N.Y. Insurance Law § 6704: Licensing of nonprofit property/casualty insurance companies

§ 6704. Licensing of nonprofit property/casualty insurance companies.

(a) No person, firm, corporation or association as an underwriter or

underwriters, and no nonprofit property/casualty insurance company,

shall do any insurance business in this state, unless authorized to do

so pursuant to the provisions of this article.

(b) The superintendent may pursuant to this article issue a license to

a nonprofit property/casualty insurance company that is organized as a

charitable corporation as defined in paragraph (a) of section one

hundred two (Definitions) of the not-for-profit corporation law if such

company:

(1) complies with (A) the applicable requirements of section one

thousand one hundred two of this chapter, and (B) the provisions of

article forty-one of this chapter applicable to stock property/casualty

insurance companies (other than sections four thousand one hundred

three, four thousand one hundred five and four thousand one hundred

nineteen) and, in each case, the rules and regulations of the

superintendent promulgated pursuant thereto except insofar as such

provisions of law, rules and regulations may be inconsistent with the

provisions of this article, and

(2) has an initial surplus to policyholders at least equal to the

amount of applicable paid-in capital and additional amount of paid-in

surplus required by paragraph one of subsection (a) of section four

thousand one hundred three of this chapter for a newly organized

domestic stock property/casualty insurance company doing the same kind

or kinds of insurance business.

Thereafter, every such nonprofit property/casualty insurance company

shall maintain a surplus to policyholders at least equal to the amount

of applicable paid-in capital required to be maintained by paragraph one

of subsection (a) of section four thousand one hundred three of this

chapter for a domestic stock property/casualty insurance company doing

the same kind or kinds of insurance business.

(c) The superintendent may issue a license to a nonprofit

property/casualty insurance company pursuant to this article that is a

nonprofit reciprocal insurer organized pursuant to article sixty-one of

this chapter if such company complies with the requirements of section

one thousand one hundred two of this chapter and article sixty-one of

this chapter and, in each case, the rules and regulations of the

superintendent promulgated pursuant thereto except insofar as such

provisions of law, rules and regulations may be inconsistent with the

provisions of this article and except that the provisions of subsection

(a) of section six thousand one hundred four of this chapter shall not

apply with respect to nonprofit organizations that are or seek to become

subscribers of such a nonprofit property/casualty insurance company,

provided that such a nonprofit property/casualty insurance company

either (1) has an initial surplus to policyholders and thereafter

maintains a surplus to policyholders in an amount acceptable to the

superintendent which amount shall be substantially greater than the

initial surplus to policyholders and surplus to policyholders to be

maintained by a reciprocal insurer under article sixty-one of this

chapter, or (2) submits a reinsurance or other financial plan, which

adequately addresses the provisions of subsection (a) of section six

thousand one hundred four of this chapter and which reinsurance or other

financial plan is acceptable to the superintendent.

(d) Every license to engage in an insurance business issued by the

superintendent to any nonprofit property/casualty insurance company

pursuant to the provisions of this article shall specify the company's

name, the location of its principal office, the name and principal

address of its attorney-in-fact, if any, and the kind or kinds of

insurance business specified in terms of subsection (a) of section one

thousand one hundred thirteen of this chapter, which it is authorized to

engage in in this state.