1. (1) For purposes of determining compliance with Section 31A-18-109:

   1. (a) securities of a single issuer and the single issuer's affiliates, other than the government of the United States and subsidiaries authorized under Section 31A-16-102.5, may not exceed:

      1. (i) 5% of admitted assets; or
      2. (ii) 10% of admitted assets, if the securities are secured by real property and the insurer demonstrates a prudent investment policy regarding the investments described in Section 31A-18-105; and
   2. (b) investments in the voting securities of a depository institution, or any company that controls a depository institution, may not exceed 5% of the insurer's admitted assets.

2. (2) For purposes of Section 31A-18-109, the following limitations on classes of investments apply:

   1. (a) for an investment authorized under Subsection 31A-18-110(2), and an investment authorized by Subsection 31A-18-110(7) that is a type of investment described in Subsection 31A-18-110(2), the aggregate amount of:

      1. (i) medium and lower grade investments may not exceed 20% of the insurer's admitted assets;
      2. (ii) lower grade investments may not exceed 10% of the insurer's admitted assets;
      3. (iii) investments rated 5 or 6 by the Securities Valuation Office of the NAIC, may not exceed 5% of the insurer's admitted assets;
      4. (iv) investments rated 6 by the Securities Valuation Office of the NAIC, may not exceed 1% of the insurer's admitted assets; or
      5. (v) medium and lower grade investments that receive, as cash income, less than the equivalent yield for Treasury issues with a comparative average life, may not exceed 1% of the insurer's admitted assets;

   2. (b) for an investment authorized under Subsection 31A-18-110(3):

      1. (i) 50% of admitted assets, if the insurer is a life insurer; and
      2. (ii) 25% of admitted assets if the insurer is a non-life insurer;

   3. (c) for an investment authorized under Subsection 31A-18-110(4), other than subsidiaries of the type authorized in Section 31A-16-102.5:

      1. (i) 20% of admitted assets, if the insurer is a life insurer; and
      2. (ii) 35% of admitted assets, if the insurer is a non-life insurer;
   4. (d) for an investment authorized under Subsection 31A-18-110(5), 10% of admitted assets;

   5. (e) for an investment authorized under Subsection 31A-18-110(6):

      1. (i) 20% of admitted assets, if the insurer is a life insurer; and
      2. (ii) 10% of admitted assets, if the insurer is a non-life insurer;
   6. (f) for an investment authorized under Subsection 31A-18-110(7), 20% of admitted assets;
   7. (g) for an investment authorized under Subsection 31A-18-110(8), 2% of admitted assets;
   8. (h) for an investment authorized under Subsection 31A-18-110(10), 2% of admitted assets; and
   9. (i) for an investment authorized under Subsection 31A-18-110(11), that is considered an investment in a kind of security or evidence of debt pledged, the investment is subject to the class limitations applicable to the pledged security or evidence of debt.
3. (3) For purposes of determining compliance with the limitations of this section, the admitted portion of assets of subsidiaries under Section 31A-15-102.5 are deemed to be owned directly by the insurer and any other investors in proportion to the market value, or, if there is no market, the reasonable value of the investors' interest in the subsidiaries.
4. (4) To the extent an investment exceeds the limitations described in Subsections (1) and (2), the insurer may assign the excess to the investment class authorized in Subsection 31A-18-110(13), until that limit is exhausted.
5. (5) If the commissioner determines necessary to get a proper evaluation of an insurer's investment portfolio, the commissioner may require that an investment in a mutual fund, pooled investment vehicle, or other investment company be treated, for purposes of this chapter, as if the investor directly owned the investor's proportional share of the assets owned by the mutual fund, pooled investment vehicle, or investment company.
6. (6) Unless otherwise specified, an investment limitation computed on the basis of an insurer's admitted assets or capital and surplus is the amount the insurer stated on the insurer's statutory balance sheet that the insurer most recently filed with the commissioner.

Enacted by Chapter 368, 2025 General Session