2019 New York Laws
ISC - Insurance
Article 70 - Captive Insurance Companies
7004 - Required Capital and Surplus as Regards Policyholders.

§  7004.   Required capital and surplus as regards policyholders.  (a)
No pure captive insurance company or  group  captive  insurance  company
shall  be  issued  a  license  unless  it  shall  possess and thereafter
maintain unimpaired paid-in capital and surplus as regards policyholders
of:
  (1) in the case of a pure captive insurance company incorporated as  a
stock insurer, not less than two hundred fifty thousand dollars of total
surplus  as regards policyholders, of which one hundred thousand dollars
shall represent paid-in capital;
  (2) in the case of a pure captive insurance company incorporated as  a
mutual  insurer,  not  less  than  two hundred fifty thousand dollars of
total surplus as regards to policyholders;
  (3) in the case of a group captive insurance company incorporated as a
stock insurer, not less than five  hundred  thousand  dollars  of  total
surplus  as regards policyholders, of which two hundred thousand dollars
shall represent paid-in capital; and
  (4)  in the case of a group captive insurance company incorporated  as
a  mutual  insurer, not less than five hundred thousand dollars of total
surplus as regards policyholders.
  (b) The minimum capital  and  surplus  to  policyholders  required  in
subsection (a) of this section shall be in the form of:
  (1) cash;
  (2)  minimum  capital  or  surplus to policyholders investments of the
type specified in paragraphs one and two of subsection  (b)  of  section
one thousand four hundred two of this chapter;  or
  (3)  an  irrevocable  letter  of  credit,  in  a  form approved by the
superintendent,  naming  the  superintendent  as  beneficiary  for   the
security  of the captive insurance company's policyholders and issued by
a bank acceptable to the superintendent.
  (c)  The superintendent may prescribe additional capital  and  surplus
to  policyholders  based  upon  the type, volume and nature of insurance
business  transacted.     Any  additional   capital   and   surplus   to
policyholders  so  required  shall  be  in  the  form  as  set  forth in
subsection (b) of this section.