TITLE 41

INSURANCE

CHAPTER 7

INVESTMENTS

41-729.  Time limit for disposal of real estate. (1) Except as provided in subsection (4) below, an insurer shall dispose of real estate within time limits as follows:

(a)  If acquired under section 41-728(1)(a) (home office and branch office property), the insurer shall sell and dispose of the property within five (5) years after it ceased to be used or to be necessary for the purposes stated therein.

(b)  If acquired under subdivisions (b) (in satisfaction of debts, etc.), (c) (in part payment on other real estate sold), (d) (by gift or devise), or (e) (merger or consolidation) of section 41-728(1), the insurer shall sell and dispose of the property within five (5) years after the insurer acquired title thereto.

(c)  If acquired under section 41-728(1)(f) (for production of income), the insurer shall within five (5) years after the termination or expiration of the lease, sell and dispose of the property, or re-lease the property for an additional term under the same conditions provided in such section as for an original leasing.

(2)  Any real estate otherwise subject to disposal under subdivisions (b) or (c) above, may be retained by the insurer for home office or branch office purposes for so long as so used, and subject to provisions otherwise applicable to such home office and branch office property.

(3)  Any real property otherwise subject to disposal under subdivisions (a) and (b) above, may be retained by the insurer for leasing under section 41-728(1)(f) for so long as so used, and subject to provisions otherwise applicable to such real estate for leasing.

(4)  Upon proof satisfactory to him that the interests of the insurer will suffer materially by the forced sale thereof, the commissioner may by certificate grant a reasonable additional period, as specified in the certificate, within which the insurer shall dispose of any particular parcel of real estate.

(5)  Real estate held by an insurer beyond the period allowed for its disposal under this section shall not constitute an asset of the insurer in any determination of the insurer’s financial condition.

History:

[41-729, added 1961, ch. 330, sec. 166, p. 645.]