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Law 6901(a)( 1 )(A)(Mc, Kinney 2000). Facts: Mr. A is the President of ABC Co., a financing company situated in New York, which is not an insurer. Mr. An explains a scenario wherein a private demands a loan from his business. Instead of providing  Learn More Here , ABC Co. directs them to a financial organization that, in turn, issues the loan.

would then ensure the loan under a surety bond, for a fee. Mr. A want to know whether these activities would constitute doing an insurance coverage organization, for which licensing would be needed. Analysis: Mr. A asked whether ABC Co. would be doing an insurance coverage company within the significance of N.Y.

Law 1101 (Mc, Kinney 2000 & Supp. 2002). N.Y. Ins. Law 1102(a) (Mc, Kinney 2000) forbids anyone, firm, association, corporation or joint-stock company from doing an insurance coverage organization in this state, unless certified as an insurance company or excused from licensing. N.Y. Ins. Law 1101(b)( 1) (Mc, Kinney 2000 & Supp.

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(emphasis supplied) Subparagraphs (C), (D) and (E) are not pertinent to this discussion. N.Y. Ins. Law 1101(a)( 1) (Mc, Kinney 2000 & Supp. 2002) specifies "insurance agreement" as follows: (a)( 1) [A] ny arrangement or other deal whereby one party, the "insurance provider", is obliged to provide advantage of budgeting worth upon another party, the "insured" or "recipient", reliant upon the occurring of a fortuitous occasion in which the guaranteed or recipient has, or is expected to have at the time of such happening, a product interest which will be adversely affected by the taking place of such occasion.

Ins. Law 1101(a)( 2) (Mc, Kinney 2000 & Supp. 2002) specifies "fortuitous occasion" as "any incident or failure to take place which is, or is presumed by the celebrations to be, to a significant level beyond the control of either celebration." In accordance with the above, if ABC Co. guarantees the bank that it will pay the loan due to the monetary default of a customer, such activity would make up doing an insurance coverage company, for which licensing would be needed.