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Ch. 660
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2000 LAWS OF MARYLAND
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(2) the aggregate amount of foreign investments then held by the life
insurer under this subsection in a single foreign jurisdiction does not exceed:
(i) 10% of its admitted assets for a foreign jurisdiction that has a
sovereign debt rating of investment grade or higher by a nationally recognized
statistical rating organization; or
(ii) 3% of its admitted assets for any other foreign jurisdiction.
[(c)] (D) (1) Subject to the limitations of § 5-511 of this subtitle, a life
insurer may acquire investments or engage in investment practices denominated in
foreign currencies, whether or not they are foreign investments acquired under
subsection [(b)] (C) of this section, or additional foreign currency exposure as a result
of the termination or expiration of a hedging transaction with respect to investments
denominated in a foreign currency, if:
(i) the aggregate amount of investments then held by the life
insurer under this subsection denominated in foreign currencies does not exceed 10%
of its admitted assets; and
(ii) the aggregate amount of investments then held by the life
insurer under this subsection denominated in the foreign currency of a single foreign
jurisdiction does not exceed:
1. 10% of its admitted assets for a foreign jurisdiction that
has a sovereign debt rating of investment grade or higher by a nationally recognized
statistical rating organization; or
2. 3% of its admitted assets for any other foreign jurisdiction.
(2) Notwithstanding paragraph (1) of this subsection, an investment is
not considered denominated in foreign currency if the acquiring insurer enters into
one or more contracts in derivative transactions and the business entity counterparty
agrees under the contract or contracts to exchange all payments made on the foreign
currency denominated investment for United States currency at a rate that effectively
insulates the investment cash flows against future changes in currency exchange
rates during the period the contract or contracts are in effect.
[(d)] (E) (1) In addition to investments allowed under subsections [(b) and
(c)] (C) AND (D) of this section, a life insurer that is authorized to do business in a
foreign jurisdiction, and that has outstanding insurance, annuity, or reinsurance
contracts on lives or risks resident or located in that foreign jurisdiction and
denominated in the foreign currency of that jurisdiction, may acquire foreign
investments with respect to that foreign jurisdiction, and may acquire investments
denominated in the currency of that jurisdiction, subject to the limitations of § 5-511
of this subtitle.
(2) Notwithstanding paragraph (1) of this subsection, investments made
under this subsection in obligations of foreign governments, their political
subdivisions, and government sponsored enterprises are not subject to the limitations
of § 5-511 of this subtitle if those investments carry a rating of investment grade or
higher by a nationally recognized statistical rating organization.
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