Section 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.