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 |
| 32 | Donor Medical Expense | 100,000 | 50,000 | 150,000 |
| 33 | Excess Business Disability | 100,000 | 50,000 | 150,000 |
| 34 | Business Interruption | 2,000,000 | 1,000,000 | 3,000,000 |
TOTAL GROUP A (Basic & Non Basic) |
$12,800,000 |
$6,400,000 |
$19,200,000 | |
| Group B: | ||||
| 4, (5), (6), (12), (19), (20), (34) Parametric Ins. | 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: | $13,800,000 | $7,400,000 | $21,200,000 | |
*Cannot be licensed for these kinds of insurance unless company is licensed to write at least one line in Group A-Basic
**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 |