33-2-803. General qualifications of investments. (1) A security or investment, other than real and personal property acquired under 33-2-832, is not eligible for acquisition unless it is interest bearing or interest accruing or dividend or income paying, if not then in default in any respect, and the insurer is entitled to receive for its exclusive account and benefit the interest or income accruing on the security or investment. However, up to 3% of a company's total assets may be invested in nondividend-paying common stock as described in 33-2-820.
     (2) A security or investment is not eligible for purchase at a price above its market value.
     (3) A provision of this part may not prohibit the acquisition by an insurer of other or additional securities or property if received as a dividend or as a lawful distribution of assets or under a lawful and bona fide agreement of bulk reinsurance, merger, or consolidation. Any investment acquired that is not otherwise eligible under this part must be disposed of pursuant to 33-2-842 if personal property or securities or pursuant to 33-2-841 if real property.

     History: En. Sec. 100, Ch. 286, L. 1959; R.C.M. 1947, 40-3103; amd. Sec. 23, Ch. 379, L. 1995.