2023 New York Laws › ISC - Insurance › Article 66 - Co-Operative Property/casualty Insurance Companies › 6604 - Organization of Advance Premium Corporations.

§  6604.  Organization of advance premium corporations. (a) An advance
premium  corporation  may  be  organized  and  licensed  in  the  manner
prescribed in section six thousand six hundred three of this article and
may do, in addition to the kind of insurance specified in paragraph four
of  subsection  (a) of section one thousand one hundred thirteen of this
chapter, any one  or  more  of  the  kinds  of  insurance  specified  in
paragraphs  five, six, twelve, nineteen and twenty (inland marine only),
of such subsection, and in conjunction with  insurance  under  the  same
policy,  the  kinds  of  insurance specified in paragraphs seven, eight,
nine, thirteen, fourteen and fifteen  (excluding  workers'  compensation
insurance)  of  such  subsection,  provided  the  whole risk for all the
perils as specified in  such  paragraphs  is  reinsured  in  an  insurer
authorized  to  do business in this state or in an accredited reinsurer,
as defined in subsection (a)  of  section  one  hundred  seven  of  this
chapter,  insofar  as  specified  in its charter, on compliance with the
following prerequisites:
(1) It shall have, in order to be licensed  to  do  business  in  this
state  as specified in its charter, not less than four hundred bona fide
applications for insurance of such  kind  or  kinds,  on  real  property
located  in  this  state,  and  from not less than four hundred separate
applicants who have paid premiums of not less than ten thousand  dollars
on  insurance  aggregating  not  less than one million dollars, and each
member of such corporation shall be subject to a contingent liability in
an amount at least equal to that provided in section  six  thousand  six
hundred fourteen of this article.
(2)  It  shall have a cash organization or initial surplus fund of not
less than three hundred thousand dollars,  which  may  be  used  in  the
manner  provided  for in paragraph nine of subsection (a) of section one
thousand two hundred one of this chapter,  and  shall  maintain  at  all
times, a surplus of at least two hundred thousand dollars.
(3)  A  licensed  advance premium corporation may apply for an amended
license to do any one or more of the kinds  of  insurance  specified  in
subsection  (a)  of  section  one  thousand one hundred thirteen of this
chapter, except those specified in paragraphs  one,  two,  eighteen  and
twenty-three  thereof,  provided it has a surplus to policyholders equal
in the aggregate to the surplus required on organization by section four
thousand one hundred seven of this chapter  for  all  of  the  kinds  of
insurance  for which it is to be licensed, and shall thereafter maintain
a surplus to  policyholders  equal  to  the  amount  specified  in  such
section,  and  if licensed to do any of the kinds of insurance set forth
in subsection (a) of section four thousand  one  hundred  nine  of  this
chapter  such company shall be subject to the provisions of such section
and to the provisions of subsection (a) of  section  four  thousand  one
hundred four of this chapter.
(b)  (1)  An  advance  premium  corporation  may also be organized and
licensed in the manner prescribed in section six  thousand  six  hundred
three  of  this  article  to  do  in this state, as an assuming insurer,
solely reinsurance business of a kind or kinds specified in its license,
on compliance with all of the provisions of this chapter  applicable  to
an  advance  premium  corporation organized and licensed pursuant to the
provisions of subsection (a) hereof, except as provided in paragraph two
hereof.
(2) It shall have  not  less  than  ten  bona  fide  applications  for
reinsurance  of  such kind or kinds on real property located within this
state, and from not less than ten separate applying insurers  authorized
to  do business in this state, providing for the payment of gross annual
reinsurance premiums of not less than twenty-five thousand  dollars  and
providing  that  such ceding insurer shall, as a member of such assuming

insurer, be subject to a contingent mutual liability  in  an  amount  at
least  equal  to  that  provided for in section six thousand six hundred
fourteen of this article.
(3)  Such  a  corporation shall, pursuant to such license, do only the
business of reinsurance as herein provided, but  may  upon  meeting  the
requirements of paragraph one of subsection (a) of this section and upon
evidence  satisfactory  to  the superintendent that it is complying with
paragraph two of subsection (a) of this  section,  relative  to  minimum
surplus,  be  licensed, pursuant to section one thousand one hundred two
of this chapter, to do the kind or kinds of insurance business as  above
designated, both as a direct writer and as a reinsurer.
(c) The financial and deposit requirements set forth in subsection (a)
of  this  section  shall  be  reduced by fifty percent for a cooperative
property/casualty insurance company initially licensed to do business in
this state prior to July first, nineteen hundred eighty-two.