N.Y. ISC Law § 1402

§ 1402. Minimum capital or minimum surplus to policyholder\ninvestments. (a) Before investing its funds in any other investments,\nevery domestic insurer shall invest and maintain an amount equal to the\ngreater of the minimum capital required by law or the minimum surplus to\npolicyholders required to be maintained by law for a domestic stock\ncorporation authorized to transact the same kinds of insurance, only in\ninvestments of the types specified in this section which are not in\ndefault as to principal or interest. Investments equal in value,\ndetermined pursuant to section one thousand four hundred fourteen of\nthis article, to such amount and of such types shall at all times be\nmaintained free and clear from any security interest other than as\nimpressed upon a deposit with any government within the United States\nfor the security of all policyholders or all policyholders and creditors\nof the insurer or upon trusteed assets held in trust for the security of\nall policyholders and creditors of the insurer.\n (b) Not less than sixty percent of the amount of the required minimum\ncapital or surplus to policyholder investments shall consist of the\ntypes specified in paragraphs one and two hereof:\n (1) Obligations of the United States or of any agency thereof provided\nsuch agency obligations are guaranteed as to principal and interest by\nthe United States.\n (2) Direct obligations of this state or of any county, district or\nmunicipality thereof.\n (3) Direct obligations of any state of the United States.\n (4) Obligations secured by first mortgage loans which meet the\nstandards specified in paragraph four of subsection (a) of section one\nthousand four hundred four of this article on property located in this\nstate.\n