N.Y. Insurance Law § 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.