AI-assisted research summary: This section limits how certain New Hampshire domestic insurance companies may invest and deposit funds, and gives the insurance commissioner some authority to restrict risky investments.
I. This subdivision applies to insurance companies organized under the laws of this state, other than life insurance companies. The percentage limitations contained in RSA 402:28 and RSA 402:29 shall not be effective until January 1, 1993. Any such domestic company may invest its funds in investments as provided in this subdivision and not otherwise. Notwithstanding the provisions of this subdivision, the insurance commissioner may, after notice and hearing, order a domestic company to limit or withdraw from certain investments, or discontinue certain investment practices, to the extent that the commissioner finds that such investments or investment practices endanger the solvency of such company. II. No investment, loan, or investment practice, shall be made or engaged in by any domestic company, unless the same has been authorized or ratified by the board of directors, or by a committee of the board of directors charged with the duty of supervising investments and loans. III. No such domestic company shall subscribe to, or participate in, any underwriting of the purchase or sale of securities or property or enter into any agreement to withhold from sale any of its property, but the disposition of its property shall be at all times within the control of the board of directors. Any agreement or contract providing for the lawful disposition of property wherein such disposition may be determined at the option of a third person at some specified future price or condition or specified time or upon demand shall be construed to be within the control of the board of directors. IV. Nothing contained in paragraph III shall prevent the board of directors of any such company from depositing any of its securities with a committee appointed for the purpose of protecting the interest of security holders or with authorities of any state or country where it is necessary to do so in order to secure permission to transact its appropriate business. Nothing contained in this subdivision shall prevent the board of directors of such company from depositing securities as collateral for the securing of any bond or obligation required for the business of the company. V. All investments and deposits of the funds of a domestic company shall be made in its corporate name except that, subject to the approval of the commissioner, securities may be kept under a custodial or similar agreement with a bank or banking and trust company or registered investment advisor and issued in the name of a nominee of such bank or banking and trust company or registered investment advisor. Source: Source. 1917, 30:4. PL 273:22. RL 323:27. RSA 402:27. 1957, 43:1. 1991, 372:1, eff. Jan. 1, 1992.