N.Y. Insurance Law § 7306-a: Reconversion of domestic mutual property/casualty insurance company into advance premium corporation or assessment corporation

§ 7306-a. Reconversion of domestic mutual property/casualty insurance

company into advance premium corporation or assessment corporation. Any

domestic mutual property/casualty insurance company, organized under

article twelve of this chapter and licensed under article forty-one of

this chapter which was previously organized as an advance premium

corporation or assessment corporation and which has in force contracts

of insurance of the kinds which advance premium corporations or

assessment corporations, as defined in section six thousand six hundred

two of this chapter, may be authorized to do, covering not less than

three hundred separate risks and on which the premiums in force

aggregates not less than one hundred thousand dollars, may be

reconverted into and licensed as an advance premium corporation or

assessment corporation in the manner prescribed in this section and

subject to any other requirements of law. The successive steps shall be

as follows:

(a) A majority of the board of directors of the domestic mutual

property/casualty insurer shall adopt a resolution approving the

proposed reconversion and appointing a committee of not less than three

directors to prepare a draft of a proposed declaration, charter and

by-laws.

(b) The proposed declaration, charter and by-laws shall be submitted

with an appropriate resolution to the board for its approval.

(c) A majority of the board at any regular or special meeting thereof

shall approve by resolution the proposed declaration, charter and

by-laws, which shall conform to the requirements of this chapter

relative to the contents of charters and by-laws of advance premium

corporations or assessment corporations, as the case may be, hereafter

organized, with such additions as the superintendent shall approve to

accommodate insurance contracts then in force. Such resolution shall

also direct that notice that the proposed reconversion will be submitted

for approval at a special meeting of policyholders to be called for that

purpose be mailed, with postage prepaid, to all policyholders at their

last known post office addresses respectively, at least thirty days

prior to the date of the meeting, together with copies of the

resolutions provided for in subsections (a) and (b) of this section and

this subsection and of the proposed declaration, charter and by-laws.

(d) At least two-thirds of the votes of policyholders voting at such

meeting either in person or by proxy, if the domestic mutual

property/casualty insurer's by-laws provide for a vote by proxy, shall

be cast in favor of the proposed reconversion and of the adoption of the

proposed declaration and charter and proposed by-laws. A resolution

shall similarly be adopted instructing the president and secretary to

execute or certify and file all necessary papers and instruments

incident to the proposed conversion.

(e) The proposed declaration and charter executed by the president and

secretary together with proof of mailing of notice of policyholders'

meeting and copies of all other necessary papers and instruments

incident to the proposed reconversion, together with a certificate of

their adoption as provided for herein, subscribed and affirmed by such

officers as true under the penalties of perjury, shall be submitted to

the superintendent.

(f) If the superintendent finds, by such investigation or examination

as he deems appropriate to make, that the corporation meets the initial

surplus and reserve requirements for advance premium corporations or

assessment corporations, as the case may be, to do the kinds of

insurance business for which the corporation is to be licensed, and

complies with all other provisions of this section, he shall approve the

declaration and charter and by-laws and file the same together with the

other documents submitted as required by subsection (e) of this section

in his office, and coincident with such filing such domestic mutual

property/casualty insurance company shall become an advance premium

corporation or assessment corporation, as the case may be.

(g) Upon compliance by the domestic mutual property/casualty insurer

with the foregoing and with any other lawful prerequisites for the

issuance of an insurer's license, the superintendent may, in accordance

with subsection (d) of section one thousand one hundred two of this

chapter, grant a license to such advance premium corporation or

assessment corporation, as the case may be. Such corporation shall

thereafter be subject to all the provisions and requirements of this

chapter relative to advance premium corporations or assessment

corporations, as the case may be.