ยง 1713. Prohibitions on investments of subsidiaries. No subsidiary
shall make any investment (i) in obligations, shares or other securities
issued by a corporation, other than an insurance corporation, if a
majority of the shares having voting powers of such issuing corporation
is owned directly or indirectly by or for the benefit of one or more
officers or directors of the insurer or (ii) found by the superintendent
to be against public policy or designed to evade any prohibition of this
chapter or (iii) in the case of a subsidiary that is a property/casualty
insurance company (other than an alien insurer), in any foreign
investment that would be prohibited under paragraph seven of subsection
(a) of section one thousand four hundred seven of this chapter.
Structure New York Laws
Article 17 - Subsidiaries of Domestic Life Insurance Companies and Certain Other Entities
1701 - Authority to Invest in Subsidiaries; Businesses of Subsidiaries.
1703 - Standard of Care for Investments in Subsidiaries.
1704 - Exemptions Applicable to Subsidiaries; Limitations Generally.
1705 - Quantitative Limitations.
1706 - Exemptions Applicable to Parent Corporation.
1707 - Regulations to Restrict Pyramiding.
1709 - Confidentiality of Information Reports.
1710 - Divestiture of Control; Superintendent's Power to Order Disposition of Subsidiaries.
1711 - Subsidiary's Name Not to Mislead.
1712 - Relationships and Transactions Between Parent Corporation and Subsidiary.
1713 - Prohibitions on Investments of Subsidiaries.
1714 - Authority to Conduct Certain Business Directly Instead of Through Subsidiary.