2023 New York Laws › ISC - Insurance › Article 14 - Investments › 1413 - Investments of Foreign and Alien Insurers.

§   1413.   Investments   of  foreign  and  alien  insurers.  (a)  The
superintendent may refuse a  new  or  renewal  license  to  any  foreign
insurer,  if  he  finds  that its investments do not comply in substance
with the investment requirements and limitations imposed by this chapter
upon like domestic insurers hereafter organized to do the same  kind  or
kinds of insurance business. For the purposes of this subsection, except
for  derivative transactions authorized pursuant to section one thousand
four hundred ten of this article, a foreign insurer's investments  shall
be  deemed to comply in substance with such requirements and limitations
if, after disallowing as  admitted  assets  in  whole  or  in  part  any
investments  not  in compliance therewith, the superintendent finds that
such foreign insurer's adjusted surplus to  policyholders  is  not  less
than  an  amount  which  is  reasonable  in  relation to its outstanding
liabilities and adequate to its financial needs, and at least  equal  to
the  minimum  surplus  to  policyholders  required  on organization of a
domestic insurer to do the same kind or kinds of insurance business. The
superintendent may recognize like securities of a foreign insurer's home
state as minimum capital or minimum surplus to policyholder  investments
in  lieu  of  the  securities  specified  in  paragraphs two and four of
subsection (b) of section one thousand four hundred two of this article.
Foreign insurers engaging in derivative transactions pursuant to section
one thousand  four  hundred  ten  of  this  article  shall  comply  with
subsection   (k)  of  such  section  for  the  purposes  of  substantial
compliance.
(b) No alien insurer shall be authorized to do business in this  state
unless  its  general  state deposits and its trusteed assets comply with
the requirements and limitations of  this  chapter  applicable  to  like
foreign  insurers  hereafter  licensed  to  do the same kind or kinds of
insurance business, except that foreign investments shall be allowed  to
the following extent only:
(1)  Obligations issued or guaranteed by the government of the country
in which the alien insurer was organized or by  any  province  or  other
major  political  subdivision thereof and not in default as to principal
or interest, may be recognized as reserve investments under section  one
thousand  four  hundred  four  of  this article (in the case of insurers
making investments under section one thousand four hundred four of  this
article)  or as investments under section one thousand four hundred five
(in the case of insurers making investments under section  one  thousand
four  hundred  five  of  this  article)  in  an amount not exceeding the
statutory deposit required by the provisions  of  section  one  thousand
three hundred twenty of this chapter.
(2)  Except as provided in paragraph one hereof, for an alien non-life
insurer  foreign  investments  that  qualify  as  a  reserve  investment
pursuant to the provisions of paragraph six of subsection (a) of section
one  thousand  four hundred four of this article may be included in such
alien insurer's trusteed assets in an aggregate amount not exceeding ten
percent of the admitted assets of such insurer's United States branch as
shown by its last statement on file with the superintendent, or, for  an
alien  life  insurer,  foreign  investments that qualify pursuant to the
provisions of paragraph seven of subsection (a) of section one  thousand
four  hundred  five  of  this  article  may  be  included  in such alien
insurer's trusteed assets in  an  aggregate  amount  not  exceeding  the
applicable  quantitative  limitations,  as  set  forth in such paragraph
seven.
(c) The superintendent may refuse a new  or  renewal  license  to  any
foreign  or  alien  insurer  which  holds a direct or indirect ownership
interest in a risk retention group, as defined in article fifty-nine  of

this  chapter, other than in a risk retention group all of whose members
are insurance companies.
(d)  This  section shall not relieve any foreign or alien insurer from
compliance with any other provision of this chapter.