620.01 Purpose and scope.

195 words·~1 min read·/wi/chapter-620/620-01

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(1)Investment objectives. The purpose of this chapter is to protect and to further the interests of insureds, creditors and the public, by providing, with minimum interference with management initiative and judgment, standards for the development and administration of programs for the investment of the assets of insurers, which standards seek an optimal balance of the following objectives:

(a)Safety of principal, and to the extent consistent therewith, maximum yield and growth;

(b)Stability of value, except where higher risk and possible fluctuations of value are compensated by a commensurate increase in yield and growth possibilities, and either special reserves or surplus is available in sufficient amount to cover reasonably foreseeable fluctuations in value;

(c)Sufficient liquidity to avoid the necessity in reasonably expected circumstances for selling assets at undue sacrifice;

(d)Reasonable diversification with respect to geographical area, industry, maturity, types of investment, individual investments and other relevant variables; and

(e)Reasonable relationship between liabilities and assets as to term and nature.

(2)Scope. Except as otherwise provided, this chapter and the rules promulgated to interpret and implement it, apply to all insurers authorized to do business in this state.