N.Y. Insurance Law § 1402: Minimum capital or minimum surplus to policyholder investments

§ 1402. Minimum capital or minimum surplus to policyholder

investments. (a) Before investing its funds in any other investments,

every domestic insurer shall invest and maintain an amount equal to the

greater of the minimum capital required by law or the minimum surplus to

policyholders required to be maintained by law for a domestic stock

corporation authorized to transact the same kinds of insurance, only in

investments of the types specified in this section which are not in

default as to principal or interest. Investments equal in value,

determined pursuant to section one thousand four hundred fourteen of

this article, to such amount and of such types shall at all times be

maintained free and clear from any security interest other than as

impressed upon a deposit with any government within the United States

for the security of all policyholders or all policyholders and creditors

of the insurer or upon trusteed assets held in trust for the security of

all policyholders and creditors of the insurer.

(b) Not less than sixty percent of the amount of the required minimum

capital or surplus to policyholder investments shall consist of the

types specified in paragraphs one and two hereof:

(1) Obligations of the United States or of any agency thereof provided

such agency obligations are guaranteed as to principal and interest by

the United States.

(2) Direct obligations of this state or of any county, district or

municipality thereof.

(3) Direct obligations of any state of the United States.

(4) Obligations secured by first mortgage loans which meet the

standards specified in paragraph four of subsection (a) of section one

thousand four hundred four of this article on property located in this

state.