N.Y. Insurance Law § 7004: Required capital and surplus as regards policyholders

§ 7004. Required capital and surplus as regards policyholders. (a)

No pure captive insurance company or group captive insurance company

shall be issued a license unless it shall possess and thereafter

maintain unimpaired paid-in capital and surplus as regards policyholders

of:

(1) in the case of a pure captive insurance company incorporated as a

stock insurer, not less than two hundred fifty thousand dollars of total

surplus as regards policyholders, of which one hundred thousand dollars

shall represent paid-in capital;

(2) in the case of a pure captive insurance company incorporated as a

mutual insurer, not less than two hundred fifty thousand dollars of

total surplus as regards to policyholders;

(3) in the case of a group captive insurance company incorporated as a

stock insurer, not less than five hundred thousand dollars of total

surplus as regards policyholders, of which two hundred thousand dollars

shall represent paid-in capital; and

(4) in the case of a group captive insurance company incorporated as

a mutual insurer, not less than five hundred thousand dollars of total

surplus as regards policyholders.

(b) The minimum capital and surplus to policyholders required in

subsection (a) of this section shall be in the form of:

(1) cash;

(2) minimum capital or surplus to policyholders investments of the

type specified in paragraphs one and two of subsection (b) of section

one thousand four hundred two of this chapter; or

(3) an irrevocable letter of credit, in a form approved by the

superintendent, naming the superintendent as beneficiary for the

security of the captive insurance company's policyholders and issued by

a bank acceptable to the superintendent.

(c) The superintendent may prescribe additional capital and surplus

to policyholders based upon the type, volume and nature of insurance

business transacted. Any additional capital and surplus to

policyholders so required shall be in the form as set forth in

subsection (b) of this section.