CODE OF VIRGINIA

CANADIAN GOVERNMENTAL OBLIGATIONS (§ 38.2-1416)

A. A domestic insurer may invest in bonds, notes, warrants, and other evidences
of indebtedness which are direct obligations of the government of Canada or for
which the full faith and credit of the government of Canada are pledged for the
payment of principal and interest.

B. No domestic insurer shall invest in any obligation under this section unless
the obligation is payable both as to principal and interest in lawful money of
the United States or of Canada.

C. A domestic insurer may invest in direct, general obligations of any province
of Canada for the payment of money, or obligations for the payment of money to
the extent guaranteed or insured as to the payment of principal and interest by
any province of Canada, on the following conditions:

   1.  The province has the power to levy taxes for the prompt payment of the
   principal and interest of its obligations;

   2.  The province is not in default in the payment of principal or interest on
   any of its direct, guaranteed or insured obligations as of the date of
   investment; and

   3.  An insurer shall not invest under this subsection more than five percent
   of its admitted assets in obligations issued or guaranteed by any one
   province.

D. A domestic insurer may invest in direct, general obligations of any political
subdivision of any province of Canada for the payment of money, or obligation
for the payment of money, to the extent guaranteed as to the payment of
principal and interest, by any such political subdivision, on the following
conditions:

   1.  The obligations are payable or guaranteed from ad valorem taxes;

   2.  Such political subdivision is not in default in the payment of principal
   or interest on any of its direct or guaranteed obligations;

   3.  No investment shall be made under this subsection in obligations which are
   secured only by special assessments for local improvements; and

   4.  An insurer shall not invest more than two percent of its admitted assets
   in obligations issued or guaranteed by any one such political subdivision.

HISTORY: 1983, c. 457, § 38.1-217.19; 1986, c. 562; 1992, c. 588.