N.Y. Insurance Law § 6402: Organization; financial requirements

§ 6402. Organization; financial requirements. A title insurance

corporation may be organized and licensed in the manner prescribed in

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

thousand two hundred one of this chapter, except as hereinafter

prescribed, to do the kind of insurance business, and with the

incidental powers, specified in section six thousand four hundred three

of this article, with a paid-in capital of at least five hundred

thousand dollars and a paid-in initial surplus at least equal to fifty

percent of its paid-in capital, and it shall at all times thereafter

maintain a capital at least equal to five hundred thousand dollars,

except that any such corporation organized before July first, nineteen

hundred eighty-two, shall at all times maintain a minimum capital of two

hundred fifty thousand dollars. In the organization of any such

corporation the provisions of section one thousand two hundred one of

this chapter shall be superseded or supplemented by the following

provisions:

(a) The duration of such corporation shall be perpetual.

(b) Its principal office shall be located in this state.

(c) The purposes for which such corporation shall be organized shall

only be such as are specified in section six thousand four hundred three

of this article.

(d) Its incorporators shall be natural persons, not less than seven in

number, and shall possess the qualifications of directors prescribed in

subsection (e) hereof.

(e) Its directors shall be natural persons, not less than seven in

number, all citizens of the United States, a majority of whom shall be

citizens and residents of this state at the time of their election and

during their continuance in office.

(f) Before a license to do business shall be issued to such

corporation a list of its shareholders shall be filed in the office of

the superintendent, subscribed and affirmed as true under the penalties

of perjury by two of its principal officers, giving the name, residence

and post-office address of, and number of shares held by, each

shareholder.

(g) No foreign or alien insurer shall be granted a license or renewal

of a license to do in this state the kind of business specified in

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

thirteen of this chapter if it may exercise any powers or conduct any

business without this state not authorized by such paragraph, or unless

its surplus to policyholders, of which not more than five percent of its

admitted assets shall be represented by title plant or plants, is at the

time of initial licensing not less than the sum of (i) the minimum

capital and initial surplus required of a similar domestic insurer, and

(ii) an amount by which reserves computed in accordance with paragraphs

one and two of subsection (a) of section six thousand four hundred five

of this article on business within and without the state exceed its

reserves of a comparable nature, whether statutory or voluntary, and

unless such insurer at all times thereafter maintains a surplus to

policyholders, similarly limited as to value of title plant or plants,

at least equal to the sum of such minimum capital and reserves

determined as hereinabove set forth, or if it fails to meet any other

requirements of this chapter applicable to a domestic title insurance

corporation except that any such insurer initially licensed on or after

July first, nineteen hundred eighty-two, shall have a surplus to

policyholders at least equal to the sum of (i) minimum capital and

initial surplus required of a like domestic insurer initially licensed

on or after July first, nineteen hundred eighty-two, and (ii) reserves

as hereinabove required; and shall maintain a surplus to policyholders

at least equal to the sum of (i) the reserves hereinabove required and

(ii) the minimum capital required of a domestic insurer initially

licensed on or after July first, nineteen hundred eighty-two.