(a) No policy of legal services insurance may provide defense coverage in a criminal proceeding, except as provided in subdivision (b) of this section.

1. (1) For the purposes of this subdivision, a corporation shall mean a corporation subject to the provisions of Business Corporation Law, section 726, Not-for-Profit Corporation Law, section 726, or Banking Law, section 7023, or a corporation that, if it were a New York corporation, would be subject to one of said sections.
2. (2) A directors and officers liability insurance policy that provides indemnification for the acts of an officer or director of a corporation, as such term is defined in paragraph (1) of this subdivision, may provide legal services insurance coverage in a criminal proceeding, to the extent permitted by the applicable corporate statute.

(b)