2023 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.