NY Ins L § 4107 (2021)
2021 New York Laws ISC - Insurance Article 41 - Property/casualty Insurance Companies 4107 - Domestic Mutual Companies; Financial and Other Requirements.

* § 4107. Domestic mutual companies; financial and other requirements. (a)  (1)  A  mutual property/casualty insurance company organized in the manner prescribed in subsection (a) of section one thousand two  hundred one  of  this  chapter  may  be  licensed  pursuant to subsection (e) of section one thousand one hundred two of this chapter to  write  any  one kind  (but only one kind except as hereinafter in this section provided) of insurance as specified  in  TABLE  TWO  upon  at  least  meeting  the requirements set forth therein. In this section, "initial surplus" means the  paid-in  initial  surplus  required pursuant to subparagraph (A) of paragraph nine of subsection (a) of section one thousand two hundred one and subparagraph (B) of paragraph one of subsection (e) of  section  one thousand  one  hundred  two of this chapter, and "minimum surplus" means the surplus required to be maintained  unimpaired  after  a  company  is licensed to do business.   * SPECIAL NOTE.--Notwithstanding that Chapter 585 of the Laws of 1984:   Bill sections 2, 3, 5, 6, 7, and 9 of such chapter amend provisions of the former Insurance Law that are not possible to juxtapose at this time due  to the highly technical nature of such changes and will need future corrective  legislation  to  implement  such  provisions  into  the  new Insurance Law as enacted by such Chapter 367 of the Laws of 1984.                                  TABLE TWO  Kind of insurance specified in the following                 Num-    Number numbered   Num-           ber      of paragraphs ber   Number    of     Insur-           Minimum of subsec-  of    of      Sep-    ance             Surplus tion (a)   Mem-  Appli-   arate   Poli-  Initial    to be        Other of § 1113  bers  cations  Risks   cies   Surplus   Maintained  Requirements ---------  ----- ------   -----   ----   -------   ----------  ------------     4       50    300      300    --  $  300,000{1}$  200,000{1}see note{2}     7       20     20      200    20  $  300,000   $  200,000   see note{3}     8       20     20      300    20  $  150,000   $  100,000   see note{3}     9       20     20      200    20  $  300,000   $  200,000   see note{3}    10       20     20      300    20  $  150,000   $  100,000   see note{3}    11       20     20      300    20  $  150,000   $  100,000   see note{3}    13      100    100      500{4} --  $  500,000{5}$  400,000{5}see note{6}    15       40{7}  40    2,500{7} --  $  500,000   $  400,000   see note{6}             30{7}  30    5,000{7} --  $  500,000   $  400,000   see note{6}             20{7}  20    7,500{7} --  $  500,000   $  400,000   see note{6}             10{7}  10   10,000{7} --  $  500,000   $  400,000   see note{6}    16       --     --      ---    --  $1,500,000   $1,000,000    17       20     20    2,000    20  $  750,000   $  500,000   see note{3}    20       50    300      300    --  $1,000,000{8}$  500,000{8}see note{9}    21       20     20{10}  200{11}--  $  500,000   $  500,000   see note{12}  Notes to TABLE TWO   {1}  If  licensed  to  write  paragraph  4,  no  additional surplus is required for a license to write pargraphs 5, 6, 12, 19  and  20  (inland marine only).   {2}  The  aggregate premiums in respect to the separate risks shall be at least $100,000 and each applicant shall have  paid  one-half  of  the premium payable with the balance due upon the issuance of the policy.    {3} Shall have received cash from each applicant at least equal to 1/2 of the annual premium on the policy.   {4} Not more than 5 risks from any one member.   {5}  If  licensed  to  write  paragraph  13,  no additional surplus is required for a license to write paragraphs 6, 12 and 14.   {6} The aggregate annual premium cost of such insurance  shall  be  at least $50,000.   {7} Substitute "employers" for "members" and "employees" for "separate risks"   {8}  If  licensed  to  write  paragraph  20,  no additional surplus is required for a license to write paragraphs 12, 19, and 21.   {9} The aggregate amount of cash received  for  the  premiums  on  the policies applied for shall be at least $150,000.   {10}  The  20 applications shall be from persons, firms, corporations, associations  or  joint  stock  companies,  each  owning,  operating  or chartering one or more vessels.   {11}  Applicants  shall  take  insurance  covering in the aggregate at least 200 vessels having an aggregate gross tonnage of at least  500,000 tons.   {12} Shall have received cash, from such applicants, on account of the premiums on the respective policies applied for, a sum at least equal to 20 cents per ton upon such aggregate gross tonnage.  (2)  A  mutual property/casualty insurance company whose membership is limited to hospitals may  be  organized  in  the  manner  prescribed  in subsection  (a)  of section one thousand two hundred one of this chapter and may be licensed pursuant to subsection (e) of section  one  thousand one  hundred  two  of  this  chapter  to  write  the  kinds of insurance specified in paragraph thirteen or fourteen of subsection (a) of section one thousand one hundred thirteen of this chapter provided (i) it  shall have applications from at least forty members on at least forty separate risks,  (ii)  the  total  annual  premium  cost  shall be at least seven hundred fifty thousand dollars, (iii) it shall have an  initial  surplus of  at  least five hundred thousand dollars and shall maintain a surplus of at least four hundred thousand dollars and (iv) it shall receive from its members  advances  pursuant  to  the  requirements  of  section  one thousand  three  hundred  seven  of this chapter averaging not less than one-third of the average annual indicated premium, but the total thereof shall not be less than the initial minimum surplus.  (b) If licensed to write any kind of insurance specified in TABLE TWO, a mutual property/casualty insurance company may in addition  write  any one  or more of the kinds of insurance specified in Group A and/or Group B of TABLE THREE, and  if  licensed  to  write  any  kind  of  insurance specified  in  Group  A, it may in addition write any one or more of the kinds of insurance specified in Group C of TABLE THREE, in either  case, upon  at  least  meeting  the  initial surplus requirement prescribed in TABLE THREE for the kinds of insurance for which it is to  be  licensed. It  shall  thereafter  maintain  the minimum surplus prescribed in TABLE THREE for the kinds of insurance licensed.                                 TABLE THREE  Kind of insurance specified in the                         Minimum following  numbered  Paragraphs of            Initial{1}   Surplus{1} to subsection (a) of § 1113:                     Surplus      be Maintained _________________________________             _________    _____________                                  Group A:  7 or 9 - for each such kind                   $100,000     $100,000 8, 10 or 11 - for each such kind              $ 50,000     $ 50,000 13,{2} 15 or 17 - for each such kind          $300,000     $300,000 16                                            $900,000     $900,000                                  Group B:  4{3}                                          $  300,000   $200,000 20{4}                                         $1,000,000   $500,000                                  Group C:  3(i) or 3(ii) - for each such kind            $  100,000   $  100,000 22                                            $3,000,000   $2,000,000 24                                            $  300,000   $  300,000 26 (B)                                        $  300,000   $  200,000 26(A), 26(C) or 26(D) - for each such kind                            $  900,000   $  600,000 28                                            $3,000,000   $2,000,000 6{5}, 12{6}  or 14{2}  - for each such kind                                $   50,000   $   50,000 27                                            $  300,000   $  150,000 30                                            $  300,000   $  300,000 31                                            $  100,000   $  100,000 32                                            $  100,000   $  100,000 33                                            $  100,000   $  100,000  Notes to TABLE THREE   {1}  The  amounts  shown  in  TABLE THREE are added to the initial and minimum surplus for the kind of  insurance  for  which  the  mutual  was organized  as set forth in TABLE TWO. In addition, if organized to write paragraphs 4, 20 or 21 the initial  and  minimum  surplus  required  for paragraphs  7,  8,  9, 10, 11, 13, 15, 16 or 17 shall be determined from TABLE TWO for the kind of insurance with  the  highest  initial  surplus requirement  as  indicated  in  TABLE  TWO. After such determination use TABLE THREE to derive the initial and minimum surplus  requirements  for all other kinds of insurance.   {2}  If  licensed  to  write  paragraph  13,  no additional surplus is required for a license to write paragraphs 6, 12, and 14.   {3} If licensed  to  write  paragraph  4,  no  additional  surplus  is required  for  a license to write paragraphs 5, 6, 12, 19 and 20 (inland marine only).   {4} If licensed to  write  paragraph  20,  no  additional  surplus  is required for a license to write paragraphs 12, 19, and 21.   {5}  If licensed to write paragraph 4 or 13, no additional initial and minimum surplus is required.   {6} If licensed to write paragraphs 4, 13 or 20, no additional initial and minimum surplus is required.  (c) A mutual property/casualty insurance company licensed pursuant  to paragraph  four  of  subsection (b) of section four thousand one hundred two of this  article  to  write  the  kind  of  insurance  specified  in paragraph nineteen of subsection (a) of section one thousand one hundred thirteen of this chapter must maintain a minimum surplus of at least six hundred thousand dollars.  (d)  A mutual property/casualty insurance company licensed pursuant to subsection (c) of section four thousand one hundred two of this  article to reinsure risks or write insurance on risks outside the United States,  its   territories   and   possessions,   must   maintain  a  surplus  to policyholders of at least thirty-five million dollars.  (e) The dollar amounts of initial surplus, minimum surplus and surplus to  policyholders  set  forth  in  subsections  (a), (b) and (c) of this section shall be reduced by  fifty  percent  for  any  mutual  property/ casualty  insurance  company  initially  licensed to do business in this state prior to July first, nineteen hundred eighty-two.  Such  reduction shall  not  apply  to the financial requirements specified in subsection (b) of this section in order to write paragraph twenty-two,  twenty-four or twenty-six.  (f)  Notwithstanding any provision of this section to the contrary, if licensed to write the kind of insurance specified in  paragraph  fifteen of  subsection  (a) of section one thousand one hundred thirteen of this chapter, a mutual property/casualty insurance company  may  be  licensed for  the  purposes  of  article nine of the workers' compensation law to write the kind of insurance specified in item (i) of paragraph three  of subsection  (a)  of  section  one  thousand one hundred thirteen of this chapter without having any additional surplus.