§ 6703. Organization of nonprofit property/casualty insurance
companies. (a) A corporation may be organized as a charitable
corporation pursuant to paragraph (a) of section two hundred one of the
not-for-profit corporation law or as a nonprofit reciprocal insurer
under article sixty-one of this chapter to write the kinds of insurance
specified in subsection (a) of section one thousand one hundred thirteen
of this chapter other than (1) those types of insurance specified in
paragraphs one, two, eighteen, twenty-two, twenty-three and twenty-five
of such subsection, (2) insurance against legal liability of the
insured, and against loss, damage or expense incident to a claim of such
liability arising out of death or injury of any person, due to medical
or hospital malpractice by any licensed physician or hospital, and (3)
insurance subject to section three thousand four hundred twenty-five of
this chapter.

(b) A corporation organized pursuant to subsection (a) of this section
shall (1) be organized and operated exclusively for a purpose or
purposes for which a corporation may be formed under the not-for-profit
corporation law and this chapter, not for pecuniary profit or financial
gain, and no part of its assets, income or profit is distributable to or
enures to the benefit of its members, directors or officers except to
the extent permitted under the not-for-profit corporation law and this
chapter, in a manner acceptable to the superintendent, and (2) insure no
organizations or corporations other than nonprofit organizations.

(c) Notwithstanding any provision of the not-for-profit corporation
law, no nonprofit property/casualty insurance company licensed pursuant
to this article shall be converted into a corporation or other entity
organized for pecuniary profit or into a for-profit organization of any
kind.