N.Y. Insurance Law § 4208: Financial and additional requirements for the organization of mutual life, accident and health, and legal services insurance companies

§ 4208. Financial and additional requirements for the organization of

mutual life, accident and health, and legal services insurance

companies. (a) (1) A mutual insurance company may be incorporated and

licensed exclusively to do one or more of the kinds of insurance

business specified in paragraphs one, two, three, twenty-nine and

thirty-one of subsection (a) of section one thousand one hundred

thirteen of this chapter, upon compliance with the applicable

requirements of section one thousand two hundred one and subsection (e)

of section one thousand one hundred two of this chapter and subsection

(b) of this section.

(2) In this section:

(A) "Initial surplus" means the paid-in initial surplus required

pursuant to paragraph nine of subsection (a) of section one thousand two

hundred one and paragraph one of subsection (e) of section one thousand

one hundred two of this chapter.

(B) "Minimum surplus" means the amount of surplus which such company

shall, after being licensed to do business, at all times maintain

unimpaired.

(C) "Applications" means individual applications for policies of life

insurance, except that in the case of volunteer firefighters, it shall

also mean applications for enrollment for coverage to be issued under

group life insurance policies applied for by not less than twenty-five

associations or organizations of volunteer firefighters in accordance

with the provisions of paragraph seven of subsection (b) of section four

thousand two hundred sixteen of this article.

(b) (1) If organized to do only the kind of insurance business

specified in paragraph one of subsection (a) of section one thousand one

hundred thirteen of this chapter, such company shall:

(A) have not less than one thousand bona fide applications for life

insurance in an amount not less than one thousand dollars each;

(B) have received from each such applicant in cash the full amount of

one annual premium on the policy applied for, which premiums in the

aggregate at least equal twenty-five thousand dollars;

(C) have an initial surplus of one hundred fifty thousand dollars in

cash; and

(D) have a minimum surplus of one hundred thousand dollars.

(2) If organized to do only the kind of business specified in item (i)

of paragraph three of subsection (a) of section one thousand one hundred

thirteen of this chapter, such company shall:

(A) have not less than five hundred bona fide applications for such

insurance;

(B) have received from each such applicant in cash the full amount of

one annual premium on the policy applied for, which premiums in the

aggregate at least equal twenty thousand dollars;

(C) have an initial surplus of one hundred fifty thousand dollars in

cash; and

(D) have a minimum surplus of one hundred thousand dollars, except

that every such company initially licensed on or after July first,

nineteen hundred eighty-two shall have an initial surplus and a minimum

surplus in an amount which is at least equal to two hundred percent of

that required of a like company licensed prior to July first, nineteen

hundred eighty-two.

(3) If organized to do the kinds of insurance business specified in

paragraph one and in item (i) of paragraph three of subsection (a) of

section one thousand one hundred thirteen of this chapter, such company

shall comply with both paragraph one and paragraph two of this

subsection.

(4) To be organized to do the kind of insurance business specified in

paragraph two of subsection (a) of section one thousand one hundred

thirteen of this chapter, such company shall meet the organizational

requirements of paragraph one hereof and shall have an initial surplus

and a minimum surplus, each in an amount at least fifty thousand dollars

in excess of the respective amounts otherwise required by paragraph one

hereof.

(5) To be organized to do the kind of insurance business specified in

item (ii) of paragraph three or paragraph twenty-nine of subsection (a)

of section one thousand one hundred thirteen of this chapter, such

company shall meet the organizational requirements of one or more of

paragraphs one through four hereof and shall have an initial surplus and

a minimum surplus, each in an amount at least fifty thousand dollars in

excess of the highest applicable respective amount required by such

paragraph or paragraphs, except that any such company initially licensed

on or after July first, nineteen hundred eighty-two shall have an

initial surplus and a minimum surplus, each in an amount at least one

hundred thousand dollars in excess of the highest applicable respective

amount required by such paragraph or paragraphs.