§ 6604. Organization of advance premium corporations. (a) An advance
premium corporation may be organized and licensed in the manner
prescribed in section six thousand six hundred three of this article and
may do, in addition to the kind of insurance specified in paragraph four
of subsection (a) of section one thousand one hundred thirteen of this
chapter, any one or more of the kinds of insurance specified in
paragraphs five, six, twelve, nineteen and twenty (inland marine only),
of such subsection, and in conjunction with insurance under the same
policy, the kinds of insurance specified in paragraphs seven, eight,
nine, thirteen, fourteen and fifteen (excluding workers' compensation
insurance) of such subsection, provided the whole risk for all the
perils as specified in such paragraphs is reinsured in an insurer
authorized to do business in this state or in an accredited reinsurer,
as defined in subsection (a) of section one hundred seven of this
chapter, insofar as specified in its charter, on compliance with the
following prerequisites:

(1) It shall have, in order to be licensed to do business in this
state as specified in its charter, not less than four hundred bona fide
applications for insurance of such kind or kinds, on real property
located in this state, and from not less than four hundred separate
applicants who have paid premiums of not less than ten thousand dollars
on insurance aggregating not less than one million dollars, and each
member of such corporation shall be subject to a contingent liability in
an amount at least equal to that provided in section six thousand six
hundred fourteen of this article.

(2) It shall have a cash organization or initial surplus fund of not
less than three hundred thousand dollars, which may be used in the
manner provided for in paragraph nine of subsection (a) of section one
thousand two hundred one of this chapter, and shall maintain at all
times, a surplus of at least two hundred thousand dollars.

(3) A licensed advance premium corporation may apply for an amended
license to do any one or more of the kinds of insurance specified in
subsection (a) of section one thousand one hundred thirteen of this
chapter, except those specified in paragraphs one, two, eighteen and
twenty-three thereof, provided it has a surplus to policyholders equal
in the aggregate to the surplus required on organization by section four
thousand one hundred seven of this chapter for all of the kinds of
insurance for which it is to be licensed, and shall thereafter maintain
a surplus to policyholders equal to the amount specified in such
section, and if licensed to do any of the kinds of insurance set forth
in subsection (a) of section four thousand one hundred nine of this
chapter such company shall be subject to the provisions of such section
and to the provisions of subsection (a) of section four thousand one
hundred four of this chapter.

(b) (1) An advance premium corporation may also be organized and
licensed in the manner prescribed in section six thousand six hundred
three of this article to do in this state, as an assuming insurer,
solely reinsurance business of a kind or kinds specified in its license,
on compliance with all of the provisions of this chapter applicable to
an advance premium corporation organized and licensed pursuant to the
provisions of subsection (a) hereof, except as provided in paragraph two
hereof.

(2) It shall have not less than ten bona fide applications for
reinsurance of such kind or kinds on real property located within this
state, and from not less than ten separate applying insurers authorized
to do business in this state, providing for the payment of gross annual
reinsurance premiums of not less than twenty-five thousand dollars and
providing that such ceding insurer shall, as a member of such assuming
insurer, be subject to a contingent mutual liability in an amount at
least equal to that provided for in section six thousand six hundred
fourteen of this article.

(3) Such a corporation shall, pursuant to such license, do only the
business of reinsurance as herein provided, but may upon meeting the
requirements of paragraph one of subsection (a) of this section and upon
evidence satisfactory to the superintendent that it is complying with
paragraph two of subsection (a) of this section, relative to minimum
surplus, be licensed, pursuant to section one thousand one hundred two
of this chapter, to do the kind or kinds of insurance business as above
designated, both as a direct writer and as a reinsurer.

(c) The financial and deposit requirements set forth in subsection (a)
of this section shall be reduced by fifty percent for a cooperative
property/casualty insurance company initially licensed to do business in
this state prior to July first, nineteen hundred eighty-two.