Section 230. Limitations on ownership

A. A separate account shall not purchase or otherwise acquire the securities of any issuer, other than securities issued or guaranteed as to principal and interest by the United States government, if immediately after such purchase or acquisition the value of such investment, together with prior investments of such account in such security valued as required by this chapter, would exceed 10% of the value of the assets of the separate account. The Commission may waive this limitation in writing if it believes such waiver will not render the operation of the separate account hazardous to the public or the policyholders in this Commonwealth.

B. No separate account shall purchase or otherwise acquire the voting securities of any issuer if as a result of such acquisition the insurer and its separate accounts in the aggregate will own more than 10% of the total issued and outstanding voting securities of such issuer. The Commission may waive this limitation in writing if it believes such waiver will not render the operation of the separate account hazardous to the public or the policyholders in this Commonwealth or jeopardize the independent operation of the issuer of such securities.

C. The percentage limitation specified in subsection A of this section shall not be construed to preclude the investment of the assets of separate accounts in shares of investment companies registered pursuant to the Investment Company Act of 1940 (15 USC § 80a-1 et seq.) or other pools of investment assets if the investments and investment policies of such investment companies or asset pools comply substantially with the provisions of 14VAC5-80-220 of this chapter and other applicable portions of this chapter.

Historical Notes

Derived from Regulation 26, Case No. INS920077, Article VII, § 4, eff. June 15, 1992.

Statutory Authority

§§ 12.1-13 and 38.2-3313 of the Code of Virginia.