2023 New York Laws › ISC - Insurance › Article 73 - Conversion to Different Type of Insurer › 7306 - Conversion of Advance Premium Corporations or Assessment Corporations Into Mutual Property/casualty Insurance Companies.

§  7306.  Conversion  of  advance  premium  corporations or assessment
corporations into  mutual  property/casualty  insurance  companies.  Any
advance  premium  corporation  or  assessment corporation, as defined in
section six thousand six hundred two of this chapter, which has in force
contracts  of   insurance   of   the   kinds   which   domestic   mutual
property/casualty  insurance  companies, as defined in subsection (a) of
section one hundred seven of this chapter,  may  be  authorized  to  do,
covering  not  less  than  three hundred separate risks and on which the
premiums in force or the most recent annual  assessment  aggregates  not
less  than  one  hundred  thousand  dollars,  may  be converted into and
licensed as a domestic mutual property/casualty insurance company 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 corporation shall
adopt a resolution approving the proposed conversion  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  domestic  mutual
property/casualty  insurance  companies  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 conversion will be submitted for approval at the  next
annual  meeting of members or at a special meeting to be called for that
purpose be mailed, with postage prepaid, to all members  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) hereof and this subsection and
of the proposed declaration, charter and by-laws.
(d) At least two-thirds of the votes of members voting at such meeting
either in person or by proxy, if the corporation's by-laws provide for a
vote by proxy, shall be cast in favor of the proposed conversion 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  members'  meeting
and copies of all other necessary papers and instruments incident to the
proposed  conversion,  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  domestic  mutual  fire  insurance
companies organized and licensed immediately before July first, nineteen
hundred  eighty-two, 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) hereof in his  office,  and  coincident  with
such  filing  such advance premium corporation or assessment corporation
shall become a domestic mutual property/casualty insurance company.
(g) Upon compliance by the corporation 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 mutual
property/casualty  insurance  company. Such corporation shall thereafter
be subject to all  the  provisions  and  requirements  of  this  chapter
relative to mutual property/casualty insurance companies.