NY Ins L § 5402 (2021)
2021 New York Laws ISC - Insurance Article 54 - New York Property Insurance Underwriting Association 5402 - Joint Underwriting Association.

§  5402.  Joint  underwriting  association. (a) The joint underwriting association known  as  the  New  York  property  insurance  underwriting association is continued, consisting of all insurers authorized to write and  engaged  in  writing within this state, on a direct basis, fire and extended coverage insurance, including insurers covering such perils  in homeowners  and commercial multiple peril package policies but excluding assessment cooperative fire  insurance  companies  transacting  business pursuant  to article sixty-six of this chapter. Every such insurer shall be and remain a  member  of  the  association  as  a  condition  of  its authority to continue to transact fire, extended coverage and homeowners insurance in this state.  (b)  The  association  shall  be  governed  by  a  board  of  thirteen directors, ten of whom shall be elected annually by cumulative voting by the members of the association, whose votes in such  election  shall  be weighted  in  accordance  with each member's net direct premiums written during the preceding calendar year. The remaining three directors  shall be  appointed  annually  by  the  superintendent  and  be  duly licensed insurance agents or brokers representative  of  broad  segments  of  the public obtaining insurance through the association.  (c)  The association shall, pursuant to the provisions of this article and the plan of operation and with respect to fire  insurance,  extended coverage,  broad form coverage issued pursuant to subsection (g) of this section, coverage for additional perils, and homeowners insurance should the same be made available through the association in accordance with  a determination  of  necessity  made  by  the  superintendent  pursuant to section five thousand four hundred twelve of this article  on  insurable property, have the power on behalf of its members:  (i) to cause policies of insurance to be issued to applicants;  (ii) to assume reinsurance from its members; and  (iii) to cede reinsurance.  (d)  The  association  shall adhere to a plan of operation, consistent with the provisions of this  article,  approved  by  the  superintendent after consultation with affected individuals and organizations. The plan shall provide for economical, fair and non-discriminatory administration and  prompt  and  efficient  provision of fire, extended coverage, broad form coverage pursuant to subsection (g) of this section and  homeowners insurance,   when   a   determination   of  necessity  is  made  by  the superintendent pursuant to section five thousand four hundred twelve  of this  article to promote orderly community development. It shall contain other matters including, but not limited  to,  provision  for  necessary facilities;  management  of  the  association;  assessment of members to defray losses and  expenses;  commission  arrangements;  reasonable  and objective  underwriting standards; acceptance and cession of reinsurance and procedures for determining amounts of insurance to  be  provided  by the  association. The amounts shall not be in excess of one million five hundred thousand dollars for the insurable real property or the tangible personal property thereon.  (e) The directors of the association may, on their own  initiative  or at the request of the superintendent, amend the plan subject to approval by the superintendent.  (f)  The  association  shall offer homeowners insurance, as defined in subsection (h) of section five thousand four hundred one of this article upon a determination of necessity having been made by the superintendent pursuant to section five thousand four hundred twelve of this article.  (g) In addition to fire insurance,  extended  coverage,  coverage  for additional  perils  and  homeowners  insurance  should  the same be made available through the association in accordance with a determination  of necessity  pursuant to section five thousand four hundred twelve of this  article, the association may offer broad  form  coverage  to  applicants seeking to insure real property at fixed locations of this state, or the tangible  personal  property  located thereon. The association may offer broad  form  coverage  for  a  period of fifteen years beginning on June thirtieth, two thousand eight. On or before October first, two  thousand seventeen  the superintendent shall require the association to report to him or her as to  the  number  of  policies  written  pursuant  to  this subsection  and  paragraph  three  of  subsection  (f)  of  section five thousand four hundred five of this article, and  any  other  information the superintendent may require. On or before January first, two thousand eighteen,  the  superintendent  shall  report  to  the  governor and the legislature regarding the number of policies  issued  pursuant  to  this section  and  such paragraph and shall include recommendations as to the continuation of such insurance offerings.  (i) Not less than once every thirty days, the association shall report to the superintendent, the speaker of the assembly,  and  the  temporary president  of  the  senate  on the number, location and type of policies written through a coastal market assistance program.