New York Insurance Law Section 4208 - Financial and additional requirements for the organization of mutual life, accident and health, and legal services insurance companies.

  4208. Financial and additional requirements for the organization of
  mutual  life,  accident  and  health,  and  legal   services   insurance
  companies.  (a)  (1)  A mutual insurance company may be incorporated and
  licensed exclusively to do  one  or  more  of  the  kinds  of  insurance
  business  specified  in  paragraphs  one,  two,  three,  twenty-nine and
  thirty-one of  subsection  (a)  of  section  one  thousand  one  hundred
  thirteen   of   this   chapter,  upon  compliance  with  the  applicable
  requirements of section one thousand two hundred one and subsection  (e)
  of  section  one thousand one hundred two of this chapter and subsection
  (b) of this section.
(2) In this section:
(A) "Initial surplus"  means  the  paid-in  initial  surplus  required
  pursuant to paragraph nine of subsection (a) of section one thousand two
  hundred  one and paragraph one of subsection (e) of section one thousand
  one hundred two of this chapter.
(B) "Minimum surplus" means the amount of surplus which  such  company
  shall,  after  being  licensed  to  do  business,  at all times maintain
  unimpaired.
(C) "Applications" means individual applications for policies of  life
  insurance,  except  that in the case of volunteer firemen, it shall also
  mean applications for enrollment for coverage to be issued  under  group
  life  insurance  policies  applied  for  by  not  less  than twenty-five
  associations or organizations of volunteer firemen  in  accordance  with
  the  provisions  of  paragraph  seven  of subsection (b) of section four
  thousand two hundred sixteen of this article.
(b) (1) If organized  to  do  only  the  kind  of  insurance  business
  specified in paragraph one of subsection (a) of section one thousand one
  hundred thirteen of this chapter, such company shall:
(A)  have  not  less than one thousand bona fide applications for life
  insurance in an amount not less than one thousand dollars each;
(B) have received from each such applicant in cash the full amount  of
  one  annual  premium  on  the  policy applied for, which premiums in the
  aggregate at least equal twenty-five thousand dollars;
(C) have an initial surplus of one hundred fifty thousand  dollars  in
  cash; and
(D) have a minimum surplus of one hundred thousand dollars.
(2) If organized to do only the kind of business specified in item (i)
  of paragraph three of subsection (a) of section one thousand one hundred
  thirteen of this chapter, such company shall:
(A)  have  not  less than five hundred bona fide applications for such
  insurance;
(B) have received from each such applicant in cash the full amount  of
  one  annual  premium  on  the  policy applied for, which premiums in the
  aggregate at least equal twenty thousand dollars;
(C) have an initial surplus of one hundred fifty thousand  dollars  in
  cash; and
(D)  have  a  minimum  surplus of one hundred thousand dollars, except
  that every such company initially  licensed  on  or  after  July  first,
  nineteen  hundred eighty-two shall have an initial surplus and a minimum
  surplus in an amount which is at least equal to two hundred  percent  of
  that  required  of a like company licensed prior to July first, nineteen
  hundred eighty-two.
(3) If organized to do the kinds of insurance  business  specified  in
  paragraph  one  and  in item (i) of paragraph three of subsection (a) of
  section one thousand one hundred thirteen of this chapter, such  company
  shall  comply  with  both  paragraph  one  and  paragraph  two  of  this
  subsection.

(4) To be organized to do the kind of insurance business specified  in
  paragraph  two  of  subsection  (a)  of section one thousand one hundred
  thirteen of this chapter, such company  shall  meet  the  organizational
  requirements  of  paragraph one hereof and shall have an initial surplus
  and a minimum surplus, each in an amount at least fifty thousand dollars
  in  excess of the respective amounts otherwise required by paragraph one
  hereof.
(5) To be organized to do the kind of insurance business specified  in
  item  (ii) of paragraph three or paragraph twenty-nine of subsection (a)
  of section one thousand one  hundred  thirteen  of  this  chapter,  such
  company  shall  meet  the  organizational requirements of one or more of
  paragraphs one through four hereof and shall have an initial surplus and
  a minimum surplus, each in an amount at least fifty thousand dollars  in
  excess  of  the  highest  applicable  respective amount required by such
  paragraph or paragraphs, except that any such company initially licensed
  on or after July  first,  nineteen  hundred  eighty-two  shall  have  an
  initial  surplus  and  a minimum surplus, each in an amount at least one
  hundred thousand dollars in excess of the highest applicable  respective
  amount required by such paragraph or paragraphs.

Last modified: February 3, 2019