N.Y. Insurance Law § 4302: Permit and license to do business

§ 4302. Permit and license to do business. (a) Corporations subject to

this article shall not solicit the purchase of, or enter into, any

contract with any individual or group until it has obtained from the

superintendent a permit so to do. Such permit shall be issued by the

superintendent upon receipt of an application in a form to be prescribed

by the superintendent and upon payment of a fee of ten dollars. Such

application shall include a statement of the territory in which the

corporation will operate, which, in the case of hospital service

corporations, shall not exceed eighteen counties of this state, the

services to be rendered by the corporation and the rates to be charged

therefor, and shall be accompanied by two copies of each type of

contract for service which the corporation proposes to render and by a

bond in the sum of one thousand dollars conditioned upon return to

applicants for contracts of any advance payments made if within one year

from the date of the issuance of such permit a license to do business as

hereafter provided has not been issued.

(b) No such corporation shall furnish medical expense indemnity,

dental expense indemnity, hospital service or health service as set

forth in section four thousand three hundred one of this article until

it has obtained from the superintendent a license to do business. Such

license may be issued by the superintendent upon the filing of an

application, subscribed by two officers of such corporation and affirmed

by such officers as true under the penalties of perjury, and in a form

prescribed by the superintendent and upon payment of a fee of ten

dollars. Such application shall include (i) a statement of the number of

individuals and groups from whom the corporation has received

applications for medical expense indemnity, dental expense indemnity,

hospital service or health service, as the case may be, to be rendered

during one year, and from each of whom it has received payment of not

less than one-sixth of the full payment required from such individuals

and groups; and (ii) a statement of the total amount so collected, which

shall be not less than eighteen hundred dollars. Before issuing any such

license the superintendent may make such examination or investigation as

he deems expedient, including an investigation of the sponsors of such

proposed corporation and if after such examination or investigation he

determines the issuance of such license is contrary to the interest of

the people, he shall refuse to issue. Upon the issuance of such license,

the corporation may begin to furnish medical expense indemnity, dental

expense indemnity, hospital service or health service, as the case may

be.

(c) Notwithstanding the other provisions of this article, the

superintendent may issue a permit to organize and a license to do

business to a not-for-profit corporation organized and operated under

the supervision of the New York State Public High School Athletic

Association, unrestricted as to its territorial operations in this

state, for the sole purpose, however, of furnishing medical, dental and

hospital expense indemnity to bona fide students in elementary and high

schools injured (i) in intramural and interscholastic athletic games and

sports activities, (ii) while engaged in preparation for such games,

sports or contests, (iii) in physical education classes, and (iv) in any

other accidents which in the judgment of the superintendent should be

included. The dental indemnity is to apply, however, only in case of

dental expense caused by injury occurring as above set forth.