2012 New York Consolidated Laws
ISC - Insurance
Article 45 - (4501 - 4530) FRATERNAL BENEFIT SOCIETIES
4530 - Optional Investment Authority.

 
    §  4530.  Optional  Investment  Authority.  (a)  An authorized society
  meeting the requirements set forth in  this  section  is  authorized  to
  invest  its  funds  in, or otherwise acquire, or loan upon, the types of
  investments specified in sections one thousand  four  hundred  two,  one
  thousand  four  hundred  three,  one  thousand  four  hundred  five, one
  thousand four hundred six, one  thousand  four  hundred  ten,  and  four
  thousand  two  hundred forty of this chapter, subject to the limitations
  contained therein. The provisions of section one thousand  four  hundred
  four  of  this  chapter shall not have any application to investments of
  such societies, except to the  extent  provided  in  paragraph  four  of
  subsection (b) of section one thousand four hundred two of this chapter.
    (b)  In  addition to other requirements of this article, an authorized
  society investing pursuant to this  section  shall  meet  the  following
  requirements:
    (1)  Prior  to  investing  pursuant to this section, the society shall
  submit notice to the superintendent that the board of directors  of  the
  society  has  approved  investment pursuant to this section and that the
  society meets the requirements of this section  and  intends  to  invest
  hereunder;
    (2)  The  society  shall:  (A) have been in continuous operation for a
  minimum of five years; and (B) have total admitted assets  of  at  least
  two  billion  dollars  for  a  period of five continuous years as of the
  immediately preceding calendar year; and
    (3) For each calendar year during which this section  applies  to  the
  society,  the  society  shall  have,  as  of  the end of the immediately
  preceding calendar year:
    (A) had a risk based capital level of at least  six  times  authorized
  control  level  RBC as defined by the provisions of section one thousand
  three hundred twenty-two of this chapter; and
    (B)  maintained  a  minimum  claims-paying,  financial   strength   or
  equivalent  rating  from  at least one nationally recognized statistical
  rating organization in one of the organization's  three  highest  rating
  categories  for the time period during which this section applies to the
  society provided that the rating shall not  depend  on  a  guarantee  or
  other  credit enhancement from another entity; and shall not be modified
  or  otherwise  qualified  to  show  dependence  of  the  rating  on  the
  performance or a contractual obligation of, or the society's affiliation
  with, another society.
    (c)  Whenever  a  society  fails to meet the requirements set forth in
  this section, the superintendent may, in his or her discretion, prohibit
  or limit the  society  from  engaging  in  new  investments  under  this
  section.