On July 26, 2019, Governor Roy Cooper signed House Bill 220, imposing a limit on the amount a domestic insurer may invest in its affiliates. After finding a loophole in the North Carolina Code, HB 220 amends N.C. Gen. Stat. § 58-19-10 to now state a domestic insurer may invest in the stock of one or more “affiliates or” subsidiaries, amounts that do not exceed the lesser of 10% of admitted assets or 50% of policyholders surplus. North Carolina’s investment laws, which had originally only focused on investments in subsidiaries, now apply to investments in an insurer’s affiliates as well.
For questions regarding North Carolina’s investment limitation, or any inquiries about insurance investment regulations, please contact Westmont Associates, Inc.