N.Y. ISC Law § 7305 — New York Code / Act ISC / Article 73 / Section 7305
Conversion of assessment corporations into advance premium corporations
Status: in_force

§ 7305. Conversion of assessment corporations into advance premium\ncorporations. Any assessment corporation, as defined in section six\nthousand six hundred two of this chapter, licensed under section six\nthousand six hundred three of this chapter to do the business of fire\ninsurance may be converted into and licensed as an advance premium\ncorporation, as defined in section six thousand six hundred two of this\nchapter, in the manner prescribed in this section and subject to any\nother requirements of law. The successive steps shall be as follows:\n  (a) A majority of the board of such assessment corporation shall adopt\na resolution approving the proposed conversion and appointing a\ncommittee of not less than three directors to prepare a draft of a\nproposed declaration and charter and proposed by-laws.\n  (b) Such committee's proposed declaration, charter and by-laws shall\nbe submitted with an appropriate resolution to the board of directors\nfor approval.\n  (c) A majority of the board at any regular or special meeting thereof\nshall approve by resolution a proposed declaration and charter and\nproposed by-laws, which shall conform to the requirements of this\nchapter relative to the contents of charters and by-laws of advance\npremium corporations hereafter organized, with such modifications as the\nsuperintendent, by regulation, shall prescribe to make such requirements\napplicable to the nature and character of such conversion proceeding.\nSuch resolution shall also direct that notice that the proposed\nconversion will be submitted for approval at the next annual meeting of\nmembers or at a special meeting to be called for that purpose be given\nto all members pursuant to section six hundred five of the business\ncorporation law, together with copies of the resolutions referred to in\nsubsections (a) and (b) hereof and in this subsection, and of the\nproposed declaration, charter and by-laws.\n  (d) At least two-thirds of the votes of the members voting at such\nmeeting either in person or by proxy, if the corporation's by-laws\nprovide for a vote by proxy, shall be cast in favor of the proposed\nconversion and of the adoption of the proposed declaration and charter\nand proposed by-laws. A resolution shall similarly be adopted\ninstructing the president and secretary to execute or certify and file\nall necessary papers and instruments incident to the proposed\nconversion.\n  (e) The proposed declaration and charter executed by the president and\nsecretary, together with copies of all other necessary papers and\ninstruments incident to the proposed conversion, subscribed and affirmed\nby each as true under the penalties of perjury, shall be submitted to\nthe superintendent.\n  (f) If the superintendent finds, by such investigation or examination\nas he deems appropriate to make, that the corporation meets the minimum\nsurplus requirements of section six thousand six hundred four of this\nchapter, he shall file in his office the declaration, charter, by-laws\nand other documents submitted as required by subsection (e) hereof, and\ncoincident with such filing such assessment corporation shall become an\nadvance premium corporation. For an assessment corporation initially\nlicensed to do business in this state prior to July first, nineteen\nhundred eighty-two such minimum surplus requirements and minimum capital\ninvestment requirements shall be those applicable to an advance premium\ncorporation initially licensed to do business in this state prior to\nsuch date.\n  (g) Upon compliance by the corporation with the foregoing and with any\nother lawful prerequisites for the issuance of an insurer's license, the\nsuperintendent may, in accordance with subsection (d) of section one\nthousand one hundred two of this chapter, grant a license to such\nadvance premium corporation to do the kinds of insurance business\nspecified in its charter. The territory in which such corporation shall\nbe licensed shall be that for which it was licensed when an assessment\ncorporation immediately prior to its conversion as herein provided, but\nif it has a surplus of at least one hundred fifty thousand dollars it\nmay be licensed by the superintendent to do business throughout the\nstate, subject to the requirements of section six thousand six hundred\nten of this chapter and to all the provisions and requirements of this\narticle relative to advance premium corporations.\n