KRS 304.49-100: Duties of captive insurer -- Investment plan -- Prohibited and permitted

limitations on investments -- Applicability of investment requirements and

limitations of Subtitle 7.

(1) A captive insurer shall establish, monitor, and control its investmen t strategy

prudently, setting clear guidelines with regard to the exposure to different

investment types, levels of investment grade, and exposure to individual

investments. This investment plan and any material amendments shall be filed with

the commissioner.

(2) A captive insurer shall not be subject to any restrictions on allowable investments in

this chapter, including those limitations contained in Subtitle 7 of this chapter.

(3) The commissioner may prohibit or limit any investment that threatens the solvency

or liquidity of any company.

(4) An industrial insured captive insurer insuring the risks of an industrial insured

group defined in KRS 304.49 -010(9)(b) shall comply with the investment

requirements contained in Subtitle 7 of this chapter. Notwith standing any other

provision of this chapter, the commissioner may approve the use of alternative

reliable methods of valuation and rating.