2023 New York Laws › ISC - Insurance › Article 73 - Conversion to Different Type of Insurer › 7306-A - Reconversion of Domestic Mutual Property/casualty Insurance Company Into Advance Premium Corporation or Assessment Corporation.

§  7306-a. Reconversion of domestic mutual property/casualty insurance
company into advance premium corporation or assessment corporation.  Any
domestic  mutual  property/casualty  insurance  company, organized under
article twelve of this chapter and licensed under article  forty-one  of
this  chapter  which  was  previously  organized  as  an advance premium
corporation or assessment corporation and which has in  force  contracts
of  insurance  of  the  kinds  which  advance  premium  corporations  or
assessment corporations, as defined in section six thousand six  hundred
two  of  this  chapter,  may be authorized to do, covering not less than
three hundred  separate  risks  and  on  which  the  premiums  in  force
aggregates   not   less  than  one  hundred  thousand  dollars,  may  be
reconverted into and licensed  as  an  advance  premium  corporation  or
assessment  corporation  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  directors of the domestic mutual
property/casualty  insurer  shall  adopt  a  resolution  approving   the
proposed  reconversion and appointing a committee of not less than three
directors to prepare a draft of  a  proposed  declaration,  charter  and
by-laws.
(b)  The  proposed declaration, charter and by-laws shall be submitted
with an appropriate resolution to the board for its approval.
(c) A majority of the board at any regular or special meeting  thereof
shall  approve  by  resolution  the  proposed  declaration,  charter and
by-laws, which  shall  conform  to  the  requirements  of  this  chapter
relative  to  the  contents  of  charters and by-laws of advance premium
corporations or assessment corporations, as the case may  be,  hereafter
organized,  with  such  additions as the superintendent shall approve to
accommodate insurance contracts then in  force.  Such  resolution  shall
also direct that notice that the proposed reconversion will be submitted
for approval at a special meeting of policyholders to be called for that
purpose  be  mailed, with postage prepaid, to all policyholders at their
last known post office addresses  respectively,  at  least  thirty  days
prior  to  the  date  of  the  meeting,  together  with  copies  of  the
resolutions provided for in subsections (a) and (b) of this section  and
this subsection and of the proposed declaration, charter and by-laws.
(d)  At  least two-thirds of the votes of policyholders voting at such
meeting  either  in  person  or  by  proxy,  if  the   domestic   mutual
property/casualty  insurer's  by-laws provide for a vote by proxy, shall
be cast in favor of the proposed reconversion 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  proof  of mailing of notice of policyholders'
meeting and  copies  of  all  other  necessary  papers  and  instruments
incident  to  the  proposed reconversion, together with a certificate of
their adoption as provided for herein, subscribed and affirmed  by  such
officers  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 initial
surplus and reserve requirements for  advance  premium  corporations  or
assessment  corporations,  as  the  case  may  be,  to  do  the kinds of
insurance business for which the corporation  is  to  be  licensed,  and
complies with all other provisions of this section, he shall approve the
declaration  and charter and by-laws and file the same together with the

other documents submitted as required by subsection (e) of this  section
in  his  office,  and  coincident  with such filing such domestic mutual
property/casualty insurance company  shall  become  an  advance  premium
corporation or assessment corporation, as the case may be.
(g)  Upon  compliance by the domestic mutual property/casualty insurer
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  or
assessment corporation, as the  case  may  be.  Such  corporation  shall
thereafter  be  subject  to  all the provisions and requirements of this
chapter  relative  to  advance  premium   corporations   or   assessment
corporations, as the case may be.