N.Y. ISC Law § 7004

§ 7004. Required capital and surplus as regards policyholders. (a)\nNo pure captive insurance company or group captive insurance company\nshall be issued a license unless it shall possess and thereafter\nmaintain unimpaired paid-in capital and surplus as regards policyholders\nof:\n (1) in the case of a pure captive insurance company incorporated as a\nstock insurer, not less than two hundred fifty thousand dollars of total\nsurplus as regards policyholders, of which one hundred thousand dollars\nshall represent paid-in capital;\n (2) in the case of a pure captive insurance company incorporated as a\nmutual insurer, not less than two hundred fifty thousand dollars of\ntotal surplus as regards to policyholders;\n (3) in the case of a group captive insurance company incorporated as a\nstock insurer, not less than five hundred thousand dollars of total\nsurplus as regards policyholders, of which two hundred thousand dollars\nshall represent paid-in capital; and\n (4) in the case of a group captive insurance company incorporated as\na mutual insurer, not less than five hundred thousand dollars of total\nsurplus as regards policyholders.\n (b) The minimum capital and surplus to policyholders required in\nsubsection (a) of this section shall be in the form of:\n (1) cash;\n (2) minimum capital or surplus to policyholders investments of the\ntype specified in paragraphs one and two of subsection (b) of section\none thousand four hundred two of this chapter; or\n (3) an irrevocable letter of credit, in a form approved by the\nsuperintendent, naming the superintendent as beneficiary for the\nsecurity of the captive insurance company's policyholders and issued by\na bank acceptable to the superintendent.\n (c) The superintendent may prescribe additional capital and surplus\nto policyholders based upon the type, volume and nature of insurance\nbusiness transacted. Any additional capital and surplus to\npolicyholders so required shall be in the form as set forth in\nsubsection (b) of this section.\n