N.Y. Insurance Law § 1610: Authority to conduct certain business directly instead of through subsidiary

§ 1610. Authority to conduct certain business directly instead of

through subsidiary. (a) A domestic insurance company subject to this

article may, provided that it maintains books and records which

separately account for such business, engage directly in any business

referred to in paragraphs one, two and three of this subsection to the

extent any such business is necessarily or properly incidental to the

insurance business the insurer is authorized to do in this state:

(1) rendering investment advice;

(2) rendering services related to the functions involved in the

operation of an insurance business including actuarial, loss prevention,

safety engineering, data processing, accounting, claims, appraisals,

collections and soliciting and engaging in the business of representing

self-insurers pursuant to section fifty of the workers' compensation

law; and

(3) acting as administrative agent for a government instrumentality

which is performing an insurance function or is responsible for a health

or welfare program.

(b) A domestic insurance company subject to this article may, provided

that it maintains books and records which separately account for such

business, engage directly in any other business activity reasonably

ancillary to an insurance business to the extent any such business is

approved by the superintendent and subject to any limitations he may

prescribe to protect the interests of the policyholders of the insurer

after taking into account:

(1) the effect of such business on the insurer's existing insurance

business and its surplus,

(2) the proposed allocation of the estimated cost of such business,

(3) the risks inherent in such business, and

(4) the relative advantages to the insurer and its policyholders of

conducting such business directly instead of through a subsidiary.