§ 7003. License; power; filing; fees. (a) Any captive insurance\ncompany, when permitted by its articles of association or charter, shall\napply to the superintendent for a license to do a captive insurance\nbusiness under this article. A captive insurance business consists of\nthe kinds of insurance set forth in section one thousand one hundred\nthirteen and section one thousand one hundred fourteen of this chapter,\nprovided that:\n (1) a pure captive insurance company shall insure, on a primary basis,\nonly risks of its parent and affiliated companies;\n (2) a group captive insurance company shall insure, on a primary\nbasis, only risks of the industrial insureds that comprise the\nindustrial insured group;\n (3) a pure captive insurance company or a group captive insurance\ncompany shall not be authorized to provide, on a primary basis or as\nreinsurance, the kinds of insurance specified in paragraphs one, two,\nthree, eighteen, twenty-three and twenty-five of subsection (a) of\nsection one thousand one hundred thirteen of this chapter;\n (4) a pure captive insurance company or a group captive insurance\ncompany shall not be authorized to provide, on a primary basis:\n (A) workers' compensation and employers' liability insurance; or\n (B) any other kind of insurance, including motor vehicle liability\ninsurance, that is required, under the laws of this state or any\npolitical subdivision of this state, as a demonstration of financial\nresponsibility for obtaining a license or permit to undertake specific\nactivities when such requirement must be satisfied by obtaining\ninsurance coverage from an insurer authorized in this state, up to the\nminimum amount of insurance so required under such laws; and\n (C) except that subparagraphs (A) and (B) of this paragraph shall not\nprohibit a pure captive insurance company from providing primary\nindemnity coverage to its parent and affiliated companies for any\ninsurance or self-insurance program specified in such subparagraphs (A)\nor (B), provided the insurance or self-insurance program has qualified\nunder the applicable state or federal law requiring the program; and\n (5) a pure captive insurance company or a group captive insurance\ncompany shall reinsure only risks as set forth in section seven thousand\nten of this article.\n Notwithstanding any inconsistent provisions of paragraphs one through\nfive of this subsection, a pure captive insurance company formed by a\ncity with a population of one million or more may insure or provide\nreinsurance for its parent, statutory subsidiaries and affiliated\ncompanies only for liability related to or arising out of activities in\nor near the World Trade Center site in response to the attacks of\nSeptember eleventh, two thousand one.\n (b) No captive insurance company shall do any captive insurance\nbusiness in this state unless:\n (1) it first obtains from the superintendent a license authorizing it\nto do captive insurance business in this state;\n (2) its board of directors holds at least one meeting each year in\nthis state;\n (3) it maintains its principal office and its records in this state;\n (4) it utilizes a captive manager resident in this state who is:\n (A) licensed as an agent or a broker under the provisions of article\ntwenty-one of this chapter; or\n (B) any other person approved by the superintendent provided that the\napproval may be withdrawn by the superintendent, upon notice and\nhearing, if the person has:\n (i) been guilty of fraudulent or dishonest practices; or\n (ii) demonstrated incompetency or untrustworthiness to act in such a\ncapacity; and\n (5) it submits a power of attorney, in accordance with the provisions\nof section one thousand two hundred twelve of this chapter, designating\nthe superintendent as its agent for the purpose of receiving service of\nprocess in any proceeding against it.\n (c)(1) Before receiving a license to do a captive insurance business,\na captive insurance c
‹ Prev All New York sections Next ›
Lexace provides legal information, not legal advice, and no attorney–client relationship is created. Statute text is provided for general information and may not reflect the most recent amendments; verify against the official state code.