§ 1704. Exemptions applicable to subsidiaries; limitations generally.
(a) Investments in separate account subsidiaries and in investment
subsidiaries are exempt from the provisions of subsection (a) of section
one thousand seven hundred five of this article and separate account
subsidiaries and investment subsidiaries are exempt from the provisions
of item (ii) of section one thousand seven hundred ten of this article.
Investments by the parent corporation in holding company operating
subsidiaries are exempt from the provisions of paragraph two of
subsection (a) of section one thousand seven hundred five of this
article.

(b) Subsidiaries that become such as a result of (i) the acquisition
of securities received as permitted by subsection (e) of section one
thousand four hundred three of this chapter or (ii) the temporary
assumption of control by the owners of securities upon the happening of
a contingency are exempt from the provisions of section one thousand
seven hundred eight and item (ii) of section one thousand seven hundred
ten of this article for one year, and from the provisions of subsection
(a) of section one thousand seven hundred five of this article for five
years, after becoming subsidiaries.

(c) Investments in subsidiaries engaged or organized to engage in any
kind of insurance business in which the parent corporation may engage,
and investments in subsidiaries engaged or organized to engage
exclusively in the ownership and management of such subsidiaries, are
exempt from the provisions of subsection (a) of section one thousand
seven hundred five of this article.

(d) Investments made or acquired by investment subsidiaries shall be
deemed, for the purposes of this chapter, to be made or acquired
directly by the parent corporation (pro rata, in the case of a
subsidiary less than all of whose voting securities are owned by the
parent corporation, in accordance with the parent corporation's
investment in such subsidiary), and shall (to such extent) be subject to
all the provisions and limitations (including quantitative limits) on
the making thereof specified in this chapter with respect to investments
by the parent corporation.