NY Ins L § 6604 (2021)
2021 New York Laws ISC - Insurance Article 66 - Co-Operative Property/casualty Insurance Companies 6604 - Organization of Advance Premium Corporations.

§  6604.  Organization of advance premium corporations. (a) An advance premium  corporation  may  be  organized  and  licensed  in  the  manner prescribed in section six thousand six hundred three of this article and may do, in addition to the kind of insurance specified in paragraph four of  subsection  (a) of section one thousand one hundred thirteen of this chapter, any one  or  more  of  the  kinds  of  insurance  specified  in paragraphs  five, six, twelve, nineteen and twenty (inland marine only), of such subsection, and in conjunction with  insurance  under  the  same policy,  the  kinds  of  insurance specified in paragraphs seven, eight, nine, thirteen, fourteen and fifteen  (excluding  workers'  compensation insurance)  of  such  subsection,  provided  the  whole risk for all the perils as specified in  such  paragraphs  is  reinsured  in  an  insurer authorized  to  do business in this state or in an accredited reinsurer, as defined in subsection (a)  of  section  one  hundred  seven  of  this chapter,  insofar  as  specified  in its charter, on compliance with the following prerequisites:  (1) It shall have, in order to be licensed  to  do  business  in  this state  as specified in its charter, not less than four hundred bona fide applications for insurance of such  kind  or  kinds,  on  real  property located  in  this  state,  and  from not less than four hundred separate applicants who have paid premiums of not less than ten thousand  dollars on  insurance  aggregating  not  less than one million dollars, and each member of such corporation shall be subject to a contingent liability in an amount at least equal to that provided in section  six  thousand  six hundred fourteen of this article.  (2)  It  shall have a cash organization or initial surplus fund of not less than three hundred thousand dollars,  which  may  be  used  in  the manner  provided  for in paragraph nine of subsection (a) of section one thousand two hundred one of this chapter,  and  shall  maintain  at  all times, a surplus of at least two hundred thousand dollars.  (3)  A  licensed  advance premium corporation may apply for an amended license to do any one or more of the kinds  of  insurance  specified  in subsection  (a)  of  section  one  thousand one hundred thirteen of this chapter, except those specified in paragraphs  one,  two,  eighteen  and twenty-three  thereof,  provided it has a surplus to policyholders equal in the aggregate to the surplus required on organization by section four thousand one hundred seven of this chapter  for  all  of  the  kinds  of insurance  for which it is to be licensed, and shall thereafter maintain a surplus to  policyholders  equal  to  the  amount  specified  in  such section,  and  if licensed to do any of the kinds of insurance set forth in subsection (a) of section four thousand  one  hundred  nine  of  this chapter  such company shall be subject to the provisions of such section and to the provisions of subsection (a) of  section  four  thousand  one hundred four of this chapter.  (b)  (1)  An  advance  premium  corporation  may also be organized and licensed in the manner prescribed in section six  thousand  six  hundred three  of  this  article  to  do  in this state, as an assuming insurer, solely reinsurance business of a kind or kinds specified in its license, on compliance with all of the provisions of this chapter  applicable  to an  advance  premium  corporation organized and licensed pursuant to the provisions of subsection (a) hereof, except as provided in paragraph two hereof.  (2) It shall have  not  less  than  ten  bona  fide  applications  for reinsurance  of  such kind or kinds on real property located within this state, and from not less than ten separate applying insurers  authorized to  do business in this state, providing for the payment of gross annual reinsurance premiums of not less than twenty-five thousand  dollars  and providing  that  such ceding insurer shall, as a member of such assuming  insurer, be subject to a contingent mutual liability  in  an  amount  at least  equal  to  that  provided for in section six thousand six hundred fourteen of this article.  (3)  Such  a  corporation shall, pursuant to such license, do only the business of reinsurance as herein provided, but  may  upon  meeting  the requirements of paragraph one of subsection (a) of this section and upon evidence  satisfactory  to  the superintendent that it is complying with paragraph two of subsection (a) of this  section,  relative  to  minimum surplus,  be  licensed, pursuant to section one thousand one hundred two of this chapter, to do the kind or kinds of insurance business as  above designated, both as a direct writer and as a reinsurer.  (c) The financial and deposit requirements set forth in subsection (a) of  this  section  shall  be  reduced by fifty percent for a cooperative property/casualty insurance company initially licensed to do business in this state prior to July first, nineteen hundred eighty-two.