N.Y. Insurance Law § 4103: Stock companies; financial requirements

* § 4103. Stock companies; financial requirements. (a) (1) A stock

property/casualty insurance company organized in the manner prescribed

in subsection (a) of section one thousand two hundred one of this

chapter may be licensed under subsection (e) of section one thousand one

hundred two of this chapter to write one or more kinds of insurance as

specified in TABLE ONE upon meeting the applicable paid-in capital and

an additional amount of paid-in surplus for each kind of insurance

licensed, in the aggregate at least equal to the requirements specified

in TABLE ONE and every such company shall thereafter maintain a minimum

capital at least equal to the amount specified in this section and a

surplus to policyholders at least equal to the aggregate paid-in capital

specified in TABLE ONE for the kind or kinds of insurance licensed.

TABLE ONE

Kind of insurance specified

in the following numbered Paid-in Paid-in

paragraphs of subsection Capital Surplus

(a) of § 1113:

Group A:

7 $300,000 $150,000

8, 9, 10, 11, or 14 - for each such kind $100,000 $ 50,000

13 or 15 - for each such kind $500,000 $250,000

16 $900,000 $450,000

17 $400,000 $200,000

Basic additional amount

required for any one

or more of the above

kinds of insurance $100,000 $ 50,000

3(i), 3(ii), 6{1} or 12{2} - for each

such kind $100,000 $ 50,000

22 $2,000,000 $1,000,000

24 $400,000 $200,000

26(B) $200,000 $100,000

26(A), 26(C) or 26(D) -

for each such kind $600,000 $300,000

27 $300,000 $150,000

28 $2,000,000 $1,000,000

30 $400,000 $200,000

31 $100,000 $ 50,000

32 $100,000 $ 50,000

33 $100,000 $ 50,000

34 $2,000,000 $1,000,0000

Group B:

4{3} or 20{4} - for each such kind $500,000 $500,000

Notes to TABLE ONE

{1} If licensed to write paragraph 4, no additional paid-in capital

and surplus is required.

{2} If licensed to write paragraph 4 or 20, no additional paid-in

capital and surplus is required.

{3} If licensed to write paragraph 4, no additional paid-in capital

and surplus is required for a license to write paragraphs 5, 6, 12, 19,

20, (inland marine only) and 34.

{4} If licensed to write paragraph 20, no additional paid-in capital

and surplus is required for a license to write paragraphs 12, 19 and 21.

(2) A stock property/casualty insurance company licensed to write one

or more of the kinds of insurance as specified in TABLE ONE, Group A,

and having a minimum capital of one million dollars, may be licensed to

write any other kind of insurance specified in TABLE ONE, Group A, upon

at least having an initial surplus to policyholders equal to the

aggregate of the paid-in capital and paid-in surplus specified in TABLE

ONE for the kinds of insurance for which it is to be licensed, and shall

thereafter maintain a surplus to policyholders at least equal to the

aggregate paid-in capital prescribed in TABLE ONE for the kinds of

insurance licensed or one million dollars, whichever is greater.

(3) A stock property/casualty insurance company licensed to write any

kind of insurance specified in TABLE ONE, Group A, must have a minimum

capital of one million dollars and a surplus to policyholders as

specified in this paragraph before being licensed to write either kind

of insurance specified in Group B. If licensed to write the kind or

kinds of insurance specified in TABLE ONE, Group B, it may, in addition

write any one or more kinds of insurance specified in TABLE ONE, Group

A, provided it has a minimum capital of one million dollars and a

surplus to policyholders as specified in this paragraph before being

licensed to write any other kind or kinds of insurance specified in

TABLE ONE, Group A. Every such company shall have an initial surplus to

policyholders at least equal to the aggregate of the paid-in capital and

paid-in surplus specified in TABLE ONE for the kinds of insurance for

which it is to be licensed and shall thereafter maintain a surplus to

policyholders at least equal to the aggregate paid-in capital prescribed

in TABLE ONE for the kinds of insurance licensed or one million dollars

whichever is greater.

(4) A stock property/casualty insurance company licensed under

subsection (c) of section four thousand one hundred two of this article

to reinsure risks or write insurance on risks outside the United States,

its territories and possessions, must maintain a surplus to

policyholders of at least thirty-five million dollars.

(5) The dollar amounts set forth in paragraphs one (except the dollar

amounts set forth for paragraphs (22), (24) and (26)), two and three of

this subsection shall be reduced by fifty percent for a domestic stock

property/casualty insurance company initially licensed to do business in

this state prior to July first, nineteen hundred eighty-two.

(b) No foreign stock property/casualty insurance company shall be

granted a license to do business in this state unless it has a paid-in

capital and surplus at least equal, respectively, to the amounts

required by subsection (a) hereof for the organization of a domestic

company to write the same kind or kinds of insurance which such foreign

company is to be licensed to write in this state, and every such company

shall thereafter maintain a minimum capital and a surplus to

policyholders at least equal to the amount required of a domestic

company licensed for the same kind or kinds of insurance.

(c) No alien stock property/casualty insurance company shall be

granted a license to write any kind of insurance specified in TABLE ONE,

Group A, except as permitted by the provisions of notes {1} and {2} to

TABLE ONE, unless it has a trusteed surplus, as defined in section one

thousand three hundred twelve of this chapter, at least equal in amount

to one hundred fifty percent of the paid-in capital set forth in TABLE

ONE for such kind or kinds of insurance, nor to write any kind of

insurance specified in TABLE ONE, Group B, unless it has such a trusteed

surplus at least equal in amount to two hundred percent of the paid-in

capital set forth in TABLE ONE for such kind or kinds of insurance.

Every such insurer shall thereafter maintain a trusteed surplus at least

equal to the paid-in capital set forth in TABLE ONE for such kind or

kinds of insurance.

(d) The financial requirements specified in subsections (b) and (c)

hereof shall be reduced by fifty percent for a foreign or alien stock

property/casualty insurance company initially licensed to do business in

this state prior to July first, nineteen hundred eighty-two, but such

reduction shall not apply to such a foreign or alien insurer licensed

under subsection (c) of section four thousand one hundred two of this

article to reinsure risks or write insurance on risks outside the United

States, its territories and possessions. Such reduction shall also not

apply to the financial requirements specified in subsection (a) of this

section in order to write paragraph twenty-two, twenty-four or

twenty-six.

* SPECIAL NOTE.--Notwithstanding that Chapter 585 of the Laws of 1984:

Bill sections 2, 3, 5, 6, 7, and 9 of such chapter amend provisions of

the former Insurance Law that are not possible to juxtapose at this time

due to the highly technical nature of such changes and will need future

corrective legislation to implement such provisions into the new

Insurance Law as enacted by such Chapter 367 of the Laws of 1984.