District Of Columbia § 31-1373.04 - Rated credit instruments.
Full text of District Of Columbia D.C. Code § 31-1373.04 — Rated credit instruments., with citation guidance and answers to common questions.
§ 31-1373.04. Rated credit instruments.
31-1373.04Subject to the limitations of and subsection (f) of this section, but not to the limitations of , an insurer may acquire rated credit instruments issued, assumed, guaranteed, or insured by:
The United States; or
A government-sponsored enterprise of the United States if the instruments of the government-sponsored enterprise are assumed, guaranteed, or insured by the United States or are otherwise backed or supported by the full faith and credit of the United States.
Subject to the limitations of , but not to the limitations of , an insurer may acquire rated credit instruments issued, assumed, guaranteed, or insured by:
Canada; or
A government-sponsored enterprise of Canada if the instruments of the government-sponsored enterprise are assumed, guaranteed, or insured by Canada or are otherwise backed or supported by the full faith and credit of Canada;
An insurer shall not acquire an instrument under this subsection if, as a result of and after giving effect to the investment, the aggregate amount of investments held by the insurer under this subsection would exceed 40% of its admitted assets.
Subject to the limitations of and paragraph (2) of this subsection, but not to the limitations of , an insurer may acquire rated credit instruments, excluding asset-backed securities:
Issued by a government money market mutual fund, a class one money market mutual fund, or a class one bond mutual fund;
Issued, assumed, guaranteed, or insured by a government-sponsored enterprise of the United States other than those eligible under subsection (a) of this section;
Issued, assumed, guaranteed, or insured by a state if the instruments are general obligations of the state; or
Issued by a multilateral development bank.
An insurer shall not acquire an instrument of any fund, enterprise, or entity, or state under this subsection if, as a result of and after giving effect to the investment, the aggregate amount of investments held in any one fund, enterprise or entity or state under this subsection would exceed 10% of its admitted assets.
Subject to the limitations of , an insurer may acquire preferred stocks that are not foreign investments and that meet the requirements of rated credit instruments if, as a result of and after giving effect to the investment:
The aggregate amount of preferred stocks held by the insurer under this subsection does not exceed 20% of its admitted assets; and
The aggregate amount of preferred stocks held by the insurer under this subsection which are not sinking fund stocks or rated P1 or P2 by the SVO does not exceed 10% of its admitted assets.
Subject to the limitations of , in addition to those investments eligible under subsections (a), (b), (c), and (d) of this section, an insurer may acquire rated credit instruments that are not foreign investments.
Notwithstanding any other provision of this section, an insurer shall not acquire special rated credit instruments under this section if, as a result of and after giving effect to the investment, the aggregate amount of special rated credit instruments held by the insurer would exceed 5% of its admitted assets.
For purposes of this section, obligations of Federal National Mortgage Association, Federal Home Loan Mortgage Corporation, and other mortgage related securities as defined in section 106 of the Secondary Mortgage Market Enhancement Act of 1984, approved October 3, 1984 (98 Stat. 1691; 15 U.S.C. ), may be acquired to the same extent as allowed under subsection (a) of this section, whether or not they are rated credit instruments authorized in .
Annotations
Source: official District Of Columbia text · Last verified 2026-08-27
Frequently Asked Questions About District Of Columbia § 31-1373.04
What does D.C. Code § 31-1373.04 cover?
Section 31-1373.04 ("Rated credit instruments.") is part of the D.C. Code, the codified statutory law of District Of Columbia. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite District Of Columbia § 31-1373.04?
A common citation format is "D.C. Code § 31-1373.04" (District Of Columbia). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of District Of Columbia law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the District Of Columbia official source linked on this page or consult a licensed District Of Columbia attorney.
How does District Of Columbia § 31-1373.04 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in District Of Columbia can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in District Of Columbia.