Section 1315. Trusteed assets of alien insurers

(a) Whenever a licensed
  alien insurer is required or permitted by this chapter to deposit assets
  with a trustee or trustees for the security  of  its  policyholders  and
  creditors  in the United States, such assets shall be known as "trusteed
  assets". All trusteed assets  shall  be  continuously  kept  within  the
  United  States  and  the  trusteed  assets  of  a licensed alien insurer
  entered through this state shall be continuously  kept  in  this  state.
  The  deed  of trust and all amendments thereto shall be authenticated in
  such form and manner as the superintendent may prescribe and  shall  not
  be  effective unless approved by him. If he finds a deed of trust or its
  amendments: (i) are sufficient in form and in conformity with law,  (ii)
  the  trustee  or  trustees  are  eligible as such, and (iii) the deed of
  trust is adequate to protect the interests of the beneficiaries  of  the
  trust,  he shall give his approval. If he finds, after reasonable notice
  to and hearing of the insurer, that the requisites for the  approval  no
  longer exist, he may withdraw such approval.
    (b)  The  trustee  or  trustees  of  all trusts created after nineteen
  hundred thirty-nine shall be solvent banks or trust companies deemed  by
  the superintendent suitable for such purpose.
    (c)  All  trusts  of  trusteed assets existing before nineteen hundred
  forty shall be continued in accordance with the terms of the instruments
  creating them, if not inconsistent with this section. If the trustees of
  any trust created before nineteen hundred  forty  are  individuals,  and
  their  number  is  reduced  to less than three, by death, resignation or
  otherwise,  the  superintendent  shall  require  substitution  for  such
  trustees  of one or more banks or trust companies deemed by him suitable
  for such purpose. If the superintendent finds, after  reasonable  notice
  to  and  hearing  of  such  alien insurer, that a deed of trust executed
  before nineteen hundred forty is inadequate to protect the interests  of
  the beneficiaries of such trust, he shall require the execution of a new
  or  amended  deed  of  trust in conformity with the requirements of this
  section.
    (d) The superintendent may from time to time approve modifications of,
  or variations in, any deed of trust,  which  in  his  judgment  are  not
  prejudicial to the interests of the people of this state.
    (e) (1) Such deed of trust shall contain provisions which:
    (A)  vest  legal  title  to trusteed assets in the trustees, and their
  successors  lawfully  appointed,  in  trust  for  the  security  of  all
  policyholders  and  creditors  of  the  alien  insurer within the United
  States;
    (B) provide for substitution of a new trustee or trustees in case of a
  vacancy by death, resignation or otherwise, subject to approval  of  the
  superintendent;
    (C)  require that all trusteed assets shall be at all times maintained
  as a trust fund separate and distinct from all other assets; and
    (D) require that the trustee or trustees shall continuously maintain a
  record at all times sufficient to identify the assets of such fund.
    (2) Such deed of trust may provide that income, earnings, dividends or
  interest accumulations of the assets of such fund may be  paid  over  to
  the  United  States  manager  of  such  alien  insurer,  upon his or its
  request.
    (3)  Such  deed  of  trust  shall  provide,  in  substance,  that   no
  withdrawals  of  assets,  other than income as above specified, shall be
  made or permitted by the trustee or trustees without the approval of the
  superintendent except to:
    (A) make deposits required by law in any state  for  the  security  or
  benefit  of  all  policyholders, or policyholders and creditors, of such
  alien insurer in the United States;

    (B) substitute other assets permitted by law and  at  least  equal  in
  value  to  those  withdrawn,  upon the specific written direction of the
  United States manager or an assistant United States  manager  when  duly
  empowered  and  acting  pursuant  to  either general or specific written
  authority previously given or delegated by the board of directors; or
    (C)  transfer  such  assets to an official liquidator or rehabilitator
  pursuant to an order of a court of competent jurisdiction.
    (f) Upon withdrawal of trusteed assets deposited in another  state  in
  which  such insurer is authorized to do business, it shall be sufficient
  if the deed of trust requires similar written approval of the  insurance
  supervising   official  of  such  state  in  lieu  of  approval  of  the
  superintendent. In all such cases the alien  insurer  shall  notify  the
  superintendent in writing of the nature and extent of such withdrawal.
    (g) The superintendent may from time to time: (i) make examinations of
  the  trusteed  assets  of  any authorized alien insurer at the insurer's
  expense and (ii) require the trustee or trustees to file a statement, in
  such form as he may prescribe, certifying the assets of such trust  fund
  and  the  amounts thereof.   Refusal or neglect of any trustee to comply
  with the foregoing requirements shall be ground for  the  revocation  of
  such insurer's license or the liquidation of its United States branch.
    (h)  In  the  case  of a Canadian life insurance company or a Canadian
  fraternal benefit society, the provisions of this section applicable  to
  a   United  States  manager  refer  to  the  president,  vice-president,
  secretary or treasurer of the company at its home office in Canada or to
  any officer of the society elected by its supreme governing  body,  when
  duly empowered and authorized for such purpose.