No company shall invest its funds in, or loan them on its own stock without the prior approval of the insurance commissioner. This section shall not prohibit a company from investing its funds in the stock or obligations of its parent company provided that:
- I. Such stock shall be valued according to the Securities Valuation Manual of the National Association of Insurance Commissioners.
- II. No company shall hold, at any one time, more than 10 percent of its policyholder surplus, in such stock or obligations.
- III. Such stock, in order to qualify under this section, shall be traded on a nationally recognized stock exchange or on the NASDAQ system.
Source. 1991, 372:4, eff. Jan. 1, 1992.