§ 7306-A — Reconversion of domestic mutual property/casualty insurance company into advance premium corporation or assessment corporation

New York § 7306-A

• Jurisdiction: New York
• Law ISC: Insurance
• Art. 73: Conversion to Different Type of Insurer

Text

§ 7306-a. Reconversion of domestic mutual property/casualty insurance\ncompany into advance premium corporation or assessment corporation. Any\ndomestic mutual property/casualty insurance company, organized under\narticle twelve of this chapter and licensed under article forty-one of\nthis chapter which was previously organized as an advance premium\ncorporation or assessment corporation and which has in force contracts\nof insurance of the kinds which advance premium corporations or\nassessment corporations, as defined in section six thousand six hundred\ntwo of this chapter, may be authorized to do, covering not less than\nthree hundred separate risks and on which the premiums in force\naggregates not less than one hundred thousand dollars, may be\nreconverted into and licensed as an advance premium corporation or\nassessment corporation in the manner prescribed in this section and\nsubject to any other requirements of law. The successive steps shall be\nas follows:\n (a) A majority of the board of directors of the domestic mutual\nproperty/casualty insurer shall adopt a resolution approving the\nproposed reconversion and appointing a committee of not less than three\ndirectors to prepare a draft of a proposed declaration, charter and\nby-laws.\n (b) The proposed declaration, charter and by-laws shall be submitted\nwith an appropriate resolution to the board for its approval.\n (c) A majority of the board at any regular or special meeting thereof\nshall approve by resolution the proposed declaration, charter and\nby-laws, which shall conform to the requirements of this chapter\nrelative to the contents of charters and by-laws of advance premium\ncorporations or assessment corporations, as the case may be, hereafter\norganized, with such additions as the superintendent shall approve to\naccommodate insurance contracts then in force. Such resolution shall\nalso direct that notice that the proposed reconversion will be submitted\nfor approval at a special meeting of policyholders to be called for that\npurpose be mailed, with postage prepaid, to all policyholders at their\nlast known post office addresses respectively, at least thirty days\nprior to the date of the meeting, together with copies of the\nresolutions provided for in subsections (a) and (b) of this section and\nthis subsection and of the proposed declaration, charter and by-laws.\n (d) At least two-thirds of the votes of policyholders voting at such\nmeeting either in person or by proxy, if the domestic mutual\nproperty/casualty insurer's by-laws provide for a vote by proxy, shall\nbe cast in favor of the proposed reconversion and of the adoption of the\nproposed declaration and charter and proposed by-laws. A resolution\nshall similarly be adopted instructing the president and secretary to\nexecute or certify and file all necessary papers and instruments\nincident to the proposed conversion.\n (e) The proposed declaration and charter executed by the president and\nsecretary together with proof of mailing of notice of policyholders'\nmeeting and copies of all other necessary papers and instruments\nincident to the proposed reconversion, together with a certificate of\ntheir adoption as provided for herein, subscribed and affirmed by such\nofficers as true under the penalties of perjury, shall be submitted to\nthe superintendent.\n (f) If the superintendent finds, by such investigation or examination\nas he deems appropriate to make, that the corporation meets the initial\nsurplus and reserve requirements for advance premium corporations or\nassessment corporations, as the case may be, to do the kinds of\ninsurance business for which the corporation is to be licensed, and\ncomplies with all other provisions of this section, he shall approve the\ndeclaration and charter and by-laws and file the same together with the\nother documents submitted as required by subsection (e) of this section\nin his office, and coincident with such filing such domestic mutual\nproperty/casualty insurance company shall become an advance premium\ncorporation or assessment corporation, as the case may be.\n (g) Upon compliance by the domestic mutual property/casualty insurer\nwith the foregoing and with any other lawful prerequisites for the\nissuance of an insurer's license, the superintendent may, in accordance\nwith subsection (d) of section one thousand one hundred two of this\nchapter, grant a license to such advance premium corporation or\nassessment corporation, as the case may be. Such corporation shall\nthereafter be subject to all the provisions and requirements of this\nchapter relative to advance premium corporations or assessment\ncorporations, as the case may be.\n