HRS §431:6-303
Rules for insurers buying preferred stocks
This section lets an insurance company put up to 15% of its assets into preferred or guaranteed stocks of solvent U.S. institutions, but only if the institution's other debts and preferred stocks meet certain investment rules and are filed with or exempted by the SVO.
The statute, as written — Preferred or guaranteed stocks or shares
An insurer may invest any of its funds, in an aggregate amount not exceeding fifteen per cent of its assets, in preferred or guaranteed stocks or shares, other than common stocks, of solvent institutions existing under the laws of the United States or of any state, district, or territory thereof, if all of the prior obligations and prior preferred stocks, if any, of the institution at the date of acquisition by the insurer are: (1) Eligible as investments under this article; and (2) Filed with the SVO or are considered "filing exempt" by the Purposes and Procedures Manual of the SVO, or its successor publication.
LawTrove is not legal advice. The summary above is a computer-generated restatement — the authoritative text is the official version linked above.