2023 New York Laws › ISC - Insurance › Article 14 - Investments › 1408 - Acquisition of Insurance Company Shares; Limitations Thereon.

§  1408. Acquisition of insurance company shares; limitations thereon.
(a)  Any  insurer  which  makes  investments  under  the  authority   of
subsection  (c)  of  section  one  thousand  four  hundred three of this
article and which meets the requirements of such subsection and  section
one  thousand  four  hundred  two  of  this  article,  may invest in, or
otherwise acquire, the  shares,  including  voting  trust  certificates,
certificates  of deposit, interim receipts and other similar instruments
representing such shares, of any other  insurance  companies,  including
for  purposes  of  this section any corporation having a majority of its
assets invested in one or more insurance companies, in an amount  which,
together   with   its   present   holdings  and  with  any  indirect  or
proportionate interest in insurance company shares held  by  it  through
any  intermediate  subsidiary,  shall  not  exceed  in value thirty-five
percent of the surplus to policyholders of such  acquiring  insurer,  or
fifty percent of its surplus over and above its liabilities and capital,
whichever  is greater. No United States branch of an alien insurer shall
be permitted to acquire or  hold  any  shares  of  any  alien  insurance
corporation.
(b)  This  section  shall  not  prohibit  the acquisition of insurance
company shares by the acceptance of a stock dividend  nor  prohibit  the
owner  of  previously  lawfully  acquired shares of an insurance company
from making a contribution, with the approval of the superintendent,  to
such  other  insurance  company's  surplus.  Notwithstanding  any  other
provisions of this chapter, any domestic insurer or United States branch
of an alien insurer, which, prior to  January  first,  nineteen  hundred
forty,  acquired  shares of other insurance companies in accordance with
law in force at the time of such acquisition, may continue to hold them.
In determining the financial condition of a domestic insurer  shares  of
other  insurance companies shall be valued in accordance with subsection
(c) of section one thousand four hundred fourteen of this article but in
no event shall their aggregate value be allowed as an admitted asset  in
excess  of fifty per centum of the surplus to policyholders or sixty per
centum of the surplus of such insurer, whichever is greater.
(c) In applying the formulas of this section, the initial  calculation
of  surplus shall include voluntary reserves not required by law and the
value of insurance company  shares  before  adjustment  for  any  excess
holdings thereof.
(d)  A  United  States  branch  of  an  alien  insurer, other than one
licensed to do in this state the business of life  insurance,  shall  be
subject  to  the foregoing limitations, except that its trusteed surplus
statement shall be used in determining compliance. For  the  purpose  of
this  section  the  surplus  to  policyholders of a United States branch
shall be deemed to be its trusteed surplus  and  its  surplus  shall  be
deemed  to  be  its  trusteed  surplus  less  an  amount  equal  to  the
paid-in-capital specified in table one of paragraph  one  of  subsection
(a)  of  section  four  thousand one hundred three of this chapter for a
domestic stock property/casualty insurance company licensed  to  do  the
same  kinds  of  insurance  except  as  such  amount  may be modified by
paragraph five of subsection (a) of section four  thousand  one  hundred
three of this chapter.