# Mont. Code Ann. § 33-2-1103: 33-2-1103 Additional investment authority -- exemption from other investment restrictions -- determination of qualification -- divestiture

> Montana · Statutes · In force

URL: https://www.frixlaw.com/law-library/statutes/STATE_MT_T33_C2_P11_S33-2-1103

## Section

- **Citation:** Mont. Code Ann. § 33-2-1103
- **Heading:** 33-2-1103 Additional investment authority -- exemption from other investment restrictions -- determination of qualification -- divestiture
- **Jurisdiction:** Montana
- **Kind:** Statutes
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** MT Code / Title 33 / Chapter 2 / Part 11 / Section 33-2-1103

## Text

33-2-1103 . Additional investment authority -- exemption from other investment restrictions -- determination of qualification -- divestiture. (1) In addition to investments in common stock, preferred stock, debt obligations, and other securities permitted under this part, a domestic insurer may also:

(a) invest, in common stock, preferred stock, debt obligations, and other securities of one or more subsidiaries, amounts which do not exceed the lesser of 10% of the insurer's assets or 50% of the insurer's surplus as regards policyholders, provided that after the investments the insurer's surplus as regards policyholders will be reasonable in relation to the insurer's outstanding liabilities and adequate to its financial needs. In calculating the amount of the investments, there must be included total net money or other consideration expended and obligations assumed in the acquisition or formation of a subsidiary, including all organizational expenses and contributions to capital and surplus of the subsidiary, whether or not represented by the purchase of capital stock or issuance of other securities, and all amounts expended in acquiring additional common stock, preferred stock, debt obligations, and other securities and all contributions to the capital or surplus of a subsidiary subsequent to its acquisition or formation.

(b) if the insurer's total liabilities, as calculated for national association of insurance commissioners annual statement purposes, are less than 10% of assets, invest any amount in common stock, preferred stock, debt obligations, and other securities of one or more subsidiaries, provided that after the investment the insurer's surplus as regards policyholders, considering the investment as if it were a disallowed asset, will be reasonable in relation to the insurer's outstanding liabilities and adequate to its financial needs;

(c) invest any amount in common stock, preferred stock, debt obligations, and other securities of one or more subsidiaries, provided that each subsidiary agrees to limit its investments in any asset so that the investments will not cause the amount of the total investment of the insurer to exceed any of the investment limitations specified in this section. The total investment of the insurer must include:

(i) any direct investment by the insurer in an asset;

(ii) the insurer's proportionate share of any investment in an asset by any subsidiary of the insurer, which is calculated by multiplying the amount of the subsidiary's investment by the percentage of the insurer's ownership of such subsidiary.

(d) with the approval of the commissioner, invest a greater amount in common stock, preferred stock, debt obligations, or other securities of one or more subsidiaries, provided that after the investment, the insurer's surplus as regards policyholders will be reasonable in relation to the insurer's outstanding liabilities and adequate to its financial needs.

(2) Investments in common stock, preferred stock, debt obligations, or other securities of subsidiaries made pursuant to subsection (1) are not subject to any of the otherwise applicable restrictions or prohibitions contained in this part applicable to such investments of insurers.

(3) Whether any investment pursuant to subsection (1) meets the applicable requirements thereof is to be determined immediately after the investment is made, taking into account the then outstanding principal balance on all previous investments in debt obligations and the value of all previous investments in equity securities as of the date they were made.
licable to such investments of insurers.

(3) Whether any investment pursuant to subsection (1) meets the applicable requirements thereof is to be determined immediately after the investment is made, taking into account the then outstanding principal balance on all previous investments in debt obligations and the value of all previous investments in equity securities as of the date they were made.

(4) If an insurer ceases to control a subsidiary, it shall dispose of any investment therein made pursuant to this section within 3 years from the time of the cessation of control or within such further time as the commissioner may prescribe, unless at any time after the investment is made, the investment meets the requirements for investment under any other section of this part and the insurer has notified the commissioner thereof.

## Nearby sections

- [Mont. Code Ann. § 33-2-1101 33-2-1101 Definitions](https://www.frixlaw.com/law-library/statutes/STATE_MT_T33_C2_P11_S33-2-1101.md)
- [Mont. Code Ann. § 33-2-1102 33-2-1102 Authorization of subsidiaries](https://www.frixlaw.com/law-library/statutes/STATE_MT_T33_C2_P11_S33-2-1102.md)
- [Mont. Code Ann. § 33-2-1103 33-2-1103 Additional investment authority -- exemption from other investment restrictions -- determination of qualification -- divestiture](https://www.frixlaw.com/law-library/statutes/STATE_MT_T33_C2_P11_S33-2-1103.md)
- [Mont. Code Ann. § 33-2-1104 33-2-1104 Acquisition or divestiture of control of or merger with domestic insurer -- filing requisites](https://www.frixlaw.com/law-library/statutes/STATE_MT_T33_C2_P11_S33-2-1104.md)
- [Mont. Code Ann. § 33-2-1105 33-2-1105 Approval by commissioner -- hearings -- notice](https://www.frixlaw.com/law-library/statutes/STATE_MT_T33_C2_P11_S33-2-1105.md)
- [Mont. Code Ann. § 33-2-1106 33-2-1106 Exemptions -- violations -- jurisdiction](https://www.frixlaw.com/law-library/statutes/STATE_MT_T33_C2_P11_S33-2-1106.md)
- [Mont. Code Ann. § 33-2-1111 33-2-1111 Registration of insurers -- requisites -- termination](https://www.frixlaw.com/law-library/statutes/STATE_MT_T33_C2_P11_S33-2-1111.md)
- [Mont. Code Ann. § 33-2-1112 33-2-1112 Exemptions -- disclaimer -- violations](https://www.frixlaw.com/law-library/statutes/STATE_MT_T33_C2_P11_S33-2-1112.md)
- [Mont. Code Ann. § 33-2-1113 33-2-1113 Transactions with affiliates -- standards](https://www.frixlaw.com/law-library/statutes/STATE_MT_T33_C2_P11_S33-2-1113.md)
- [Mont. Code Ann. § 33-2-1114 33-2-1114 Dividends and other distributions -- commissioner approval](https://www.frixlaw.com/law-library/statutes/STATE_MT_T33_C2_P11_S33-2-1114.md)
- [Mont. Code Ann. § 33-2-1115 33-2-1115 Examination](https://www.frixlaw.com/law-library/statutes/STATE_MT_T33_C2_P11_S33-2-1115.md)
- [Mont. Code Ann. § 33-2-1116 33-2-1116 Confidentiality of information](https://www.frixlaw.com/law-library/statutes/STATE_MT_T33_C2_P11_S33-2-1116.md)
- [Mont. Code Ann. § 33-2-1117 33-2-1117 Rules](https://www.frixlaw.com/law-library/statutes/STATE_MT_T33_C2_P11_S33-2-1117.md)
- [Mont. Code Ann. § 33-2-1118 33-2-1118 Injunctions](https://www.frixlaw.com/law-library/statutes/STATE_MT_T33_C2_P11_S33-2-1118.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_MT_T33_C2_P11_S33-2-1103. Check the current official text before relying on it. Not legal advice.