NY Ins L § 6108 (2021)
2021 New York Laws ISC - Insurance Article 61 - Reciprocal Insurers and Lloyds Underwriters 6108 - Contingent Liability; Non-Assessable Policies.

§  6108.  Contingent  liability;  non-assessable  policies.  (a) Every contract of insurance and  subscriber's  agreement  under  or  by  which contracts  of  insurance  are  issued  or  exchanged  by  any authorized reciprocal insurer shall provide for a contingent several liability  for assessment  of  the subscriber as an inter-insurer on the risks of every other subscriber in an amount not less than one nor more than ten  times the  annual  premium  and in addition to the annual premium expressed in such contracts of insurance issued to the subscriber by  the  reciprocal insurer.  (b)  If  the  admitted  assets  of  any  such  insurer are at any time insufficient for the payment of losses and expenses after providing  for all  other  liabilities  of  such  insurer  and  the  minimum surplus to policyholders required by this chapter, the  advisory  committee  shall, within  thirty  days  thereafter,  order  an  assessment  for the amount necessary  to  pay  such  losses  and  expenses,   and   authorize   the attorney-in-fact  to  collect from each subscriber liable therefor a pro rata share of the amount  of  such  assessment,  subject  to  the  limit specified  in  the contract of such subscriber and to maintain an action therefor in the name of the attorney-in-fact.  (c) Every policy issued  by  any  such  insurer  shall  clearly  state whether  or  not  the  holder  of the policy is subject to liability for assessment. All policies issued by any such insurer which are subject to liability  for  assessment  shall  contain  a  clear  statement  of  the liability  of  the  policyholder for payment of a proportionate share of any deficiency or  impairment  as  provided  by  law  within  the  limit provided  by  the  policy,  and  shall further state that any assessment shall be for the exclusive benefit of holders of policies which  provide for  such a contingent liability, and the holders of policies subject to assessment shall not be liable to assessment in  an  amount  greater  in proportion  to  the  total deficiency than the ratio that the deficiency attributable to the assessable business bears to the total deficiency.  (d) Any reciprocal insurer,  except  a  municipal  reciprocal  insurer which  issues  policies  not  covered by the property/casualty insurance security fund, may with  the  permission  of  the  superintendent  issue non-assessable policies or agreements in this state upon compliance with the following requirements:  (1)  It  shall  have  and maintain a surplus to policyholders at least equal to  one  hundred  fifty  percent  of  the  amount  of  surplus  to policyholders  which  such  insurer  is  required  to  maintain  by  the provisions of section six thousand one hundred two of this article. Such surplus shall be inclusive of any surplus required by any other sections of this chapter.  (2) It shall have submitted a  copy  of  its  proposed  non-assessable policy  or  policies  for approval of the superintendent, and shall have obtained his approval thereof.