2013 New York Consolidated Laws
ISC - Insurance
Article 41 - (4101 - 4121) PROPERTY/CASUALTY INSURANCE COMPANIES
4107 - Domestic mutual companies; financial and other requirements.

 
    * § 4107. Domestic mutual companies; financial and other requirements.
  (a)  (1)  A  mutual property/casualty insurance company organized in the
  manner prescribed in subsection (a) of section one thousand two  hundred
  one  of  this  chapter  may  be  licensed  pursuant to subsection (e) of
  section one thousand one hundred two of this chapter to  write  any  one
  kind  (but only one kind except as hereinafter in this section provided)
  of insurance as specified  in  TABLE  TWO  upon  at  least  meeting  the
  requirements set forth therein. In this section, "initial surplus" means
  the  paid-in  initial  surplus  required pursuant to subparagraph (A) of
  paragraph nine of subsection (a) of section one thousand two hundred one
  and subparagraph (B) of paragraph one of subsection (e) of  section  one
  thousand  one  hundred  two of this chapter, and "minimum surplus" means
  the surplus required to be maintained  unimpaired  after  a  company  is
  licensed to do business.
    * SPECIAL NOTE.--Notwithstanding that Chapter 585 of the Laws of 1984:
    Bill sections 2, 3, 5, 6, 7, and 9 of such chapter amend provisions of
  the former Insurance Law that are not possible to juxtapose at this time
  due  to the highly technical nature of such changes and will need future
  corrective  legislation  to  implement  such  provisions  into  the  new
  Insurance Law as enacted by such Chapter 367 of the Laws of 1984.
 
                                  TABLE TWO
 
  Kind of
  insurance
  specified
  in the
  following                 Num-    Number
  numbered   Num-           ber      of
  paragraphs ber   Number    of     Insur-           Minimum
  of subsec-  of    of      Sep-    ance             Surplus
  tion (a)   Mem-  Appli-   arate   Poli-  Initial    to be        Other
  of § 1113  bers  cations  Risks   cies   Surplus   Maintained  Requirements
  ---------  ----- ------   -----   ----   -------   ----------  ------------
      4       50    300      300    --  $  300,000{1}$  200,000{1}see note{2}
      7       20     20      200    20  $  300,000   $  200,000   see note{3}
      8       20     20      300    20  $  150,000   $  100,000   see note{3}
      9       20     20      200    20  $  300,000   $  200,000   see note{3}
     10       20     20      300    20  $  150,000   $  100,000   see note{3}
     11       20     20      300    20  $  150,000   $  100,000   see note{3}
     13      100    100      500{4} --  $  500,000{5}$  400,000{5}see note{6}
     15       40{7}  40    2,500{7} --  $  500,000   $  400,000   see note{6}
              30{7}  30    5,000{7} --  $  500,000   $  400,000   see note{6}
              20{7}  20    7,500{7} --  $  500,000   $  400,000   see note{6}
              10{7}  10   10,000{7} --  $  500,000   $  400,000   see note{6}
     16       --     --      ---    --  $1,500,000   $1,000,000
     17       20     20    2,000    20  $  750,000   $  500,000   see note{3}
     20       50    300      300    --  $1,000,000{8}$  500,000{8}see note{9}
     21       20     20{10}  200{11}--  $  500,000   $  500,000   see note{12}
 
  Notes to TABLE TWO
    {1}  If  licensed  to  write  paragraph  4,  no  additional surplus is
  required for a license to write pargraphs 5, 6, 12, 19  and  20  (inland
  marine only).
    {2}  The  aggregate premiums in respect to the separate risks shall be
  at least $100,000 and each applicant shall have  paid  one-half  of  the
  premium payable with the balance due upon the issuance of the policy.

    {3} Shall have received cash from each applicant at least equal to 1/2
  of the annual premium on the policy.
    {4} Not more than 5 risks from any one member.
    {5}  If  licensed  to  write  paragraph  13,  no additional surplus is
  required for a license to write paragraphs 6, 12 and 14.
    {6} The aggregate annual premium cost of such insurance  shall  be  at
  least $50,000.
    {7} Substitute "employers" for "members" and "employees" for "separate
  risks"
    {8}  If  licensed  to  write  paragraph  20,  no additional surplus is
  required for a license to write paragraphs 12, 19, and 21.
    {9} The aggregate amount of cash received  for  the  premiums  on  the
  policies applied for shall be at least $150,000.
    {10}  The  20 applications shall be from persons, firms, corporations,
  associations  or  joint  stock  companies,  each  owning,  operating  or
  chartering one or more vessels.
    {11}  Applicants  shall  take  insurance  covering in the aggregate at
  least 200 vessels having an aggregate gross tonnage of at least  500,000
  tons.
    {12} Shall have received cash, from such applicants, on account of the
  premiums on the respective policies applied for, a sum at least equal to
  20 cents per ton upon such aggregate gross tonnage.
    (2)  A  mutual property/casualty insurance company whose membership is
  limited to hospitals may  be  organized  in  the  manner  prescribed  in
  subsection  (a)  of section one thousand two hundred one of this chapter
  and may be licensed pursuant to subsection (e) of section  one  thousand
  one  hundred  two  of  this  chapter  to  write  the  kinds of insurance
  specified in paragraph thirteen or fourteen of subsection (a) of section
  one thousand one hundred thirteen of this chapter provided (i) it  shall
  have applications from at least forty members on at least forty separate
  risks,  (ii)  the  total  annual  premium  cost  shall be at least seven
  hundred fifty thousand dollars, (iii) it shall have an  initial  surplus
  of  at  least five hundred thousand dollars and shall maintain a surplus
  of at least four hundred thousand dollars and (iv) it shall receive from
  its members  advances  pursuant  to  the  requirements  of  section  one
  thousand  three  hundred  seven  of this chapter averaging not less than
  one-third of the average annual indicated premium, but the total thereof
  shall not be less than the initial minimum surplus.
    (b) If licensed to write any kind of insurance specified in TABLE TWO,
  a mutual property/casualty insurance company may in addition  write  any
  one  or more of the kinds of insurance specified in Group A and/or Group
  B of TABLE THREE, and  if  licensed  to  write  any  kind  of  insurance
  specified  in  Group  A, it may in addition write any one or more of the
  kinds of insurance specified in Group C of TABLE THREE, in either  case,
  upon  at  least  meeting  the  initial surplus requirement prescribed in
  TABLE THREE for the kinds of insurance for which it is to  be  licensed.
  It  shall  thereafter  maintain  the minimum surplus prescribed in TABLE
  THREE for the kinds of insurance licensed.
 
                                 TABLE THREE
 
  Kind of insurance specified in the                         Minimum
  following  numbered  Paragraphs of            Initial{1}   Surplus{1} to
  subsection (a) of § 1113:                     Surplus      be Maintained
  _________________________________             _________    _____________
 
                                  Group A:

  7 or 9 - for each such kind                   $100,000     $100,000
  8, 10 or 11 - for each such kind              $ 50,000     $ 50,000
  13,{2} 15 or 17 - for each such kind          $300,000     $300,000
  16                                            $900,000     $900,000
 
                                  Group B:
 
  4{3}                                          $  300,000   $200,000
  20{4}                                         $1,000,000   $500,000
 
                                  Group C:
 
  3(i) or 3(ii) - for each such kind            $  100,000   $  100,000
  22                                            $3,000,000   $2,000,000
  24                                            $  300,000   $  300,000
  26 (B)                                        $  300,000   $  200,000
  26(A), 26 (C) or 26(D) -
  for each such kind                            $  900,000   $  600,000
  28                                            $3,000,000   $2,000,000
  6{5}, 12{6}  or 14{2}  - for
  each such kind                                $   50,000   $   50,000
  27                                            $  300,000   $  150,000
  30                                            $  300,000   $  300,000
  31                                            $  100,000   $  100,000
 
  Notes to TABLE THREE
    {1}  The  amounts  shown  in  TABLE THREE are added to the initial and
  minimum surplus for the kind of  insurance  for  which  the  mutual  was
  organized  as set forth in TABLE TWO. In addition, if organized to write
  paragraphs 4, 20 or 21 the initial  and  minimum  surplus  required  for
  paragraphs  7,  8,  9, 10, 11, 13, 15, 16 or 17 shall be determined from
  TABLE TWO for the kind of insurance with  the  highest  initial  surplus
  requirement  as  indicated  in  TABLE  TWO. After such determination use
  TABLE THREE to derive the initial and minimum surplus  requirements  for
  all other kinds of insurance.
    {2}  If  licensed  to  write  paragraph  13,  no additional surplus is
  required for a license to write paragraphs 6, 12, and 14.
    {3} If licensed  to  write  paragraph  4,  no  additional  surplus  is
  required  for  a license to write paragraphs 5, 6, 12, 19 and 20 (inland
  marine only).
    {4} If licensed to  write  paragraph  20,  no  additional  surplus  is
  required for a license to write paragraphs 12, 19, and 21.
    {5}  If licensed to write paragraph 4 or 13, no additional initial and
  minimum surplus is required.
    {6} If licensed to write paragraphs 4, 13 or 20, no additional initial
  and minimum surplus is required.
    (c) A mutual property/casualty insurance company licensed pursuant  to
  paragraph  four  of  subsection (b) of section four thousand one hundred
  two of this  article  to  write  the  kind  of  insurance  specified  in
  paragraph nineteen of subsection (a) of section one thousand one hundred
  thirteen of this chapter must maintain a minimum surplus of at least six
  hundred thousand dollars.
    (d)  A mutual property/casualty insurance company licensed pursuant to
  subsection (c) of section four thousand one hundred two of this  article
  to reinsure risks or write insurance on risks outside the United States,
  its   territories   and   possessions,   must   maintain  a  surplus  to
  policyholders of at least thirty-five million dollars.

    (e) The dollar amounts of initial surplus, minimum surplus and surplus
  to policyholders set forth in subsections  (a),  (b)  and  (c)  of  this
  section   shall   be   reduced   by   fifty   percent   for  any  mutual
  property/casualty insurance company initially licensed to do business in
  this  state  prior  to  July  first,  nineteen  hundred eighty-two. Such
  reduction shall not apply to the  financial  requirements  specified  in
  subsection  (b)  of this section in order to write paragraph twenty-two,
  twenty-four or twenty-six.
    (f) Notwithstanding any provision of this section to the contrary,  if
  licensed  to  write the kind of insurance specified in paragraph fifteen
  of subsection (a) of section one thousand one hundred thirteen  of  this
  chapter,  a  mutual  property/casualty insurance company may be licensed
  for the purposes of article nine of the  workers'  compensation  law  to
  write  the kind of insurance specified in item (i) of paragraph three of
  subsection (a) of section one thousand  one  hundred  thirteen  of  this
  chapter without having any additional surplus.