An Act relative to insurance companies

This bill amends Massachusetts insurance laws to allow insurance companies to invest in specific types of exchange-traded funds (ETFs) that function as long-term bonds. To qualify, these funds must be solvent, have at least $100 million in net assets, be registered with the Securities and Exchange Commission, and be approved by the National Association of Insurance Commissioners. The legislation also sets a limit that an insurer cannot invest more than 15 percent of its capital and surplus in any single qualifying ETF and explicitly bans investments in leveraged or inverse ETFs. Additionally, the bill updates rules regarding the investment of insurance company assets in bonds issued by institutions with provisional credit ratings.