{"data":{"id":"us-ky/krs-304.7-423","jurisdiction":"us-ky","citation":"KRS 304.7-423","heading":"Investment practices that are allowed without regard to limitations of","body":"this subtitle.\n(1) Solely for the purpose of acquiring investments that exceed the quantitative\nlimitations of KRS 304.7 -403, 304.7-405, 304.7-407, 304.7-409, 304.7-411, 304.7-\n413, 304.7 -415, and 304.7 -417, an insurer may acquire under this subsection an\ninvestment, or engage in investment practices described in KRS 304.7 -415, but an\ninsurer shall not acquire an investment, or engage in investment practices described\nin KRS 304.7 -415, under this subsection if, as a result of and after giving effect to\nthe transaction:\n(a) The aggregate amount of investments then held by an insurer under this\nsubsection would exceed three percent (3%) of its admitted assets; or\n(b) The aggregate amo unt of investments as to one (1) limitation in KRS 304.7 -\n403, 304.7-405, 304.7-407, 304.7-409, 304.7-411, 304.7-413, 304.7-415, and\n304.7-417 then held by the insurer under this subsection would exceed one\npercent (1%) of its admitted assets.\n(2) (a) In addition to the authority provided under subsection (1) of this section, an\ninsurer may acquire under this subsection an investment of any kind, or\nengage in investment practices described in KRS 304.7 -415, that are not\nspecifically prohibited by this subtit le, without regard to the categories,\nconditions, standards, or other limitations of KRS 304.7 -403, 304.7 -405,\n304.7-407, 304.7-409, 304.7-411, 304.7-413, 304.7-415, and 304.7 -417 if, as\na result of and after giving effect to the transaction, the aggregate  amount of\ninvestments then held under this subsection would not exceed the lesser of:\n1. Ten percent (10%) of its admitted assets; or\n2. Seventy-five percent (75%) of its capital and surplus.\n(b) However, an insurer shall not acquire any investment or eng age in any\ninvestment practice under this subsection if, as a result of and after giving\neffect to the transaction, the aggregate amount of all investments in any one\n(1) person then held by the insurer under this subsection would exceed three\npercent (3%) of its admitted assets.\n(3) In addition to the investments acquired under subsections (1) and (2) of this section,\nan insurer may acquire under this subsection an investment of any kind, or engage\nin investment practices described in KRS 304.7 -415, that a re not specifically\nprohibited by this subtitle without regard to any limitations of KRS 304.7 -403,\n304.7-405, 304.7-407, 304.7-409, 304.7-411, 304.7-413, 304.7-415, and 304.7-417\nif:\n(a) The commissioner grants prior approval;\n(b) The insurer demonstrates  that its investments are being made in a prudent\nmanner and that the additional amounts will be invested in a prudent manner;\nand\n(c) As a result of and after giving effect to the transaction, the aggregate amount\nof investments then held by the insurer u nder this subsection does not exceed\nthe greater of:\n1. Twenty-five percent (25%) of its capital and surplus; or\n2. One hundred percent (100%) of capital and surplus less ten percent\n(10%) of its admitted assets.\n(4) An investment prohibited under KRS 304.7 -363, not permitted under KRS 304.7 -\n419, or additional derivative instruments acquired under KRS 304.7 -419 shall not\nbe acquired under this section.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=16851","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:39Z","sha256":"25abfab49afed83ff3896776ec1440d0309369fef9d9f46e8b3a8a657628dc0b","source_id":"us-ky","stale":false,"prev":"us-ky/krs-304.7-421","next":"us-ky/krs-304.7-451"},"notice":"GroundRules: Original legal text. Not legal advice."}