Section 206A. (a) In addition to capital stock investments authorized or permitted elsewhere in this chapter, and provided that the insurer has satisfied the requirements of section sixty-three applicable to the insurer, any domestic insurer, either by itself or in cooperation with one or more persons, may organize, or acquire, or invest in the capital stock of one or more subsidiaries engaged in one or more of the following kinds of business:

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(1) any kind of insurance business authorized by the jurisdiction in which it is incorporated;

(2) acting as an insurance broker or as an insurance agent for its parent or for any of its parent’s insurer subsidiaries;

(3) investing, reinvesting or trading in securities for its own account, that of its parent, any subsidiary of its parent, any affiliate, or subsidiary, or on behalf of any other person;

(4) management of any investment company subject to or registered pursuant to the Investment Company Act of 1940 (15 USC, sections 80 a–1 to 80 b–21), as amended, including related sales and services;

(5) acting as a trustee, transfer agent, custodian, or fiduciary;

(6) any business which the insurer can do directly pursuant to section forty-seven A;

(7) a corporation providing sales, administrative, custody, management, or investment advisory services to investors;

(8) a corporation providing sales, administrative, custody, management, or investment advisory services to investment companies, other insurance companies, other financial institutions, governments, government agencies, corporations, other organizations, individuals or groups;

(9) acting as a broker-dealer subject to or registered pursuant to the Securities Exchange Act of 1934, 15 USC, section 78a to 78k, inclusive, as amended;

(10) a corporation providing financial consulting or financial planning services;

(11) a corporation providing services related to the operations of an insurance business including, but not limited to: actuarial, accounting, administrative, claims, communications, appraisal and collection, data processing, loss prevention, management, marketing, telemarketing, underwriting, safety engineering services, or acting as an administrative agent for a governmental instrumentality which is performing insurance functions or is responsible for a health, retirement or welfare program;

(12) ownership or management of assets which the parent insurer itself could own or manage;

(13) a company engaged in premium financing, factoring or any general financing business;

(14) any other business activity determined by the commissioner to be supplementary or complementary to the business of a domestic insurance company; or

(15) owning a corporation or corporations engaged or organized to engage in one or more of the businesses permitted under this chapter.

(b) In addition to investments in capital stock authorized or permitted under all other sections, provided that the insurer has satisfied the requirements of section sixty-three applicable to the insurer, a domestic insurer may also:

(1) invest in capital stock of one or more subsidiaries of the type authorized in this chapter, additional amounts which do not exceed the lesser of ten percent of such insurer’s assets or fifty percent of such insurer’s surplus as regards policyholders, provided that after such investments, the insurer’s surplus as regards policyholders will be reasonable in relation to the insurer’s outstanding liabilities and adequate to its financial needs. In calculating the amount of such investments, investment in the capital stock of domestic or foreign insurance subsidiaries shall be excluded, and there shall be included:

(i) total net monies or other consideration expended and obligations assumed in the acquisition or formation of noninsurer subsidiaries, including all organizational expenses and contributions to capital and surplus of such noninsurance subsidiaries; and (ii) all amounts expended in acquiring additional capital stock and all contributions to the capital or surplus of noninsurance subsidiaries subsequent to their acquisition or formation;

(2) Invest any amount in capital stock of one or more subsidiaries engaged or organized to engage exclusively in the ownership and management of assets authorized as investments for the insurer, however, provided that each such subsidiary limits its investments in any asset so that such investment in such assets pursuant to this clause will not cause the amount of the total investment of the insurer to exceed the applicable investment limitation contained in the section under which such investment would otherwise be held by the insurer pursuant to the applicable provisions of sections sixty-three to sixty-six E, inclusive, subsection (a) of section two hundred and six A and paragraph (1) of subsection (b) of section two hundred and six A. For purposes of this clause the total investment of the insurer shall include:

(i) any direct investment by the insurer in an asset, and (ii) the insurer’s proportionate share of any investment in an asset by any subsidiary of the insurer formed or acquired pursuant to this clause, which proportionate share shall be calculated by multiplying the amount of such subsidiary’s investment in such asset by the percentage of the capital stock of such subsidiary owned by the insurer;

(3) With the approval of the commissioner, invest any greater amount in capital stock of one or more subsidiaries of the types authorized for investment by this chapter, provided that after such investment the insurer’s surplus as regards policyholders and its asset valuation reserve are reasonable in relation to the insurer’s outstanding liabilities and adequate to its financial needs.

(c) Whether any investment pursuant to subsection (b) meets the applicable requirements thereof is to be determined before such investment is made, by calculating the applicable investment limitations as though the investment had already been made, taking into account the value of all previous investments in capital stock of subsidiaries acquired subject to the limitations of said subsection (b) as of the day they were made, net of any return of capital invested, not including dividends.

(d) If an insurer ceases to control a subsidiary, it shall dispose of the investment in the capital stock made pursuant to this section within three years from the time of the cessation of control or within such further time as the commissioner may prescribe, unless at any time after such investment shall have been made, such investment shall have met the requirements for investment under any other section of this chapter or is otherwise lawful, and the insurer has notified the commissioner thereof.