2023 New York Laws › ISC - Insurance › Article 11 - Licensing of Insurers › 1111 - Compulsory Insurance; Bonds of Surety Companies; Certificates of Qualification.

§  1111. Compulsory insurance; bonds of surety companies; certificates
of qualification. (a) Whenever by any law of this state  any  policy  or
contract of insurance is required, or is acceptable in lieu of any other
requirement  imposed  by  such law, the superintendent may, upon written
request containing such information as he deems necessary, issue to  any
person  a certificate of qualification, stating the qualification of any
insurer authorized to do such business in this state if he  finds  that,
as  shown  by  the  insurer's  last filed annual statement or last filed
report on examination, whichever  is  later,  the  insurer  is  solvent,
responsible and otherwise qualified to make policies or contracts of the
kind  required. No insurer authorized to do business in this state shall
issue or make any policy or contract of  insurance  or  surety  bond  to
owners  or  operators of motor vehicles as required by the provisions of
the vehicle and traffic law of this  state,  unless  the  superintendent
shall  have  certified  to  the commissioner of motor vehicles that such
insurer is qualified to issue such policy or  contract,  in  the  manner
specified herein.
(b)  (1)  Whenever  by  any  law  of  this  state a bond, undertaking,
recognizance,  guaranty  or  like  obligation  is  required,  permitted,
authorized   or  allowed,  or  the  performance  of  any  act,  duty  or
obligation, or the refraining from  any  act,  is  required,  permitted,
authorized  or  allowed  to  be secured or guaranteed, such bond or like
obligation, or such  security  or  guaranty,  may  be  executed  by  any
insurance  company  authorized  to  do  in  this  state  the business of
executing such instruments and empowered by its charter to execute them.
The  insurer's  execution   of   such   instrument   by   its   officer,
attorney-in-fact  or  other  authorized representative shall be accepted
as, and in all respects shall be, a full compliance with  every  law  or
other  requirement,  now or hereafter in force, that any such obligation
be given or accepted or that it be executed by one or more sureties,  or
that such sureties be residents, householders or freeholders, or possess
any other qualifications.
(2) The superintendent may on written application issue to any company
his  certificate  of  qualification  stating  the  company's capital and
surplus as shown by its last annual statement or its last  filed  report
on  examination,  whichever  is later, and that such capital and surplus
complies with the requirements of this chapter.  The  certificate  shall
further  indicate  the limitation upon the amount of a single risk which
such company is authorized to assume.
(c) The superintendent may refuse to issue any certificate pursuant to
subsection (a) or (b) hereof  if  in  his  judgment  refusal  will  best
promote  the interests of the people of this state. Such certificate, or
a copy certified by the superintendent, shall be conclusive evidence, as
of its date and  thereafter  until  revoked,  of  either  the  insurer's
qualification to issue the policy, contract of insurance or surety bond,
if   issued   pursuant  to  subsection  (a)  hereof,  or  the  company's
qualification, and its sufficiency under any law of this state as surety
or guarantor, and of the propriety of  accepting  and  approving  it  as
such,   if   issued   pursuant   to  subsection  (b)  hereof,  and  this
certification shall be in lieu of  any  justification  required  of  the
insurer by any law of this state or any requirement pursuant thereto.
(d)  If  after notice to and hearing of any insurer the superintendent
finds the insurer is no longer entitled to obtain a certificate, he  may
revoke  it  by  filing  an  order  of revocation in his office. He shall
thereupon serve a copy of such order  on  the  insurer  and  shall  give
notice  of  the  revocation  to  any state official or board to whom the
certificate was issued. The superintendent may publish  notice  of  such
revocation in such newspapers of general circulation in this state as he

may  deem  proper  in  the  public  interest. No insurer and no officer,
attorney-in-fact or other representative thereof shall, after  receiving
notice  of revocation, make or execute, or hold itself out as authorized
to  make  or  execute, in this state, any policy, contract of insurance,
bond or like obligation, or security or guaranty specified in subsection
(a) or (b) hereof, as long as such revocation continues in effect.