2012 New York Consolidated Laws
ISC - Insurance
Article 64 - (6401 - 6411) TITLE INSURANCE CORPORATIONS
6402 - Organization; financial requirements.

 
    §  6402.  Organization;  financial  requirements.  A  title  insurance
  corporation may be organized and licensed in the  manner  prescribed  in
  subsection  (e)  of section one thousand one hundred two and section one
  thousand  two  hundred  one  of  this  chapter,  except  as  hereinafter
  prescribed,  to  do  the  kind  of  insurance  business,  and  with  the
  incidental powers, specified in section six thousand four hundred  three
  of  this  article,  with  a  paid-in  capital  of  at least five hundred
  thousand dollars and a paid-in initial surplus at least equal  to  fifty
  percent  of  its  paid-in  capital, and it shall at all times thereafter
  maintain a capital at least equal  to  five  hundred  thousand  dollars,
  except  that  any such corporation organized before July first, nineteen
  hundred eighty-two, shall at all times maintain a minimum capital of two
  hundred  fifty  thousand  dollars.  In  the  organization  of  any  such
  corporation  the  provisions  of section one thousand two hundred one of
  this chapter shall  be  superseded  or  supplemented  by  the  following
  provisions:
    (a) The duration of such corporation shall be perpetual.
    (b) Its principal office shall be located in this state.
    (c)  The  purposes for which such corporation shall be organized shall
  only be such as are specified in section six thousand four hundred three
  of this article.
    (d) Its incorporators shall be natural persons, not less than seven in
  number, and shall possess the qualifications of directors prescribed  in
  subsection (e) hereof.
    (e)  Its  directors  shall  be natural persons, not less than seven in
  number, all citizens of the United States, a majority of whom  shall  be
  citizens  and  residents of this state at the time of their election and
  during their continuance in office.
    (f)  Before  a  license  to  do  business  shall  be  issued  to  such
  corporation  a  list of its shareholders shall be filed in the office of
  the superintendent, subscribed and affirmed as true under the  penalties
  of  perjury by two of its principal officers, giving the name, residence
  and  post-office  address  of,  and  number  of  shares  held  by,  each
  shareholder.
    (g)  No foreign or alien insurer shall be granted a license or renewal
  of a license to do in this state  the  kind  of  business  specified  in
  paragraph eighteen of subsection (a) of section one thousand one hundred
  thirteen  of  this  chapter if it may exercise any powers or conduct any
  business without this state not authorized by such paragraph, or  unless
  its surplus to policyholders, of which not more than five percent of its
  admitted assets shall be represented by title plant or plants, is at the
  time  of  initial  licensing  not  less  than the sum of (i) the minimum
  capital and initial surplus required of a similar domestic insurer,  and
  (ii)  an amount by which reserves computed in accordance with paragraphs
  one and two of subsection (a) of section six thousand four hundred  five
  of  this  article  on  business  within and without the state exceed its
  reserves of a comparable nature, whether  statutory  or  voluntary,  and
  unless  such  insurer  at  all  times  thereafter maintains a surplus to
  policyholders, similarly limited as to value of title plant  or  plants,
  at  least  equal  to  the  sum  of  such  minimum  capital  and reserves
  determined as hereinabove set forth, or if it fails to  meet  any  other
  requirements  of  this  chapter applicable to a domestic title insurance
  corporation except that any such insurer initially licensed on or  after
  July  first,  nineteen  hundred  eighty-two,  shall  have  a  surplus to
  policyholders at least equal to the  sum  of  (i)  minimum  capital  and
  initial  surplus  required of a like domestic insurer initially licensed
  on or after July first, nineteen hundred eighty-two, and  (ii)  reserves
  as  hereinabove  required; and shall maintain a surplus to policyholders

  at least equal to the sum of (i) the reserves hereinabove  required  and
  (ii)  the  minimum  capital  required  of  a  domestic insurer initially
  licensed on or after July first, nineteen hundred eighty-two.