N.Y. ISC Law § 4109

§ 4109. Mutual companies; special contingent surplus. (a) A domestic\nmutual property/casualty insurance company licensed to write any of the\nkinds of insurance defined respectively in the following paragraphs of\nsubsection (a) of section one thousand one hundred thirteen of this\nchapter: accident and health (item (i) of (3)), non-cancellable\ndisability (item (ii) of (3)), burglary and theft (7), glass (8), boiler\nand machinery (9), elevator (10), animal (11), personal injury liability\n(13), property damage liability (14), workers' compensation and\nemployers' liability (15), fidelity and surety (16) or credit (17),\nshall establish on its general ledger a special contingent surplus and\nshall thereafter maintain the same unimpaired so long as it is licensed\nto write one or more of the foregoing kinds of insurance. An impairment\nexists in the surplus of any such company at any time when the aggregate\nvalue of its admitted assets is less than the amount of all of its\nliabilities and the special contingent surplus which it is required to\nmaintain at such time.\n (b) During each full calendar year except the first two full calendar\nyears next following the calendar year in which such company was\nlicensed to write any kind of insurance specified in subsection (a)\nhereof, the amount of such contingent surplus shall exceed the required\namount thereof at last year-end, by an amount at least equal to one and\none-half percent of the net premium income received for the kinds of\ninsurance referred to in subsection (a) hereof during such whole\ncalendar year, until the amount of such contingent surplus shall be at\nleast equal to the amount of surplus to policyholders required under\nsection four thousand one hundred three of this article to be maintained\nby a similar domestic stock property/casualty insurance company licensed\nto do any one or more of the kinds of insurance specified in subsection\n(a) hereof. Such special contingent surplus, by whatever name called,\nshall be inclusive of the minimum surplus required by the provisions of\nthis chapter and shall be exclusive of any divisible surplus available\nfor the payment of dividends.\n (c) No domestic mutual property/casualty insurance company shall\ndeclare or pay any dividend to policyholders if, after the payment of\nsuch dividend, its special contingent surplus as herein required will be\nimpaired. The declaration and payment of dividends by any such company\nshall be subject to the provisions of section one thousand two hundred\neleven of this chapter.\n (d) Any domestic mutual property/casualty insurance company shall be\nauthorized in any year to further increase its special contingent\nsurplus by an amount in excess of the annual accumulation required by\nthis section, and any such excess shall be credited upon the amount\nwhich otherwise it would have been required to accumulate by the\nprovisions of this section in any subsequent year or years.\n (e) The superintendent may refuse to issue a license or renewal\nlicense to do an insurance business in this state to any foreign or\nalien mutual property/casualty insurance company which does not comply\nin substance with this section applicable to a similar domestic mutual\nproperty/casualty insurance company licensed to write the same kind or\nkinds of insurance.\n