N.Y. ISC Law § 1211 — New York Code / Act ISC / Article 12 / Section 1211
Mutual insurance corporations; membership and dividends
Status: in_force

§ 1211. Mutual insurance corporations; membership and dividends. (a)\nEvery domestic mutual insurance corporation shall be organized,\nmaintained and operated for the benefit of its members as a non-stock\ncorporation. Every policyholder shall be a member of such corporation\nand shall, except as provided in subsection (d) hereof, be entitled to\nvote at any regular or special meeting of such corporation, to notice\nthereof pursuant to the by-laws and to share equitably in dividends\ndeclared by the board of directors. The board of directors may, subject\nto limitations in this chapter, from time to time declare a dividend\nfrom the corporation's surplus. No dividend shall be declared or paid if\nthereby the company's minimum or other required surplus will be\nimpaired. In declaring and paying any dividend the board of directors\nmay make reasonable classifications of policies, and shall declare and\npay such dividend in a manner that is fair and equitable to the\npolicyholders. Unless otherwise provided in the corporation's charter or\nby-laws, each member shall be entitled to one vote at any regular or\nspecial meeting. The charter or by-laws may, with the approval of the\nsuperintendent, provide for distribution of voting power among members\non the basis of the amount of insurance held, number of policies held,\namount of premiums paid by them or on any other basis the superintendent\nfinds fair and equitable.\n  (b) A member of any such corporation may vote at any such meeting in\nperson or by proxy. No proxy or power of attorney given by him, to vote\nat any meeting of such corporation, shall be valid or effective after\nthe next meeting. No person shall directly or indirectly sell or\npurchase, or offer to sell or purchase, any proxy or power of attorney\nto vote at any such meeting, nor shall any person directly or indirectly\ngive or receive, or offer to give or receive, any proxy or power of\nattorney to vote at any such meeting as an inducement to the negotiation\nor making of a contract of insurance or any renewal thereof, to the\nsettlement of any claim thereunder, or to any other act relating\nthereto.\n  (c) All corporations, their directors and representatives and all\npersons, firms or corporations holding property in trust may insure the\nsame in mutual insurance corporations and by so doing such directors,\nrepresentatives or trustees, in their representative capacity, may\nassume the liabilities and be entitled to the rights of a member of such\ninsurer, but shall not be personally liable as individuals upon such\ncontract of insurance.\n  (d) The provisions of this section as to members' voting rights and\nthe election of directors shall not apply to any domestic mutual life\ninsurance company governed by the provisions of section four thousand\ntwo hundred ten of this chapter, nor shall they require any such company\nto hold a meeting of its members.\n  (e) As to any surety or fidelity bond or like obligation executed by a\nmutual property/casualty insurance company as a surety or guarantor, the\nprincipal, and not the obligee, shall be a member of such corporation.\n