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

§  7306-a. Reconversion of domestic mutual property/casualty insurance company into advance premium corporation or assessment corporation.  Any domestic  mutual  property/casualty  insurance  company, organized under article twelve of this chapter and licensed under article  forty-one  of this  chapter  which  was  previously  organized  as  an advance premium corporation or assessment corporation and which has in  force  contracts of  insurance  of  the  kinds  which  advance  premium  corporations  or assessment corporations, as defined in section six thousand six  hundred two  of  this  chapter,  may be authorized to do, covering not less than three hundred  separate  risks  and  on  which  the  premiums  in  force aggregates   not   less  than  one  hundred  thousand  dollars,  may  be reconverted into and licensed  as  an  advance  premium  corporation  or assessment  corporation  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 domestic mutual property/casualty  insurer  shall  adopt  a  resolution  approving   the proposed  reconversion 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 advance premium corporations or assessment corporations, as the case may  be,  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 reconversion will be submitted for approval at a special meeting of policyholders to be called for that purpose  be  mailed, with postage prepaid, to all policyholders 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) of this section  and this subsection and of the proposed declaration, charter and by-laws.  (d)  At  least two-thirds of the votes of policyholders voting at such meeting  either  in  person  or  by  proxy,  if  the   domestic   mutual property/casualty  insurer's  by-laws provide for a vote by proxy, shall be cast in favor of the proposed reconversion 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 policyholders' meeting and  copies  of  all  other  necessary  papers  and  instruments incident  to  the  proposed reconversion, 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  advance  premium  corporations  or assessment  corporations,  as  the  case  may  be,  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) of this  section in  his  office,  and  coincident  with such filing such domestic mutual property/casualty insurance company  shall  become  an  advance  premium corporation or assessment corporation, as the case may be.  (g)  Upon  compliance by the domestic mutual property/casualty insurer 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  advance  premium  corporation  or assessment corporation, as the  case  may  be.  Such  corporation  shall thereafter  be  subject  to  all the provisions and requirements of this chapter  relative  to  advance  premium   corporations   or   assessment corporations, as the case may be.