Introduced By: Senator Blais
Date Introduced : February 8, 1999
It is enacted by the General Assembly as follows:
SECTION 1. Section 27-19-11 of the General Laws in Chapter 27-19 entitled "Nonprofit Hospital Service Corporations" is hereby amended to read as follows:
27-19-11. {DEL Investment of funds. --
The funds of any nonprofit hospital service corporation shall
be invested only in the manner permitted by the laws of this state
for the investment of assets of savings banks of this state. DEL}
{ADD Investment Standards. -- ADD}{ADD (a) All nonprofit hospital
service corporations shall protect the interests of subscribers
by promoting company solvency and financial strength through the
application of investment standards that facilitate a reasonable
balance of the following objectives: ADD}
{ADD (1) To preserve principal; ADD}
{ADD (2) To assure reasonable diversification as to type of investment, issuer and credit quality; and ADD}
{ADD (3) To allow the nonprofit hospital service corporation to allocate investments in a manner consistent with principles of prudent investment management to achieve an adequate return so that obligations to subscribers are adequately met and financial strength is sufficient to cover reasonably foreseeable contingencies. ADD}
{ADD (b) All investments, including but not limited to those referred to in this chapter, shall be made and held in accordance with the objectives in subsection (a) subject to the limitations set forth in this chapter and in regulations promulgated pursuant to this chapter. Investments not conforming to this chapter and any regulations promulgated pursuant to this chapter shall not be considered admitted assets. ADD}
SECTION 2. Section 27-20-11 of the General Laws in Chapter 27-20 entitled "Nonprofit Medical Service Corporations" is hereby amended to read as follows:
27-20-11. {DEL Investment of funds. --
The funds of any nonprofit medical service corporation shall be
invested only in the manner permitted by the laws of this state
for the investment of assets of savings banks of this state. DEL}
{ADD Investment Standards. --ADD}{ADD (a) All nonprofit medical
service corporations shall protect the interests of subscribers
by promoting company solvency and financial strength through the
application of investment standards that facilitate a reasonable
balance of the following objectives: ADD}
{ADD (1) To preserve principal; ADD}
{ADD (2) To assure reasonable diversification as to type of investment, issuer and credit quality; and ADD}
{ADD (3) To allow the nonprofit medical service corporation to allocate investments in a manner consistent with principles of prudent investment management to achieve an adequate return so that obligations to subscribers are adequately met and financial strength is sufficient to cover reasonably foreseeable contingencies. ADD}
{ADD (b) All investments, including but not limited to those referred to in this chapter, shall be made and held in accordance with the objectives in subsection (a) subject to the limitations set forth in this chapter and in regulations promulgated pursuant to this chapter. Investments not conforming to this chapter and any regulations promulgated pursuant to this chapter shall not be considered admitted assets. ADD}
SECTION 3. Section 27-20.1-7 of the General Laws in Chapter 27-20.1 entitled "Nonprofit Dental Service Corporations" is hereby amended to read as follows:
27-20.1-7. {DEL Investment of funds. --
The funds of any nonprofit dental service corporation shall be
invested only in the manner permitted by the laws of this state
for the investment of assets of savings banks of this state. DEL}
{ADD Investment Standards. --ADD}{ADD (a) All nonprofit dental
service corporations shall protect the interests of subscribers
by promoting company solvency and financial strength through the
application of investment standards that facilitate a reasonable
balance of the following objectives: ADD}
{ADD (1) To preserve principal; ADD}
{ADD (2) To assure reasonable diversification as to type of investment, issuer and credit quality; and ADD}
{ADD (3) To allow the nonprofit medical service corporation to allocate investments in a manner consistent with principles of prudent investment management to achieve an adequate return so that obligations to subscribers are adequately met and financial strength is sufficient to cover reasonably foreseeable contingencies. ADD}
{ADD (b) All investments, including but not limited to those referred to in this chapter, shall be made and held in accordance with the objectives in subsection (a) subject to the limitations set forth in this chapter and in regulations promulgated pursuant to this chapter. Investments not conforming to this chapter and any regulations promulgated pursuant to this chapter shall not be considered admitted assets. ADD}
SECTION 4. Section 27-20.2-7 of the General Laws in Chapter 27-20.2 entitled "Nonprofit Optometric Service Corporations" is hereby amended to read as follows:
27-20.2-7. {DEL Investment of funds. --
The funds of any nonprofit optometric service corporation shall
be invested only in the manner permitted by the laws of this state
for the investment of assets of savings banks of this state. DEL}
{ADD Investment Standards. -- ADD}{ADD> (a ) All nonprofit optometric
service corporations shall protect the interests of subscribers
by promoting company solvency and financial strength through the
application of investment standards that facilitate a reasonable
balance of the following objectives: ADD}
{ADD (1) To preserve principal; ADD}
{ADD (2) To assure reasonable diversification as to type of investment, issuer and credit quality; and ADD}
{ADD (3) To allow the nonprofit optometric service corporation to allocate investments in a manner consistent with principles of prudent investment management to achieve an adequate return so that obligations to subscribers are adequately met and financial strength is sufficient to cover reasonably foreseeable contingencies. ADD}
{ADD (b) All investments, including but not limited to those referred to in this chapter, shall be made and held in accordance with the objectives in subsection (a) subject to the limitations set forth in this chapter and in regulations promulgated pursuant to this chapter. Investments not conforming to this chapter and any regulations promulgated pursuant to this chapter shall not be considered admitted assets. ADD}
SECTION 5. Section 27-20.3-7 of the General Laws in Chapter 27-20.3 entitled "Nonprofit Legal Prepaid Service Corporations" is hereby amended to read as follows:
27-20.3-7. {DEL Investment of funds. --
The funds of any nonprofit prepaid legal service corporation shall
be invested only in the manner permitted by the laws of this state
for the investment of assets of savings banks of this state. DEL}
{ADD Investment Standards. --ADD}{ADD (a) All nonprofit prepaid
legal service corporations shall protect the interests of subscribers
by promoting company solvency and financial strength through the
application of investment standards that facilitate a reasonable
balance of the following objectives: ADD}
{ADD (1) To preserve principal; ADD}
{ADD (2) To assure reasonable diversification as to type of investment, issuer and credit quality; and ADD}
{ADD (3) To allow the nonprofit prepaid legal service corporation to allocate investments in a manner consistent with principles of prudent investment management to achieve an adequate return so that obligations to subscribers are adequately met and financial strength is sufficient to cover reasonably foreseeable contingencies. ADD}
{ADD (b) All investments, including but not limited to those referred to in this chapter, shall be made and held in accordance with the objectives in subsection (a) subject to the limitations set forth in this chapter and in regulations promulgated pursuant to this chapter. Investments not conforming to this chapter and any regulations promulgated pursuant to this chapter shall not be considered admitted assets. ADD}
SECTION 6. This act shall take effect upon passage.
