1. Any foreign insurance company organized under the laws of any foreign government entering through this state to transact insurance in the United States to qualify for authority to transact business in this state shall, in addition to deposits required of like domestic insurers, maintain deposits under trust agreements approved by the director of the department of commerce and insurance. Such deposits shall be not less than the amount of liabilities with respect to the insurer‘s business in the United States. Such deposits shall be held for the benefit of policyholders and creditors within the United States.

2. Whenever an insurer which is organized under the laws of any foreign government is required or permitted to deposit assets with a trustee for the benefit and security of its policyholders, or of its policyholders and creditors, in the United States, the trustee of any such trust hereafter created shall be a solvent bank or trust company in the United States acceptable to the director of the department of commerce and insurance and authorized to act as such trustee by the laws of any state or of the United States. All trusteed assets shall be continuously kept within the United States. Any such trust heretofore created and now existing, and any such trust hereafter created and existing when such insurer seeks to be admitted, shall be continued in accordance with the terms of the instrument creating it, unless inconsistent with the provisions of this section, in which case the instrument shall, after reasonable notice to and hearing of such insurer by the director of the department of commerce and insurance, be amended to conform to the requirements of this section. No amendment to any trust agreement, whether heretofore or hereafter created, shall be effective unless approved in writing by the director of the department of commerce and insurance. If the trustees of any such trust heretofore created are natural persons and if the number of such trustees is reduced by death, resignation, or from any other cause, to less than three, then the director of the department of commerce and insurance shall require the substitution for such trustees of a solvent bank or trust company in the United States acceptable to him and authorized to act as such trustee by the laws of any state or of the United States. The director of the department of commerce and insurance may from time to time approve modifications of, or variations in, any trust agreement which in his judgment are not prejudicial to the interests of the people of this state.

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3. Such trust agreements shall:

(1) Vest the legal title to the trusteed assets in the trustee and its successors lawfully appointed, in trust for the benefit and security of all the policyholders, or of all the policyholders and creditors, of such insurer organized under the laws of any foreign government;

(2) Provide for the substitution of a new trustee in the event of a vacancy by death, resignation or from any other cause, subject to the approval of the director of the department of commerce and insurance;

(3) Require that the trusteed assets shall at all times be maintained within the United States as a trust fund separate and distinct from all other assets, and that the trustee shall continuously maintain a record at all times sufficient to identify such fund;

(4) Prescribe the conditions, satisfactory to the director of the department of commerce and insurance and not inconsistent with the purposes of this section, under which any or all income, earnings, dividends or interest accumulations of such fund may be paid over to the United States manager of such insurer organized under the laws of any foreign government;

(5) Prohibit the withdrawal, other than as provided in accordance with subdivision (4) of this subsection, of any trusteed assets from such fund without the written approval of the director of the department of commerce and insurance, except as follows:

(a) For the purpose of making general state deposits required by law in any state;

(b) For the purpose of paying obligations due from such insurer organized under the laws of any foreign government to policyholders and creditors in the United States, and for the purpose of making special state deposits required by law in any state if such payments and deposits do not impair the insurer’s assets to an amount less than the minimum capital and surplus required of like insurers organized under the laws of this state and such fact is certified to the trustee by the insurer or its United States manager duly authorized for that purpose;

(c) For the purpose of substituting other assets permitted by law and at least equal in value to those to be withdrawn, upon the specific written direction of the United States manager or an assistant United States manager or other representative in the United States of such insurer organized under the laws of any foreign government when duly empowered and acting pursuant to either general or specific written authority previously given or delegated by the board of directors thereof, except as provided in paragraph (e) of this subdivision;

(d) For the purpose of transferring such assets to an official conservator, rehabilitator, or liquidator pursuant to an order of a court of competent jurisdiction;

(e) In the case of a life insurer organized under the laws of the Dominion of Canada or of any province thereof, the provisions of this section applicable to the United States manager or an assistant United States manager or other representative in the United States of such insurer shall be deemed to refer to the president, vice president, secretary or treasurer of such insurer at its principal place of business in said dominion or province thereof, when duly authorized for such purpose.

4. The director of the department of commerce and insurance may from time to time examine the trusteed assets of an insurer organized under the laws of any foreign government and may from time to time require the trustee holding trusteed assets of an admitted insurer organized under the laws of any foreign government to file with the director of the department of commerce and insurance a statement, in such form as he may prescribe, certifying such trusteed assets and the amounts thereof. Refusal or neglect on the part of the trustee to comply with such requirement shall be ground for the revocation of the insurer’s certificate of authority and for proceedings against it under the provisions of this chapter.