§ 1413. Investments of foreign and alien insurers. (a) The
superintendent may refuse a new or renewal license to any foreign
insurer, if he finds that its investments do not comply in substance
with the investment requirements and limitations imposed by this chapter
upon like domestic insurers hereafter organized to do the same kind or
kinds of insurance business. For the purposes of this subsection, except
for derivative transactions authorized pursuant to section one thousand
four hundred ten of this article, a foreign insurer's investments shall
be deemed to comply in substance with such requirements and limitations
if, after disallowing as admitted assets in whole or in part any
investments not in compliance therewith, the superintendent finds that
such foreign insurer's adjusted surplus to policyholders is not less
than an amount which is reasonable in relation to its outstanding
liabilities and adequate to its financial needs, and at least equal to
the minimum surplus to policyholders required on organization of a
domestic insurer to do the same kind or kinds of insurance business. The
superintendent may recognize like securities of a foreign insurer's home
state as minimum capital or minimum surplus to policyholder investments
in lieu of the securities specified in paragraphs two and four of
subsection (b) of section one thousand four hundred two of this article.
Foreign insurers engaging in derivative transactions pursuant to section
one thousand four hundred ten of this article shall comply with
subsection (k) of such section for the purposes of substantial
compliance.

(b) No alien insurer shall be authorized to do business in this state
unless its general state deposits and its trusteed assets comply with
the requirements and limitations of this chapter applicable to like
foreign insurers hereafter licensed to do the same kind or kinds of
insurance business, except that foreign investments shall be allowed to
the following extent only:

(1) Obligations issued or guaranteed by the government of the country
in which the alien insurer was organized or by any province or other
major political subdivision thereof and not in default as to principal
or interest, may be recognized as reserve investments under section one
thousand four hundred four of this article (in the case of insurers
making investments under section one thousand four hundred four of this
article) or as investments under section one thousand four hundred five
(in the case of insurers making investments under section one thousand
four hundred five of this article) in an amount not exceeding the
statutory deposit required by the provisions of section one thousand
three hundred twenty of this chapter.

(2) Except as provided in paragraph one hereof, for an alien non-life
insurer foreign investments that qualify as a reserve investment
pursuant to the provisions of paragraph six of subsection (a) of section
one thousand four hundred four of this article may be included in such
alien insurer's trusteed assets in an aggregate amount not exceeding ten
percent of the admitted assets of such insurer's United States branch as
shown by its last statement on file with the superintendent, or, for an
alien life insurer, foreign investments that qualify pursuant to the
provisions of paragraph seven of subsection (a) of section one thousand
four hundred five of this article may be included in such alien
insurer's trusteed assets in an aggregate amount not exceeding the
applicable quantitative limitations, as set forth in such paragraph
seven.

(c) The superintendent may refuse a new or renewal license to any
foreign or alien insurer which holds a direct or indirect ownership
interest in a risk retention group, as defined in article fifty-nine of
this chapter, other than in a risk retention group all of whose members
are insurance companies.

(d) This section shall not relieve any foreign or alien insurer from
compliance with any other provision of this chapter.