2023 New York Laws › ISC - Insurance › Article 42 - Life Insurance Companies and Accident and Health Insurance Companies and Legal Services Insurance Companies › 4208 - Financial and Additional Requirements for the Organization of Mutual Life, Accident and Health, and Legal Services Insurance Companies.

§  4208. Financial and additional requirements for the organization of
mutual  life,  accident  and  health,  and  legal   services   insurance
companies.  (a)  (1)  A mutual insurance company may be incorporated and
licensed exclusively to do  one  or  more  of  the  kinds  of  insurance
business  specified  in  paragraphs  one,  two,  three,  twenty-nine and
thirty-one of  subsection  (a)  of  section  one  thousand  one  hundred
thirteen   of   this   chapter,  upon  compliance  with  the  applicable
requirements of section one thousand two hundred one and subsection  (e)
of  section  one thousand one hundred two of this chapter and subsection
(b) of this section.
(2) In this section:
(A) "Initial surplus"  means  the  paid-in  initial  surplus  required
pursuant to paragraph nine of subsection (a) of section one thousand two
hundred  one and paragraph one of subsection (e) of section one thousand
one hundred two of this chapter.
(B) "Minimum surplus" means the amount of surplus which  such  company
shall,  after  being  licensed  to  do  business,  at all times maintain
unimpaired.
(C) "Applications" means individual applications for policies of  life
insurance,  except  that in the case of volunteer firefighters, it shall
also mean applications for enrollment for coverage to  be  issued  under
group  life  insurance policies applied for by not less than twenty-five
associations or organizations of volunteer  firefighters  in  accordance
with the provisions of paragraph seven of subsection (b) of section four
thousand two hundred sixteen of this article.
(b)  (1)  If  organized  to  do  only  the  kind of insurance business
specified in paragraph one of subsection (a) of section one thousand one
hundred thirteen of this chapter, such company shall:
(A) have not less than one thousand bona fide  applications  for  life
insurance in an amount not less than one thousand dollars each;
(B)  have received from each such applicant in cash the full amount of
one annual premium on the policy applied  for,  which  premiums  in  the
aggregate at least equal twenty-five thousand dollars;
(C)  have  an initial surplus of one hundred fifty thousand dollars in
cash; and
(D) have a minimum surplus of one hundred thousand dollars.
(2) If organized to do only the kind of business specified in item (i)
of paragraph three of subsection (a) of section one thousand one hundred
thirteen of this chapter, such company shall:
(A) have not less than five hundred bona fide  applications  for  such
insurance;
(B)  have received from each such applicant in cash the full amount of
one annual premium on the policy applied  for,  which  premiums  in  the
aggregate at least equal twenty thousand dollars;
(C)  have  an initial surplus of one hundred fifty thousand dollars in
cash; and
(D) have a minimum surplus of one  hundred  thousand  dollars,  except
that  every  such  company  initially  licensed  on or after July first,
nineteen hundred eighty-two shall have an initial surplus and a  minimum
surplus  in  an amount which is at least equal to two hundred percent of
that required of a like company licensed prior to July  first,  nineteen
hundred eighty-two.
(3)  If  organized  to do the kinds of insurance business specified in
paragraph one and in item (i) of paragraph three of  subsection  (a)  of
section  one thousand one hundred thirteen of this chapter, such company
shall  comply  with  both  paragraph  one  and  paragraph  two  of  this
subsection.
(4)  To be organized to do the kind of insurance business specified in
paragraph two of subsection (a) of  section  one  thousand  one  hundred
thirteen  of  this  chapter,  such company shall meet the organizational
requirements of paragraph one hereof and shall have an  initial  surplus
and a minimum surplus, each in an amount at least fifty thousand dollars
in  excess of the respective amounts otherwise required by paragraph one
hereof.
(5) To be organized to do the kind of insurance business specified  in
item  (ii) of paragraph three or paragraph twenty-nine of subsection (a)
of section one thousand one  hundred  thirteen  of  this  chapter,  such
company  shall  meet  the  organizational requirements of one or more of
paragraphs one through four hereof and shall have an initial surplus and
a minimum surplus, each in an amount at least fifty thousand dollars  in
excess  of  the  highest  applicable  respective amount required by such
paragraph or paragraphs, except that any such company initially licensed
on or after July  first,  nineteen  hundred  eighty-two  shall  have  an
initial  surplus  and  a minimum surplus, each in an amount at least one
hundred thousand dollars in excess of the highest applicable  respective
amount required by such paragraph or paragraphs.