§ 6402 — Organization; financial requirements

§ 6402. Organization; financial requirements. A title insurance\ncorporation may be organized and licensed in the manner prescribed in\nsubsection (e) of section one thousand one hundred two and section one\nthousand two hundred one of this chapter, except as hereinafter\nprescribed, to do the kind of insurance business, and with the\nincidental powers, specified in section six thousand four hundred three\nof this article, with a paid-in capital of at least five hundred\nthousand dollars and a paid-in initial surplus at least equal to fifty\npercent of its paid-in capital, and it shall at all times thereafter\nmaintain a capital at least equal to five hundred thousand dollars,\nexcept that any such corporation organized before July first, nineteen\nhundred eighty-two, shall at all times maintain a minimum capital of two\nhundred fifty thousand dollars. In the organization of any such\ncorporation the provisions of section one thousand two hundred one of\nthis chapter shall be superseded or supplemented by the following\nprovisions:\n (a) The duration of such corporation shall be perpetual.\n (b) Its principal office shall be located in this state.\n (c) The purposes for which such corporation shall be organized shall\nonly be such as are specified in section six thousand four hundred three\nof this article.\n (d) Its incorporators shall be natural persons, not less than seven in\nnumber, and shall possess the qualifications of directors prescribed in\nsubsection (e) hereof.\n (e) Its directors shall be natural persons, not less than seven in\nnumber, all citizens of the United States, a majority of whom shall be\ncitizens and residents of this state at the time of their election and\nduring their continuance in office.\n (f) Before a license to do business shall be issued to such\ncorporation a list of its shareholders shall be filed in the office of\nthe superintendent, subscribed and affirmed as true under the penalties\nof perjury by two of its principal officers, giving the name, residence\nand post-office address of, and number of shares held by, each\nshareholder.\n (g) No foreign or alien insurer shall be granted a license or renewal\nof a license to do in this state the kind of business specified in\nparagraph eighteen of subsection (a) of section one thousand one hundred\nthirteen of this chapter if it may exercise any powers or conduct any\nbusiness without this state not authorized by such paragraph, or unless\nits surplus to policyholders, of which not more than five percent of its\nadmitted assets shall be represented by title plant or plants, is at the\ntime of initial licensing not less than the sum of (i) the minimum\ncapital and initial surplus required of a similar domestic insurer, and\n(ii) an amount by which reserves computed in accordance with paragraphs\none and two of subsection (a) of section six thousand four hundred five\nof this article on business within and without the state exceed its\nreserves of a comparable nature, whether statutory or voluntary, and\nunless such insurer at all times thereafter maintains a surplus to\npolicyholders, similarly limited as to value of title plant or plants,\nat least equal to the sum of such minimum capital and reserves\ndetermined as hereinabove set forth, or if it fails to meet any other\nrequirements of this chapter applicable to a domestic title insurance\ncorporation except that any such insurer initially licensed on or after\nJuly first, nineteen hundred eighty-two, shall have a surplus to\npolicyholders at least equal to the sum of (i) minimum capital and\ninitial surplus required of a like domestic insurer initially licensed\non or after July first, nineteen hundred eighty-two, and (ii) reserves\nas hereinabove required; and shall maintain a surplus to policyholders\nat least equal to the sum of (i) the reserves hereinabove required and\n(ii) the minimum capital required of a domestic insurer initially\nlicensed on or after July first, nineteen hundred eighty-two.\n