N.Y. ISC Law § 4302 — New York Code / Act ISC / Article 43 / Section 4302
Permit and license to do business
Status: in_force

§ 4302. Permit and license to do business. (a) Corporations subject to\nthis article shall not solicit the purchase of, or enter into, any\ncontract with any individual or group until it has obtained from the\nsuperintendent a permit so to do. Such permit shall be issued by the\nsuperintendent upon receipt of an application in a form to be prescribed\nby the superintendent and upon payment of a fee of ten dollars. Such\napplication shall include a statement of the territory in which the\ncorporation will operate, which, in the case of hospital service\ncorporations, shall not exceed eighteen counties of this state, the\nservices to be rendered by the corporation and the rates to be charged\ntherefor, and shall be accompanied by two copies of each type of\ncontract for service which the corporation proposes to render and by a\nbond in the sum of one thousand dollars conditioned upon return to\napplicants for contracts of any advance payments made if within one year\nfrom the date of the issuance of such permit a license to do business as\nhereafter provided has not been issued.\n  (b) No such corporation shall furnish medical expense indemnity,\ndental expense indemnity, hospital service or health service as set\nforth in section four thousand three hundred one of this article until\nit has obtained from the superintendent a license to do business. Such\nlicense may be issued by the superintendent upon the filing of an\napplication, subscribed by two officers of such corporation and affirmed\nby such officers as true under the penalties of perjury, and in a form\nprescribed by the superintendent and upon payment of a fee of ten\ndollars. Such application shall include (i) a statement of the number of\nindividuals and groups from whom the corporation has received\napplications for medical expense indemnity, dental expense indemnity,\nhospital service or health service, as the case may be, to be rendered\nduring one year, and from each of whom it has received payment of not\nless than one-sixth of the full payment required from such individuals\nand groups; and (ii) a statement of the total amount so collected, which\nshall be not less than eighteen hundred dollars. Before issuing any such\nlicense the superintendent may make such examination or investigation as\nhe deems expedient, including an investigation of the sponsors of such\nproposed corporation and if after such examination or investigation he\ndetermines the issuance of such license is contrary to the interest of\nthe people, he shall refuse to issue. Upon the issuance of such license,\nthe corporation may begin to furnish medical expense indemnity, dental\nexpense indemnity, hospital service or health service, as the case may\nbe.\n  (c) Notwithstanding the other provisions of this article, the\nsuperintendent may issue a permit to organize and a license to do\nbusiness to a not-for-profit corporation organized and operated under\nthe supervision of the New York State Public High School Athletic\nAssociation, unrestricted as to its territorial operations in this\nstate, for the sole purpose, however, of furnishing medical, dental and\nhospital expense indemnity to bona fide students in elementary and high\nschools injured (i) in intramural and interscholastic athletic games and\nsports activities, (ii) while engaged in preparation for such games,\nsports or contests, (iii) in physical education classes, and (iv) in any\nother accidents which in the judgment of the superintendent should be\nincluded. The dental indemnity is to apply, however, only in case of\ndental expense caused by injury occurring as above set forth.\n