2023 New York Laws › ISC - Insurance › Article 43 - Non-Profit Medical and Dental Indemnity, or Health and Hospital Service Corporations › 4302 - Permit and License to Do Business.

§ 4302. Permit and license to do business. (a) Corporations subject to
this  article  shall  not  solicit  the  purchase of, or enter into, any
contract with any individual or group until it  has  obtained  from  the
superintendent  a  permit  so  to do. Such permit shall be issued by the
superintendent upon receipt of an application in a form to be prescribed
by the superintendent and upon payment of a fee  of  ten  dollars.  Such
application  shall  include  a  statement  of the territory in which the
corporation will  operate,  which,  in  the  case  of  hospital  service
corporations,  shall  not  exceed  eighteen  counties of this state, the
services to be rendered by the corporation and the rates to  be  charged
therefor,  and  shall  be  accompanied  by  two  copies  of each type of
contract for service which the corporation proposes to render and  by  a
bond  in  the  sum  of  one  thousand dollars conditioned upon return to
applicants for contracts of any advance payments made if within one year
from the date of the issuance of such permit a license to do business as
hereafter provided has not been issued.
(b) No such  corporation  shall  furnish  medical  expense  indemnity,
dental  expense  indemnity,  hospital  service  or health service as set
forth in section four thousand three hundred one of this  article  until
it  has  obtained from the superintendent a license to do business. Such
license may be issued by  the  superintendent  upon  the  filing  of  an
application, subscribed by two officers of such corporation and affirmed
by  such  officers as true under the penalties of perjury, and in a form
prescribed by the superintendent and  upon  payment  of  a  fee  of  ten
dollars. Such application shall include (i) a statement of the number of
individuals   and   groups   from  whom  the  corporation  has  received
applications for medical expense indemnity,  dental  expense  indemnity,
hospital  service  or health service, as the case may be, to be rendered
during one year, and from each of whom it has received  payment  of  not
less  than  one-sixth of the full payment required from such individuals
and groups; and (ii) a statement of the total amount so collected, which
shall be not less than eighteen hundred dollars. Before issuing any such
license the superintendent may make such examination or investigation as
he deems expedient, including an investigation of the sponsors  of  such
proposed  corporation  and if after such examination or investigation he
determines the issuance of such license is contrary to the  interest  of
the people, he shall refuse to issue. Upon the issuance of such license,
the  corporation  may begin to furnish medical expense indemnity, dental
expense indemnity, hospital service or health service, as the  case  may
be.
(c)   Notwithstanding  the  other  provisions  of  this  article,  the
superintendent may issue a permit  to  organize  and  a  license  to  do
business  to  a  not-for-profit corporation organized and operated under
the supervision of the  New  York  State  Public  High  School  Athletic
Association,  unrestricted  as  to  its  territorial  operations in this
state, for the sole purpose, however, of furnishing medical, dental  and
hospital  expense indemnity to bona fide students in elementary and high
schools injured (i) in intramural and interscholastic athletic games and
sports activities, (ii) while engaged in  preparation  for  such  games,
sports or contests, (iii) in physical education classes, and (iv) in any
other  accidents  which  in the judgment of the superintendent should be
included. The dental indemnity is to apply, however,  only  in  case  of
dental expense caused by injury occurring as above set forth.