Stock Property/Casualty Insurance Company -- Article 41

FINANCIAL REQUIREMENTS

N.Y. Ins. Law SECTION 1113(a)

KIND OF INSURANCE

PAID-IN CAPITAL
(Maintain Surplus to Policyholders)

PAID-IN SURPLUS

INITIAL SURPLUS TO POLICYHOLDERS
(Paid in Capital plus Paid in Surplus)

 

Group A – Basic:

     

7

Burglary

$300,000

$ 150,000

$ 450,000

8

Glass

100,000

50,000

150,000

9

Boiler

100,000

50,000

150,000

10

Elevator

100,000

50,000

150,000

11

Animal

100,000

50,000

150,000

13

Liability – Personal Injury

500,000

250,000

750,000

14

Liability – Physical Damage

100,000

50,000

150,000

15

Workers’ Compensation

500,000

250,000

750,000

16

Fidelity & Surety

900,000

450,000

1,350,000

17

Credit

400,000

200,000

600,000

Additional amount required if licensed for any one or more of the above kinds of insurance

100,000

50,000

150,000

 

Group A – Non Basic

     

3(I)

*Accident & Health

100,000

50,000

150,000

3(ii)

*Non-cancellable disability

100,000

50,000

150,000

22

*Residual Value

2,000,000

1,000,000

3,000,000

24

*Credit Unemployment

400,000

200,000

600,000

26

*Gap

2,000,000

1,000,000

3,000,000

27

*Prize Indemnification

300,000

150,000

450,000

28

*Service Contract Reimbursement

 

2,000,000

 

1,000,000

 

3,000,000

29

*Legal Services Insurance

-0-

-0-

-0-

30

*Involuntary Unemployment

400,000

200,000

600,000

31

*Salary Protection

100,000

50,000

150,000

 

TOTAL GROUP A (Basic &

Non Basic)

 

$10,600,000

 

$5,300,000

 

$15,900,000

         
 

Group B

     

4, (5), (6), (12), (19), (20)

Fire & Allied (inland only)

$ 500,000

$ 500,000

$1,000,000

20, (21)

Marine (Inland & Ocean)

500,000

500,000

1,000,000

 

TOTAL GROUP B

$1,000,000

$1,000,000

$2,000,000

 

Total GROUP A & B

$11,600,000

$6,300,000

$17,900,000

*Cannot be licensed for these kinds of insurance unless company is licensed to write at least one line in Group A-Basic

** It should be noted that these are minimum requirements. A higher amount of surplus may be required based upon a review of the Company’s Plan of Operations and Financial Projections. Generally a deposit of at least $500,000 is required.

Note 1: Property & Casualty Companies seeking to reinsure lines in addition to those lines they can write directly; or to write or reinsure risks outside the United States, its territories and possessions are required to have Surplus to Policyholders of $35,000,000 and a deposit of at least $3,000,000.

Note 2: It is recommended that the company include a cushion (i. e. 20%) in its deposit to allow for fluctuations in the market value of the securities in order to minimize the chances of the market value falling below the required amount.

FINANCIAL REQUIREMENTS FOR MONOLINE COMPANIES:

TITLE INSURANCE CORPORATIONS--Article 64 N.Y. Ins. Law

Paid-in capital

$500,000

Paid-in initial surplus

$250,000

Initial surplus to policyholders

$750,000

Surplus to policyholders to be maintained

$500,000

Minimum capital investments

$500,000

MORTGAGE GUARANTY INSURANCE CORPORATIONS --Article 65 N.Y. Ins. Law

Paid-in capital

$1,000,000

Paid-in initial surplus

$1,000,000

Initial surplus to policyholders

$2,000,000

Paid-in capital

$1,000,000

Paid-in surplus

$ 500,000

Surplus to policyholders to be maintained

$1,500,000

Minimum capital investments

$1,500,000

FINANCIAL GUARANTY INSURANCE CORPORATIONS —Article 69 N.Y. Ins. Law

Paid-in capital

$ 2,500,000

Paid-in surplus

$72,500,000

Initial surplus to policyholders

$75,000,000

Paid-in capital

$ 2,500,000

Paid-in surplus

$62,500,000

Surplus to policyholders to be maintained

$65,000,000

Minimum capital investments

$65,000,000