§ 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.