(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.
Structure New York Laws
Article 12 - Organization and Corporate Procedure
1201 - Incorporation of Stock or Mutual Insurance Companies.
1203 - Non-Use of Corporate Charter.
1204 - Sale of Insurance Securities.
1206 - Amendments to Charters and Increase of Capital of Insurance Corporations.
1207 - Options for the Purchase of Shares.
1208 - Method of Amending Mutual Company Charters.
1209 - Management and By-Laws of Mutual Insurance Corporations.
1210 - By-Laws of Domestic Stock Life Insurance Companies.
1211 - Mutual Insurance Corporations; Membership and Dividends.
1212 - Service of Process Upon Superintendent as Attorney.
1213 - Service of Process on Superintendent as Attorney for Unauthorized Insurers.
1214 - Acting for Foreign Corporation Which Has Not Designated Superintendent as Attorney.
1215 - Forfeiture of Office by Director or Trustee of a Domestic Mutual Insurer.
1216 - Notice of Indemnification of Directors and Officers of Insurance Corporations.
1217 - Vouchers for Disbursements.
1218 - Regulation of Stock Ownership, Interlocking Directors and Common Management.
1219 - Misconduct by Directors; Insolvency.
1221 - Transactions by Officers, Directors and Certain Shareowners in the Insurer's Shares.