Public Law 87–245

That subsection (10) of section 35 of chapter III of the Life Insurance Act (D.C. Code 35–535(10)) is amended by redesignating the present subsection “(10)” as subsection “(10) (a)” and by adding a new paragraph at the end thereof to be designated as subsection “(10) (b)”, to read as follows:

“(b)“(b)

In addition to the investments authorized in paragraph (10) (a), common stocks of any insurance company (other than as

48 Stat. 1154.

prohibited in section 35–540) created under the laws of the United States, or of any State thereof, or the District of Columbia: Provided, however, That stocks may be acquired under this paragraph (10) (b) only (i) with the intention of ultimately acquiring ownership or control of the issuing-corporation as an affiliate or a subsidiary, (ii) if such acquisition will not cause the acquiring company’s aggregate cost of investments under this paragraph to exceed, in the case of a capital stock company, the amount of capital, surplus and contingency reserves in excess of $150,000 or, in the case of a mutual company, the amount of surplus and contingency reserves in excess of $150,000, and (iii) after the Superintendent of Insurance of the District of Columbia has been furnished with such information as he may require and has given to the acquiring company his written approval of the proposed acquisition stating his opinion that it will not substantially lessen competition, will not tend to create a monopoly in any line of insurance, and will not impair the financial stability of the acquiring company.”

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