Insurance Law 1610 — Legislation

Legislation Search OpenLegislation Statutes Search Term Search icon Search previous SECTION 1609 Prohibitions on investments of subsidiaries up ARTICLE 16 Subsidiaries of Domestic Property/casualty Insurance Companies and Certain Other Entities next SECTION 1611 Aggregate limitations Viewing most recent revision (from 2014-09-22) View historical revision as of: -- Choose a Date -- 2014-09-22 Share Facebook Email SECTION 1610 Authority to conduct certain business directly instead of through subsidiary Insurance (ISC) CHAPTER 28, ARTICLE 16 § 1610. Authority to conduct certain business directly instead of through subsidiary. (a) A domestic insurance company subject to this article may, provided that it maintains books and records which separately account for such business, engage directly in any business referred to in paragraphs one, two and three of this subsection to the extent any such business is necessarily or properly incidental to the insurance business the insurer is authorized to do in this state: (1) rendering investment advice; (2) rendering services related to the functions involved in the operation of an insurance business including actuarial, loss prevention, safety engineering, data processing, accounting, claims, appraisals, collections and soliciting and engaging in the business of representing self-insurers pursuant to section fifty of the workers' compensation law; and (3) acting as administrative agent for a government instrumentality which is performing an insurance function or is responsible for a health or welfare program. (b) A domestic insurance company subject to this article may, provided that it maintains books and records which separately account for such business, engage directly in any other business activity reasonably ancillary to an insurance business to the extent any such business is approved by the superintendent and subject to any limitations he may prescribe to protect the interests of the policyholders of the insurer after taking into account: (1) the effect of such business on the insurer's existing insurance business and its surplus, (2) the proposed allocation of the estimated cost of such business, (3) the risks inherent in such business, and (4) the relative advantages to the insurer and its policyholders of conducting such business directly instead of through a subsidiary.