N.Y. Insurance Law § 4104: Deposits

* § 4104. Deposits. (a) Before being licensed to write one or more of

the kinds of insurance defined respectively in the following paragraphs

of subsection (a) of section one thousand one hundred thirteen of this

chapter: burglary and theft (7), glass (8), boiler and machinery (9),

elevator (10), animal (11), personal injury liability (13), property

damage liability (14), workers' compensation and employers' liability

(15), fidelity and surety (16), or credit (17), a domestic

property/casualty insurance company shall have made a deposit with the

superintendent of eligible securities in an amount of at least five

hundred thousand dollars or the amount required as paid-in capital or

minimum surplus for the kind or kinds of insurance which such company is

to be licensed to write, whichever is the lesser, but in no event shall

the amount of the deposit be less than four hundred thousand dollars for

any stock company writing any two kinds of insurance designated in this

subsection.

(b) Before being licensed pursuant to subsection (c) of section four

thousand one hundred two of this article to reinsure risks or to write

insurance on risks outside of the United States, its territories and

possessions, a domestic property/casualty insurance company shall have

made a deposit with the superintendent of eligible securities in an

amount of at least three million dollars. Such deposit shall be

inclusive of any deposit required by subsection (a) or (c) hereof.

(c) Before being authorized to issue non-assessable policies pursuant

to section four thousand one hundred thirteen of this article, a

domestic mutual property/casualty insurance company shall have made a

deposit with the superintendent of eligible securities in an amount of

at least five hundred thousand dollars. Such deposit shall be inclusive

of any deposit required by subsection (a) or (b) hereof.

(d) Before being granted any license or renewal license, every foreign

property/casualty insurance company shall have made a deposit with the

superintendent of eligible securities in an amount not less than the

amount required for a similar domestic property/casualty insurance

company. The superintendent shall accept in lieu of such deposit a

certificate of the proper state officer of the state under whose laws

such company is organized showing that such company has deposited with

the proper officer of such state, in trust for the benefit and

protection of, or for the security of, all of its policyholders, or of

all of its policyholders and creditors, securities valued at an amount

not less than the amount hereinbefore specified. Such certificate and

deposit shall be governed by the provisions of sections one thousand

three hundred eighteen and one thousand three hundred nineteen of this

chapter.

(e) The dollar amounts of the deposits specified in subsections (a)

and (c) hereof shall be reduced by fifty percent for any

property/casualty insurance company initially licensed to do business in

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

* 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.