Investment Constraints. The Segregated Portfolio will consist of fixed-income securities (including private placements) and commercial mortgage loans. The percentages stated in this section of this Schedule I are based on statutory admitted asset value. The fixed-income securities in the Segregated Portfolio shall have a weighted average quality rating of “A-” or better. No more than 40% of the fixed-income securities will be invested in BBB-rated securities. No more than 10% of the fixed-income securities will be invested in securities with quality ratings below BBB-. Commercial mortgages shall not exceed 20% of the portfolio. Name and size limitations shall be 5% of the portfolio. No investments will be made in real estate (unless acquired through foreclosure of a commercial mortgage), equity related securities, or securities issued by parents, affiliates, or subsidiaries of the Reinsured or the Reinsurer. FUV-011 – May 1, 2007 34 Sufficient liquidity shall be maintained such that plausible negative cash flows can be covered through the ability to sell Segregated assets.
Appears in 3 contracts
Sources: Reinsurance Agreement (Separate Account Va B), Reinsurance Agreement (Separate Account Va C), Reinsurance Agreement (Separate Account Va X)