Section 22:601.4 - Authorization of investments by the board of directorsA. Except as to the policy loans of a life insurer, investments acquired and held under this Subpart shall be acquired and held under the supervision and direction of the board of directors of the insurer. The board of directors shall evidence by formal resolution, at least annually, that it has determined whether all investments have been made in accordance with delegations, standards, limitations, and investment objectives prescribed by the board or a committee of the board charged with the responsibility to direct its investments.B. At least quarterly, and more frequently if considered appropriate, the insurer's board of directors or a committee of the board of directors shall receive and review a summary report on the insurer's investment portfolio, its investment activities, and investment practices engaged in under its authority, in order to determine whether the investment activity of the insurer is consistent with its written plan.C. In discharging its duties pursuant to this Section, the board of directors shall require that records of any authorizations or approvals, other documentation as the board may require, and reports of any action taken under authority delegated under the plan referred to in Subsection A of this Section shall be made available on a regular basis to the board of directors.D. In discharging their duties pursuant to this Section, the board of directors of an insurer shall perform their duties in good faith and with the degree of care that ordinarily prudent individuals in like positions would use under similar circumstances.E. Investments shall be sufficient in value, liquidity, and diversity to assure the insurer's ability to meet its outstanding obligations based on reasonable assumptions as to new business production for current lines of business.F. The insurer shall establish and implement internal controls and procedures to assure compliance with investment policies and procedures to assure that all of the following occur: (1) The insurer's investment staff and consultants are reputable and capable.(2) Periodic evaluation and monitoring occur for assessing the effectiveness of investment policy and strategies.(3) Management's performance is assessed in meeting the stated objectives of the investment policy.(4) Appropriate analyses are undertaken of the degree to which asset cash flows are adequate to meet liability cash flows under different economic environments.G. As to each such investment or loan, the insurer's records shall contain all of the following: (1) In the case of loans: (a) The name of the borrower.(b) The location and legal description of the property.(c) A physical description and the appraised value of the security.(d) The amount of the loan, rate of interest, and terms of repayment.(2) In the case of securities: (a) The name of the obligor and a description of the security.(c) The rate of interest or dividend.(d) The maturity and yield based upon the purchase price.(3) In the case of real estate: (a) The location and legal description of the property.(b) A physical description and the appraised value.(c) The purchase price and terms.(4) In the case of all investments:(a) The amount of expenses estimated, if details are not available, and commissions, if any are incurred on account of any investment or loan, and by whom and to whom payable if not covered by contracts with mortgage loan representatives or correspondents which are part of the insurer's records.(b) The name of any officer or director of the insurer having any direct, indirect, or contingent interest in the securities or loan representing the investment, or in the assets of the person on whose behalf the investment or loan is made, and the nature of such interest. Acts 2021, No. 165, §1, eff. Jan. 1, 2022.Added by Acts 2021, No. 165,s. 1, eff. 1/1/2022.