AUTHORIZED INVESTMENTS FOR ALL FUNDS: DEBENTURES OF PUBLIC UTILITY CORPORATIONS

(a) Subject to this section, an insurer may invest any of the insurer's funds and accumulations in: (1) a debenture of a solvent public utility corporation that: (A) has not defaulted in the payment of any debt during the five years preceding the investment; and (B) has not failed in any one of the five years preceding the investment to have earned, after taxes, including income taxes, and after deducting proper charges for replacements, depreciation, and obsolescence, an amount applicable to interest on the corporation's outstanding indebtedness equal to at least two times the amount of interest due for that year, or, in the case of issuance of new debentures, the earnings applicable to interest are equal to at least two times the amount of annual interest on the corporation's obligations after giving effect to the new financing; or (2) a debenture of a solvent public utility corporation that has not been in existence for the five years preceding the investment, if: (A) the corporation has succeeded to the business and assets and has assumed the liabilities of another public utility corporation; (B) neither the successor corporation or the corporation succeeded has defaulted in the payment of any debt during the five years preceding the investment; and (C) neither the successor corporation or the corporation succeeded have failed in any one of the five years preceding the investment to have earned, after taxes, including income taxes, and after deducting proper charges for replacements, depreciation, and obsolescence, an amount applicable to interest on the corporation's outstanding indebtedness equal to at least two times the amount of interest due for that year, or in the case of issuance of new debentures, the earnings applicable to interest are equal to at least two times the amount of annual interest on the corporation's obligations after giving effect to the new financing. (b) The amount of an insurer's investment in debentures under this section may not exceed five percent of the insurer's admitted assets.