Common use of QUALITY CONSTRAINTS Clause in Contracts

QUALITY CONSTRAINTS. The investment manager may invest in permitted investment categories subject to the following quality constraints: Investments in money market instruments (less than or equal to 1 year term) will be limited to those included on the list approved by the insurance company. This list will include money market instruments of the U.S. Treasury, agencies of the U.S. government, and as a minimum commercial paper rated A1 or higher by Moody’s and rated P1 or higher by Standard & Poor’s. Investments in bonds and preferred securities will be limited by bond rating category as follows: LIMITS AS % OF ADMITTED ASSETS Bond Rating % of Total Min./Max. A or better 50% Min. BBB 50% Max. Less than BBB 20% Max. The above limits are subject to adjustment to conform with applicable insurance regulatory requirements. Limits are determined on a cost basis and include convertible securities. Downgrades will be taken into account when making new investments but will not necessarily result in the sale of existing positions. Securities which are not rated by any public rating agency must be rated by the investment manager and included as part of the categories above for the purposes of determining overall exposure by bond rating category. Any exceptions to the above must be approved by the investment committee.

QUALITY CONSTRAINTS. The investment manager may invest in the permitted investment categories subject to the following quality constraints: Investments in money market instruments (less than or equal to 1 year term) will be limited to those included on the list approved by the insurance company. This list will include money market instruments of the U.S. Treasury, agencies of the U.S. government, and as a minimum commercial paper rated A1 or higher by Moody’s and rated P1 or higher by Standard & Poor’s. Investments in bonds and preferred securities will be limited by bond rating category as follows: LIMITS AS % OF ADMITTED ASSETS Bond Rating % of Total Min./Max. A or better 5050 % Min. BBB 5050 % Max. Less than BBB 2020 % Max. The above limits are subject to adjustment to conform with applicable insurance regulatory requirements. Limits are determined on a cost basis and include convertible securities. Downgrades will be taken into account when making new investments but will not necessarily result in the sale of existing positions. Securities which are not rated by any public rating agency must be rated by the investment manager and included as part of the categories above for the purposes of determining overall exposure by bond rating category. Any exceptions to the above must be approved by the investment committee.

QUALITY CONSTRAINTS. The investment manager may invest in the permitted investment categories subject to the following quality constraints: Investments in money market instruments (less than or equal to 1 year term) will be limited to those included on the list approved by the insurance company. This list will include money market instruments of the U.S. Treasury, agencies of the U.S. government, and as a minimum commercial paper rated A1 or higher by Moody’s and rated P1 or higher by Standard & Poor’s. Investments in bonds and preferred securities will be limited by bond rating category as follows: LIMITS AS % OF ADMITTED ASSETS Bond Rating % of Total Min./Max. A or better 50% Min. BBB 50% Max. Less than BBB 20% Max. The above limits are subject to adjustment to conform with applicable insurance regulatory requirements. Limits are determined on a cost basis and include convertible securities. Downgrades will be taken into account when making new investments but will not necessarily result in the sale of existing positions. Securities which are not rated by any public rating agency must be rated by the investment manager and included as part of the categories above for the purposes of determining overall exposure by bond rating category. Any exceptions to the above must be approved by the investment committee.