Common use of Investment Constraints Clause in Contracts

Investment Constraints. The segmented 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 segmented 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. Schedule I (continued) Liquidity Sufficient liquidity shall be maintained such that plausible negative cash flows can be covered through the ability to sell segmented assets.

Investment Constraints. The segmented portfolio 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 segmented portfolio 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. Schedule I (continued) Liquidity Sufficient liquidity shall be maintained such that plausible negative cash flows can be covered through the ability to sell segmented Segregated assets.