Current through Register Vol. 54, No. 49, December 7, 2024
Section 82.45 - Limitations on ownership(a) A separate account may not purchase or otherwise acquire the securities of an issuer, other than securities issued or guaranteed as to principal and interest by the United States, if, immediately after the purchase or acquisition, the value of the investment, together with prior investments of the separate account in the security valued as required by this chapter, would exceed 10% of the value of the assets of the separate account. The Commissioner may waive this limitation in writing if the Commissioner believes the waiver will not render the operation of the separate account hazardous to the public or the policyholders in this Commonwealth.(b) No separate account may purchase or otherwise acquire the voting securities of an issuer if, as a result of the acquisition, the insurer and its separate accounts, in the aggregate, will own more than 10% of the total issued and outstanding voting securities of the issuer. The Commissioner may waive this limitation in writing if the Commissioner believes the 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 the securities.(c) The percentage limitation specified in subsection (a) does not preclude the investment of the assets of separate accounts in shares of investment companies registered under the Investment Company Act of 1940 ( 15 U.S.C.A. §§ 80a -1-80 a-64) or other pools of investment assets if the investments and investment policies of the investment companies or asset pools comply substantially with § 82.44 (relating to investments by the separate account) and other applicable portions of this chapter.The provisions of this § 82.45 adopted August 4, 1978, effective 9/5/1978, 8 Pa.B. 2171; amended April 28, 1989, effective 4/29/1989, 19 Pa.B. 1835; corrected June 30, 1989, effective retroactive to April 29, 1989, 19 Pa.B. 2754. This section cited in 31 Pa. Code § 82.41 (relating to applicability).