NY Ins L § 6105 (2021)
2021 New York Laws ISC - Insurance Article 61 - Reciprocal Insurers and Lloyds Underwriters 6105 - Licensing.

§  6105. Licensing. (a) No person, firm, corporation or association as an underwriter or underwriters, and no reciprocal insurer, shall do  any insurance   business   in  this  state,  nor  shall  any  person,  firm, corporation or association as attorney-in-fact or  other  representative of  any  reciprocal insurer do or cause to be done within this state any act which effects, aids or promotes the doing of an  insurance  business in  this  state  by  any  reciprocal insurer, unless authorized so to do pursuant to the provisions of this article.  (b)  Every  license  to  do  an  insurance  business  issued  by   the superintendent  to  any reciprocal insurer pursuant to the provisions of this article shall specify its  name,  the  location  of  its  principal office,  the name and principal address of its attorney-in-fact, and the kind or kinds of insurance business, specified in  terms  of  subsection (a)  of section one thousand one hundred thirteen of this chapter, which it is authorized to do in this state.  (c) No person shall act in the capacity of an attorney-in-fact  for  a subscriber  whose  risk  is  located  in  this state or for a reciprocal licensed to do business in this state, unless such person is  authorized as such by the superintendent.  (d) The superintendent may require the attorney-in-fact, or any person to which its functions, in whole or in part, have been delegated, unless wholly owned or controlled by the reciprocal to:  (1) provide a bond issued by an insurer and in an amount acceptable to the  superintendent  for  the  protection  of  the  subscribers  to  the reciprocal; and  (2) maintain an errors and omissions policy, providing coverage in  an amount and issued by an insurer acceptable to the superintendent.  (e) The attorney-in-fact authorized as such pursuant to subsection (c) of  this  section  shall not, merely by virtue of such authorization, be thereby deemed to be doing business in this state within the meaning  of any laws of this state applicable to general business corporations.  (f) An attorney-in-fact of a reciprocal insurer licensed in this state shall,   on   or   before  June  first  of  each  year,  file  with  the superintendent an audited financial report of  its  financial  condition and  the  results  of its operations as related to its management of the reciprocal, covering the previous calendar year, prepared in  accordance with   generally   accepted  accounting  principles  by  an  independent certified public accountant who certified  to  the  reciprocal's  annual statement  pursuant  to section three hundred seven of this chapter.  In lieu of such a report, an attorney-in-fact of a foreign  reciprocal  who is  an  individual,  shall file a statement prepared by such independent certified public accountant stating that its  audit  of  the  reciprocal discloses  any  direct  or  indirect compensation or benefit paid by the reciprocal to the attorney-in-fact.    The  report  or  statement  filed pursuant  to  this  subsection  shall  be  a  confidential document, not subject to disclosure pursuant to this chapter or  article  six  of  the public officers law.  (g)  An  attorney-in-fact of a reciprocal licensed in this state shall submit to examination by order of the superintendent for the purposes of determining  compliance  with  this  article  and  all  other   relevant provisions  of this chapter relating to the operations of the reciprocal or  its  attorney-in-fact,  which  the  superintendent  determines   (as specified  in  the  order)  cannot  be  obtained  by  examination of the reciprocal. The cost of the examination shall be  assessed  against  the attorney-in-fact  and no portion thereof shall be reimbursed directly or indirectly by the reciprocal or its subscribers.  (h) The advisory committee shall meet  at  least  annually  and  shall consist  of  at  least  nine  individuals elected by the subscribers, at  least two-thirds of whom are subscribers or  officers  or  directors  of subscribers and, except for a municipal reciprocal or a reciprocal which wholly  owns  its  attorney-in-fact, not more than one-third of whom may be:  (1) the attorney-in-fact; or  (2)   an   employee,   officer,   director,   or   affiliate   of  the attorney-in-fact; or  (3) any person having a financial interest in the attorney-in-fact; or  (4) any person representing any of the foregoing.  (i) Members of the advisory committee may be elected and re-elected to a term of office of not less than one year nor more than four years, and terms may be staggered to provide for continuity.  (j) The chair of the advisory committee of a domestic reciprocal,  who shall  not  be any of those persons enumerated in paragraphs one through four of subsection (h) of this section,  shall be elected by  the  other members  of  the  committee  and  the committee of a domestic reciprocal shall adopt rules consistent with  its  purposes,  as  approved  by  the superintendent.  (k)  Special  meetings  of the advisory committee may be called by the attorney-in-fact, the chair of the committee, any three members  of  the committee,  or  a  signed  petition  of  at  least  one  percent  of the subscribers as of the most recent annual report of the reciprocal.