§ 58-93-55. Investments.

230 words·~1 min read·/nc/chapter-58/58-93-55

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(a)With the exception of investments made in accordance with subsection

(b)of this section, the funds of a PHP shall be invested or maintained only in securities, other investments, or other assets permitted by the laws of this State for the investment of assets constituting the legal reserves of life insurance companies or such other securities or investments as the Commissioner may permit.

(b)A PHP may, with the Commissioner's prior approval, do any of the following:

(1)Invest its funds to purchase, lease, construct, renovate, operate, or maintain

(i)a hospital,

(ii)a medical facility,

(iii)ancillary equipment of a hospital or medical facility, or

(iv)any property as may reasonably be required for its principal office or for other purposes as may be necessary in the transaction of the business of the PHP.

(2)Make loans to a medical group under contract with the PHP in furtherance of the PHP's program or the making of loans to a corporation or corporations under the PHP's control for the purpose of acquiring or constructing medical facilities and hospitals or in furtherance of a program providing health care services to enrollees.

(c)The Commissioner shall not allow any investment if the Commissioner determines the investment would substantially and adversely affect the financial soundness of the PHP and endanger its ability to meet its obligations. (2018-49, s. 1(a).)