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§6604
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§6604 . Organization of advance premium corporations.
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§6604(a)
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(a) An advance premium corporation may be organized and licensed in the manner prescribed in §6603 of this article and may do, in addition to the kind of insurance specified in paragraph §1113(a)(4) of this chapter, any 1 or more of the kinds of insurance specified in (¶ (5)) , (¶ (6)) , (¶ (12)) , (¶ (19)) and (¶ (20)(inland) marine only), of such subsection , and in conjunction with insurance under the same policy, the kinds of insurance specified in (¶ (7)) , (¶ (8)) , (¶ (9)) , (¶ (13)) , (¶ (14)) and (¶ (15)(excluding) workers' compensation insurance) of such subsection ,provided the whole risk for all the perils as specified in such is reinsured in an insurer authorized to do business in this state or in an accredited reinsurer, as defined in subsection §107(a) of this chapter, insofar as specified in its charter, on compliance with the following prerequisites:
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§6604(a)(1)
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(1) It shall have, in order to be licensed to do business in this state as specified in its charter, not less than 400 bona fide applications for insurance such kind or kinds, on real property located in this state, from not less than 400 separate applicants who have paid premiums not less than $10,000 on insurance aggregating not less than $1,000,000, and each member of such corporation shall be subject to a contingent liability in an amount at least equal to that provided in §6614 of this article.
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§6604(a)(2)
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(2) It shall have a cash organization or initial surplus fund of not less than $300,000, which may be used in the manner provided for in paragraph §1201(a)(9) of this chapter, and shall maintain at all times, a surplus of at least $200,000.
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§6604(a)(3)
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(3) A licensed advance premium corporation may apply for an amended license to do any 1 or more of the kinds of insurance specified in subsection §1113(a) of this chapter, except those specified in (¶ (1)) , (¶ (2)) , (¶ (18)) and (¶ (23)) thereof, provided it has a surplus to policyholders equal in the aggregate to the surplus required on organization by §4107 of this chapter for all of the kinds of insurance for which it is to be licensed, and shall thereafter maintain a surplus to policyholders equal to the amount specified in such section, and if licensed to do any of the kinds of insurance set forth in subsection §4109(a) of this chapter such company shall be subject to the provisions of such section and to the provisions of subsection §4104(a) of this chapter.
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§6604(b)
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(b)
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§6604(b)(1)
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(1) An advance premium corporation may also be organized and licensed in the manner prescribed in §6603 of this article to do in this state, as an assuming insurer, solely reinsurance business of a kind or kinds specified in its license, on compliance with all of the provisions of this chapter applicable to an advance premium corporation organized and licensed pursuant to the provisions of (sub§ (a)) hereof, except as provided in (¶ (2)) hereof.
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§6604(b)(2)
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(2) It shall have not less than 10 bona fide applications for reinsurance of such kind or kinds on real property located within this state, and from not less than 10 separate applying insurers authorized to do business in this state, providing for the payment of gross annual reinsurance premiums of not less than $25,000 and providing that such ceding insurer shall, as a member of such assuming insurer, be subject to a contingent mutual liability in an amount at least equal to that provided for in §6614 of this article.
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§6604(b)(3)
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(3) Such a corporation shall, pursuant to such license, do only the business of reinsurance as herein provided, but may upon meeting the requirements of paragraph (this §)(a)(1) and upon evidence satisfactory to the superintendent that it is complying with paragraph (this §)(a)(2) ,relative to minimum surplus, be licensed, pursuant to §1102 of this chapter, to do the kind or kinds of insurance business as above designated, both as a direct writer and as a reinsurer.
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§6604(c)
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(c) The financial and deposit requirements set forth in subsection (this §)(a) shall be reduced by 50% for a cooperative property/casualty insurance company initially licensed to do business in this state prior to July 1st, 1982. Source Data downloaded: 2009-04-09 15: 39: 49; Processed: 2009-05-08 15: 36: 26
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