§ 1409. Limitation of investments. (a) Except as more specifically
provided in this chapter, no domestic insurer shall have more than ten
percent of its admitted assets as shown by its last statement on file
with the superintendent invested in, or loaned upon, the securities
(including for this purpose certificates of deposit, partnership
interests and other equity interests) of any one institution.

(b) The restriction of subsection (a) hereof shall not apply to the
classes of governmental obligations (including obligations secured by
mortgages upon real property guaranteed or insured under the National
Housing Act, 12 U.S.C. §§ 1701-1750) eligible for minimum capital or
surplus to policyholder investments pursuant to the provisions of
section one thousand four hundred two of this article nor to investments
in shares of other insurance companies pursuant to the provisions of
section one thousand four hundred eight of this article.

(c) The limitations of investments set forth in this section shall not
apply to mortgage-related securities or securities issued or guaranteed
by the Federal Home Loan Mortgage Corporation or the Federal National
Mortgage Association; provided, however, that for an insurer maintaining
an aggregate investment in excess of seventy percent of its admitted
assets as shown by its last statement on file with the superintendent in
such securities, the balance of such investments greater than seventy
percent thereon shall be limited by and apportioned according to a ratio
of one to two respectively, between investment in such securities and
investment in government obligations, as that term is defined in
paragraph one of subsection (a) of section fourteen hundred four of this
chapter.

(d) The superintendent shall not promulgate any rules or regulations
to limit or otherwise alter the provisions of paragraph two of
subsection (a) of section fourteen hundred one of this article or
subsection (c) of this section. The superintendent shall not promulgate
any rules or regulations that limit the authority of any insurer to
invest in mortgage related securities.