N.Y. Ins. Law § 1219

§ 1219. Misconduct by directors; insolvency. (a) Every director of an\ninsurance corporation who:\n (1) in case of the fraudulent insolvency of such corporation, shall\nhave participated in such fraud, or\n (2) as such director, either wilfully does any act expressly forbidden\nby statute, or wilfully omits to perform any duty imposed upon him by\nstatute,\nshall be guilty of a misdemeanor, unless otherwise prescribed by law.\n (b) The insolvency of an insurance corporation is deemed fraudulent\nunless its affairs appear upon investigation to have been administered\nfairly, legally and with the same care and diligence that agents\nreceiving a compensation for their services are bound, by law, to\nobserve.\n