(a) A domestic life insurance company may acquire, hold and convey real property only for the following purposes and in the following manner:

(1) The land and the building on the land in which it has its principal office and other real property that is requisite for its convenient accommodations in the transaction of its insurance business, the amount not to exceed ten percent (10%) of its admitted assets, subject, however, to the limitations of subsection (b);

(2) Real property that has been mortgaged to it in good faith by way of security for loans previously contracted or for moneys due;

(3) Real property that has been conveyed to it in satisfaction of debts previously contracted in the course of its dealings;

(4) Real property that has been purchased at sales on judgments, decrees, or mortgages obtained or made for those debts;

(5) Real property that has been acquired for investment purposes; provided, that:

(A) No real property may be acquired or held under the authority of this subdivision (a)(5) unless at the time of acquisition it is already improved and income producing or unless it is improved with due diligence after acquisition so as to produce an income;

(B) No company shall at any one (1) time have more than two percent (2%) of its admitted assets invested in a single piece or adjoining pieces of real property acquired or held under the authority of this subdivision (a)(5); and

(C) No investments under the authority of this subdivision (a)(5) shall be made in hotels, club houses, garages, schools, factories erected and designed for special purposes or agricultural properties, without specific approval in advance by the commissioner.

(b) In no event shall the aggregate of all of a company's holdings and investments, under the authority of subdivisions (a)(1)-(5), exceed ten percent (10%) of the company's admitted assets; provided, that nothing in this subsection (b) shall prevent the acquisition by the company of any property under subdivisions (a)(2)-(4), but properties so acquired shall be held under § 56-3-306.