NY Ins L § 6603 (2021)
2021 New York Laws ISC - Insurance Article 66 - Co-Operative Property/casualty Insurance Companies 6603 - Incorporation of Co-Operative Property/casualty Insurance Companies.

§  6603.  Incorporation  of  co-operative  property/casualty insurance companies. (a) A corporation may be organized and licensed as an advance premium corporation or  as  an  assessment  corporation  in  the  manner prescribed   in  this  section  and  subject  to  any  other  applicable requirements of this chapter. The successive steps shall be as follows:  (1) The proposed incorporators, who shall be natural persons not  less than  thirty  in  number, shall submit to the superintendent in writing, the proposed name of the  corporation,  which  shall  include  the  word "co-operative,"  and  the  county  in which its principal office will be located, and the name and address  of  a  public  newspaper  of  general circulation  in  said  county.  Such  proposed  incorporators shall also submit at the same time statements subscribed and affirmed  by  them  as true  under the penalties of perjury, in such form as the superintendent may require, which shall show that each incorporator  is  the  true  and bona  fide  owner  of  improved  real  property  worth not less than two thousand dollars; that the real property so owned by such  incorporators is  worth  in  the aggregate not less than two hundred thousand dollars; and that such real property  is  located  wholly  within  the  territory wherein the corporation desires to do business.  (2)   If   the  superintendent  approves  the  proposed  name  of  the corporation and the designated newspaper,  each  as  conforming  to  the requirements  of  law,  and  if he finds that the affidavits required by paragraph one hereof are sufficient in  form  and  substance,  he  shall notify  the proposed incorporators, or their representative, in writing. Such approval shall become void if  within  six  months  from  the  date thereof the declaration and charter have not been filed pursuant to this section.  However, upon application made prior to the expiration of such six months, the superintendent for good cause shown in such  application may  extend  such  approval  for  an additional period not to exceed six months.  (3) The proposed incorporators shall cause  to  be  published  in  the approved  newspaper,  twice a week for three successive weeks, or once a week for six successive weeks, a notice of  intention  to  form  such  a corporation,  stating  its proposed name, the kind or kinds of insurance business to be transacted and whether on the  advance  premium  plan  or assessment  plan,  the  names  and respective residence addresses of the proposed incorporators, and the location of its principal office in this state.  (4) The proposed incorporators  shall  submit  to  the  superintendent proof  of  such  publication by the statement of the publisher or of his foreman or clerk, subscribed and affirmed by him as true subject to  the penalties  of perjury, and a declaration subscribed and affirmed as true under the penalties of perjury by each and  all  of  the  incorporators, setting forth the items hereinafter specified.  (5) Such declaration shall be in the English language, and shall state the  intention  of  the proposed incorporators to form a corporation for the purpose of doing one or more kinds of insurance  business  specified in  subsection  (a) of section one thousand one hundred thirteen of this chapter and shall specify the provision or provisions  of  such  section defining  the kind or kinds of insurance business, insofar as such kinds of insurance are specifically available to such a corporation by section six thousand six hundred four or six thousand six hundred five  of  this article,  whichever is applicable. Such declaration shall also set forth a copy of the proposed charter of the corporation, which shall contain:  (A) The name of the proposed corporation.  (B) The territory in this state wherein the corporation desires to  do business.  (C)  The  kind  or  kinds  of insurance to be transacted, specified as above required, and whether on the advance premium or assessment plan.  (D)  The  mode  and  manner  in  which  its corporate powers are to be exercised.  (E) The number of its directors, which shall be not less  than  seven, and  a  provision  that in no case shall the number of directors be less than seven.  (F) The times and manner of electing its directors and  officers,  the manner of filling vacancies in such offices, and a provision that at all times  a  majority  of  the directors shall be citizens and residents of this state and that not less than one shall be  a  resident  within  the territory in which the corporation is licensed to do business.  (G)  The  names and the residence addresses of the directors who shall serve until the first annual meeting of the members of the corporation.  (H) Such other particulars as may be necessary to explain the objects, purposes, management and control of the corporation. The  superintendent may  by  regulation prescribe the additional information to be required, pursuant to this subparagraph.  (6) The superintendent  shall  transmit  such  proof  of  publication, declaration,  and  charter  to  the  attorney  general.  If  the same be approved by the attorney general, as conforming to the  requirements  of law,  upon  receipt  of such approval the superintendent shall file such declaration, charter and proof of publication in his office,  and  shall issue  a  certified  copy  thereof to the incorporators. If requested by such incorporators, the  superintendent  shall  also  issue  to  them  a certificate  of  incorporation executed by him in the name of the people of the state. Such incorporators shall thereupon become a body corporate and shall then have the powers enumerated in paragraph seven hereof, but such corporation shall not be authorized to do the business of insurance until it shall have obtained a license therefor.  (7) (A) Such a corporation shall have power to receive such monies  as are  necessary  to comply with the requirements of this article relative to the initial surplus fund of such corporation and to borrow monies  in accordance  with  section  one  thousand  three  hundred  seven  of this chapter.  (B) Any such corporation shall have power to  open  books  to  receive applications for insurance in such corporation from persons desiring and eligible  to  become  members  thereof,  and to keep them open until the minimum number and  amount  of  such  applications,  together  with  the premium  payments or advance payments thereon as required by section six thousand six hundred four or six  thousand  six  hundred  five  of  this article,  whichever  is  applicable,  have  been received; to invest the monies so received in the manner prescribed in section one thousand four hundred two of this chapter; and to expend money  or  incur  liabilities necessary  or  proper  as  organization  expenses,  such expenses not to exceed  the  maximum  amount  prescribed  in  the   permit   hereinafter mentioned.  (C)  No  such  corporation shall solicit applications for insurance or receive premium payments thereon or advance payments, as  the  case  may be, until it has received a permit therefor from the superintendent.  (D) Such permit shall be issued after:  (i)  the  superintendent  is  satisfied,  by  such  evidence as he may require or by such examination  as  he  may  deem  expedient,  that  the corporation holds in trust for prospective policyholders and creditors a fund,  in  cash  or securities eligible for investment under section one thousand four hundred two of this chapter, at least equal to the  amount required  of  such  a  corporation  as  its cash organization or initial surplus fund, such trust to terminate if and when a  license  to  do  an  insurance  business  of  the  kind  or  kinds  provided in its corporate charter has been obtained; and  (ii)  the  corporation  shall  have submitted to the superintendent an estimate of the total amount to be expended for  organization  expenses, and the superintendent shall have approved the same. Such estimate shall be recited in the permit, which shall also fix the maximum amount, to be prescribed by the superintendent, which may be expended for organization expenses.  (E)    The   directors   and   incorporators   of   any   co-operative property/casualty insurance  company  shall  be  jointly  and  severally liable  for  all debts or liabilities of such corporation until it shall have been licensed to do an insurance business  of  the  kind  or  kinds proposed.  (8)  (A)  Before  licensing  any  such corporation to do any insurance business, the superintendent shall require proof, by  statements  of  at least  three incorporators subscribed and affirmed by such incorporators as true under the penalties of perjury  and  by  such  investigation  or examination  of  the  affairs  of  such  corporation  as  he may deem it expedient to make pursuant to article three of this chapter, that:  (i) the corporation has fully complied with this chapter applicable to such corporations;  (ii) that it has the required cash  organization  or  initial  surplus fund in cash or in investments as prescribed in this chapter;  (iii)  that  it  has  the  required  number  and  amount  of bona fide applications for insurance;  (iv) that the membership list is genuine; and  (v) that every member has paid in cash the required amount of  premium or advance payment, as the case may be, on the insurance applied for and will  take the contracts as agreed within sixty days after a license has been issued to such corporation.  (B) If the superintendent finds the proof of  the  facts  itemized  in subparagraph  (A) hereof to be sufficient, he shall file the same in his office and notify the corporation thereof.  (C) Upon payment of the appropriate  fees  by  such  corporation,  the superintendent  shall  cause  a  copy  of  its  declaration and charter, certified by him, to be filed and recorded in the office of the clerk of the county in which such corporation has its principal office.  (D) The superintendent may refuse a license to any such corporation if he  finds,  after  notice  and  hearing,  that  any  of   the   proposed incorporators or directors of such corporation has been convicted of any crime  involving  fraud,  dishonesty,  or  like  moral  turpitude, or is otherwise an untrustworthy person.  (9)  Upon  compliance  with  the  foregoing  and  any   other   lawful prerequisites   for   the   issuance   of   an  insurer's  license,  the superintendent may, in accordance with the  provisions  of  section  one thousand  one  hundred  two  of  this  chapter,  grant a license to such corporation to do the kind or kinds of insurance business  specified  in its charter.  (b) No person shall participate as an incorporator in the organization of  more  than  one assessment corporation within a period of five years from the date of incorporation of the assessment corporation of which he was an incorporator.