Section 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.