{"data":{"id":"us-ky/krs-304.7-455","jurisdiction":"us-ky","citation":"KRS 304.7-455","heading":"Limitations on investments that are guaranteed by a single person --","body":"Investments in certain rating categories -- Canadian investments.\n(1) Except as otherwise specified in this subtitle, an insurer shall not acquire directly or\nindirectly through an investment subsidiary an investment under this subtitle if, as a\nresult of and after giving effect to the investment, the insurer would hold more than\nfive percent (5%) of its admitted assets in investments of all kinds issued, assumed,\naccepted, insured, or guaranteed by a single person.\n(2) This five percent (5%) limitation shall not apply to the aggregate amounts insured\nby a single financial guaranty insurer with the highest generic rating issued by a\nnationally recognized statistical rating organization.\n(3) Asset-backed securities shall not be subject to the limitations of subsection (1) of\nthis section. However, an insurer shall not acquire an asset -backed security if, as a\nresult of and after giving effect to the investment, the aggregate amount of asset-\nbacked securities secured by or evidencing an interest in a single asset or single pool\nof assets held by a trust or other business entity, then held by the insurer would\nexceed five percent (5%) of its admitted assets.\n(4) An insurer shall not acquire, directly or indirectly through an investment subsidiary,\nan investment under KRS 304.7 -457, 304.7 -463, or 304.7 -469, or counterparty\nexposure under KRS 304.7 -471(4) if, as a result of and after giving effect to the\ninvestment:\n(a) The aggregate amount of all medium and lower grade investments then held\nby the insurer would exceed twenty percent (20%) of its admitted assets;\n(b) The aggregate amount of lower grade investments then held by the insurer\nwould exceed ten percent (10%) of its admitted assets;\n(c) The aggregate amount of investments rated 5 or 6 by the SVO then held by the\ninsurer would exceed five percent (5%) of its admitted assets;\n(d) The aggregate amount of investments rated 6 by the SVO then held by the\ninsurer would exceed one percent (1%) of its admitted assets; or\n(e) The aggregate amount of medium and lower grade investments then held by\nthe insurer that receive as cash income less than the equivalent yield for\nTreasury issues with a comparative average life, would exceed one percent\n(1%) of its admitted assets.\n(5) An insurer shall not acquire, directly or indirectly through an investment subsidiary,\nan investment under KRS 304.7 -457, 304.7 -463, or 304.7 -469, or counterparty\nexposure under KRS 304.7 -471(4) if, as a result of and after giving effect to the\ninvestment:\n(a) The aggregate amount of medium and lower grade investments issued,\nassumed, guaranteed, accepted, or insured by any one (1) person or, as to\nasset-backed securities secured by or evidencing an interest in a single asset or\npool of assets, then held by the insurer would exceed one percent (1%) of its\nadmitted assets; or\n(b) The aggregate amount of lower grade investments issued, assumed,\nguaranteed, accepted, or insured by any one (1) person or, as to asset -backed\nsecurities secured by or evidencing an interest in a single asset or pool of\nassets, then held by the insurer would exceed one -half of one percent (0.5%)\nof its admitted assets.\n(6) If an insurer attains or exceeds the limit of any one (1) rating category referre d to in\nsubsections (4) to (6) of this section, the insurer shall not thereby be precluded from\nacquiring investments in other rating categories subject to the specific and\nmulticategory limits applicable to those investments.\n(7) An insurer shall not acquire, directly or indirectly through an investment subsidiary,\nany Canadian investments authorized by this subtitle, if as a result of and after\ngiving effect to the investment, the aggregate amount of these investments then held\nby the insurer would exceed  forty percent (40%) of its admitted assets, or if the\naggregate amount of Canadian investments not acquired under KRS 304.7 -457(2)\nthen held by the insurer would exceed twenty -five percent (25%) of its admitted\nassets.\n(8) However, as to an insurer that is authorized to do business in Canada or that has\noutstanding insurance, annuity, or reinsurance contracts on lives or risks resident or\nlocated in Canada and denominated in Canadian currency, the limitations of\nsubsection (7) of this section shall be increased by the greater of:\n(a) The amount the insurer is required by Canadian law to invest in Canada or to\nbe denominated in Canadian currency; or\n(b) One hundred twenty -five percent (125%) of the amount of its reserves and\nother obligations under contracts on risks resident or located in Canada.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=16854","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:39Z","sha256":"1592aedd0476d2393b93d24733a4c82ac58c16c2db67f0fef4ed15319357d634","source_id":"us-ky","stale":false,"prev":"us-ky/krs-304.7-453","next":"us-ky/krs-304.7-457"},"notice":"GroundRules: Original legal text. Not legal advice."}