CODE OF VIRGINIA

FOREIGN SECURITIES (§ 38.2-1433)

A. A domestic insurer transacting the business of insurance in a foreign country
may invest in securities of or issued in that country of substantially the same
kinds, classes, and investment grades as the insurer may acquire in the United
States.

B. A domestic insurer may invest in securities of or issued in a foreign country
of substantially the same kinds, classes and investment grades as the insurer
may acquire in the United States, provided (i) all such securities are rated
medium grade or higher by the Securities Valuation Office of the National
Association of Insurance Commissioners or by a national rating agency recognized
by the Commission and no more than one percent of the insurer’s admitted
assets are invested in such securities which are rated medium grade, and (ii)
the aggregate amount of foreign investment held by the insurer under this
section for a single foreign jurisdiction does not exceed (a) five percent of
the insurer’s admitted assets as to a foreign jurisdiction that has a
sovereign debt rating of SVO 1 by the Securities Valuation Office of the
National Association of Insurance Commissioners or (b) three percent of the
insurer’s admitted assets as to any other foreign jurisdiction.

C. Investments made eligible by this section shall be payable in lawful currency
of the United States, except (i) where payment in other lawful currencies is
required to match obligations denominated in such other lawful currencies or
(ii) if the investment is denominated in other lawful currency, the investment
is effectively hedged, substantially in its entirety, against the lawful
currency of the United States in accordance with § 38.2-1428.

HISTORY: 1983, c. 457, § 38.1-217.36; 1986, c. 562; 1998, c. 414; 2014, cc.
159, 206.