HARRY HUGHES, Governor

893

(4)  The extent of the geographical dispersion of the
insurer's insured risks;

(5)  The nature and extent of reinsurance of the
insurer's risks;

(6)  The quality, diversification, and liquidity of
the insurer's investment portfolio;

(7)  The recent past and projected future trends in
the size of the insurer's surplus as regards policyholders;

(8)  The surplus as regards policyholders maintained
by other, comparable insurers;

(9)  The financial position of the insurer in the
light of investments in and other transactions with affiliated
persons.

(C) THE FOLLOWING TRANSACTIONS INVOLVING A DOMESTIC INSURER
AND ANY PERSON IN ITS HOLDING COMPANY SYSTEM MAY NOT BE ENTERED
INTO UNLESS THE INSURER HAS NOTIFIED THE COMMISSIONER IN WRITING
OF ITS INTENTION TO ENTER INTO SUCH TRANSACTION AT LEAST 30 DAYS
PRIOR THERETO, OR SUCH SHORTER PERIOD AS THE COMMISSIONER MAY
PERMIT, AND THE COMMISSIONER HAS NOT DISAPPROVED IT WITHIN SUCH
PERIOD:

(1)  SALES, PURCHASES, EXCHANGES, LOANS OR EXTENSIONS
OF CREDIT, GUARANTEES, OR INVESTMENTS PROVIDED THAT, AS OF THE
DECEMBER 31 NEXT PRECEDING, SUCH TRANSACTIONS ARE EQUAL TO OR
EXCEED:

(I)  WITH RESPECT TO NONLIFE INSURERS, THE
LESSER OF 3 PERCENT OF THE INSURER'S ADMITTED ASSETS OR 25
PERCENT OF SURPLUS AS REGARDS POLICYHOLDERS;

(II)  WITH RESPECT TO LIFE INSURERS, 3 PERCENT
OF THE INSURER'S ADMITTED ASSETS;

(2)  LOANS OR EXTENSIONS OF CREDIT TO ANY PERSON WHO
IS NOT AN AFFILIATE, WHERE THE INSURER MAKES SUCH LOANS OR
EXTENSIONS OF CREDIT WITH THE AGREEMENT OR UNDERSTANDING THAT THE
PROCEEDS OF SUCH TRANSACTIONS, IN WHOLE OR IN SUBSTANTIAL PART,
ARE TO BE USED TO MAKE LOANS OR EXTENSIONS OF CREDIT TO PURCHASE
ASSETS OF, OR TO MAKE INVESTMENTS IN, ANY AFFILIATE OF THE
INSURER MAKING SUCH LOANS OR EXTENSIONS OF CREDIT PROVIDED THAT,
AS OF THE DECEMBER 31 NEXT PRECEDING, SUCH TRANSACTIONS ARE EQUAL
OR EXCEED:

(I)  WITH RESPECT TO NONLIFE INSURERS, THE
LESSER OF 3 PERCENT OF THE INSURER'S ADMITTED ASSETS OR 25
PERCENT OF THE SURPLUS AS REGARDS POLICYHOLDERS;

(II)  WITH RESPECT TO LIFE INSURERS, 3 PERCENT
OF THE INSURER'S ADMITTED ASSETS;