N.Y. Insurance Law § 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.