NY Ins L § 4109 (2021)
2021 New York Laws ISC - Insurance Article 41 - Property/casualty Insurance Companies 4109 - Mutual Companies; Special Contingent Surplus.

§  4109.  Mutual companies; special contingent surplus. (a) A domestic mutual property/casualty insurance company licensed to write any of  the kinds  of  insurance defined respectively in the following paragraphs of subsection (a) of section one thousand  one  hundred  thirteen  of  this chapter:   accident  and  health  (item  (i)  of  (3)),  non-cancellable disability (item (ii) of (3)), burglary and theft (7), glass (8), boiler and machinery (9), elevator (10), animal (11), personal injury liability (13),  property  damage  liability  (14),  workers'   compensation   and employers'  liability  (15),  fidelity  and  surety (16) or credit (17), shall establish on its general ledger a special contingent  surplus  and shall  thereafter maintain the same unimpaired so long as it is licensed to write one or more of the foregoing kinds of insurance. An  impairment exists in the surplus of any such company at any time when the aggregate value  of  its  admitted  assets  is  less than the amount of all of its liabilities and the special contingent surplus which it is  required  to maintain at such time.  (b)  During each full calendar year except the first two full calendar years next following  the  calendar  year  in  which  such  company  was licensed  to  write  any  kind  of insurance specified in subsection (a) hereof, the amount of such contingent surplus shall exceed the  required amount  thereof at last year-end, by an amount at least equal to one and one-half percent of the net premium income received  for  the  kinds  of insurance  referred  to  in  subsection  (a)  hereof  during  such whole calendar year, until the amount of such contingent surplus shall  be  at least  equal  to  the  amount of surplus to policyholders required under section four thousand one hundred three of this article to be maintained by a similar domestic stock property/casualty insurance company licensed to do any one or more of the kinds of insurance specified in  subsection (a)  hereof.  Such  special contingent surplus, by whatever name called, shall be inclusive of the minimum surplus required by the provisions  of this  chapter  and shall be exclusive of any divisible surplus available for the payment of dividends.  (c) No  domestic  mutual  property/casualty  insurance  company  shall declare  or  pay  any dividend to policyholders if, after the payment of such dividend, its special contingent surplus as herein required will be impaired.  The declaration and payment of dividends by any such  company shall  be  subject to the provisions of section one thousand two hundred eleven of this chapter.  (d) Any domestic mutual property/casualty insurance company  shall  be authorized  in  any  year  to  further  increase  its special contingent surplus by an amount in excess of the annual  accumulation  required  by this  section,  and  any  such  excess shall be credited upon the amount which otherwise it  would  have  been  required  to  accumulate  by  the provisions of this section in any subsequent year or years.  (e)  The  superintendent  may  refuse  to  issue  a license or renewal license to do an insurance business in this  state  to  any  foreign  or alien  mutual  property/casualty insurance company which does not comply in substance with this section applicable to a similar  domestic  mutual property/casualty  insurance  company licensed to write the same kind or kinds of insurance.