NY Ins L § 7305 (2021)
2021 New York Laws ISC - Insurance Article 73 - Conversion to Different Type of Insurer 7305 - Conversion of Assessment Corporations Into Advance Premium Corporations.

§  7305.  Conversion  of  assessment corporations into advance premium corporations. Any assessment corporation,  as  defined  in  section  six thousand  six  hundred  two  of this chapter, licensed under section six thousand six hundred three of this chapter to do the  business  of  fire insurance  may  be  converted  into  and  licensed as an advance premium corporation, as defined in section six thousand six hundred two of  this chapter,  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 such assessment corporation shall adopt a  resolution  approving  the  proposed  conversion  and  appointing   a committee  of  not  less  than  three  directors to prepare a draft of a proposed declaration and charter and proposed by-laws.  (b) Such committee's proposed declaration, charter and  by-laws  shall be  submitted  with  an appropriate resolution to the board of directors for approval.  (c) A majority of the board at any regular or special meeting  thereof shall  approve  by  resolution  a  proposed  declaration and charter and proposed by-laws, which  shall  conform  to  the  requirements  of  this chapter  relative  to  the  contents  of charters and by-laws of advance premium corporations hereafter organized, with such modifications as the superintendent, by regulation, shall prescribe to make such requirements applicable to the nature and character of  such  conversion  proceeding. Such  resolution  shall  also  direct  that  notice  that  the  proposed conversion will be submitted for approval at the next annual meeting  of members  or  at a special meeting to be called for that purpose be given to all members pursuant to section six  hundred  five  of  the  business corporation  law, together with copies of the resolutions referred to in subsections (a) and (b) hereof  and  in  this  subsection,  and  of  the proposed declaration, charter and by-laws.  (d)  At  least  two-thirds  of the votes of the members voting at such meeting either in person or  by  proxy,  if  the  corporation's  by-laws provide  for  a  vote  by  proxy, shall be cast in favor of the proposed conversion 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  copies  of  all  other  necessary  papers  and instruments incident to the proposed conversion, subscribed and affirmed by  each  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 minimum surplus requirements of section six thousand six hundred  four  of  this chapter,  he  shall file in his office the declaration, charter, by-laws and other documents submitted as required by subsection (e) hereof,  and coincident  with such filing such assessment corporation shall become an advance premium corporation. For  an  assessment  corporation  initially licensed  to  do  business  in  this state prior to July first, nineteen hundred eighty-two such minimum surplus requirements and minimum capital investment requirements shall be those applicable to an advance  premium corporation  initially  licensed  to  do business in this state prior to such date.  (g) Upon compliance by the corporation 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  to  do  the  kinds  of  insurance  business specified  in its charter. The territory in which such corporation shall be licensed shall be that for which it was licensed when  an  assessment corporation  immediately prior to its conversion as herein provided, but if it has a surplus of at least one hundred fifty  thousand  dollars  it may  be  licensed  by  the  superintendent to do business throughout the state, subject to the requirements of section six thousand  six  hundred ten  of  this chapter and to all the provisions and requirements of this article relative to advance premium corporations.