{"data":{"id":"us-ky/krs-304.7-469","jurisdiction":"us-ky","citation":"KRS 304.7-469","heading":"Foreign investments and foreign currency transactions.","body":"(1) Subject to the limitations of KRS 304.7 -455, 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 -459,\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 five percent (5%) of its admitted assets as to any other\nforeign jurisdiction.\n(2) Subject to the limitations of KRS 304.7-455, an insurer may acquire investments, or\nengage in investment practices denominated in foreig n 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 i n 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 fifteen percent\n(15%) of its admitted assets; and\n(b) The aggregate amount of investments the n held 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 to a foreign\njurisdiction that has a sovereign debt rating of SVO 1 or five percent (5 %) 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 -471 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 jurisdiction  and that has\noutstanding insurance, annuity, or reinsurance contracts on lives or risks resident or\nlocated in a foreign jurisdiction and denominated in foreign currency of that\njurisdiction, may acquire foreign investments respecting that foreign jurisdi ction,\nand may acquire investments denominated in the currency of that jurisdiction\nsubject to the limitations set forth in KRS 304.7 -455. However, investments made\nunder this subsection in obligations of foreign governments, their political\nsubdivisions, and government sponsored enterprises shall not be subject to the\nlimitations of KRS 304.7 -455 if those investments carry an SVO rating of 1 or 2.\nThe aggregate amount of investments acquired by the insurer under this subsection\nshall not exceed the greater of:\n(a) The amount the insurer is required by law to invest in the foreign jurisdiction;\nor\n(b) One hundred twenty-five percent (125%) of the amount of its reserves, net of\nreinsurance, and other obligations under the contracts.\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 a foreig n jurisdiction and denominated in foreign currency of that\njurisdiction, may acquire foreign investments respecting that foreign jurisdiction,\nand may acquire investments denominated in the currency of that jurisdiction\nsubject to the limitations set forth  in KRS 304.7 -455. However, investments made\nunder this subsection in obligations of foreign governments, their political\nsubdivisions, and government sponsored enterprises shall not be subject to the\nlimitations of KRS 304.7 -455 if those investments carry  an SVO rating of 1 or 2.\nThe aggregate amount of investments acquired by the insurer under this subsection\nshall not exceed one hundred five percent (105%) of the amount of its reserves, net\nof reinsurance, and other obligations under the contracts on ris ks resident or located\nin the foreign jurisdiction.\n(5) Investments acquired under this section shall be aggregated with investments of the\nsame types made under this subtitle, and in a similar manner, for purposes of\ndetermining compliance with the limita tions of this subtitle, if any. Investments in\nobligations of foreign governments, their political subdivisions, and government\nsponsored enterprises of these persons, except for those exempted under subsections\n(3) and (4) of this section, shall be subject to the limitations of KRS 304.7-455.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=16861","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:39Z","sha256":"7065ca54b6f7bcc0555ccb340359e90010cb2f2fdcf58289efb36b7aa2ab326a","source_id":"us-ky","stale":false,"prev":"us-ky/krs-304.7-467","next":"us-ky/krs-304.7-471"},"notice":"GroundRules: Original legal text. Not legal advice."}