§ 1413 — Investments of foreign and alien insurers

§ 1413. Investments of foreign and alien insurers. (a) The\nsuperintendent may refuse a new or renewal license to any foreign\ninsurer, if he finds that its investments do not comply in substance\nwith the investment requirements and limitations imposed by this chapter\nupon like domestic insurers hereafter organized to do the same kind or\nkinds of insurance business. For the purposes of this subsection, except\nfor derivative transactions authorized pursuant to section one thousand\nfour hundred ten of this article, a foreign insurer's investments shall\nbe deemed to comply in substance with such requirements and limitations\nif, after disallowing as admitted assets in whole or in part any\ninvestments not in compliance therewith, the superintendent finds that\nsuch foreign insurer's adjusted surplus to policyholders is not less\nthan an amount which is reasonable in relation to its outstanding\nliabilities and adequate to its financial needs, and at least equal to\nthe minimum surplus to policyholders required on organization of a\ndomestic insurer to do the same kind or kinds of insurance business. The\nsuperintendent may recognize like securities of a foreign insurer's home\nstate as minimum capital or minimum surplus to policyholder investments\nin lieu of the securities specified in paragraphs two and four of\nsubsection (b) of section one thousand four hundred two of this article.\nForeign insurers engaging in derivative transactions pursuant to section\none thousand four hundred ten of this article shall comply with\nsubsection (k) of such section for the purposes of substantial\ncompliance.\n (b) No alien insurer shall be authorized to do business in this state\nunless its general state deposits and its trusteed assets comply with\nthe requirements and limitations of this chapter applicable to like\nforeign insurers hereafter licensed to do the same kind or kinds of\ninsurance business, except that foreign investments shall be allowed to\nthe following extent only:\n (1) Obligations issued or guaranteed by the government of the country\nin which the alien insurer was organized or by any province or other\nmajor political subdivision thereof and not in default as to principal\nor interest, may be recognized as reserve investments under section one\nthousand four hundred four of this article (in the case of insurers\nmaking investments under section one thousand four hundred four of this\narticle) or as investments under section one thousand four hundred five\n(in the case of insurers making investments under section one thousand\nfour hundred five of this article) in an amount not exceeding the\nstatutory deposit required by the provisions of section one thousand\nthree hundred twenty of this chapter.\n (2) Except as provided in paragraph one hereof, for an alien non-life\ninsurer foreign investments that qualify as a reserve investment\npursuant to the provisions of paragraph six of subsection (a) of section\none thousand four hundred four of this article may be included in such\nalien insurer's trusteed assets in an aggregate amount not exceeding ten\npercent of the admitted assets of such insurer's United States branch as\nshown by its last statement on file with the superintendent, or, for an\nalien life insurer, foreign investments that qualify pursuant to the\nprovisions of paragraph seven of subsection (a) of section one thousand\nfour hundred five of this article may be included in such alien\ninsurer's trusteed assets in an aggregate amount not exceeding the\napplicable quantitative limitations, as set forth in such paragraph\nseven.\n (c) The superintendent may refuse a new or renewal license to any\nforeign or alien insurer which holds a direct or indirect ownership\ninterest in a risk retention group, as defined in article fifty-nine of\nthis chapter, other than in a risk retention group all of whose members\nare insurance companies.\n (d) This section shall not relieve any foreign or alien insurer from\ncompliance with any other provision of this chapter.\n