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* §4107 . Domestic mutual companies; financial and other requirements.
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(a)
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(1) A mutual property/casualty insurance company organized in the manner prescribed in subsection §1201(a) of this chapter may be licensed pursuant to subsection §1102(e) of this chapter to write any 1 kind (but only 1 kind except as hereinafter in (this §) provided) of insurance as specified in TABLE 2 upon at least meeting the requirements set forth therein. In (this §) ,"initial surplus" means the paid-in initial surplus required pursuant to subparagraph §1201(a)(9)(A) and subparagraph §1102(e)(1)(B) of this chapter, and "minimum surplus" means the surplus required to be maintained unimpaired after a company is licensed to do business.
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* 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.
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(2) A mutual property/casualty insurance company whose membership is limited to hospitals may be organized in the manner prescribed in subsection §1201(a) of this chapter and may be licensed pursuant to subsection §1102(e) of this chapter to write the kinds of insurance specified in paragraph §1113(a)(13) or §1113(a)(14) of this chapter provided (i) it shall have applications from at least 40 members on at least 40 separate risks, (ii) the total annual premium cost shall be at least $750,000, (iii) it shall have an initial surplus of at least $500,000 and shall maintain a surplus of at least $400,000 and (iv) it shall receive from its members advances pursuant to the requirements of §1307 of this chapter averaging not less than 1-3rd of the average annual indicated premium, but the total thereof shall not be less than the initial minimum surplus.
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(b) If licensed to write any kind of insurance specified in TABLE 2, a mutual property/casualty insurance company may in addition write any 1 or more of the kinds of insurance specified in Group A and/or Group B of TABLE 3, and if licensed to write any kind of insurance specified in Group A, it may in addition write any 1 or more of the kinds of insurance specified in Group C of TABLE 3, in either case, upon at least meeting the initial surplus requirement prescribed in TABLE 3 for the kinds of insurance for which it is to be licensed. It shall thereafter maintain the minimum surplus prescribed in TABLE 3 for the kinds of insurance licensed.
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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.
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(c) A mutual property/casualty insurance company licensed pursuant to paragraph §4102(b)(4) of this article to write the kind of insurance specified in paragraph §1113(a)(19) of this chapter must maintain a minimum surplus of at least $600,000.
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(d) A mutual property/casualty insurance company licensed pursuant to subsection §4102(c) 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 $35,000,000.
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(e) The amounts of initial surplus, minimum surplus and surplus to policyholders set forth in subsections (this §)(a) , (this §)(b) and (this §)(c) shall be reduced by 50% for any mutual property/casualty insurance company initially licensed to do business in this state prior to July 1st, 1982. Such reduction shall not apply to the financial requirements specified in (sub§ (b)) in order to write (¶ (22)) .
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(f) Notwithstanding any provision of (this §) to the contrary, if licensed to write the kind of insurance specified in paragraph §1113(a)(15) of this chapter, a mutual property/casualty insurance company may be licensed for the purposes of article 9 of the workers' compensation law to write the kind of insurance specified in item §1113(a)(3)(i) of this chapter without having any additional surplus. Source Data downloaded: 2009-04-29 12: 28: 37; Processed: 2009-05-08 15: 36: 05 |
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