Nonlegal Investment(redirected from Non-Legal Investment)
An investment that is not on a state's legal list, meaning that an insurance company may not be permitted to make it because it carries too much risk. If an insurer wishes to make a nonlegal investment, it must show how it will be able to pay on its policies and still be able to carry the investment. However, some states do not permit nonlegal investments at all.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved