N.Y. Insurance Law § 6703: Organization of nonprofit property/casualty insurance companies

§ 6703. Organization of nonprofit property/casualty insurance

companies. (a) A corporation may be organized as a charitable

corporation pursuant to paragraph (a) of section two hundred one of the

not-for-profit corporation law or as a nonprofit reciprocal insurer

under article sixty-one of this chapter to write the kinds of insurance

specified in subsection (a) of section one thousand one hundred thirteen

of this chapter other than (1) those types of insurance specified in

paragraphs one, two, eighteen, twenty-two, twenty-three and twenty-five

of such subsection, (2) insurance against legal liability of the

insured, and against loss, damage or expense incident to a claim of such

liability arising out of death or injury of any person, due to medical

or hospital malpractice by any licensed physician or hospital, and (3)

insurance subject to section three thousand four hundred twenty-five of

this chapter.

(b) A corporation organized pursuant to subsection (a) of this section

shall (1) be organized and operated exclusively for a purpose or

purposes for which a corporation may be formed under the not-for-profit

corporation law and this chapter, not for pecuniary profit or financial

gain, and no part of its assets, income or profit is distributable to or

enures to the benefit of its members, directors or officers except to

the extent permitted under the not-for-profit corporation law and this

chapter, in a manner acceptable to the superintendent, and (2) insure no

organizations or corporations other than nonprofit organizations.

(c) Notwithstanding any provision of the not-for-profit corporation

law, no nonprofit property/casualty insurance company licensed pursuant

to this article shall be converted into a corporation or other entity

organized for pecuniary profit or into a for-profit organization of any

kind.