Ins 6.20(6)(b)5r.e.e. Each town mutual insurer shall file a prospectus of each fund purchased in accordance with this paragraph with the commissioner no later no later than February 15 of the year immediately following the year the purchase was made. Ins 6.20(6)(c)(c) Minimum expected assets. A town mutual insurer may invest in assets permitted under par. (d) only if, on December 31 of the preceding year, its assets invested in accordance with par. (b) were in an amount at least equal to the sum of its liabilities plus the greatest of the following: Ins 6.20(6)(c)1.1. 100% of the net written premiums and assessments for the 12-month period ending December 31. Ins 6.20(6)(c)2.2. 33% of the direct written premiums and assessments for the 12-month period ending December 31. Ins 6.20(6)(d)(d) Permitted investments for assets in excess of minimum expected assets. A town mutual insurer may invest assets in excess of the amount determined under par. (c) in one or more of the following: Ins 6.20(6)(d)1.1. Unrated bonds of a Wisconsin municipality or political subdivision not included in par. (b). Any bonds purchased under this subdivision must be direct obligations of the municipality or political subdivision, and no investment shall be made in unrated industrial revenue or industrial development bonds. Such investments shall not exceed 3% of assets in any single issue or 10% of assets in a single issuer or its affiliates; Ins 6.20(6)(d)2.2. Bonds with a final maturity of more than 15 years that would otherwise be classified within par. (b) 1., 3. or 4. Ins 6.20(6)(d)3c.3c. Stock which is either common stock or preferred stock of a licensed insurance company domiciled in this state which reinsured town mutual insurers in this state at the time it converted from a mutual insurance corporation to a stock insurance corporation. Ins 6.20(6)(d)3g.3g. Common or preferred stock or convertible securities of any United States, Canadian or foreign corporation not included in par. (b) that are traded on a federally regulated securities exchange in the United States. Ins 6.20(6)(d)3L.3L. Shares in no-load mutual funds, which have an expense ratio, including any fees for marketing or distribution, of 1.20% or less and have as their stated investment objective, as disclosed in their prospectus, an intent to invest 80% or more of their assets under management in common or preferred stock or convertible securities of any United States, Canadian or foreign corporation not included in par. (b). Ins 6.20(6)(d)3p.3p. Shares of exchange-traded funds, which have an expense ratio, including any fees for marketing or distribution, of 1.20% or less and have as their stated investment objective, as disclosed in their prospectus, an intent to invest 80% or more of their assets under management in common or preferred stock or convertible securities of any United States, Canadian or foreign corporation not included in par. (b). Ins 6.20(6)(d)3t.3t. Shares in no-load mutual funds with a weighted average maturity of more than 8 years that would otherwise be permitted under par. (b) 5g. Ins 6.20(6)(d)3x.3x. Shares in exchange-traded funds with a weighted average maturity of more than 8 years that would otherwise be permitted under par. (b) 5r. Ins 6.20(6)(d)4.4. Any subsidiaries formed to provide services ancillary to the town mutual insurer’s insurance operations. Subsidiaries are considered ancillary subsidiaries if they are engaged principally in insurance-related activities such as acting as an insurance agent or providing claims adjusting services. A town mutual insurer may invest in a subsidiary only with the prior written approval of the commissioner and the investment may not exceed the amount approved by the commissioner or 10% of assets, whichever is less. Ins 6.20(6)(d)6.6. Real property needed for the convenient transaction of the insurer’s business, provided that the insurer obtains the prior written approval of the commissioner. Ins 6.20(6)(d)7.7. Real estate loans on property meeting the requirements of sub. (5) (c) and investment in real estate partnerships. Any investment in real estate partnerships shall be with the prior approval of the commissioner. Ins 6.20(6)(d)9.9. Investments not otherwise permitted by this paragraph, and not specifically prohibited by statute or rule, to the extent of not more than 5% of the insurer’s assets. This includes the cash surrender value of life insurance policies and annuities of insurers authorized to do business in Wisconsin. Ins 6.20(6)(e)(e) Town mutual insurer reinsurer stock. A town mutual insurer is not required to divest stock described in par. (d) 3c. This type of stock is an authorized investment and is not an asset invested in accordance with par. (b). Ins 6.20(6)(f)(f) Limitations on amount of investment. A town mutual insurer may not invest in any of the following: Ins 6.20(6)(f)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. Ins 6.20(6)(f)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)(f)5.5. More than 20% of assets in investments sponsored or managed by any single issuer or its affiliates with respect to mutual funds and exchange-traded funds. Ins 6.20(6)(g)(g) Transition and divestment. Except as provided under par. (e), a town mutual insurer shall comply with all of the following: Ins 6.20(6)(g)1.1. A town mutual insurer that holds investments permitted under par. (d) but no longer meets the minimum asset test of par. (c) may continue to hold such investments so long as the town mutual insurer holds investments in accordance with par. (b) in an amount that is no less than the sum of its liabilities plus the greatest of any of the following: Ins 6.20(6)(g)1.a.a. 75% of the net written premiums and assessments for the 12-month period ending December 31.