§ 4103 — Stock companies; financial requirements

New York § 4103

• Jurisdiction: New York
• Law ISC: Insurance
• Art. 41: Property/casualty Insurance Companies

Text

* § 4103. Stock companies; financial requirements. (a) (1) A stock\nproperty/casualty insurance company organized in the manner prescribed\nin subsection (a) of section one thousand two hundred one of this\nchapter may be licensed under subsection (e) of section one thousand one\nhundred two of this chapter to write one or more kinds of insurance as\nspecified in TABLE ONE upon meeting the applicable paid-in capital and\nan additional amount of paid-in surplus for each kind of insurance\nlicensed, in the aggregate at least equal to the requirements specified\nin TABLE ONE and every such company shall thereafter maintain a minimum\ncapital at least equal to the amount specified in this section and a\nsurplus to policyholders at least equal to the aggregate paid-in capital\nspecified in TABLE ONE for the kind or kinds of insurance licensed.\n TABLE ONE\nKind of insurance specified\nin the following numbered Paid-in Paid-in\nparagraphs of subsection Capital Surplus\n(a) of § 1113:\n Group A:\n7 $300,000 $150,000\n8, 9, 10, 11, or 14 - for each such kind $100,000 $ 50,000\n13 or 15 - for each such kind $500,000 $250,000\n16 $900,000 $450,000\n17 $400,000 $200,000\nBasic additional amount\nrequired for any one\nor more of the above\nkinds of insurance $100,000 $ 50,000\n3(i), 3(ii), 6{1} or 12{2} - for each\nsuch kind $100,000 $ 50,000\n22 $2,000,000 $1,000,000\n24 $400,000 $200,000\n26(B) $200,000 $100,000\n26(A), 26(C) or 26(D) -\nfor each such kind $600,000 $300,000\n27 $300,000 $150,000\n28 $2,000,000 $1,000,000\n30 $400,000 $200,000\n31 $100,000 $ 50,000\n32 $100,000 $ 50,000\n33 $100,000 $ 50,000\n34 $2,000,000 $1,000,0000\n Group B:\n4{3} or 20{4} - for each such kind $500,000 $500,000\n Notes to TABLE ONE\n {1} If licensed to write paragraph 4, no additional paid-in capital\nand surplus is required.\n {2} If licensed to write paragraph 4 or 20, no additional paid-in\ncapital and surplus is required.\n {3} If licensed to write paragraph 4, no additional paid-in capital\nand surplus is required for a license to write paragraphs 5, 6, 12, 19,\n20, (inland marine only) and 34.\n {4} If licensed to write paragraph 20, no additional paid-in capital\nand surplus is required for a license to write paragraphs 12, 19 and 21.\n (2) A stock property/casualty insurance company licensed to write one\nor more of the kinds of insurance as specified in TABLE ONE, Group A,\nand having a minimum capital of one million dollars, may be licensed to\nwrite any other kind of insurance specified in TABLE ONE, Group A, upon\nat least having an initial surplus to policyholders equal to the\naggregate of the paid-in capital and paid-in surplus specified in TABLE\nONE for the kinds of insurance for which it is to be licensed, and shall\nthereafter maintain a surplus to policyholders at least equal to the\naggregate paid-in capital prescribed in TABLE ONE for the kinds of\ninsurance licensed or one million dollars, whichever is greater.\n (3) A stock property/casualty insurance company licensed to write any\nkind of insurance specified in TABLE ONE, Group A, must have a minimum\ncapital of one million dollars and a surplus to policyholders as\nspecified in this paragraph before being licensed to write either kind\nof insurance specified in Group B. If licensed to write the kind or\nkinds of insurance specified in TABLE ONE, Group B, it may, in addition\nwrite any one or more kinds of insurance specified in TABLE ONE, Group\nA, provided it has a minimum capital of one million dollars and a\nsurplus to policyholders as specified in this paragraph before being\nlicensed to write any other kind or kinds of insurance specified in\nTABLE ONE, Group A. Every such company shall have an initial surplus to\npolicyholders at least equal to the aggregate of the paid-in capital and\npaid-in surplus specified in TABLE ONE for the kinds of insurance for\nwhich it is to be licensed and shall thereafter maintain a surplus to\npolicyholders at least equal to the aggregate paid-in capital prescribed\nin TABLE ONE for the kinds of insurance licensed or one million dollars\nwhichever is greater.\n (4) A stock property/casualty insurance company licensed under\nsubsection (c) of section four thousand one hundred two of this article\nto reinsure risks or write insurance on risks outside the United States,\nits territories and possessions, must maintain a surplus to\npolicyholders of at least thirty-five million dollars.\n (5) The dollar amounts set forth in paragraphs one (except the dollar\namounts set forth for paragraphs (22), (24) and (26)), two and three of\nthis subsection shall be reduced by fifty percent for a domestic stock\nproperty/casualty insurance company initially licensed to do business in\nthis state prior to July first, nineteen hundred eighty-two.\n (b) No foreign stock property/casualty insurance company shall be\ngranted a license to do business in this state unless it has a paid-in\ncapital and surplus at least equal, respectively, to the amounts\nrequired by subsection (a) hereof for the organization of a domestic\ncompany to write the same kind or kinds of insurance which such foreign\ncompany is to be licensed to write in this state, and every such company\nshall thereafter maintain a minimum capital and a surplus to\npolicyholders at least equal to the amount required of a domestic\ncompany licensed for the same kind or kinds of insurance.\n (c) No alien stock property/casualty insurance company shall be\ngranted a license to write any kind of insurance specified in TABLE ONE,\nGroup A, except as permitted by the provisions of notes {1} and {2} to\nTABLE ONE, unless it has a trusteed surplus, as defined in section one\nthousand three hundred twelve of this chapter, at least equal in amount\nto one hundred fifty percent of the paid-in capital set forth in TABLE\nONE for such kind or kinds of insurance, nor to write any kind of\ninsurance specified in TABLE ONE, Group B, unless it has such a trusteed\nsurplus at least equal in amount to two hundred percent of the paid-in\ncapital set forth in TABLE ONE for such kind or kinds of insurance.\nEvery such insurer shall thereafter maintain a trusteed surplus at least\nequal to the paid-in capital set forth in TABLE ONE for such kind or\nkinds of insurance.\n (d) The financial requirements specified in subsections (b) and (c)\nhereof shall be reduced by fifty percent for a foreign or alien stock\nproperty/casualty insurance company initially licensed to do business in\nthis state prior to July first, nineteen hundred eighty-two, but such\nreduction shall not apply to such a foreign or alien insurer licensed\nunder subsection (c) of section four thousand one hundred two of this\narticle to reinsure risks or write insurance on risks outside the United\nStates, its territories and possessions. Such reduction shall also not\napply to the financial requirements specified in subsection (a) of this\nsection in order to write paragraph twenty-two, twenty-four or\ntwenty-six.\n* SPECIAL NOTE.--Notwithstanding that Chapter 585 of the Laws of 1984:\n Bill sections 2, 3, 5, 6, 7, and 9 of such chapter amend provisions of\nthe former Insurance Law that are not possible to juxtapose at this time\ndue to the highly technical nature of such changes and will need future\ncorrective legislation to implement such provisions into the new\nInsurance Law as enacted by such Chapter 367 of the Laws of 1984.\n