§ 6704 — Licensing of nonprofit property/casualty insurance companies

§ 6704. Licensing of nonprofit property/casualty insurance companies.\n(a) No person, firm, corporation or association as an underwriter or\nunderwriters, and no nonprofit property/casualty insurance company,\nshall do any insurance business in this state, unless authorized to do\nso pursuant to the provisions of this article.\n (b) The superintendent may pursuant to this article issue a license to\na nonprofit property/casualty insurance company that is organized as a\ncharitable corporation as defined in paragraph (a) of section one\nhundred two (Definitions) of the not-for-profit corporation law if such\ncompany:\n (1) complies with (A) the applicable requirements of section one\nthousand one hundred two of this chapter, and (B) the provisions of\narticle forty-one of this chapter applicable to stock property/casualty\ninsurance companies (other than sections four thousand one hundred\nthree, four thousand one hundred five and four thousand one hundred\nnineteen) and, in each case, the rules and regulations of the\nsuperintendent promulgated pursuant thereto except insofar as such\nprovisions of law, rules and regulations may be inconsistent with the\nprovisions of this article, and\n (2) has an initial surplus to policyholders at least equal to the\namount of applicable paid-in capital and additional amount of paid-in\nsurplus required by paragraph one of subsection (a) of section four\nthousand one hundred three of this chapter for a newly organized\ndomestic stock property/casualty insurance company doing the same kind\nor kinds of insurance business.\n Thereafter, every such nonprofit property/casualty insurance company\nshall maintain a surplus to policyholders at least equal to the amount\nof applicable paid-in capital required to be maintained by paragraph one\nof subsection (a) of section four thousand one hundred three of this\nchapter for a domestic stock property/casualty insurance company doing\nthe same kind or kinds of insurance business.\n (c) The superintendent may issue a license to a nonprofit\nproperty/casualty insurance company pursuant to this article that is a\nnonprofit reciprocal insurer organized pursuant to article sixty-one of\nthis chapter if such company complies with the requirements of section\none thousand one hundred two of this chapter and article sixty-one of\nthis chapter and, in each case, the rules and regulations of the\nsuperintendent promulgated pursuant thereto except insofar as such\nprovisions of law, rules and regulations may be inconsistent with the\nprovisions of this article and except that the provisions of subsection\n(a) of section six thousand one hundred four of this chapter shall not\napply with respect to nonprofit organizations that are or seek to become\nsubscribers of such a nonprofit property/casualty insurance company,\nprovided that such a nonprofit property/casualty insurance company\neither (1) has an initial surplus to policyholders and thereafter\nmaintains a surplus to policyholders in an amount acceptable to the\nsuperintendent which amount shall be substantially greater than the\ninitial surplus to policyholders and surplus to policyholders to be\nmaintained by a reciprocal insurer under article sixty-one of this\nchapter, or (2) submits a reinsurance or other financial plan, which\nadequately addresses the provisions of subsection (a) of section six\nthousand one hundred four of this chapter and which reinsurance or other\nfinancial plan is acceptable to the superintendent.\n (d) Every license to engage in an insurance business issued by the\nsuperintendent to any nonprofit property/casualty insurance company\npursuant to the provisions of this article shall specify the company's\nname, the location of its principal office, the name and principal\naddress of its attorney-in-fact, if any, and the kind or kinds of\ninsurance business specified in terms of subsection (a) of section one\nthousand one hundred thirteen of this chapter, which it is authorized to\nengage in in this state.\n