N.Y. Insurance Law § 4530: Optional Investment Authority

§ 4530. Optional Investment Authority. (a) An authorized society

meeting the requirements set forth in this section is authorized to

invest its funds in, or otherwise acquire, or loan upon, the types of

investments specified in sections one thousand four hundred two, one

thousand four hundred three, one thousand four hundred five, one

thousand four hundred six, one thousand four hundred ten, and four

thousand two hundred forty of this chapter, subject to the limitations

contained therein. The provisions of section one thousand four hundred

four of this chapter shall not have any application to investments of

such societies, except to the extent provided in paragraph four of

subsection (b) of section one thousand four hundred two of this chapter.

(b) In addition to other requirements of this article, an authorized

society investing pursuant to this section shall meet the following

requirements:

(1) Prior to investing pursuant to this section, the society shall

submit notice to the superintendent that the board of directors of the

society has approved investment pursuant to this section and that the

society meets the requirements of this section and intends to invest

hereunder;

(2) The society shall: (A) have been in continuous operation for a

minimum of five years; and (B) have total admitted assets of at least

two billion dollars for a period of five continuous years as of the

immediately preceding calendar year; and

(3) For each calendar year during which this section applies to the

society, the society shall have, as of the end of the immediately

preceding calendar year:

(A) had a risk based capital level of at least six times authorized

control level RBC as defined by the provisions of section one thousand

three hundred twenty-two of this chapter; and

(B) maintained a minimum claims-paying, financial strength or

equivalent rating from at least one nationally recognized statistical

rating organization in one of the organization's three highest rating

categories for the time period during which this section applies to the

society provided that the rating shall not depend on a guarantee or

other credit enhancement from another entity; and shall not be modified

or otherwise qualified to show dependence of the rating on the

performance or a contractual obligation of, or the society's affiliation

with, another society.

(c) Whenever a society fails to meet the requirements set forth in

this section, the superintendent may, in his or her discretion, prohibit

or limit the society from engaging in new investments under this

section.