§ 4208 — Financial and additional requirements for the organization of mutual life, accident and health, and legal services insurance companies

New York § 4208

• Jurisdiction: New York
• Law ISC: Insurance
• Art. 42: Life Insurance Companies and Accident and Health Insurance Companies and Legal Services Insurance Companies

Text

§ 4208. Financial and additional requirements for the organization of\nmutual life, accident and health, and legal services insurance\ncompanies. (a) (1) A mutual insurance company may be incorporated and\nlicensed exclusively to do one or more of the kinds of insurance\nbusiness specified in paragraphs one, two, three, twenty-nine and\nthirty-one of subsection (a) of section one thousand one hundred\nthirteen of this chapter, upon compliance with the applicable\nrequirements of section one thousand two hundred one and subsection (e)\nof section one thousand one hundred two of this chapter and subsection\n(b) of this section.\n (2) In this section:\n (A) "Initial surplus" means the paid-in initial surplus required\npursuant to paragraph nine of subsection (a) of section one thousand two\nhundred one and paragraph one of subsection (e) of section one thousand\none hundred two of this chapter.\n (B) "Minimum surplus" means the amount of surplus which such company\nshall, after being licensed to do business, at all times maintain\nunimpaired.\n (C) "Applications" means individual applications for policies of life\ninsurance, except that in the case of volunteer firefighters, it shall\nalso mean applications for enrollment for coverage to be issued under\ngroup life insurance policies applied for by not less than twenty-five\nassociations or organizations of volunteer firefighters in accordance\nwith the provisions of paragraph seven of subsection (b) of section four\nthousand two hundred sixteen of this article.\n (b) (1) If organized to do only the kind of insurance business\nspecified in paragraph one of subsection (a) of section one thousand one\nhundred thirteen of this chapter, such company shall:\n (A) have not less than one thousand bona fide applications for life\ninsurance in an amount not less than one thousand dollars each;\n (B) have received from each such applicant in cash the full amount of\none annual premium on the policy applied for, which premiums in the\naggregate at least equal twenty-five thousand dollars;\n (C) have an initial surplus of one hundred fifty thousand dollars in\ncash; and\n (D) have a minimum surplus of one hundred thousand dollars.\n (2) If organized to do only the kind of business specified in item (i)\nof paragraph three of subsection (a) of section one thousand one hundred\nthirteen of this chapter, such company shall:\n (A) have not less than five hundred bona fide applications for such\ninsurance;\n (B) have received from each such applicant in cash the full amount of\none annual premium on the policy applied for, which premiums in the\naggregate at least equal twenty thousand dollars;\n (C) have an initial surplus of one hundred fifty thousand dollars in\ncash; and\n (D) have a minimum surplus of one hundred thousand dollars, except\nthat every such company initially licensed on or after July first,\nnineteen hundred eighty-two shall have an initial surplus and a minimum\nsurplus in an amount which is at least equal to two hundred percent of\nthat required of a like company licensed prior to July first, nineteen\nhundred eighty-two.\n (3) If organized to do the kinds of insurance business specified in\nparagraph one and in item (i) of paragraph three of subsection (a) of\nsection one thousand one hundred thirteen of this chapter, such company\nshall comply with both paragraph one and paragraph two of this\nsubsection.\n (4) To be organized to do the kind of insurance business specified in\nparagraph two of subsection (a) of section one thousand one hundred\nthirteen of this chapter, such company shall meet the organizational\nrequirements of paragraph one hereof and shall have an initial surplus\nand a minimum surplus, each in an amount at least fifty thousand dollars\nin excess of the respective amounts otherwise required by paragraph one\nhereof.\n (5) To be organized to do the kind of insurance business specified in\nitem (ii) of paragraph three or paragraph twenty-nine of subsection (a)\nof section one thousand one hundred thirteen of this chapter, such\ncompany shall meet the organizational requirements of one or more of\nparagraphs one through four hereof and shall have an initial surplus and\na minimum surplus, each in an amount at least fifty thousand dollars in\nexcess of the highest applicable respective amount required by such\nparagraph or paragraphs, except that any such company initially licensed\non or after July first, nineteen hundred eighty-two shall have an\ninitial surplus and a minimum surplus, each in an amount at least one\nhundred thousand dollars in excess of the highest applicable respective\namount required by such paragraph or paragraphs.\n