N.Y. ISC Law § 6705 — New York Code / Act ISC / Article 67 / Section 6705
Relevant criteria
Status: in_force

§ 6705. Relevant criteria. (a) In applying this article, the\nsuperintendent shall consider the provisions of paragraph (3) of\nsubsection (c) of section 501 of the Internal Revenue Code and\nsubsection (n) of section 501 of the Internal Revenue Code.\n  (b) Notwithstanding any other provision of law, a nonprofit\nproperty/casualty insurance company shall:\n  (1) be operated solely to insure risks of its members.\n  (2) directly provide information to its members with respect to loss\ncontrol and risk management.\n  (3) obtain at least one million dollars in startup capital from\nnonmember charitable organizations. Such startup capital may take the\nform of subventions as authorized pursuant to section five hundred four\nof the not-for-profit corporation law or advancements or borrowings as\nauthorized pursuant to section one thousand three hundred seven of this\nchapter. Startup capital may be used to satisfy the financial\nrequirements contained in this chapter applicable to a nonprofit\nproperty/casualty insurance company only to the extent the\nsuperintendent determines that it complies with such requirements.\nSubventions will qualify as advancements or borrowings authorized\npursuant to section one thousand three hundred seven of this chapter\nonly if they meet the requirements of advancements or borrowings\nauthorized pursuant to such section.\n  (4) be controlled by a board of directors elected by the members of\nthe nonprofit property/casualty insurance company.\n  (5) require, in its organizational documents that:\n  (A) each member of such nonprofit property/casualty insurance company\nshall at all times be an organization described in paragraph (3) of\nsubsection (c) of section 501 of the Internal Revenue Code and exempt\nfrom tax under subsection (a) of section 501 of the Internal Revenue\nCode.\n  (B) any member which receives a final determination that it no longer\nqualifies as an organization described in paragraph (3) of subsection\n(c) of section 501 of the Internal Revenue Code shall immediately notify\nthe nonprofit property/casualty insurance company of such determination\nand the effective date of such determination.\n  (C) each policy of insurance issued by the nonprofit property/casualty\ninsurance company shall provide that such policy will not cover the\ninsured with respect to events occurring after the date such final\ndetermination was issued to the insured.\n  (c) A nonprofit property/casualty insurance company shall:\n  (1) not refuse to issue, renew or cancel a policy of any insurable\nnonprofit organization based solely on geographic location,\n  (2) not refuse to write coverages afforded by such insurer for any\ninsurable nonprofit organization in accordance with subsection (d) of\nthis section,\n  (3) establish and promote a risk management program among its members\nto identify and reduce risks by implementation of loss control, safety\nprograms and other methods of risk management,\n  (4) establish equitable risk classifications for all types of\nnonprofit organizations, and\n  (5) establish recordkeeping and reporting procedures.\n  (d) A nonprofit property/casualty insurance company shall, subject to\nregulatory standards, offer to provide coverage following application by\nan eligible nonprofit organization, provided that the nonprofit\norganization has not:\n  (1) violated applicable laws, regulations and rules;\n  (2) been involved in financial, management or operational acts,\nomissions or conditions that substantially and materially increase the\nhazards to the nonprofit insurer, its solvency, its policyholders, its\ncreditors, or the public;\n  (3) engaged in fraud or material misrepresentation;\n  (4) refused to cooperate with reasonable risk management in accordance\nwith risk management standards, approved by the nonprofit insurer's\nboard of directors, for the purpose of protecting the nonprofit\norganization itself and all participating nonprofit organizations\ninsured by the nonprofit insurer; or\n  (5) violated such other standards of insurability as the nonprofit\ninsurer's board of directors and the superintendent may approve.\n  The nonprofit property/casualty insurance company, in any instance of\ndeclination of coverage, shall inform the nonprofit organization and the\nsuperintendent of the reasons for such declination.\n