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This entry was published on 2014-09-22
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SECTION 1601
Authority to invest in subsidiaries; businesses of subsidiaries
Insurance (ISC) CHAPTER 28, ARTICLE 16
§ 1601. Authority to invest in subsidiaries; businesses of
subsidiaries. (a) (1) A domestic insurer authorized to make investments
by subsection (c) of section one thousand four hundred three of this
chapter may, subject to section one thousand two hundred eighteen of
this chapter invest in, or otherwise acquire, subsidiaries engaged or
organized to engage in any business lawful under the laws of the
jurisdiction in which such subsidiaries are organized.

(2) Notwithstanding the provisions of paragraph one of this
subsection, no assessment corporation, as defined in subsection (b) of
section six thousand six hundred two of this chapter, shall invest in or
otherwise acquire, directly or indirectly, an insurance company if such
investment or acquisition results in the control of such insurance
company by the assessment corporation.

(b) Except as prohibited by paragraph two of subsection (a) of this
section, subsidiaries engaged or organized to engage exclusively in
owning or investing in insurers, directly or indirectly, are subject to
the limitations set forth in sections one thousand two hundred eighteen
and one thousand four hundred eight of this chapter.