Whenever any life insurance company incorporated under the laws of this state assumes
the risks, in whole or in part, of any life insurance company incorporated under the
laws of any other state or the Dominion of Canada or any province thereof a deposit
of any part of its capital stock, surplus, legal reserve or other funds on the policies
so assumed, the director of the department of commerce and insurance is hereby authorized,
in his discretion, to receive from such official such deposit pertaining to the policies
so assumed or the capital stock, surplus, legal reserve or other funds assigned by
such foreign company to such domestic company, and during the time that any such official
of any other state or the Dominion of Canada or any province thereof retains or holds
possession and custody of such deposit after their assignment to such domestic company,
such director may treat such deposits so held by the officials of such other state
or the Dominion of Canada or any province thereof the same as if they had been received
by and were in the custody of such director, and may, in his discretion, register
the policies so assumed and may or may not, during such time, require such domestic
company to make or maintain with such department of commerce and insurance any additional
deposit on account thereof; provided, that when any of the capital stock, surplus,
legal reserve or other funds of any such foreign company is legally invested in securities
not authorized by the laws of this state, such securities shall be sold and disposed
of within five years as the director may direct, and such domestic company shall not
hold such securities or carry same as part of its capital stock, surplus, legal reserve
or other funds for a longer period unless it shall procure a certificate from such
director that its interests will suffer materially by the forced sale thereof.
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