Sec. 1. 24 MRSA §2301, sub-§9-A, ¶A, as enacted by PL 1993, c. 702, Pt. A, §1, is amended to read:

A. A corporation subject to this chapter may invest funds in the same manner and to the same extent as domestic mutual insurers under the provisions of Title 24-A, chapter 13-A, except that such a corporation and shall maintain reserves for possible losses or fluctuation in the value of investments as contemplated in Title 24-A, section 921 901- A, subsection 6 2. Those reserves must comprehend, at a minimum, an asset valuation reserve and an income maintenance reserve calculated by methods that are consistent with standards that have been adopted by the superintendent for management of investment risk by life and health insurers.

Sec. 2. 24 MRSA §2301, sub-§9-A, ¶H, as enacted by PL 1993, c. 702, Pt. A, §1, is amended to read:

H. For corporations subject to this subsection, the following terms have the following meanings.

(1) "Admitted assets" means those assets owned by the corporation, as defined in recognized pursuant to Title 24-A, section 901 901-A, reduced in amount by any applicable provision of this Title or Title 24-A. For purposes of applying the investment limitations of Title 24-A, chapter 13-A, the asset value must be that contained in the annual statement of the corporation as of December 31st of the year next preceding the making of the investment or contained in an audited financial report, as defined in Title 24-A, section 221-A, of more current origin prepared on the basis of statutory accounting principles.

(2) "Subscriber reserves" means those reserves held by the corporation for the protection of subscribers that are the excess of the corporation's assets over its liabilities as set forth in the annual statement of the corporation as of December 31st of the year next preceding the making of the investment or contained in an audited financial report, as defined in Title 24-A, section 221-A, of more current origin prepared on the basis of statutory accounting principles;

Sec. 3. 24 MRSA §2301, sub-§9-C, as enacted by PL 1993, c. 702, Pt. A, §1, is amended to read: