H0112B0413A00417       SFL:DHB 04/17/07    #90             A00417
                        AMENDMENTS TO HOUSE BILL NO. 112
                                    Sponsor:  REPRESENTATIVE NICKOL
                                           Printer's No. 413

     1       Amend Title, page 1, line 11, by inserting after "providing,"
     2               in fire and marine insurance, for real estate which
     3               may be acquired, held and conveyed and,

     4       Amend Bill, page 1, lines 18 through 22, by striking out all
     5    of said lines and inserting
     6       Section 1.  Section 519 of the act of May 17, 1921 (P.L.682,
     7    No.284), known as The Insurance Company Law of 1921, amended
     8    December 22, 1989 (P.L.755, No.106) and December 18, 1992
     9    (P.L.1519, No.178), is amended to read:
    10       Section 519.  Real Estate Which May Be Acquired, Held, and
    11    Conveyed.--A domestic stock fire, stock marine, or stock fire
    12    and marine insurance company may, directly or indirectly, alone
    13    or in combination with one or more other persons or entities
    14    (except that no domestic stock fire, stock marine, or stock fire
    15    and marine insurance company may participate in a general
    16    partnership), acquire by purchase, lease or otherwise or
    17    receive, hold, or convey real estate, or any interest therein:
    18       (a)  Required for its convenient accommodation in the
    19    transaction of its business, including residential real estate
    20    purchased from employes transferred or about to be transferred
    21    to new places of employment with such company.
    22       (b)  Conveyed to it in satisfaction of debts previously
    23    contracted in the course of its dealing.
    24       (c)  Purchased at sales upon judgments, decrees, or
    25    mortgages, obtained or made for debts due the company, or for
    26    debts due other persons where said company may have liens or
    27    encumbrances on the same, and the purchase is deemed necessary
    28    to save the company from loss.
    29       (d)  Reasonably necessary for the purpose of maintaining or
    30    enhancing the sale value of real property previously acquired or
    31    held by it under subsection (a), (b), (c) or (e).
    32       (e)  As an investment for the production of income or capital
    33    appreciation, or so acquired for development, improvement,
    34    maintenance or construction and maintenance for such investment
    35    purposes, provided that the aggregate cost of investments in
    36    unimproved real estate under this subsection shall not exceed
    37    the lesser of ten per centum (10%) of the company's admitted
    38    assets or forty-five per centum (45%) of its capital and
    39    surplus. Investments under this subsection, including
    40    investments in limited partnership interests or other entities

     1    where said entities are engaged primarily in holding real estate
     2    or interests therein under this subsection and corporations that
     3    are engaged primarily in holding real estate or interests
     4    therein as defined in this subsection and the majority of whose
     5    voting securities are owned directly or indirectly through one
     6    or more intermediaries, shall not exceed twenty per centum (20%)
     7    of such company's admitted assets.
     8       Section 1.1.  The definitions of "insurer" and "person" in
     9    section 1401 of the act, amended December 20, 2000 (P.L.967,
    10    No.132), are amended and the section is amended by adding a
    11    definition to read:

















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