N.Y. Insurance Law § 1409: Limitation of investments

§ 1409. Limitation of investments. (a) Except as more specifically

provided in this chapter, no domestic insurer shall have more than ten

percent of its admitted assets as shown by its last statement on file

with the superintendent invested in, or loaned upon, the securities

(including for this purpose certificates of deposit, partnership

interests and other equity interests) of any one institution.

(b) The restriction of subsection (a) hereof shall not apply to the

classes of governmental obligations (including obligations secured by

mortgages upon real property guaranteed or insured under the National

Housing Act, 12 U.S.C. §§ 1701-1750) eligible for minimum capital or

surplus to policyholder investments pursuant to the provisions of

section one thousand four hundred two of this article nor to investments

in shares of other insurance companies pursuant to the provisions of

section one thousand four hundred eight of this article.

(c) The limitations of investments set forth in this section shall not

apply to mortgage-related securities or securities issued or guaranteed

by the Federal Home Loan Mortgage Corporation or the Federal National

Mortgage Association; provided, however, that for an insurer maintaining

an aggregate investment in excess of seventy percent of its admitted

assets as shown by its last statement on file with the superintendent in

such securities, the balance of such investments greater than seventy

percent thereon shall be limited by and apportioned according to a ratio

of one to two respectively, between investment in such securities and

investment in government obligations, as that term is defined in

paragraph one of subsection (a) of section fourteen hundred four of this

chapter.

(d) The superintendent shall not promulgate any rules or regulations

to limit or otherwise alter the provisions of paragraph two of

subsection (a) of section fourteen hundred one of this article or

subsection (c) of this section. The superintendent shall not promulgate

any rules or regulations that limit the authority of any insurer to

invest in mortgage related securities.