2023 New York Laws › ISC - Insurance › Article 67 - Nonprofit Property/casualty Insurance Companies › 6704 - Licensing of Nonprofit Property/casualty Insurance Companies.

§  6704. Licensing of nonprofit property/casualty insurance companies.
(a) No person, firm, corporation or association  as  an  underwriter  or
underwriters,  and  no  nonprofit  property/casualty  insurance company,
shall do any insurance business in this state, unless authorized  to  do
so pursuant to the provisions of this article.
(b) The superintendent may pursuant to this article issue a license to
a  nonprofit  property/casualty insurance company that is organized as a
charitable corporation as  defined  in  paragraph  (a)  of  section  one
hundred  two (Definitions) of the not-for-profit corporation law if such
company:
(1) complies with (A)  the  applicable  requirements  of  section  one
thousand  one  hundred  two  of  this chapter, and (B) the provisions of
article forty-one of this chapter applicable to stock  property/casualty
insurance  companies  (other  than  sections  four  thousand one hundred
three, four thousand one hundred five  and  four  thousand  one  hundred
nineteen)   and,  in  each  case,  the  rules  and  regulations  of  the
superintendent promulgated  pursuant  thereto  except  insofar  as  such
provisions  of  law,  rules and regulations may be inconsistent with the
provisions of this article, and
(2) has an initial surplus to policyholders  at  least  equal  to  the
amount  of  applicable  paid-in capital and additional amount of paid-in
surplus required by paragraph one of  subsection  (a)  of  section  four
thousand  one  hundred  three  of  this  chapter  for  a newly organized
domestic stock property/casualty insurance company doing the  same  kind
or kinds of insurance business.
Thereafter,  every  such nonprofit property/casualty insurance company
shall maintain a surplus to policyholders at least equal to  the  amount
of applicable paid-in capital required to be maintained by paragraph one
of  subsection  (a)  of  section four thousand one hundred three of this
chapter for a domestic stock property/casualty insurance  company  doing
the same kind or kinds of insurance business.
(c)   The   superintendent   may   issue  a  license  to  a  nonprofit
property/casualty insurance company pursuant to this article that  is  a
nonprofit  reciprocal insurer organized pursuant to article sixty-one of
this chapter if such company complies with the requirements  of  section
one  thousand  one  hundred two of this chapter and article sixty-one of
this chapter and, in  each  case,  the  rules  and  regulations  of  the
superintendent  promulgated  pursuant  thereto  except  insofar  as such
provisions of law, rules and regulations may be  inconsistent  with  the
provisions  of this article and except that the provisions of subsection
(a) of section six thousand one hundred four of this chapter  shall  not
apply with respect to nonprofit organizations that are or seek to become
subscribers  of  such  a  nonprofit property/casualty insurance company,
provided that  such  a  nonprofit  property/casualty  insurance  company
either  (1)  has  an  initial  surplus  to  policyholders and thereafter
maintains a surplus to policyholders in  an  amount  acceptable  to  the
superintendent  which  amount  shall  be  substantially greater than the
initial surplus to policyholders and  surplus  to  policyholders  to  be
maintained  by  a  reciprocal  insurer  under  article sixty-one of this
chapter, or (2) submits a reinsurance or  other  financial  plan,  which
adequately  addresses  the  provisions  of subsection (a) of section six
thousand one hundred four of this chapter and which reinsurance or other
financial plan is acceptable to the superintendent.
(d) Every license to engage in an insurance  business  issued  by  the
superintendent  to  any  nonprofit  property/casualty  insurance company
pursuant to the provisions of this article shall specify  the  company's
name,  the  location  of  its  principal  office, the name and principal
address of its attorney-in-fact, if  any,  and  the  kind  or  kinds  of

insurance  business  specified in terms of subsection (a) of section one
thousand one hundred thirteen of this chapter, which it is authorized to
engage in in this state.