§ 6703 — Organization of nonprofit property/casualty insurance companies

§ 6703. Organization of nonprofit property/casualty insurance\ncompanies. (a) A corporation may be organized as a charitable\ncorporation pursuant to paragraph (a) of section two hundred one of the\nnot-for-profit corporation law or as a nonprofit reciprocal insurer\nunder article sixty-one of this chapter to write the kinds of insurance\nspecified in subsection (a) of section one thousand one hundred thirteen\nof this chapter other than (1) those types of insurance specified in\nparagraphs one, two, eighteen, twenty-two, twenty-three and twenty-five\nof such subsection, (2) insurance against legal liability of the\ninsured, and against loss, damage or expense incident to a claim of such\nliability arising out of death or injury of any person, due to medical\nor hospital malpractice by any licensed physician or hospital, and (3)\ninsurance subject to section three thousand four hundred twenty-five of\nthis chapter.\n (b) A corporation organized pursuant to subsection (a) of this section\nshall (1) be organized and operated exclusively for a purpose or\npurposes for which a corporation may be formed under the not-for-profit\ncorporation law and this chapter, not for pecuniary profit or financial\ngain, and no part of its assets, income or profit is distributable to or\nenures to the benefit of its members, directors or officers except to\nthe extent permitted under the not-for-profit corporation law and this\nchapter, in a manner acceptable to the superintendent, and (2) insure no\norganizations or corporations other than nonprofit organizations.\n (c) Notwithstanding any provision of the not-for-profit corporation\nlaw, no nonprofit property/casualty insurance company licensed pursuant\nto this article shall be converted into a corporation or other entity\norganized for pecuniary profit or into a for-profit organization of any\nkind.\n