An insurer may count the following classes of investments for the purposes stated in Section 31A-18-109, whether the insurer makes these investments directly or as a participant in a partnership, joint venture, or limited liability company:
(1) cash in the direct possession of the insurer or on deposit with a financial institution regulated by a federal or state agency;
(2) a bond, debt-like preferred stock, and other evidence of indebtedness to:
(a) a government unit in the United States or Canada;
(b) an instrumentality of a government unit in the United States or Canada; or
(c) a private business entity domiciled in the United States or Canada, including asset-backed securities and mutual funds listed by the Securities Valuation Office of the NAIC;
(3) a loan secured by:
(a) a mortgage, trust deed, or other security interest in real property located in the United States or Canada; or
(b) insurance against default issued by:
(i) a government insurance corporation of the United States or Canada; or
(ii) an insurer authorized to do business in this state;
(4)
(a) common stock, equity-like preferred stock, or equity interests in any United States or Canadian business entity; or
(b) a share of mutual funds registered with the Securities and Exchange Commission of the United States under the Investment Company Act of 1940, 15 U.S.C. Sec. 80a-1 et seq., other than any mutual fund listed by the Securities Valuation Office of the NAIC;
(5) real property necessary for the convenient transaction of the insurer's business;
(6) real property, including the fixtures, furniture, furnishings, and equipment pertaining to the real property that:
(a) is located in the United States or Canada; and
(b) produces, or after suitable improvement can reasonably be expected to produce substantial income;
(7) a loan, security, or other investment described in Subsections (1) through (6) in a country other than the United States or Canada;
(8) a bond or other evidence of indebtedness to an international development organization of which the United States is a member;
(9) a loan upon the security of the insurer's own policies:
(a) in an amount that is adequately secured by the policies; and
(b) that does not exceed the surrender values of the policies;
(10) tangible personal property under contract of sale or lease with a contractual payment that may be reasonably expected to return the principal of, and provide earnings on, the investments within the tangible personal property's anticipated useful life;
(11) a loan secured by a pledged security or evidence of debt eligible for investment under this section;
(12) other investments the commissioner authorizes by rule; and
(13) for an investment not otherwise permitted by this section, and not specifically prohibited by statute, the lesser of:
(a) excess surplus as that term is defined in Section 31A-1-301; or
(b) 5% of the first $500,000,000 of the insurer's admitted assets plus 10% of the insurer's admitted assets exceeding $500,000,000.