NY Ins L § 7306 (2021)
2021 New York Laws ISC - Insurance Article 73 - Conversion to Different Type of Insurer 7306 - Conversion of Advance Premium Corporations or Assessment Corporations Into Mutual Property/casualty Insurance Companies.

§  7306.  Conversion  of  advance  premium  corporations or assessment corporations into  mutual  property/casualty  insurance  companies.  Any advance  premium  corporation  or  assessment corporation, as defined in section six thousand six hundred two of this chapter, which has in force contracts  of   insurance   of   the   kinds   which   domestic   mutual property/casualty  insurance  companies, as defined in subsection (a) of section one hundred seven of this chapter,  may  be  authorized  to  do, covering  not  less  than  three hundred separate risks and on which the premiums in force or the most recent annual  assessment  aggregates  not less  than  one  hundred  thousand  dollars,  may  be converted into and licensed as a domestic mutual property/casualty insurance company in the manner prescribed in this section and subject to any other  requirements of law. The successive steps shall be as follows:  (a)  A  majority  of  the  board of directors of the corporation shall adopt a resolution approving the proposed conversion  and  appointing  a committee  of  not  less  than  three  directors to prepare a draft of a proposed declaration, charter and by-laws.  (b) The proposed declaration, charter and by-laws shall  be  submitted with an appropriate resolution to the board for its approval.  (c)  A majority of the board at any regular or special meeting thereof shall approve  by  resolution  the  proposed  declaration,  charter  and by-laws,  which  shall  conform  to  the  requirements  of  this chapter relative to the contents of charters  and  by-laws  of  domestic  mutual property/casualty  insurance  companies  hereafter  organized, with such additions as the superintendent shall approve to  accommodate  insurance contracts  then  in force. Such resolution shall also direct that notice that the proposed conversion will be submitted for approval at the  next annual  meeting of members or at a special meeting to be called for that purpose be mailed, with postage prepaid, to all members  at  their  last known  post office addresses respectively, at least thirty days prior to the date of  the  meeting,  together  with  copies  of  the  resolutions provided  for  in subsections (a) and (b) hereof and this subsection and of the proposed declaration, charter and by-laws.  (d) At least two-thirds of the votes of members voting at such meeting either in person or by proxy, if the corporation's by-laws provide for a vote by proxy, shall be cast in favor of the proposed conversion and  of the  adoption  of  the  proposed  declaration  and  charter and proposed by-laws.  A  resolution  shall  similarly  be  adopted  instructing  the president  and  secretary  to  execute or certify and file all necessary papers and instruments incident to the proposed conversion.  (e) The proposed declaration and charter executed by the president and secretary together with proof of mailing of notice of  members'  meeting and copies of all other necessary papers and instruments incident to the proposed  conversion,  together  with a certificate of their adoption as provided for herein, subscribed and affirmed by such  officers  as  true under   the   penalties   of   perjury,   shall   be  submitted  to  the superintendent.  (f) If the superintendent finds, by such investigation or  examination as  he deems appropriate to make, that the corporation meets the initial surplus and reserve requirements  for  domestic  mutual  fire  insurance companies organized and licensed immediately before July first, nineteen hundred  eighty-two, to do the kinds of insurance business for which the corporation is to be licensed, and complies with all other provisions of this section, he shall approve the declaration and charter  and  by-laws and  file  the  same  together  with  the  other  documents submitted as required by subsection (e) hereof in his  office,  and  coincident  with such  filing  such advance premium corporation or assessment corporation shall become a domestic mutual property/casualty insurance company.  (g) Upon compliance by the corporation with the foregoing and with any other lawful prerequisites for the issuance of an insurer's license, the superintendent may, in accordance with subsection  (d)  of  section  one thousand one hundred two of this chapter, grant a license to such mutual property/casualty  insurance  company. Such corporation shall thereafter be subject to all  the  provisions  and  requirements  of  this  chapter relative to mutual property/casualty insurance companies.