{"data":{"id":"us-ky/krs-304.7-417","jurisdiction":"us-ky","citation":"KRS 304.7-417","heading":"Foreign investments and foreign currency transactions.","body":"(1) Subject to the limitations of KRS 304.7 -403, an insurer may acquire foreign\ninvestments, or engage in investment practices with persons of or in foreign\njurisdictions, of substantially the same types as those that an insurer is permitted to\nacquire under t his subtitle, other than of the type permitted under KRS 304.7 -407,\nif, as a result of and after giving effect to the investment:\n(a) The aggregate amount of foreign investments then held by the insurer under\nthis subsection does not exceed twenty percent (20%) of its admitted assets;\nand\n(b) The aggregate amount of foreign investments then held by the insurer under\nthis subsection in a single foreign jurisdiction does not exceed ten percent\n(10%) of its admitted assets as to a foreign jurisdiction that has  a sovereign\ndebt rating of SVO 1 or three percent (3%) of its admitted assets as to any\nother foreign jurisdiction.\n(2) Subject to the limitations of KRS 304.7-403, an insurer may acquire investments, or\nengage in investment practices denominated in forei gn currencies, whether or not\nthey are foreign investments acquired under subsection (1) of this section, or\nadditional foreign currency exposure as a result of the termination or expiration of a\nhedging transaction with respect to investments denominated in a foreign currency,\nif:\n(a) The aggregate amount of investments then held by the insurer under this\nsubsection denominated in foreign currencies does not exceed ten percent\n(10%) of its admitted assets; and\n(b) The aggregate amount of investments then h eld by the insurer under this\nsubsection denominated in the foreign currency of a single foreign jurisdiction\ndoes not exceed ten percent (10%) of its admitted assets as to a foreign\njurisdiction that has a sovereign debt rating of SVO 1 or three percent ( 3%) of\nits admitted assets as to any other foreign jurisdiction;\n(c) However, an investment shall not be considered denominated in a foreign\ncurrency if the acquiring insurer enters into one (1) or more contracts in\ntransactions permitted under KRS 304.7 -419 and the business entity\ncounterparty agrees under the contract or contracts to exchange all payments\nmade on the foreign currency denominated investment for United States\ncurrency at a rate that effectively insulates the investment cash flows against\nfuture changes in currency exchange rates during the period the contract or\ncontracts are in effect.\n(3) In addition to investments permitted under subsections (1) and (2) of this section, an\ninsurer that is authorized to do business in a foreign jurisdictio n, and that has\noutstanding insurance, annuity, or reinsurance contracts on lives or risks resident or\nlocated in that foreign jurisdiction and denominated in foreign currency of that\njurisdiction, may acquire foreign investment respecting that foreign jurisdiction, and\nmay acquire investments denominated in the currency of that jurisdiction, subject to\nthe limitations of KRS 304.7 -403. However, investments made under this\nsubsection in obligations of foreign governments, their political subdivisions, and\ngovernment sponsored enterprises shall not be subject to the limitations of KRS\n304.7-407 if those investments carry an SVO rating of 1 or 2. The aggregate amount\nof investments acquired by the insurer under this subsection shall not exceed the\ngreater of:\n(a) The amount the insurer is required by the law of the foreign jurisdiction to\ninvest in the foreign jurisdiction; or\n(b) One hundred fifteen percent (115%) of the amount of its reserves, net of\nreinsurance, and other obligations under the contracts on lives or risks resident\nor located in the foreign jurisdiction.\n(4) In addition to investments permitted under subsections (1) and (2) of this section, an\ninsurer that is not authorized to do business in a foreign jurisdiction, but that has\noutstanding insurance, annuity, or reinsurance contracts on lives or risks resident or\nlocated in that foreign jurisdiction and denominated in foreign currency of that\njurisdiction, may acquire foreign investments respecting that foreign jurisdiction,\nand may acquire inve stments denominated in the currency of that jurisdiction\nsubject to the limitations of KRS 304.7 -403. However, investments made under this\nsubsection in obligations of foreign governments, their political subdivisions, and\ngovernment sponsored enterprises shall not be subject to the limitations of KRS\n304.7-403 if those investments carry an SVO rating of 1 or 2. The aggregate amount\nof investments acquired by the insurer under this subsection shall not exceed one\nhundred five percent (105%) of the amount of  its reserves, net of reinsurance, and\nother obligations under the contracts on lives or risks resident or located in the\nforeign jurisdiction.\n(5) Investments acquired under this section shall be aggregated with investments of the\nsame types made in accor dance with this subtitle, and in a similar manner, for\npurposes of determining compliance with the limitations, if any, contained in this\nsubtitle. Investments in obligations of foreign governments, their political\nsubdivisions, and government sponsored en terprises of these persons, except for\nthose exempted under subsections (3) and (4) of this section, shall be subject to the\nlimitations of KRS 304.7-403.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=16848","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:39Z","sha256":"e670d838272020a8b73cd5220f41b51fbf10bc1286be09e311c7fe2e98b250d0","source_id":"us-ky","stale":false,"prev":"us-ky/krs-304.7-415","next":"us-ky/krs-304.7-419"},"notice":"GroundRules: Original legal text. Not legal advice."}