§ 1411. Authorization of, and restrictions on, investments. (a) No\ndomestic insurer shall make any loan or investment, except as provided\nin subsection (h) hereof, unless authorized or approved by its board of\ndirectors or a committee thereof responsible for supervising or making\nsuch investment or loan. The committee's minutes shall be recorded and a\nreport submitted to the board of directors at its next meeting.\n (b) No such insurer shall participate in any underwriting of the\npurchase or sale of securities in advance of their issuance. Any such\ninsurer may enter into any agreement to sell or withhold from sale any\nof its property as long as the insurer is not participating in an\nunderwriting. The disposition of its property shall be the\nresponsibility of its board of directors, in accordance with its charter\nand by-laws.\n (c) Except as otherwise specifically provided in this chapter, no\ndomestic insurer shall pledge or transfer any securities as collateral\nfor a loan (including a sale of securities subject to an unconditional\nobligation to repurchase the same) if such loan and all other\noutstanding loans secured by pledge or deposit of its securities will\nexceed, when the loan is made, five percent of its admitted assets as\nshown by its last sworn statement to the superintendent, unless the\nsuperintendent shall first give his permission for such loan as\nnecessary in the conduct of the insurer's business. No pledge or\ntransfer of securities for a loan shall be made if the insurer does not\nreceive the loan's proceeds. Nothing in this section shall be construed\nas prohibiting an insurer from selling or purchasing individually or on\nits account jointly with one or more of its subsidiaries the securities\nof any investment company to which the insurer or any of its\nsubsidiaries renders management, investment advisory or sales services,\nnor from participating in such sales or purchases jointly with any\nperson in the insurer's holding company system, as defined in section\none thousand five hundred one of this chapter.\n (d) No domestic stock insurer shall purchase its own capital shares\nexcept pursuant to section seven thousand three hundred two of this\nchapter or pursuant to a plan of stock redemption and retirement\napproved by the superintendent as reasonable and equitable. No domestic\ninsurer shall enter into any agreement in connection with the sale of\nany property to repurchase such property or any part thereof, except\nthat such an insurer may (subject to the provisions of subsection (b) of\nthis section) sell securities subject to an unconditional obligation to\nrepurchase the same on a date not more than one year from the date of\nsale. This subsection shall not apply to the purchase or sale of\ndirectors' qualifying shares.\n (e) No director or officer of an insurer doing business in this state\nshall receive, in addition to his fixed salary or compensation, any\nmoney or valuable thing, directly or indirectly, or through any\nsubstantial interest in any other corporation or business unit, for\nnegotiating, procuring, recommending or aiding in any purchase or sale\nof property, or loan, made by such insurer or any affiliate or\nsubsidiary thereof; nor shall he be pecuniarily interested, as\nprincipal, co-principal, agent or beneficiary, directly or indirectly,\nor through any substantial interest in any other corporation or business\nunit, in any such purchase, sale or loan. This subsection shall not\nprohibit:\n (1) a member of the board of directors of an insurer, other than life,\nfrom receiving his share of the usual commission earnings of a stock\nexchange firm of which he is a partner;\n (2) an insurer, other than life, or any life insurer all of whose\nshares (except directors' qualifying shares) is owned by any corporation\norganized primarily for, and engaged primarily in the business of,\nproviding support, relief, pensions, annuities or insurance for the\npriests, cler
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