State Codes and Statutes

Statutes > New-york > Isc > Article-14 > 1403

§  1403.  Reserve  and other investments; certain requirements. (a) If  the requirements of section  one  thousand  four  hundred  two  of  this  article are met:    (1)  any  domestic  life insurance company may invest its funds in, or  otherwise acquire, or loan upon, only the types of investments specified  in section one thousand four hundred two,  this  section,  sections  one  thousand  four hundred five, one thousand four hundred six, one thousand  four hundred ten, four thousand two hundred forty and article  seventeen  of  this  chapter,  subject  to  the  limitations therein contained. The  provisions of section one thousand four hundred  four  of  this  article  shall  not  have  any  application  to  investments  of  life  insurance  companies, except to the extent provided in paragraph four of subsection  (b) of section one thousand four hundred two of this article;    (2)  any  domestic  corporation  subject  to  article  forty-three  or  sixty-four  of  this  chapter and any domestic fraternal benefit society  subject to article forty-five of this chapter may invest its  funds  in,  or  otherwise  acquire,  or  loan  upon,  only  the types of investments  specified in section one thousand four hundred  two,  this  section  and  section one thousand four hundred four of this article, except as may be  modified by said article forty-three or sixty-four of this chapter as to  corporations  organized  thereunder  or  by  article  forty-five of this  chapter as to  societies  organized  thereunder.  Any  such  corporation  subject   to  article  forty-three  or  any  such  society  governed  by  subsection (a) of section forty-five hundred twenty-nine of this chapter  may also invest in, or otherwise acquire,  subsidiaries  to  the  extent  permitted by subsection (b) of section one thousand seven hundred one of  this  chapter.  Any  such fraternal benefit society may also make policy  loans under section one thousand four hundred six of this article.    (b) A domestic charitable annuity society, the  investments  of  which  are  subject  to  the  provisions  of section eleven hundred ten of this  chapter, may invest such of its  assets  (the  investment  of  which  is  controlled  by  section eleven hundred ten) in, or otherwise acquire, or  loan upon, only  the  types  of  securities  specified  in  section  one  thousand  four  hundred  two, this section and section one thousand four  hundred four of  this  article.  A  retirement  system  subject  to  the  provisions  of  article  forty-six  of this chapter may invest its funds  only as provided in article forty-six of this chapter.  In  addition,  a  retirement  system subject to article forty-six may acquire subsidiaries  under article seventeen of  this  chapter  and  may  establish  separate  accounts  under section four thousand two hundred forty of this chapter,  in each case to the  extent  permitted  by  article  forty-six  of  this  chapter.    (c)  If  the  requirements of section one thousand four hundred two of  this article are met,  any  domestic  insurer,  other  than  an  insurer  subject  to  subsection  (a)  or (b) of this section, may, except as set  forth below, invest its funds in, or otherwise acquire,  or  loan  upon,  only  the  types  of investments specified in such section, this section  and subsection (a) of section one thousand four  hundred  four  of  this  article  (except  paragraphs  eight  and  ten  of subsection (a) of such  section); provided that any such domestic insurer may  also  invest  its  funds  in, or otherwise acquire or loan upon investments permitted under  sections one thousand four hundred seven (including investments  of  the  classes  described  in  paragraphs  eight  and  ten of subsection (a) of  section one thousand four  hundred  four),  section  one  thousand  four  hundred  eight  of  this article and article sixteen of this chapter, so  long as it maintains cash, investments required by section one  thousand  four   hundred  two  of  this  article  and  reserve  investments  under  subsection (a) of  section  one  thousand  four  hundred  four  of  thisarticle,  free from any lien or pledge, which, when valued in accordance  with the provisions of this chapter, shall at least equal fifty  percent  of  the  aggregate  amount  of  its  unearned  premium,  loss  and  loss  adjustment expense reserves as shown by its last sworn statement, annual  or quarterly, on file with the superintendent. If an insurer, other than  an  accident  and  health insurance company, maintains cash, investments  required by section one thousand four hundred two of  this  article  and  reserve  investments  under  subsection (a) of section one thousand four  hundred four of this article, free from any lien or pledge, which,  when  valued in accordance with the provisions of this chapter, shall at least  equal  the  aggregate of seventy percent of its loss and loss adjustment  expense reserves and fifty percent of its unearned premium  reserves  as  shown by its last sworn statement, annual or quarterly, on file with the  superintendent,  then  such  insurer,  other than an accident and health  insurance company, may in addition enter into the types of  transactions  set  forth  in  section  one  thousand four hundred ten of this article,  subject to the limitations set forth in such section. The term "lien  or  pledge"  as  used  in  this  subsection shall not include any deposit of  securities or cash with any government, nor  trusteed  assets,  held  in  trust  for  the  benefit  or  protection  of  all  or  any  class of the  policyholders, or policyholders and creditors, of such insurer.    (d) (1) Except for investments referred to in subsection (e)  of  this  section, investments that are neither interest bearing nor income paying  shall  be  purchased or acquired only under, and to the extent permitted  by, subsection (b) of section one thousand four  hundred  four  of  this  article (in the case of insurers that make investments under section one  thousand  four  hundred  four of this article other than insurers making  investments under the authority of  subsection  (c)  of  this  section),  paragraph  eight  of subsection (a) of section one thousand four hundred  five of this article (in the case  of  insurers  that  make  investments  under  section  one  thousand four hundred five) or section one thousand  four hundred seven of this article (in the case of  insurers  that  make  investments  under  the  authority  of  subsection (c) of this section),  however, a default in interest or income  occurring  subsequent  to  the  purchase  or  other  acquisition  of  an investment shall not affect the  allowance thereof as an admitted asset at the market value thereof.    (2)(A) Notwithstanding any other provision of this article, a domestic  insurer making investments pursuant to paragraph two of  subsection  (a)  of  this section, a domestic charitable annuity society and a retirement  system making investments pursuant to subsection (b)  of  this  section,  and  a  domestic accident and health insurer making investments pursuant  to subsection (c) of this section may sell call options  on  securities,  provided that:    (i)  such options are traded on a securities exchange registered under  the laws of the United States, and    (ii) the  insurer  holds,  or  can  immediately  acquire  through  the  exercise   of   warrants   or  conversion  rights  already  owned  at  a  contractually specified price,  the  underlying  securities  during  the  entire period the option is outstanding.    (B)  An  insurer  selling  call  options  on  securities  pursuant  to  subparagraph (A) of this paragraph  may  purchase  any  such  option  to  offset an outstanding option previously sold by the insurer for the same  kind and amount of securities.    (e)   (1)  Nothing  contained  in  this  chapter  shall  prohibit  the  acquisition by any insurer of other securities or property (i)  received  as  a  dividend or pursuant to a judicial or lawful non-judicial plan of  reorganization or dissolution or pursuant to  a  lawful  and  bona  fide  agreement of bulk reinsurance or consolidation; or (ii) received throughthe  exercise  of  rights of conversion, stock warrants or stock options  acquired by it  in  accordance  with  this  subsection  or  section  one  thousand four hundred four, one thousand four hundred five, one thousand  four hundred seven or one thousand four hundred ten of this article. Nor  shall anything in this chapter prohibit acquisition of (1) an investment  permitted  under  section  one  thousand four hundred four, one thousand  four hundred five, one thousand four hundred seven or one thousand  four  hundred  ten of this article because such investment is convertible into  other securities in which such insurer is not permitted to invest  under  this  chapter,  or because such insurer receives in connection with such  investment stock warrants, whether detachable or  non-detachable,  stock  options,  stock,  property  interests or other assets of any kind or (2)  securities or property  (real  or  personal)  or  any  interest  therein  received  in satisfaction of a debt previously owing to such insurer. If  any securities or other property received by any insurer  in  accordance  with  the  first sentence of this paragraph shall consist in whole or in  part of shares of any institution or of obligations  or  other  property  not  meeting  the  requirements  specified  in section one thousand four  hundred four (in the case  of  insurers  making  investments  under  the  authority  of  section  one  thousand  four hundred four) or section one  thousand four hundred five (in the case of insurers  making  investments  under  the  authority of section one thousand four hundred five) of this  article, then any such shares and any such obligations  or  property  so  received  shall  be  disposed  of  within  five  years  from the time of  acquisition or before the expiration of such further period  or  periods  of time as may be prescribed in writing by the superintendent, unless at  any  time  after  such  acquisition such shares, obligations or property  shall have met such  requirements  and  the  insurer  has  notified  the  superintendent thereof.    (2)  Except  as  otherwise  specifically  provided  in  this  chapter,  investments in subsidiaries are not subject to the  provisions  of  this  section,  section  one thousand four hundred four (except paragraph nine  of subsection (a) thereof) or one thousand four  hundred  five  of  this  article.    (f)  (1)  Subsidiaries  of  domestic life insurance companies, whether  acquired under subsection (e) of this  section,  sections  one  thousand  four  hundred five, four thousand two hundred forty, or otherwise, shall  be subject to the provisions of article seventeen of this chapter to the  extent therein provided.    (2)  Subsidiaries  of  domestic  corporations   subject   to   article  forty-three  of this chapter and of domestic retirement systems, whether  acquired under subsection (e) of this section, section one thousand four  hundred four, four thousand two hundred forty (in the case of retirement  systems), or otherwise, shall be subject to the  provisions  of  article  seventeen of this chapter to the extent therein provided.    (g) This section does not prohibit any domestic insurance company from  acquiring  shares  under  article  seventy-one  of  this  chapter or any  domestic life insurance company from acquiring shares of its own capital  stock pursuant to section seven  thousand  three  hundred  two  of  this  chapter.    (h)  With  respect  to all transactions between a domestic insurer and  any person, five percent or more of whose voting  securities  are  held,  directly  or indirectly, by such insurer, but which is not a subsidiary,  the insurer shall maintain books, accounts  and  records  that  disclose  clearly and accurately the nature and detail of such transactions.    (i)  (1)  Except  as  provided in subparagraph (A) of paragraph two of  subsection (a) of section  four  thousand  two  hundred  forty  of  this  chapter,  investments made for separate accounts under the provisions ofsection four thousand  two  hundred  forty  of  this  chapter  shall  be  disregarded, and shall be excluded from admitted assets, in applying the  quantitative  investment  limitations contained in this chapter to other  investments.    (2)  Except  as  provided  in  subparagraph  (A)  of  paragraph two of  subsection (a) or paragraph four  of  subsection  (a)  of  section  four  thousand   two   hundred   forty  of  this  chapter,  the  restrictions,  limitations and other provisions relating to  investments  specified  in  this  chapter  shall not apply to investments made for separate accounts  under the provisions of section four thousand two hundred forty of  this  chapter.

State Codes and Statutes

Statutes > New-york > Isc > Article-14 > 1403

§  1403.  Reserve  and other investments; certain requirements. (a) If  the requirements of section  one  thousand  four  hundred  two  of  this  article are met:    (1)  any  domestic  life insurance company may invest its funds in, or  otherwise acquire, or loan upon, only the types of investments specified  in section one thousand four hundred two,  this  section,  sections  one  thousand  four hundred five, one thousand four hundred six, one thousand  four hundred ten, four thousand two hundred forty and article  seventeen  of  this  chapter,  subject  to  the  limitations therein contained. The  provisions of section one thousand four hundred  four  of  this  article  shall  not  have  any  application  to  investments  of  life  insurance  companies, except to the extent provided in paragraph four of subsection  (b) of section one thousand four hundred two of this article;    (2)  any  domestic  corporation  subject  to  article  forty-three  or  sixty-four  of  this  chapter and any domestic fraternal benefit society  subject to article forty-five of this chapter may invest its  funds  in,  or  otherwise  acquire,  or  loan  upon,  only  the types of investments  specified in section one thousand four hundred  two,  this  section  and  section one thousand four hundred four of this article, except as may be  modified by said article forty-three or sixty-four of this chapter as to  corporations  organized  thereunder  or  by  article  forty-five of this  chapter as to  societies  organized  thereunder.  Any  such  corporation  subject   to  article  forty-three  or  any  such  society  governed  by  subsection (a) of section forty-five hundred twenty-nine of this chapter  may also invest in, or otherwise acquire,  subsidiaries  to  the  extent  permitted by subsection (b) of section one thousand seven hundred one of  this  chapter.  Any  such fraternal benefit society may also make policy  loans under section one thousand four hundred six of this article.    (b) A domestic charitable annuity society, the  investments  of  which  are  subject  to  the  provisions  of section eleven hundred ten of this  chapter, may invest such of its  assets  (the  investment  of  which  is  controlled  by  section eleven hundred ten) in, or otherwise acquire, or  loan upon, only  the  types  of  securities  specified  in  section  one  thousand  four  hundred  two, this section and section one thousand four  hundred four of  this  article.  A  retirement  system  subject  to  the  provisions  of  article  forty-six  of this chapter may invest its funds  only as provided in article forty-six of this chapter.  In  addition,  a  retirement  system subject to article forty-six may acquire subsidiaries  under article seventeen of  this  chapter  and  may  establish  separate  accounts  under section four thousand two hundred forty of this chapter,  in each case to the  extent  permitted  by  article  forty-six  of  this  chapter.    (c)  If  the  requirements of section one thousand four hundred two of  this article are met,  any  domestic  insurer,  other  than  an  insurer  subject  to  subsection  (a)  or (b) of this section, may, except as set  forth below, invest its funds in, or otherwise acquire,  or  loan  upon,  only  the  types  of investments specified in such section, this section  and subsection (a) of section one thousand four  hundred  four  of  this  article  (except  paragraphs  eight  and  ten  of subsection (a) of such  section); provided that any such domestic insurer may  also  invest  its  funds  in, or otherwise acquire or loan upon investments permitted under  sections one thousand four hundred seven (including investments  of  the  classes  described  in  paragraphs  eight  and  ten of subsection (a) of  section one thousand four  hundred  four),  section  one  thousand  four  hundred  eight  of  this article and article sixteen of this chapter, so  long as it maintains cash, investments required by section one  thousand  four   hundred  two  of  this  article  and  reserve  investments  under  subsection (a) of  section  one  thousand  four  hundred  four  of  thisarticle,  free from any lien or pledge, which, when valued in accordance  with the provisions of this chapter, shall at least equal fifty  percent  of  the  aggregate  amount  of  its  unearned  premium,  loss  and  loss  adjustment expense reserves as shown by its last sworn statement, annual  or quarterly, on file with the superintendent. If an insurer, other than  an  accident  and  health insurance company, maintains cash, investments  required by section one thousand four hundred two of  this  article  and  reserve  investments  under  subsection (a) of section one thousand four  hundred four of this article, free from any lien or pledge, which,  when  valued in accordance with the provisions of this chapter, shall at least  equal  the  aggregate of seventy percent of its loss and loss adjustment  expense reserves and fifty percent of its unearned premium  reserves  as  shown by its last sworn statement, annual or quarterly, on file with the  superintendent,  then  such  insurer,  other than an accident and health  insurance company, may in addition enter into the types of  transactions  set  forth  in  section  one  thousand four hundred ten of this article,  subject to the limitations set forth in such section. The term "lien  or  pledge"  as  used  in  this  subsection shall not include any deposit of  securities or cash with any government, nor  trusteed  assets,  held  in  trust  for  the  benefit  or  protection  of  all  or  any  class of the  policyholders, or policyholders and creditors, of such insurer.    (d) (1) Except for investments referred to in subsection (e)  of  this  section, investments that are neither interest bearing nor income paying  shall  be  purchased or acquired only under, and to the extent permitted  by, subsection (b) of section one thousand four  hundred  four  of  this  article (in the case of insurers that make investments under section one  thousand  four  hundred  four of this article other than insurers making  investments under the authority of  subsection  (c)  of  this  section),  paragraph  eight  of subsection (a) of section one thousand four hundred  five of this article (in the case  of  insurers  that  make  investments  under  section  one  thousand four hundred five) or section one thousand  four hundred seven of this article (in the case of  insurers  that  make  investments  under  the  authority  of  subsection (c) of this section),  however, a default in interest or income  occurring  subsequent  to  the  purchase  or  other  acquisition  of  an investment shall not affect the  allowance thereof as an admitted asset at the market value thereof.    (2)(A) Notwithstanding any other provision of this article, a domestic  insurer making investments pursuant to paragraph two of  subsection  (a)  of  this section, a domestic charitable annuity society and a retirement  system making investments pursuant to subsection (b)  of  this  section,  and  a  domestic accident and health insurer making investments pursuant  to subsection (c) of this section may sell call options  on  securities,  provided that:    (i)  such options are traded on a securities exchange registered under  the laws of the United States, and    (ii) the  insurer  holds,  or  can  immediately  acquire  through  the  exercise   of   warrants   or  conversion  rights  already  owned  at  a  contractually specified price,  the  underlying  securities  during  the  entire period the option is outstanding.    (B)  An  insurer  selling  call  options  on  securities  pursuant  to  subparagraph (A) of this paragraph  may  purchase  any  such  option  to  offset an outstanding option previously sold by the insurer for the same  kind and amount of securities.    (e)   (1)  Nothing  contained  in  this  chapter  shall  prohibit  the  acquisition by any insurer of other securities or property (i)  received  as  a  dividend or pursuant to a judicial or lawful non-judicial plan of  reorganization or dissolution or pursuant to  a  lawful  and  bona  fide  agreement of bulk reinsurance or consolidation; or (ii) received throughthe  exercise  of  rights of conversion, stock warrants or stock options  acquired by it  in  accordance  with  this  subsection  or  section  one  thousand four hundred four, one thousand four hundred five, one thousand  four hundred seven or one thousand four hundred ten of this article. Nor  shall anything in this chapter prohibit acquisition of (1) an investment  permitted  under  section  one  thousand four hundred four, one thousand  four hundred five, one thousand four hundred seven or one thousand  four  hundred  ten of this article because such investment is convertible into  other securities in which such insurer is not permitted to invest  under  this  chapter,  or because such insurer receives in connection with such  investment stock warrants, whether detachable or  non-detachable,  stock  options,  stock,  property  interests or other assets of any kind or (2)  securities or property  (real  or  personal)  or  any  interest  therein  received  in satisfaction of a debt previously owing to such insurer. If  any securities or other property received by any insurer  in  accordance  with  the  first sentence of this paragraph shall consist in whole or in  part of shares of any institution or of obligations  or  other  property  not  meeting  the  requirements  specified  in section one thousand four  hundred four (in the case  of  insurers  making  investments  under  the  authority  of  section  one  thousand  four hundred four) or section one  thousand four hundred five (in the case of insurers  making  investments  under  the  authority of section one thousand four hundred five) of this  article, then any such shares and any such obligations  or  property  so  received  shall  be  disposed  of  within  five  years  from the time of  acquisition or before the expiration of such further period  or  periods  of time as may be prescribed in writing by the superintendent, unless at  any  time  after  such  acquisition such shares, obligations or property  shall have met such  requirements  and  the  insurer  has  notified  the  superintendent thereof.    (2)  Except  as  otherwise  specifically  provided  in  this  chapter,  investments in subsidiaries are not subject to the  provisions  of  this  section,  section  one thousand four hundred four (except paragraph nine  of subsection (a) thereof) or one thousand four  hundred  five  of  this  article.    (f)  (1)  Subsidiaries  of  domestic life insurance companies, whether  acquired under subsection (e) of this  section,  sections  one  thousand  four  hundred five, four thousand two hundred forty, or otherwise, shall  be subject to the provisions of article seventeen of this chapter to the  extent therein provided.    (2)  Subsidiaries  of  domestic  corporations   subject   to   article  forty-three  of this chapter and of domestic retirement systems, whether  acquired under subsection (e) of this section, section one thousand four  hundred four, four thousand two hundred forty (in the case of retirement  systems), or otherwise, shall be subject to the  provisions  of  article  seventeen of this chapter to the extent therein provided.    (g) This section does not prohibit any domestic insurance company from  acquiring  shares  under  article  seventy-one  of  this  chapter or any  domestic life insurance company from acquiring shares of its own capital  stock pursuant to section seven  thousand  three  hundred  two  of  this  chapter.    (h)  With  respect  to all transactions between a domestic insurer and  any person, five percent or more of whose voting  securities  are  held,  directly  or indirectly, by such insurer, but which is not a subsidiary,  the insurer shall maintain books, accounts  and  records  that  disclose  clearly and accurately the nature and detail of such transactions.    (i)  (1)  Except  as  provided in subparagraph (A) of paragraph two of  subsection (a) of section  four  thousand  two  hundred  forty  of  this  chapter,  investments made for separate accounts under the provisions ofsection four thousand  two  hundred  forty  of  this  chapter  shall  be  disregarded, and shall be excluded from admitted assets, in applying the  quantitative  investment  limitations contained in this chapter to other  investments.    (2)  Except  as  provided  in  subparagraph  (A)  of  paragraph two of  subsection (a) or paragraph four  of  subsection  (a)  of  section  four  thousand   two   hundred   forty  of  this  chapter,  the  restrictions,  limitations and other provisions relating to  investments  specified  in  this  chapter  shall not apply to investments made for separate accounts  under the provisions of section four thousand two hundred forty of  this  chapter.

State Codes and Statutes

State Codes and Statutes

Statutes > New-york > Isc > Article-14 > 1403

§  1403.  Reserve  and other investments; certain requirements. (a) If  the requirements of section  one  thousand  four  hundred  two  of  this  article are met:    (1)  any  domestic  life insurance company may invest its funds in, or  otherwise acquire, or loan upon, only the types of investments specified  in section one thousand four hundred two,  this  section,  sections  one  thousand  four hundred five, one thousand four hundred six, one thousand  four hundred ten, four thousand two hundred forty and article  seventeen  of  this  chapter,  subject  to  the  limitations therein contained. The  provisions of section one thousand four hundred  four  of  this  article  shall  not  have  any  application  to  investments  of  life  insurance  companies, except to the extent provided in paragraph four of subsection  (b) of section one thousand four hundred two of this article;    (2)  any  domestic  corporation  subject  to  article  forty-three  or  sixty-four  of  this  chapter and any domestic fraternal benefit society  subject to article forty-five of this chapter may invest its  funds  in,  or  otherwise  acquire,  or  loan  upon,  only  the types of investments  specified in section one thousand four hundred  two,  this  section  and  section one thousand four hundred four of this article, except as may be  modified by said article forty-three or sixty-four of this chapter as to  corporations  organized  thereunder  or  by  article  forty-five of this  chapter as to  societies  organized  thereunder.  Any  such  corporation  subject   to  article  forty-three  or  any  such  society  governed  by  subsection (a) of section forty-five hundred twenty-nine of this chapter  may also invest in, or otherwise acquire,  subsidiaries  to  the  extent  permitted by subsection (b) of section one thousand seven hundred one of  this  chapter.  Any  such fraternal benefit society may also make policy  loans under section one thousand four hundred six of this article.    (b) A domestic charitable annuity society, the  investments  of  which  are  subject  to  the  provisions  of section eleven hundred ten of this  chapter, may invest such of its  assets  (the  investment  of  which  is  controlled  by  section eleven hundred ten) in, or otherwise acquire, or  loan upon, only  the  types  of  securities  specified  in  section  one  thousand  four  hundred  two, this section and section one thousand four  hundred four of  this  article.  A  retirement  system  subject  to  the  provisions  of  article  forty-six  of this chapter may invest its funds  only as provided in article forty-six of this chapter.  In  addition,  a  retirement  system subject to article forty-six may acquire subsidiaries  under article seventeen of  this  chapter  and  may  establish  separate  accounts  under section four thousand two hundred forty of this chapter,  in each case to the  extent  permitted  by  article  forty-six  of  this  chapter.    (c)  If  the  requirements of section one thousand four hundred two of  this article are met,  any  domestic  insurer,  other  than  an  insurer  subject  to  subsection  (a)  or (b) of this section, may, except as set  forth below, invest its funds in, or otherwise acquire,  or  loan  upon,  only  the  types  of investments specified in such section, this section  and subsection (a) of section one thousand four  hundred  four  of  this  article  (except  paragraphs  eight  and  ten  of subsection (a) of such  section); provided that any such domestic insurer may  also  invest  its  funds  in, or otherwise acquire or loan upon investments permitted under  sections one thousand four hundred seven (including investments  of  the  classes  described  in  paragraphs  eight  and  ten of subsection (a) of  section one thousand four  hundred  four),  section  one  thousand  four  hundred  eight  of  this article and article sixteen of this chapter, so  long as it maintains cash, investments required by section one  thousand  four   hundred  two  of  this  article  and  reserve  investments  under  subsection (a) of  section  one  thousand  four  hundred  four  of  thisarticle,  free from any lien or pledge, which, when valued in accordance  with the provisions of this chapter, shall at least equal fifty  percent  of  the  aggregate  amount  of  its  unearned  premium,  loss  and  loss  adjustment expense reserves as shown by its last sworn statement, annual  or quarterly, on file with the superintendent. If an insurer, other than  an  accident  and  health insurance company, maintains cash, investments  required by section one thousand four hundred two of  this  article  and  reserve  investments  under  subsection (a) of section one thousand four  hundred four of this article, free from any lien or pledge, which,  when  valued in accordance with the provisions of this chapter, shall at least  equal  the  aggregate of seventy percent of its loss and loss adjustment  expense reserves and fifty percent of its unearned premium  reserves  as  shown by its last sworn statement, annual or quarterly, on file with the  superintendent,  then  such  insurer,  other than an accident and health  insurance company, may in addition enter into the types of  transactions  set  forth  in  section  one  thousand four hundred ten of this article,  subject to the limitations set forth in such section. The term "lien  or  pledge"  as  used  in  this  subsection shall not include any deposit of  securities or cash with any government, nor  trusteed  assets,  held  in  trust  for  the  benefit  or  protection  of  all  or  any  class of the  policyholders, or policyholders and creditors, of such insurer.    (d) (1) Except for investments referred to in subsection (e)  of  this  section, investments that are neither interest bearing nor income paying  shall  be  purchased or acquired only under, and to the extent permitted  by, subsection (b) of section one thousand four  hundred  four  of  this  article (in the case of insurers that make investments under section one  thousand  four  hundred  four of this article other than insurers making  investments under the authority of  subsection  (c)  of  this  section),  paragraph  eight  of subsection (a) of section one thousand four hundred  five of this article (in the case  of  insurers  that  make  investments  under  section  one  thousand four hundred five) or section one thousand  four hundred seven of this article (in the case of  insurers  that  make  investments  under  the  authority  of  subsection (c) of this section),  however, a default in interest or income  occurring  subsequent  to  the  purchase  or  other  acquisition  of  an investment shall not affect the  allowance thereof as an admitted asset at the market value thereof.    (2)(A) Notwithstanding any other provision of this article, a domestic  insurer making investments pursuant to paragraph two of  subsection  (a)  of  this section, a domestic charitable annuity society and a retirement  system making investments pursuant to subsection (b)  of  this  section,  and  a  domestic accident and health insurer making investments pursuant  to subsection (c) of this section may sell call options  on  securities,  provided that:    (i)  such options are traded on a securities exchange registered under  the laws of the United States, and    (ii) the  insurer  holds,  or  can  immediately  acquire  through  the  exercise   of   warrants   or  conversion  rights  already  owned  at  a  contractually specified price,  the  underlying  securities  during  the  entire period the option is outstanding.    (B)  An  insurer  selling  call  options  on  securities  pursuant  to  subparagraph (A) of this paragraph  may  purchase  any  such  option  to  offset an outstanding option previously sold by the insurer for the same  kind and amount of securities.    (e)   (1)  Nothing  contained  in  this  chapter  shall  prohibit  the  acquisition by any insurer of other securities or property (i)  received  as  a  dividend or pursuant to a judicial or lawful non-judicial plan of  reorganization or dissolution or pursuant to  a  lawful  and  bona  fide  agreement of bulk reinsurance or consolidation; or (ii) received throughthe  exercise  of  rights of conversion, stock warrants or stock options  acquired by it  in  accordance  with  this  subsection  or  section  one  thousand four hundred four, one thousand four hundred five, one thousand  four hundred seven or one thousand four hundred ten of this article. Nor  shall anything in this chapter prohibit acquisition of (1) an investment  permitted  under  section  one  thousand four hundred four, one thousand  four hundred five, one thousand four hundred seven or one thousand  four  hundred  ten of this article because such investment is convertible into  other securities in which such insurer is not permitted to invest  under  this  chapter,  or because such insurer receives in connection with such  investment stock warrants, whether detachable or  non-detachable,  stock  options,  stock,  property  interests or other assets of any kind or (2)  securities or property  (real  or  personal)  or  any  interest  therein  received  in satisfaction of a debt previously owing to such insurer. If  any securities or other property received by any insurer  in  accordance  with  the  first sentence of this paragraph shall consist in whole or in  part of shares of any institution or of obligations  or  other  property  not  meeting  the  requirements  specified  in section one thousand four  hundred four (in the case  of  insurers  making  investments  under  the  authority  of  section  one  thousand  four hundred four) or section one  thousand four hundred five (in the case of insurers  making  investments  under  the  authority of section one thousand four hundred five) of this  article, then any such shares and any such obligations  or  property  so  received  shall  be  disposed  of  within  five  years  from the time of  acquisition or before the expiration of such further period  or  periods  of time as may be prescribed in writing by the superintendent, unless at  any  time  after  such  acquisition such shares, obligations or property  shall have met such  requirements  and  the  insurer  has  notified  the  superintendent thereof.    (2)  Except  as  otherwise  specifically  provided  in  this  chapter,  investments in subsidiaries are not subject to the  provisions  of  this  section,  section  one thousand four hundred four (except paragraph nine  of subsection (a) thereof) or one thousand four  hundred  five  of  this  article.    (f)  (1)  Subsidiaries  of  domestic life insurance companies, whether  acquired under subsection (e) of this  section,  sections  one  thousand  four  hundred five, four thousand two hundred forty, or otherwise, shall  be subject to the provisions of article seventeen of this chapter to the  extent therein provided.    (2)  Subsidiaries  of  domestic  corporations   subject   to   article  forty-three  of this chapter and of domestic retirement systems, whether  acquired under subsection (e) of this section, section one thousand four  hundred four, four thousand two hundred forty (in the case of retirement  systems), or otherwise, shall be subject to the  provisions  of  article  seventeen of this chapter to the extent therein provided.    (g) This section does not prohibit any domestic insurance company from  acquiring  shares  under  article  seventy-one  of  this  chapter or any  domestic life insurance company from acquiring shares of its own capital  stock pursuant to section seven  thousand  three  hundred  two  of  this  chapter.    (h)  With  respect  to all transactions between a domestic insurer and  any person, five percent or more of whose voting  securities  are  held,  directly  or indirectly, by such insurer, but which is not a subsidiary,  the insurer shall maintain books, accounts  and  records  that  disclose  clearly and accurately the nature and detail of such transactions.    (i)  (1)  Except  as  provided in subparagraph (A) of paragraph two of  subsection (a) of section  four  thousand  two  hundred  forty  of  this  chapter,  investments made for separate accounts under the provisions ofsection four thousand  two  hundred  forty  of  this  chapter  shall  be  disregarded, and shall be excluded from admitted assets, in applying the  quantitative  investment  limitations contained in this chapter to other  investments.    (2)  Except  as  provided  in  subparagraph  (A)  of  paragraph two of  subsection (a) or paragraph four  of  subsection  (a)  of  section  four  thousand   two   hundred   forty  of  this  chapter,  the  restrictions,  limitations and other provisions relating to  investments  specified  in  this  chapter  shall not apply to investments made for separate accounts  under the provisions of section four thousand two hundred forty of  this  chapter.