{"data":{"id":"us-wa/rcw-48.13.041","jurisdiction":"us-wa","citation":"RCW 48.13.041","heading":"Determining whether an investment portfolio or investment policy is prudent.","body":"The following factors shall be evaluated by the insurer and considered along with its business in determining whether an investment portfolio or investment policy is prudent; the commissioner shall consider the following factors prior to making a determination that an insurer's investment portfolio or investment policy is not prudent:\n(1) General economic conditions;\n(2) The possible effect of inflation or deflation;\n(3) The expected tax consequences of investment decisions or strategies;\n(4) The fairness and reasonableness of the terms of an investment considering its probable risk and reward characteristics and relationship to the investment portfolio as a whole;\n(5) The extent of the diversification of the insurer's investments among:\n(a) Individual investments;\n(b) Classes of investments;\n(c) Industry concentrations;\n(d) Dates of maturity; and\n(e) Geographic areas;\n(6) The quality and liquidity of investments in affiliates;\n(7) The investment exposure to the following risks, quantified in a manner consistent with the insurer's acceptable risk level identified in RCW 48.13.051(8):\n(a) Liquidity;\n(b) Credit and default;\n(c) Systemic (market);\n(d) Interest rate;\n(e) Call, prepayment, and extension;\n(f) Currency;\n(g) Foreign sovereign; and\n(h) Leverage;\n(8) The amount of the insurer's assets, capital, and surplus, premium writings, insurance in force, and other appropriate characteristics;\n(9) The amount and adequacy of the insurer's reported liabilities;\n(10) The relationship of the expected cash flows of the insurer's assets and liabilities, and the risk of adverse changes in the insurer's assets and liabilities;\n(11) The adequacy of the insurer's capital and surplus to secure the risks and liabilities of the insurer; and\n(12) Any other factors relevant to whether an investment is prudent.","path":["Title 48","Chapter 48.13"],"source_url":"https://app.leg.wa.gov/rcw/default.aspx?cite=48.13.041","current_through":"July 15, 2026","vintage":"","retrieved_at":"2026-09-06T03:12:10Z","sha256":"392d1ca61616730f180b3726fa2daeb70dbb7f565d15382e85fe18f7db50ded2","source_id":"us-wa","stale":false,"prev":"us-wa/rcw-48.13.031","next":"us-wa/rcw-48.13.051"},"notice":"GroundRules: Original legal text. Not legal advice."}