(a) An insurer other than a life insurer may invest a portion of its surplus funds in an aggregate amount not exceeding 50 percent of its surplus over its capital stock and other liabilities, or 35 percent of its capital funds, whichever is greater, in the stocks of other insurers organized and existing under the laws of any jurisdiction of the United States. Indirect or proportionate interests in insurance stocks held by an insurer through any intermediate subsidiary or subsidiaries shall be included in applying the limitations provided in this subsection and in subsections (b) and (c) of this section.
(b) A life insurer may invest in such insurance stocks in an aggregate amount not exceeding the smaller of the following amounts: 5 percent of its assets; or 25 percent of its surplus over its capital stock and other liabilities, or of surplus over its required minimum surplus if a mutual life insurer.
(c) An insurer shall not purchase or hold as an investment more than 5 percent of the voting stocks of any one other insurer, and subject further to the investment limits of section 553 of this title. This limitation shall not apply if such other insurer is the subsidiary of, and substantially all its shares having voting powers are owned by, an insurer other than a life insurer.
(d) No such insurance stock shall be eligible as an investment unless it meets the qualifications for stocks of other corporations as set forth in section 572 of this title.
(e) The limitations on investment in insurance stocks set forth in this chapter shall not apply to stocks acquired under a plan for merger of the insurers which has been approved by the Commissioner or to shares received as stock dividends upon shares already owned.