Section 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.