§ 7313. Reorganization of domestic mutual accident and health\ninsurance companies.\n (a) In this section:\n (1) "Affiliate" of a mutual insurer means any person who controls, is\ncontrolled by or is under common control with, the mutual insurer being\nconverted. A corporation is an affiliate of another corporation,\nregardless of ownership, if substantially the same group of persons\nmanage the two corporations.\n (2) "Control" has the meaning assigned to it in paragraph two of\nsubsection (a) of section one thousand five hundred one of this chapter.\n (3) A "domestic mutual insurer" or "mutual insurer" means a domestic\nmutual accident and health insurance company organized under article\ntwelve of this chapter and licensed under article forty-two of this\nchapter and not operating under an order of rehabilitation.\n (4) "Policyholder" means a person, as determined by the records of a\nmutual accident and health insurer, who is deemed to be the\n"policyholder" of a policy that is of a type described in paragraph\nthree of subsection (a) of section one thousand one hundred thirteen of\nthis chapter.\n (5) "Policyholders' membership interest" means and includes all\npolicyholders' rights as members arising under the charter of the mutual\naccident and health insurer or this chapter or otherwise by law,\nincluding the rights to vote and to participate in the distribution of\nsurplus whether or not incident to a liquidation of a mutual accident\nand health insurer. The term "policyholders' membership interest" does\nnot include rights, including without limitation the right to\nparticipate in the distribution of surplus, expressly conferred upon the\npolicyholders by their policies or contracts other than any right to\nvote.\n (6) "Reorganization" means a conversion in accordance with this\nsection.\n (b)(1) A domestic mutual insurer may apply to the superintendent for\npermission to reorganize and convert into a domestic stock accident and\nhealth insurer complying with the relevant organization and licensing\nprovisions of articles twelve and forty-two of this chapter. The\napplication to the superintendent shall be pursuant to a resolution,\nadopted by no less than a majority of the entire board of directors,\nspecifying the reasons for and the purposes of the proposed conversion\nand the manner in which the conversion is expected to benefit\npolicyholders and the public. A copy of the resolution, together with a\nstatement of its adoption, both certified by the president and\nsecretary, or officers corresponding to either of them, and affirmed by\nthem as true under the penalties of perjury and under the seal of the\nmutual insurer, and such other information as the superintendent may\nrequire shall accompany the application.\n (2) The superintendent shall order an examination of the mutual\ninsurer pursuant to section three hundred ten of this chapter as of the\nlast day of the period covered in the insurer's latest filed statement,\nexcept that the proposed conversion shall terminate without an\nexamination if the superintendent finds that:\n (A) the resolution is defective upon its face;\n (B) the proposed conversion is contrary to law or is not in the best\ninterests of the policyholders or the public; or\n (C) the mutual insurer does not have a surplus to policyholders at\nleast equal to the minimum capital and surplus required to be maintained\nfor a newly organized stock insurer doing the same kinds of insurance.\n (c) The superintendent shall also appoint one or more qualified\ndisinterested persons to appraise and report to the superintendent the\nfair market value of the mutual insurer and, to the extent necessary,\nits affiliates, on the basis of its latest filed annual or quarterly\nstatement, and of any significant subsequent developments. The\nappraisers shall consider the assets and liabilities of the mutual\ninsurer and any factors bearing on the value of the mutual insurer or\nits affiliates. Th
‹ 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.