New York Codes, Rules and Regulations
Title 11 - INSURANCE
Chapter I - GENERAL PROVISIONS
Part 18 - New York Insurance Exchange, Inc
Subpart 18-1 - General
Section 18-1.3 - Organization, licensing, corporate procedures and capital and surplus requirements for underwriting members
Current through Register Vol. 46, No. 52, December 24, 2024
(a) Underwriting members shall be subject to the provisions of all sections of article IV of the Insurance Law, except as follows:
(b) An underwriting member of the exchange shall be exempt from the capital and surplus requirements of the Insurance Law and shall be subject to the capital and surplus requirements of section 6, article VII of the constitution.
(c) The capital and surplus amounts required for approval by the board to be an underwriting member shall consist of United States currency, securities of the types described under paragraph (a), (b) or (c) of section 79 of the Insurance Law (valued at market at the time deposited) or a letter of credit or a surety bond, equal in the aggregate to such required amounts. Such currency, securities or letter of credit shall be on deposit in accordance with rules and regulations adopted by the board. No underwriting member shall transact any business on the exchange until the amount of capital and surplus required pursuant to the constitution is on deposit for the account of the underwriting member with a solvent financial institution which is either a member of the Federal Reserve System or a bank licensed by the New York State Banking Department, in United States currency or in securities permitted under paragraphs (a), (b) and (c) of section 79 of the Insurance Law. The provisions of this subdivision shall not be applicable to the initial deposit required pursuant to section 4, article XIII of the constitution.