Insurance Commissioners; or
(B) Three percent (3%) of its admitted assets to any other foreign jurisdiction; and
(3) The insurer does not hold more than three percent (3%) of its admitted assets in investments of any kind issued, assumed, accepted, insured, or guaranteed by a single foreign entity or institution.
(b) Except as provided in § 23-63-805, an insurer may acquire investments or engage in investment practices denominated in foreign currencies when the investments are foreign investments under subsection (a) of this section or the investments are limited to foreign currency exposure as a result of the termination or expiration of a hedging transaction concerning investments denominated in a foreign currency if, as a result of and after giving effect to the investment:
(1) The aggregate amount of investments held by the insurer under this subsection denominated in foreign currencies does not exceed ten percent (10%) of its admitted assets;
(2) The aggregate amount of investments held by the insurer under this subsection denominated in the foreign currency of a single foreign jurisdiction does not exceed three percent (3%) of its admitted assets as to a foreign jurisdiction that does not have a sovereign debt rating of “1” by the Securities Valuation Office of the National Association of Insurance Commissioners; and
(3) An investment shall not be considered denominated in a foreign currency if the acquiring insurer:
(A) Enters into at least one (1) transaction under § 23-63-841; and
(B) The business entity counterparty agrees or contracts to exchange all payments made on the foreign currency denominated investment for United States currency at a rate that effectively insulates the investment cash flows against future fluctuations in currency exchange rates during the time a contract is in effect.
(c) Canadian securities that are eligible for investment under other provisions of this subchapter are not subject to this section.
Cross-references
Connections may be documented source relationships, shared citations or nearby passages. Each explains its basis; a connection alone does not establish applicability to your situation.
Arkansas Code — all titles (historical 2020) · legal_authorities
23-63-805. Diversification of investments.
An insurer shall invest in or hold as admitted assets categories of investments only within applicable limits as follows:
(1)One Person.
(A)(i)(a) Except with the consent of the Insurance Commissioner and except as otherwise specified in this subchapter, an insurer shall not have, directly or indirectly through an investment subsidiary, an investment under this subchapter if, as a result of and after giving effect to the investment, the insurer holds more than five percent (5%) of its admitted assets in investments of all kinds issued, assumed, accepted, insured, or guaranteed by a single person or five percent (5%) of its admitted assets in investments in the voting securities of a depository institution or any company that controls the institution.
(b) The five percent (5%) limitation under subdivision (1)(A)(i)(a) of this section 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.
(ii)(a) Investments in certificates of deposit and savings and loan association deposits in any one (1) person may be the greater of:
(1) Ten percent (10%) of the insurer's assets; or
(2) The maximum amount of federal insurance applicable to the deposit.
(b) The restriction under subdivision (1)(A)(i)(a) of this section does not apply to general obligations of the United States or any state or include policy loans made under § 23-63-821.
(iii) The applicable limitation shall be twenty-five percent (25%) rather than five percent (5%) for investments permitted under § 23-63-812.
(B) If upon enactment, the immediate application of this provision would have the effect of reducing the admitted asset v
Source: Arkansas Code — historical release 78 (November 6, 2020) · 23-63-805
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. The source passage cites 23-63-805. This identifies an authority to review, not proof of applicability.
Arkansas Code — all titles (historical 2020) · legal_authorities
23-63-841. Derivative transactions.
(a) As used in this section:
(1) “Cap” means an agreement obligating the seller to make payments to the buyer with each payment based on the amount by which a reference price or level or the performance or value of one (1) or more underlying interests exceeds a predetermined number, sometimes called the strike rate or strike price;
(2) “Collar” means an agreement to receive payments as the buyer of an option, cap, or floor and to make payments as the seller of a different option, cap, or floor;
(3)(A) “Counterparty exposure amount” means the net amount of credit risk attributable to an over-the-counter derivative instrument. The amount of credit risk equals:
(i) The market value of the over-the-counter derivative instrument if the liquidation of the derivative instrument would result in a final cash payment to the insurer; or
(ii) Zero (0) if the liquidation of the derivative instrument would not result in a final cash payment to the insurer.
(B) If over-the-counter derivative instruments are entered into under a written master agreement which provides for netting of payments owed by the respective parties and the domiciliary jurisdiction of the counterparty is either within the United States or if not within the United States, within a foreign jurisdiction listed in the National Association of Insurance Commissioners' publication prepared by its Securities Valuation Office as it existed on January 1, 2005, entitled the “Purposes and Procedures Manual” as eligible for netting, the net amount of credit risk shall be the greater of zero (0) or the net sum of:
(i) The market value of the over-the-counter derivative instruments entered into under the agreement, the liquidation of which would result in a final cash payment
Source: Arkansas Code — historical release 78 (November 6, 2020) · 23-63-841
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. The source passage cites 23-63-841. This identifies an authority to review, not proof of applicability.