NY Ins L § 6402 (2021)
2021 New York Laws ISC - Insurance Article 64 - Title Insurance Corporations 6402 - Organization; Financial Requirements.

§  6402.  Organization;  financial  requirements.  A  title  insurance corporation may be organized and licensed in the  manner  prescribed  in subsection  (e)  of section one thousand one hundred two and section one thousand  two  hundred  one  of  this  chapter,  except  as  hereinafter prescribed,  to  do  the  kind  of  insurance  business,  and  with  the incidental powers, specified in section six thousand four hundred  three of  this  article,  with  a  paid-in  capital  of  at least five hundred thousand dollars and a paid-in initial surplus at least equal  to  fifty percent  of  its  paid-in  capital, and it shall at all times thereafter maintain a capital at least equal  to  five  hundred  thousand  dollars, except  that  any such corporation organized before July first, nineteen hundred eighty-two, shall at all times maintain a minimum capital of two hundred  fifty  thousand  dollars.  In  the  organization  of  any  such corporation  the  provisions  of section one thousand two hundred one of this chapter shall  be  superseded  or  supplemented  by  the  following provisions:  (a) The duration of such corporation shall be perpetual.  (b) Its principal office shall be located in this state.  (c)  The  purposes for which such corporation shall be organized shall only be such as are specified in section six thousand four hundred three of this article.  (d) Its incorporators shall be natural persons, not less than seven in number, and shall possess the qualifications of directors prescribed  in subsection (e) hereof.  (e)  Its  directors  shall  be natural persons, not less than seven in number, all citizens of the United States, a majority of whom  shall  be citizens  and  residents of this state at the time of their election and during their continuance in office.  (f)  Before  a  license  to  do  business  shall  be  issued  to  such corporation  a  list of its shareholders shall be filed in the office of the superintendent, subscribed and affirmed as true under the  penalties of  perjury by two of its principal officers, giving the name, residence and  post-office  address  of,  and  number  of  shares  held  by,  each shareholder.  (g)  No foreign or alien insurer shall be granted a license or renewal of a license to do in this state  the  kind  of  business  specified  in paragraph eighteen of subsection (a) of section one thousand one hundred thirteen  of  this  chapter if it may exercise any powers or conduct any business without this state not authorized by such paragraph, or  unless its surplus to policyholders, of which not more than five percent of its admitted assets shall be represented by title plant or plants, is at the time  of  initial  licensing  not  less  than the sum of (i) the minimum capital and initial surplus required of a similar domestic insurer,  and (ii)  an amount by which reserves computed in accordance with paragraphs one and two of subsection (a) of section six thousand four hundred  five of  this  article  on  business  within and without the state exceed its reserves of a comparable nature, whether  statutory  or  voluntary,  and unless  such  insurer  at  all  times  thereafter maintains a surplus to policyholders, similarly limited as to value of title plant  or  plants, at  least  equal  to  the  sum  of  such  minimum  capital  and reserves determined as hereinabove set forth, or if it fails to  meet  any  other requirements  of  this  chapter applicable to a domestic title insurance corporation except that any such insurer initially licensed on or  after July  first,  nineteen  hundred  eighty-two,  shall  have  a  surplus to policyholders at least equal to the  sum  of  (i)  minimum  capital  and initial  surplus  required of a like domestic insurer initially licensed on or after July first, nineteen hundred eighty-two, and  (ii)  reserves as  hereinabove  required; and shall maintain a surplus to policyholders  at least equal to the sum of (i) the reserves hereinabove  required  and (ii)  the  minimum  capital  required  of  a  domestic insurer initially licensed on or after July first, nineteen hundred eighty-two.