H1614B2067A02676 AJM:SRA 07/03/07 #90 A02676
AMENDMENTS TO HOUSE BILL NO. 1614
Sponsor: REPRESENTATIVE GODSHALL
Printer's No. 2067
1 Amend Title, page 1, line 12, by removing the period after
2 "subsidiaries" and inserting
3 and for real estate which may be acquired, held and
4 conveyed.
5 Amend Bill, page 4, by inserting between lines 8 and 9
6 Section 2. Section 519(e) of the act, amended December 18,
7 1992 (P.L.1519, No.178), is amended to read:
8 Section 519. Real Estate Which May Be Acquired, Held, and
9 Conveyed.--A domestic stock fire, stock marine, or stock fire
10 and marine insurance company may, directly or indirectly, alone
11 or in combination with one or more other persons or entities
12 (except that no domestic stock fire, stock marine, or stock fire
13 and marine insurance company may participate in a general
14 partnership), acquire by purchase, lease or otherwise or
15 receive, hold, or convey real estate, or any interest therein:
16 * * *
17 (e) As an investment for the production of income or capital
18 appreciation, or so acquired for development, improvement,
19 maintenance or construction and maintenance for such investment
20 purposes, provided that the aggregate cost of investments in
21 unimproved real estate under this subsection shall not exceed
22 the lesser of ten per centum (10%) of the company's admitted
23 assets or forty-five per centum (45%) of its capital and
24 surplus. Investments under this subsection, including
25 investments in limited partnership interests or other entities
26 where the entities are engaged primarily in holding real estate
27 or interests in real estate under this subsection and
28 corporations that are engaged primarily in holding real estate
29 or interests in real estate as defined in this subsection and
30 the majority of whose voting securities are owned directly or
31 indirectly through one or more intermediaries, shall not exceed
32 twenty-five per centum (25%) of the company's admitted assets.
33 Section 3. Section 519.1(c)(1) of the act, amended February
34 17, 1994 (P.L.92, No.9), is amended to read:
35 Section 519.1. Additional Investment Authority for
36 Subsidiaries.--* * *
37 (c) (1) At no time shall a domestic stock fire, stock
38 marine or stock fire and marine insurance company make an
39 investment in any subsidiary which will bring the aggregate
40 value of its investments, as determined for annual statement
1 purposes but not in excess of cost, in all subsidiaries under
2 this subsection to an amount in excess of ten per centum (10%)
3 of its total admitted assets as of the immediately preceding
4 thirty-first day of December. In determining the amount of
5 investments of any domestic stock fire, stock marine or stock
6 fire and marine insurance company in subsidiaries for purposes
7 of this subsection, there shall be included investments made
8 directly by such insurance company and, if such investment is
9 made by another subsidiary, then to the extent that funds for
10 such investments are provided by the insurance company for such
11 purpose. A domestic stock fire, stock marine or stock fire and
12 marine insurance company may increase the aggregate value of its
13 investments, as determined for annual statement purposes but not
14 in excess of cost, in all subsidiaries in excess of ten per
15 centum (10%) but at no time in excess of fifteen per centum(15%)
16 of its total admitted assets as of the immediately preceding
17 thirty-first day of December if the increase has been approved
18 in writing by the Insurance Department prior to making the
19 investment. If the Insurance Department does not approve or
20 disapprove the increased investment limit within thirty (30)
21 days of receipt of a request for approval, the increased
22 investment shall be deemed approved.
23 * * *
24 Amend Sec. 2, page 4, line 9, by striking out "2" and
25 inserting
26 4
G3L90AJM/HB1614A02676 - 2 -