Section 506.1 - General investment provisions and restrictionsInvestment under authority of section 404.2 and holding of real estate under authority of section four hundred six by any life insurance company, organized under the laws of this Commonwealth, shall be subject to the following provisions:
(a) The Insurance Commissioner may permit such company to invest sufficient of its assets exclusive of the amounts permitted in section 404.2(3) in the securities of a foreign government in order to comply with the laws of such foreign government and transact business in such foreign country.(b) No investment under section 404.2 or 406 shall be made in the equity interest, as defined insection 404.2(10), of any unincorporated business or enterprise other than a business trust, joint-stock company or limited partnership in which a life insurance company acts as a limited partner. A subsidiary of a life insurance company may act as a general partner.(c) No investment shall be made in any loan solely upon personal security of an individual or individuals, but nothing in this act shall be construed to prevent the taking of a bona fide obligation with legal interest in payment of any premium or a loan for defraying in whole or in part the expenses of an employe transferred or about to be transferred to a new place of employment with such company.(d) No investment shall be made by any life insurance company in any loan upon the stock, shares or obligation of such company or any other insurance company transacting like classes of business but any stock life insurance company may, with the approval of its board of directors, acquire, retain, cancel or dispose of shares of its own capital stock: Provided, That (i) no such company shall acquire such stock without the prior approval of the Insurance Commissioner, (ii) no such company shall effect a reduction in its capital stock without complying with the applicable provisions of the law, and (iii) no such company shall directly or indirectly vote shares of its own stock held by it.(e) Repealed. 1963, Aug. 27, P.L. 1390, § 6.(f)Deleted by amendment. 1986, June 11, P.L. 226, No. 64, § 8, imd. effective. (g)Deleted by amendment. 1986, June 11, P.L. 226, No. 64, § 8, imd. effective. (h)Deleted by amendment. 1986, June 11, P.L. 226, No. 64, § 8, imd. effective. (i)Deleted by amendment. 1986, June 11, P.L. 226, No. 64, § 8, imd. effective. (j)Deleted by amendment. 1986, June 11, P.L. 226, No. 64, § 8, imd. effective. (k) With the approval of the Insurance Commissioner such company may enter into agreements with one or more insurance companies authorized to do business in this Commonwealth, whereby such companies shall participate in ownership, management and control of real estate held or to be acquired by such company or companies under subsection (f) of section four hundred six, or held by a corporation whose stock is held or to be acquired by such company or companies. (l) Deleted by amendment. 1986, June 11, P.L. 226, No. 64, § 8, imd. effective. (m) No provision of this act shall be so construed as to prevent any such company from investing any of its assets, or from holding any of such funds in cash or deposits in banks or trust companies or from acquiring or holding property taken in reorganization or foreclosure proceedings or which may be obtained in satisfaction of or on account of any debt previously contracted. (n) Any such company may continue its investment of any of its assets in any corporate bonds, notes or obligations held by it on the effective date of this amendment, under authority of section four hundred four, as amended by the act, approved the twelfth day of May, one thousand nine hundred and thirty-nine (Pamphlet Laws 131). (o)Deleted by amendment. 1986, June 11, P.L. 226, No. 64, § 8, imd. effective. (p)Deleted by amendment. 1986, June 11, P.L. 226, No. 64, § 8, imd. effective. (q) "Date of Investment" shall mean the date of commitment in the case of a commitment to invest. (r) If any investment is made in a manner not authorized by this act, the officers, directors and trustees making or authorizing such investment, shall be personally liable for any loss occasioned thereby. (s) "State" shall mean any state, district or territory, including Puerto Rico, the Virgin Islands of the United States and the District of Columbia. (t), (u) Deleted by amendment. 1986, June 11, P.L. 226, No. 64, § 8, imd. effective. 1921, May 17, P.L. 682, art. IV, § 406.1, added 1947, May 9, P.L. 201, § 2. Amended 1951, July 19, P.L. 1100, § 8; 1959, Nov. 19, P.L. 1522, § 1; 1963, Aug. 27, P.L. 1390, §§ 5, 7; 1965, June 2, P.L. 77, § 1; 1968, March 14, P.L. 58, No. 19, § 2; 1968, March 21, P.L. 68, No. 24, § 1; 1968, July 31, P.L. 1028, No. 309, § 1; 1972, June 1, P.L. 321, No. 88, §§ 5, 6, imd. effective; 1982, May 7, P.L. 385, No. 112, § 3, imd. effective; 1986, June 11, P.L. 226, No. 64, § 8, imd. effective.