N.Y. ISC Law § 4107 — New York Code / Act ISC / Article 41 / Section 4107
Domestic mutual companies; financial and other requirements
Status: in_force

* § 4107. Domestic mutual companies; financial and other requirements.\n(a) (1) A mutual property/casualty insurance company organized in the\nmanner prescribed in subsection (a) of section one thousand two hundred\none of this chapter may be licensed pursuant to subsection (e) of\nsection one thousand one hundred two of this chapter to write any one\nkind (but only one kind except as hereinafter in this section provided)\nof insurance as specified in TABLE TWO upon at least meeting the\nrequirements set forth therein. In this section, "initial surplus" means\nthe paid-in initial surplus required pursuant to subparagraph (A) of\nparagraph nine of subsection (a) of section one thousand two hundred one\nand subparagraph (B) of paragraph one of subsection (e) of section one\nthousand one hundred two of this chapter, and "minimum surplus" means\nthe surplus required to be maintained unimpaired after a company is\nlicensed to do business.\n  * SPECIAL NOTE.--Notwithstanding that Chapter 585 of the Laws of 1984:\n  Bill sections 2, 3, 5, 6, 7, and 9 of such chapter amend provisions of\nthe former Insurance Law that are not possible to juxtapose at this time\ndue to the highly technical nature of such changes and will need future\ncorrective legislation to implement such provisions into the new\nInsurance Law as enacted by such Chapter 367 of the Laws of 1984.\n                                TABLE TWO\nKind of\ninsurance\nspecified\nin the\nfollowing                 Num-    Number\nnumbered   Num-           ber      of\nparagraphs ber   Number    of     Insur-           Minimum\nof subsec-  of    of      Sep-    ance             Surplus\ntion (a)   Mem-  Appli-   arate   Poli-  Initial    to be        Other\nof § 1113  bers  cations  Risks   cies   Surplus   Maintained  Requirements\n---------  ----- ------   -----   ----   -------   ----------  ------------\n    4       50    300      300    --  $  300,000{1}$  200,000{1}see note{2}\n    7       20     20      200    20  $  300,000   $  200,000   see note{3}\n    8       20     20      300    20  $  150,000   $  100,000   see note{3}\n    9       20     20      200    20  $  300,000   $  200,000   see note{3}\n   10       20     20      300    20  $  150,000   $  100,000   see note{3}\n   11       20     20      300    20  $  150,000   $  100,000   see note{3}\n   13      100    100      500{4} --  $  500,000{5}$  400,000{5}see note{6}\n   15       40{7}  40    2,500{7} --  $  500,000   $  400,000   see note{6}\n            30{7}  30    5,000{7} --  $  500,000   $  400,000   see note{6}\n            20{7}  20    7,500{7} --  $  500,000   $  400,000   see note{6}\n            10{7}  10   10,000{7} --  $  500,000   $  400,000   see note{6}\n   16       --     --      ---    --  $1,500,000   $1,000,000\n   17       20     20    2,000    20  $  750,000   $  500,000   see note{3}\n   20       50    300      300    --  $1,000,000{8}$  500,000{8}see note{9}\n   21       20     20{10}  200{11}--  $  500,000   $  500,000   see note{12}\n   34       20    20     200      20  $2,000,000   $1,000,000   see note {3}\nNotes to TABLE TWO\n  {1} If licensed to write paragraph 4, no additional surplus is\nrequired for a license to write paragraphs 5, 6, 12, 19, 20, (inland\nmarine only) and 34.\n  {2} The aggregate premiums in respect to the separate risks shall be\nat least $100,000 and each applicant shall have paid one-half of the\npremium payable with the balance due upon the issuance of the policy.\n  {3} Shall have received cash from each applicant at least equal to 1/2\nof the annual premium on the policy.\n  {4} Not more than 5 risks from any one member.\n  {5} If licensed to write paragraph 13, no additional surplus is\nrequired for a license to write paragraphs 6, 12 and 14.\n  {6} The aggregate annual premium cost of such insurance shall be at\nleast $50,000.\n  {7} Substitute "employers" for "members" and "employees" for "separate\nrisks"\n  {8} If licensed to write paragraph 20, no additional surplus is\nrequired for a license to write paragraphs 12, 19, and 21.\n  {9} The aggregate amount of cash received for the premiums on the\npolicies applied for shall be at least $150,000.\n  {10} The 20 applications shall be from persons, firms, corporations,\nassociations or joint stock companies, each owning, operating or\nchartering one or more vessels.\n  {11} Applicants shall take insurance covering in the aggregate at\nleast 200 vessels having an aggregate gross tonnage of at least 500,000\ntons.\n  {12} Shall have received cash, from such applicants, on account of the\npremiums on the respective policies applied for, a sum at least equal to\n20 cents per ton upon such aggregate gross tonnage.\n  (2) A mutual property/casualty insurance company whose membership is\nlimited to hospitals may be organized in the manner prescribed in\nsubsection (a) of section one thousand two hundred one of this chapter\nand may be licensed pursuant to subsection (e) of section one thousand\none hundred two of this chapter to write the kinds of insurance\nspecified in paragraph thirteen or fourteen of subsection (a) of section\none thousand one hundred thirteen of this chapter provided (i) it shall\nhave applications from at least forty members on at least forty separate\nrisks, (ii) the total annual premium cost shall be at least seven\nhundred fifty thousand dollars, (iii) it shall have an initial surplus\nof at least five hundred thousand dollars and shall maintain a surplus\nof at least four hundred thousand dollars and (iv) it shall receive from\nits members advances pursuant to the requirements of section one\nthousand three hundred seven of this chapter averaging not less than\none-third of the average annual indicated premium, but the total thereof\nshall not be less than the initial minimum surplus.\n  (b) If licensed to write any kind of insurance specified in TABLE TWO,\na mutual property/casualty insurance company may in addition write any\none or more of the kinds of insurance specified in Group A and/or Group\nB of TABLE THREE, and if licensed to write any kind of insurance\nspecified in Group A, it may in addition write any one or more of the\nkinds of insurance specified in Group C of TABLE THREE, in either case,\nupon at least meeting the initial surplus requirement prescribed in\nTABLE THREE for the kinds of insurance for which it is to be licensed.\nIt shall thereafter maintain the minimum surplus prescribed in TABLE\nTHREE for the kinds of insurance licensed.\n                               TABLE THREE\nKind of insurance specified in the                         Minimum\nfollowing  numbered  Paragraphs of            Initial{1}   Surplus{1} to\nsubsection (a) of § 1113:                     Surplus      be Maintained\n_________________________________             _________    _____________\n                                Group A:\n7 or 9 - for each such kind                   $100,000     $100,000\n8, 10 or 11 - for each such kind              $ 50,000     $ 50,000\n13,{2} 15 or 17 - for each such kind          $300,000     $300,000\n16                                            $900,000     $900,000\n                                Group B:\n4{3}                                          $  300,000   $200,000\n20{4}                                         $1,000,000   $500,000\n                                Group C:\n3(i) or 3(ii) - for each such kind            $  100,000   $  100,000\n22                                            $3,000,000   $2,000,000\n24                                            $  300,000   $  300,000\n26 (B)                                        $  300,000   $  200,000\n26(A), 26(C) or 26(D) -\nfor each such kind                            $  900,000   $  600,000\n28                                            $3,000,000   $2,000,000\n6{5}, 12{6}  or 14{2}  - for\neach such kind                                $   50,000   $   50,000\n27                                            $  300,000   $  150,000\n30                                            $  300,000   $  300,000\n31                                            $  100,000   $  100,000\n32                                            $  100,000   $  100,000\n33                                            $  100,000   $  100,000\nNotes to TABLE THREE\n  {1}  The  amounts  shown  in  TABLE THREE are added to the initial and\nminimum surplus for the kind of  insurance  for  which  the  mutual  was\norganized  as set forth in TABLE TWO. In addition, if organized to write\nparagraphs 4, 20 or 21 the initial  and  minimum  surplus  required  for\nparagraphs  7,  8,  9, 10, 11, 13, 15, 16 or 17 shall be determined from\nTABLE TWO for the kind of insurance with  the  highest  initial  surplus\nrequirement  as  indicated  in  TABLE  TWO. After such determination use\nTABLE THREE to derive the initial and minimum surplus  requirements  for\nall other kinds of insurance.\n  {2} If licensed to write paragraph 13, no additional surplus is\nrequired for a license to write paragraphs 6, 12, and 14.\n  {3} If licensed to write paragraph 4, no additional surplus is\nrequired for a license to write paragraphs 5, 6, 12, 19, 20, (inland\nmarine only) and 34.\n  {4} If licensed to write paragraph 20, no additional surplus is\nrequired for a license to write paragraphs 12, 19, and 21.\n  {5} If licensed to write paragraph 4 or 13, no additional initial and\nminimum surplus is required.\n  {6} If licensed to write paragraphs 4, 13 or 20, no additional initial\nand minimum surplus is required.\n  (c) A mutual property/casualty insurance company licensed pursuant to\nparagraph four of subsection (b) of section four thousand one hundred\ntwo of this article to write the kind of insurance specified in\nparagraph nineteen of subsection (a) of section one thousand one hundred\nthirteen of this chapter must maintain a minimum surplus of at least six\nhundred thousand dollars.\n  (d) A mutual property/casualty insurance company licensed pursuant to\nsubsection (c) of section four thousand one hundred two of this article\nto reinsure risks or write insurance on risks outside the United States,\nits territories and possessions, must maintain a surplus to\npolicyholders of at least thirty-five million dollars.\n  (e) The dollar amounts of initial surplus, minimum surplus and surplus\nto policyholders set forth in subsections (a), (b) and (c) of this\nsection shall be reduced by fifty percent for any mutual property/\ncasualty insurance company initially licensed to do business in this\nstate prior to July first, nineteen hundred eighty-two. Such reduction\nshall not apply to the financial requirements specified in subsection\n(b) of this section in order to write paragraph twenty-two, twenty-four\nor twenty-six.\n  (f) Notwithstanding any provision of this section to the contrary, if\nlicensed to write the kind of insurance specified in paragraph fifteen\nof subsection (a) of section one thousand one hundred thirteen of this\nchapter, a mutual property/casualty insurance company may be licensed\nfor the purposes of article nine of the workers' compensation law to\nwrite the kind of insurance specified in item (i) of paragraph three of\nsubsection (a) of section one thousand one hundred thirteen of this\nchapter without having any additional surplus.\n