Alaska Administrative Code
Title 3 - Commerce, Community, and Economic Development
Part 2 - Division of Insurance
Chapter 21 - Insurer - Financial
Article 2 - Investments
3 AAC 21.266 - Foreign investments and foreign currency exposure for a life and health insurer

(a) Subject to the limitations in 3 AAC 21.231, a life and health insurer may acquire, hold, or invest in a foreign investment or engage in an investment practice with a person of or in a foreign jurisdiction, if

(b) Subject to the limitations in 3 AAC 21.231, a life and health insurer may acquire, hold, or make an investment, or engage in an investment practice denominated in foreign currency, regardless of whether the investment is acquired under (a) of this section, or acquire additional foreign currency exposure as a result of the termination or expiration of a hedging transaction with respect to an investment denominated in a foreign currency, if as a result of and after giving effect to the investment, the aggregate amount of investments then held by the life and health insurer under this subsection and denominated in

(c) An investment will not be considered denominated in a foreign currency if the acquiring life and health insurer enters into one or more contracts in transactions permitted under 3 AAC 21.271 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) In addition to an investment permitted under (a) or (b) of this section, a life and health insurer, subject to the limitations in 3 AAC 21.231, may acquire a foreign investment respecting a foreign jurisdiction and may acquire an investment denominated in foreign currency of that jurisdiction, if the life and health insurer is authorized to do business in that foreign jurisdiction and has outstanding insurance, annuity, or reinsurance contracts, denominated in foreign currency of that jurisdiction, and issued on lives or risks resident or located in that foreign jurisdiction. An investment made under this subsection in an obligation of a foreign government, political subdivision of a foreign government, or government-sponsored enterprise of a foreign government is not subject to the limitations of 3 AAC 21.231 if the investment carries a securities valuation office rating of one or two. The aggregate amount of investments acquired by the life and health insurer under this subsection may not exceed the greater of

(e) In addition to an investment permitted under (a) or (b) of this section, a life and health insurer that is not authorized to do business in a foreign jurisdiction may acquire, subject to the limitations in 3 AAC 21.231, a foreign investment respecting a foreign jurisdiction and may acquire, subject to the limitations in 3 AAC 21.231, an investment denominated in foreign currency of that jurisdiction, if the insurer has outstanding insurance, annuity, or reinsurance contracts, denominated in foreign currency of that jurisdiction, and issued on lives or risks resident or located in that foreign jurisdiction. An investment made under this subsection in an obligation of a foreign government, political subdivision of a foreign government, or government-sponsored enterprise of a foreign government is not subject to the limitations of 3 AAC 21.231 if the investment carries a securities valuation office rating of one or two. The aggregate amount of investments acquired by the life and health insurer under this subsection may not exceed 105 percent of the amount of the life and health insurer's reserves, net of reinsurance, and other obligations under the contracts on lives or risks resident or located in the foreign jurisdiction.

(f) For purposes of determining compliance with the limitations, if any, contained in the other provisions of 3 AAC 21.201 - 3 AAC 21.399, a life and health insurer shall aggregate investments permitted to be acquired under this section with investments of the same types made under other provisions of 3 AAC 21.201 - 3 AAC 21.399, and in a similar manner.