§ 1407. Non-reserve and prohibited investments for property/casualty\nand certain other insurers. (a) Any insurer that makes investments under\nthe authority of subsection (c) of section one thousand four hundred\nthree of this article and meets the requirements of such subsection (c)\nand section one thousand four hundred two of this article may invest in,\nor otherwise acquire or loan upon, directly or indirectly, any of the\ntypes of investments described in section one thousand four hundred four\nof this article, but without having to meet the applicable qualitative\nstandards or quantitative limitations which are set forth in subsection\n(a) of section one thousand four hundred four of this article, except\nthe following prohibited investments:\n (1) Obligations, shares or other securities of any institution which\nis insolvent at the time of the investment.\n (2) Obligations secured by real property or real property or interest\ntherein, which are either not eligible under or which exceed the\ninvestment limitations under paragraph four or five of subsection (a) of\nsection one thousand four hundred four of this article.\n (3) Shares of stock of the investing insurer, except to the extent\npermitted by the provisions of subsection (d) of section one thousand\nfour hundred eleven of this article.\n (4) Obligations, shares or other securities (including certificates of\ndeposit) issued by a parent corporation or a corporation which is an\naffiliate or will be an affiliate after direct or indirect acquisition\nby the insurer. Nothing in this paragraph shall be deemed to prevent any\ninvestment in obligations, shares or other securities of:\n (A) another insurance corporation within the limitations prescribed in\nsection one thousand four hundred eight of this article,\n (B) a subsidiary organized to engage exclusively in the acquisition,\nownership or management of investments of the type described in\nparagraphs one, two, three, six, seven, eight or ten of subsection (a)\nof section one thousand four hundred four of this article, provided such\nsubsidiary is wholly-owned by two or more insurance companies domiciled\nin the United States who are members of the same holding company system,\nas such term is defined in article fifteen of this chapter. Furthermore,\neach individual insurer's share of the net investment made by such\nsubsidiary shall be:\n (i) computed in proportion to its equity interests in such subsidiary,\nand\n (ii) included when computing any applicable investment limitations, or\n (C) subsidiaries subject to and within the limitations prescribed in\narticle sixteen of this chapter.\n (5) Investments made under the leeway provision, as set forth in\nsubsection (b) of section one thousand four hundred four of this\narticle, if the aggregate amount of such investments exceed twelve\npercent of the insurer's invested assets as shown by its last statement\non file with the superintendent; or if the aggregate amount of\ninvestments that are neither interest-bearing nor income-paying exceed\nthree percent of the insurer's invested assets as shown by its last\nstatement on file with the superintendent.\n (6) Obligations, shares or other securities issued by a corporation,\nif a majority of the shares having voting powers of such issuing\ncorporation is owned directly or indirectly by or for the benefit of one\nor more officers or directors of the insurer.\n (7) Foreign investments, meaning obligations, shares or other\nsecurities of any person or governmental or business unit of or in a\nforeign country or of any person or business unit of or in a possession\nof the United States, except such as conform substantially with the\nlimitations imposed by this section upon like domestic investments; but\nthe aggregate amount of foreign investments including obligations of\nAmerican institutions payable outside of the United States and cash\ndeposited in a bank, trust company or thrift institution located ou
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