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. Ins 6.20(6)(g)1.b.b. 33% of the direct written premiums and assessments for the 12-month period ending December 31. Ins 6.20(6)(g)2.2. A town mutual insurer shall divest of any investment which does not meet the requirements of pars. (b) to (f) due to decline in the rating of a bond, the insurer’s size, limitations on investments or any other reason, within three years of its noncompliance. Ins 6.20(6)(g)3.3. If at the time of purchase a town mutual insurer investment did not meet the requirements of pars. (b) to (f), then the town mutual insurer shall immediately divest of the investment. Ins 6.20(6)(h)(h) Authorization of investments by the board of directors. Ins 6.20(6)(h)1.1. The board of directors of a town mutual shall adopt a written plan for acquiring and holding investments and for engaging in investment practices which specifies guidelines as to the quality, maturity, diversification of investments and other specifications including investment strategies intended to assure that the investments and investment practices are appropriate for the business conducted by the insurer, its liquidity needs and the amount of its surplus. The board shall review and assess the company’s technical and administrative capabilities and expertise with regard to investments before adopting a written plan concerning any investment strategy or investment practice. The board shall give due consideration to all commissions and expenses associated with each investment, and the effect of such costs on anticipated returns and on liquidity. Ins 6.20(6)(h)2.2. All investments acquired and held under this section shall be acquired and held under the supervision and direction of the board of directors of the town mutual insurer. The town mutual insurer board of directors shall require that all investments be authorized or approved by the board or a committee of the board charged with the responsibility to supervise and direct its investments in accordance with delegations, standards, limitations, and investment objectives prescribed by the board. Ins 6.20(6)(h)3.3. For all mutual funds held by a town mutual insurer, the insurer shall maintain in its records the fund’s prospectus and latest issued annual financial statement. Ins 6.20(6)(h)4.a.a. If a town mutual insurer utilizes the services of an investment advisor, the town mutual shall have, and maintain, a written agreement with the investment advisor, that shall be approved by the board of directors. A separate agreement shall be entered into for each specific arrangement.