§ 6604 — Organization of advance premium corporations

§ 6604. Organization of advance premium corporations. (a) An advance\npremium corporation may be organized and licensed in the manner\nprescribed in section six thousand six hundred three of this article and\nmay do, in addition to the kind of insurance specified in paragraph four\nof subsection (a) of section one thousand one hundred thirteen of this\nchapter, any one or more of the kinds of insurance specified in\nparagraphs five, six, twelve, nineteen and twenty (inland marine only),\nof such subsection, and in conjunction with insurance under the same\npolicy, the kinds of insurance specified in paragraphs seven, eight,\nnine, thirteen, fourteen and fifteen (excluding workers' compensation\ninsurance) of such subsection, provided the whole risk for all the\nperils as specified in such paragraphs is reinsured in an insurer\nauthorized to do business in this state or in an accredited reinsurer,\nas defined in subsection (a) of section one hundred seven of this\nchapter, insofar as specified in its charter, on compliance with the\nfollowing prerequisites:\n (1) It shall have, in order to be licensed to do business in this\nstate as specified in its charter, not less than four hundred bona fide\napplications for insurance of such kind or kinds, on real property\nlocated in this state, and from not less than four hundred separate\napplicants who have paid premiums of not less than ten thousand dollars\non insurance aggregating not less than one million dollars, and each\nmember of such corporation shall be subject to a contingent liability in\nan amount at least equal to that provided in section six thousand six\nhundred fourteen of this article.\n (2) It shall have a cash organization or initial surplus fund of not\nless than three hundred thousand dollars, which may be used in the\nmanner provided for in paragraph nine of subsection (a) of section one\nthousand two hundred one of this chapter, and shall maintain at all\ntimes, a surplus of at least two hundred thousand dollars.\n (3) A licensed advance premium corporation may apply for an amended\nlicense to do any one or more of the kinds of insurance specified in\nsubsection (a) of section one thousand one hundred thirteen of this\nchapter, except those specified in paragraphs one, two, eighteen and\ntwenty-three thereof, provided it has a surplus to policyholders equal\nin the aggregate to the surplus required on organization by section four\nthousand one hundred seven of this chapter for all of the kinds of\ninsurance for which it is to be licensed, and shall thereafter maintain\na surplus to policyholders equal to the amount specified in such\nsection, and if licensed to do any of the kinds of insurance set forth\nin subsection (a) of section four thousand one hundred nine of this\nchapter such company shall be subject to the provisions of such section\nand to the provisions of subsection (a) of section four thousand one\nhundred four of this chapter.\n (b) (1) An advance premium corporation may also be organized and\nlicensed in the manner prescribed in section six thousand six hundred\nthree of this article to do in this state, as an assuming insurer,\nsolely reinsurance business of a kind or kinds specified in its license,\non compliance with all of the provisions of this chapter applicable to\nan advance premium corporation organized and licensed pursuant to the\nprovisions of subsection (a) hereof, except as provided in paragraph two\nhereof.\n (2) It shall have not less than ten bona fide applications for\nreinsurance of such kind or kinds on real property located within this\nstate, and from not less than ten separate applying insurers authorized\nto do business in this state, providing for the payment of gross annual\nreinsurance premiums of not less than twenty-five thousand dollars and\nproviding that such ceding insurer shall, as a member of such assuming\ninsurer, be subject to a contingent mutual liability in an amount at\nleast equal to that provided for in section six thousand six hundred\nfourteen of this article.\n (3) Such a corporation shall, pursuant to such license, do only the\nbusiness of reinsurance as herein provided, but may upon meeting the\nrequirements of paragraph one of subsection (a) of this section and upon\nevidence satisfactory to the superintendent that it is complying with\nparagraph two of subsection (a) of this section, relative to minimum\nsurplus, be licensed, pursuant to section one thousand one hundred two\nof this chapter, to do the kind or kinds of insurance business as above\ndesignated, both as a direct writer and as a reinsurer.\n (c) The financial and deposit requirements set forth in subsection (a)\nof this section shall be reduced by fifty percent for a cooperative\nproperty/casualty insurance company initially licensed to do business in\nthis state prior to July first, nineteen hundred eighty-two.\n