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This entry was published on 2014-09-22
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SECTION 4302
Permit and license to do business
Insurance (ISC) CHAPTER 28, ARTICLE 43
§ 4302. Permit and license to do business. (a) Corporations subject to
this article shall not solicit the purchase of, or enter into, any
contract with any individual or group until it has obtained from the
superintendent a permit so to do. Such permit shall be issued by the
superintendent upon receipt of an application in a form to be prescribed
by the superintendent and upon payment of a fee of ten dollars. Such
application shall include a statement of the territory in which the
corporation will operate, which, in the case of hospital service
corporations, shall not exceed eighteen counties of this state, the
services to be rendered by the corporation and the rates to be charged
therefor, and shall be accompanied by two copies of each type of
contract for service which the corporation proposes to render and by a
bond in the sum of one thousand dollars conditioned upon return to
applicants for contracts of any advance payments made if within one year
from the date of the issuance of such permit a license to do business as
hereafter provided has not been issued.

(b) No such corporation shall furnish medical expense indemnity,
dental expense indemnity, hospital service or health service as set
forth in section four thousand three hundred one of this article until
it has obtained from the superintendent a license to do business. Such
license may be issued by the superintendent upon the filing of an
application, subscribed by two officers of such corporation and affirmed
by such officers as true under the penalties of perjury, and in a form
prescribed by the superintendent and upon payment of a fee of ten
dollars. Such application shall include (i) a statement of the number of
individuals and groups from whom the corporation has received
applications for medical expense indemnity, dental expense indemnity,
hospital service or health service, as the case may be, to be rendered
during one year, and from each of whom it has received payment of not
less than one-sixth of the full payment required from such individuals
and groups; and (ii) a statement of the total amount so collected, which
shall be not less than eighteen hundred dollars. Before issuing any such
license the superintendent may make such examination or investigation as
he deems expedient, including an investigation of the sponsors of such
proposed corporation and if after such examination or investigation he
determines the issuance of such license is contrary to the interest of
the people, he shall refuse to issue. Upon the issuance of such license,
the corporation may begin to furnish medical expense indemnity, dental
expense indemnity, hospital service or health service, as the case may
be.

(c) Notwithstanding the other provisions of this article, the
superintendent may issue a permit to organize and a license to do
business to a not-for-profit corporation organized and operated under
the supervision of the New York State Public High School Athletic
Association, unrestricted as to its territorial operations in this
state, for the sole purpose, however, of furnishing medical, dental and
hospital expense indemnity to bona fide students in elementary and high
schools injured (i) in intramural and interscholastic athletic games and
sports activities, (ii) while engaged in preparation for such games,
sports or contests, (iii) in physical education classes, and (iv) in any
other accidents which in the judgment of the superintendent should be
included. The dental indemnity is to apply, however, only in case of
dental expense caused by injury occurring as above set forth.