(a)

1. (1) 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 such purchase or acquisition the value of such investment, together with prior investments of such account in such security valued as required by this part, would exceed ten percent (10%) of the value of the assets of the separate account.
2. (2) The Insurance Commissioner may waive this limitation in writing if he or she believes such waiver will not render the operation of the separate account hazardous to the public or the policyholders in this state.

(b)

1. (1) No separate account shall purchase or otherwise acquire the voting securities of any issuer if, as a result of such acquisition, the insurer and its separate accounts in the aggregate will own more than ten percent (10%) of the total issued and outstanding voting securities of such issuer.

2. (2) The commissioner may waive this limitation in writing if he or she believes such waiver will not:

   1. (A) Render the operation of the separate account hazardous to the public or the policyholders in this state; or
   2. (B) Jeopardize the independent operation of the issuer of such securities.

(c) The percentage limitation specified in subsection (a) of this section 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 such investment companies or asset pools comply substantially with the provisions of:

1. (1) 23 CAR § 93-504; and
2. (2) Other applicable portions of this part.