N.Y. Insurance Law 1219 – Misconduct by directors; insolvency
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§ 1219. Misconduct by directors; insolvency. (a) Every director of an insurance corporation who:
Terms Used In N.Y. Insurance Law 1219
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Fraud: Intentional deception resulting in injury to another.
- Statute: A law passed by a legislature.
(1) in case of the fraudulent insolvency of such corporation, shall have participated in such fraud, or
(2) as such director, either wilfully does any act expressly forbidden by statute, or wilfully omits to perform any duty imposed upon him by statute, shall be guilty of a misdemeanor, unless otherwise prescribed by law.
(b) The insolvency of an insurance corporation is deemed fraudulent unless its affairs appear upon investigation to have been administered fairly, legally and with the same care and diligence that agents receiving a compensation for their services are bound, by law, to observe.