Except as set forth in RCW 48.13.273, an insurer may
invest any of its funds in obligations other than those eligible
for investment under RCW 48.13.110 if they are issued, assumed,
or guaranteed by any solvent institution created or existing
under the laws of the United States or of any state, district or
territory thereof, and are qualified under any of the following:
(1) Obligations which are secured by adequate collateral
security and bear fixed interest if during each of any three,
including the last two, of the five fiscal years next preceding
the date of acquisition by the insurer, the net earnings of the
issuing, assuming or guaranteeing institution available for its
fixed charges, as defined in RCW 48.13.060, have been not less
than one and one-fourth times the total of its fixed charges for
such year. In determining the adequacy of collateral security,
not more than one-third of the total value of such required
collateral shall consist of stock other than stock meeting the
requirements of RCW 48.13.080.
(2) Fixed interest bearing obligations, other than those
described in subdivision (1) of this section, if the net earnings
of the issuing, assuming or guaranteeing institution available
for its fixed charges for a period of five fiscal years next
preceding the date of acquisition by the insurer have averaged
per year not less than one and one-half times its average annual
fixed charges applicable to such period and if during the last
year of such period such net earnings have been not less than one
and one-half times its fixed charges for such year.
(3) Adjustment, income or other contingent interest
obligations if the net earnings of the issuing, assuming or
guaranteeing institution available for its fixed charges for a
period of five fiscal years next preceding the date of
acquisition by the insurer have averaged per year not less than
one and one-half times the sum of its average annual fixed
charges and its average annual maximum contingent interest
applicable to such period and if during each of the last two
years of such period such net earnings have been not less than
one and one-half times the sum of its fixed charges and maximum
contingent interest for such year.
[1993 c 92 § 2; 1947 c 79 § .13.05; Rem. Supp. 1947 § 45.13.05.]