Ins 6.20(5)(d) (d) Preferred shares. In preferred shares unless the issuing company has had, disregarding fixed charges on indebtedness and dividend requirements on preferred stock for the retirement of which provision has been made at the date of the investment, net earnings:

Ins 6.20(5)(d)1. 1. Available for fixed charges and dividends that during the previous 5 fiscal years have averaged not less than twice the sum of the fixed charges, maximum contingent interest and preferred dividend requirements of the issuing company; or

Ins 6.20(5)(d)2. 2. Available for fixed charges and dividends that for each of the previous 3 fiscal years have been not less than 1 1/2 times the sum of the fixed charges, maximum contingent interest and preferred dividend requirements of the issuing company; or

Ins 6.20(5)(d)3. 3. Available to meet preferred dividend requirements of the previous 5 years, after allowance for fixed charges and federal and state income taxes, that have averaged not less than 3 times the preferred dividend requirements.

Ins 6.20(5)(e) (e) Common stock. In common stock except:

Ins 6.20(5)(e)1. 1. In accordance with a plan of acquisition proposed by the insurer and approved by the commissioner; and

Ins 6.20(5)(e)2. 2. In common stocks which are authorized securities for NASDAQ, the automated quotation system of the National Association of Securities Dealers.

Ins 6.20(5)(f) (f) Real property. In any investment under s. 620.22 (4) or (5), Stats., except with prior written approval of the commissioner.

Ins 6.20(5)(g) (g) Limitations on amount of investment.

Ins 6.20(5)(g)1. 1. Except as permitted under subd. 2., more than 3% of assets in securities of any single issuer unless it obtains the prior written permission of the commissioner or unless the investment is in securities of the government of the United States or its instrumentalities or in securities guaranteed by the full faith and credit of the United States; or

Ins 6.20(5)(g)2. 2. More than 10% of assets in the securities of one state, of one instrumentality of a state, or of one governmental unit of a state.

Ins 6.20(6) (6) Town mutual insurance companies.

Ins 6.20(6)(a) (a) Status as a restricted insurer. Town mutual insurance companies authorized to operate under the provisions of ch. 612, Stats., are restricted insurers and are subject to the restrictions of ss. 612.36 and 620.03 (1), Stats., sub. (4) and other applicable provisions of this section. The commissioner may grant exemptions under s. 620.03 (2), Stats.

Ins 6.20(6)(b) (b) Permitted investments. Except as permitted by pars. (c), (d) and (e), a town mutual insurer may only invest in one or more of the following:

Ins 6.20(6)(b)1. 1. Treasury bonds, treasury notes, treasury bills or any other direct obligations of the United States government or agencies or instrumentalities of the United States government with a final maturity 15 years or less, except that no part of the amount determined under this paragraph shall be invested in zero coupon bonds or collateralized mortgage obligations.

Ins 6.20(6)(b)2. 2. Demand deposit, interest bearing accounts and certificates of deposit in financial institutions, including banks, savings and loan associations and credit unions, except that the amount of an insurer’s investment with each such financial institution shall be limited to the total amount eligible for insurance under the financial institution’s depositor insurance program.

Ins 6.20(6)(b)3. 3. Bonds of any United State or Canadian corporation that at the time of purchase have a 1 or 2 designation by the national association of insurance commissioners, or an equivalent rating by a NRSRO, except that no part of the amount determined under this paragraph shall be invested in zero coupon bonds, collateralized mortgage obligations, payment in kind bonds, or bonds with a final maturity of more than 15 years.

Ins 6.20(6)(b)4. 4. Bonds of any United States municipality that at the time of purchase have a 1 or 2 designation by the national association of insurance commissioners or an equivalent rating by a NRSRO, with a final maturity of 15 years or less, except that no amount shall be invested in zero coupon bonds.

Ins 6.20(6)(b)5. 5. No more than an aggregate of 5% of assets in cumulative dividend preferred stock of any United States or Canadian corporation that at the time of purchase has a 1 or 2 designation by the national association of insurance commissioners, or an equivalent rating by a NRSRO.

Ins 6.20(6)(b)5g. 5g. Shares in no-load mutual funds, provided that all of the following requirements are met:

Ins 6.20(6)(b)5g.a. a. Each no-load mutual fund shall have an expense ratio, including any fees for marketing or distribution, of 1.20% or less.

Ins 6.20(6)(b)5g.b. b. Each no-load mutual fund shall have as a stated investment objective, as disclosed in its prospectus, an intent to invest 80% or more of its assets under management in bonds of any direct obligations of the United States government or agencies or instrumentalities of the United States government, any United States or Canadian corporation, or any United States municipality, that, at the time of purchase, have a 1 or 2 designation by the national association of insurance commissioners, or an equivalent rating by a NRSRO.

Ins 6.20(6)(b)5g.c. c. Each no-load mutual fund shall have an intent, as stated in its prospectus, to maintain a weighted average maturity of 8 years or less.

Ins 6.20(6)(b)5g.d. d. Each no-load mutual fund investment must be carried at the fair market value on the annual statement filed with the commissioner.

Ins 6.20(6)(b)5g.e. e. Each town mutual insurer shall file a prospectus of each fund purchased in accordance with this paragraph with the commissioner no later than February 15 of the year immediately following the year the purchase was made.

Ins 6.20(6)(b)5r. 5r. Shares of exchange-traded funds, provided that all of the following requirements are met:

Ins 6.20(6)(b)5r.a. a. Each exchange-traded fund shall have an expense ratio, including any fees for marketing or distribution, of 1.20% or less.

Ins 6.20(6)(b)5r.b. b. Each exchange-traded fund shall have as a stated investment objective, as disclosed in its prospectus, an intent to invest 80% or more of its assets under management in bonds of any direct obligations of the United States government or agencies or instrumentalities of the United States government, any United States or Canadian corporation or any United States municipality, that, at the time of purchase, have a 1 or 2 designation by the national association of insurance commissioners, or equivalent ratings by a NRSRO.

Ins 6.20(6)(b)5r.c. c. Each exchange-traded fund shall have an intent, as stated in its prospectus, to maintain a weighted average maturity of 8 years or less.