NY Ins L § 7603 (2021)
2021 New York Laws ISC - Insurance Article 76 - Property/casualty Security Funds 7603 - Property/casualty Insurance Security Fund.

§  7603.  Property/casualty  insurance  security  fund.  (a)  (1)  The property/casualty insurance security fund shall be used in  the  payment of  allowed  claims  remaining unpaid, in whole or in part, by reason of the inability due to insolvency of an authorized  insurer  to  meet  its insurance obligations under policies:  (A)  on  account  of claims from motor vehicle accidents as defined in subsection (f) of  section  seven  thousand  six  hundred  two  of  this article,  (B)  for  all  of  the kinds of insurance specified in paragraphs four through fourteen, sixteen, nineteen through twenty-one, twenty-four  and subparagraphs  (A)  and (B) of paragraph twenty-six of subsection (a) of section one thousand one hundred thirteen of this chapter  with  respect to  coverage  of property or risks located or resident in this state, or outside this state but within the United  States,  its  possessions  and territories, and Canada,  (C)  for  the kind of insurance providing disability benefits pursuant to article nine of the workers' compensation law issued by an authorized insurer licensed under article forty-one, sixty-one or sixty-six of this chapter with respect to coverage of risks located or  resident  in  this state,  (D) in the kind of insurance providing workers' compensation insurance pursuant to subsection (j) of section three thousand four hundred twenty of this chapter,  (E)  for  the  insurance provided by the medical malpractice insurance association,  (F) for the  insurance  provided  pursuant  to  subdivision  two-a  of section  seventy-six  of  the  workers'  compensation  law  if  and when operative,  (G) for the kinds of credit insurance as defined in subparagraphs  (B) and (C) of paragraph seventeen of subsection (a) of section one thousand one hundred thirteen of this chapter, and  (H)  any  obligation for the return of unearned premiums on any policy specified in subparagraphs (A), (B), (C), (D), (E), (F) and (G)  hereof, which  shall, for the purposes of this article, be deemed to include the obligations  of  an  insurer  and  the  medical  malpractice   insurance association  under  medical  malpractice  claims-made policies to pay to successor entities the actuarially appropriate amounts for the provision of coverage to comply with the requirements of subsections (b), (c)  and (d)  of  section  three  thousand four hundred thirty-six and paragraphs two, three and four of subsection (f)  of  section  five  thousand  five hundred four of this chapter.  (2)  No  payment  from  the  property/casualty insurance security fund shall be made to any person who owns or controls ten percent or more  of the voting securities of the insolvent insurer and no payment on any one claim  shall  exceed  one  million  dollars, provided that the amount of payment on a claim and the aggregate for all  claims  shall  be  further limited  by the provisions of paragraph two of subsection (g) of section seven thousand six hundred two of this article.  (b) (1) Contributions to the property/casualty insurance security fund shall be determined on the basis  of  net  direct  written  premiums  on policies insuring property or risks located or resident in this state.  (2) Every insurer shall pay into such fund, upon filing each quarterly return  pursuant  to  section  seven  thousand  six hundred five of this article, one-half of one percent of its net direct written  premiums  as shown for the period covered by such return.  (c)  (1)  Whenever  the superintendent determines, pursuant to section seven thousand six hundred six of this article, that the  net  value  of the  property/casualty  insurance  security fund is at least one hundred  fifty million dollars, no further contributions shall be made after  the fund  year  in  which the determination is first made, but if thereafter the superintendent determines that payments made from the  fund  by  the commissioner  to  the superintendent acting as liquidator, rehabilitator or conservator have reduced the net value to an amount  less  than  such amount, the superintendent shall cause contributions to be resumed until the  end  of  the  fund  year in which he first determines that such net value exceeds such amount.  (2) If contributions are so resumed, they shall be apportioned:  (A)  ratably  among  those  kinds  of  insurance  as  to   which   the commissioner  made  payments during the fund year in which the net value of the property/casualty insurance security fund was reduced below  such amount, and  (B)  among insurers in accordance with their respective amounts of net direct premiums written in each such kind of insurance.  (d) (1) All income earned on moneys in the fund (after  deducting  any amounts  paid  for allowed claims and administrative expenses during the preceding  year)  shall  be  credited,   upon   certification   by   the superintendent  to  the  commissioner,  to the general fund of the state treasury; except that with respect to all such income earned on or after July  first,  nineteen  hundred  seventy-nine  such  moneys   shall   be distributed annually in the following manner:  (A)  Pursuant  to  regulations of the superintendent, the deficit from the  operations  of  the  New  York  property   insurance   underwriting association   shall   be   credited   with   such  income  earned,  upon certification by the superintendent to the commissioner, in  a  sum  not exceeding such total income earned or the sum of fifteen million dollars whichever is the lesser in any one year. Such credit shall be in lieu of a transfer of such funds to the general fund of the state treasury.  (B) Any balance of earned income shall be credited, upon certification by  the  superintendent  to the commissioner, to the general fund of the state treasury; but only when the value of the fund exceeds the  sum  of two hundred forty million dollars.  (2)  The superintendent, after consultation with the commissioner, may by regulation provide for contributions  to  be  made  in  the  form  of acceptable  securities,  and  for the management and disposition of such securities. The income from such securities shall  be  included  in  the distribution outlined in paragraph one hereof.  (3)  The  superintendent is authorized to use the income earned on the moneys of the fund to offset  the  deficit  of  the  New  York  property insurance  underwriting association in accordance with subsection (d) of section five thousand four hundred five of this chapter,  provided  that any  income  earned  on  the  moneys  of  the fund which in any one year exceeds fifteen million dollars or  which  the  superintendent  has  not utilized  for  the  purposes of such subsection shall be credited to the corpus of the fund until the  superintendent  determines  that  its  net value  is  two  hundred  forty  million dollars, and thereafter shall be credited, upon certification by the superintendent to the  commissioner, to the general fund of the state treasury.  (e)  (1)  (A)  Notwithstanding  any  other  provision  of  law  to the contrary, the superintendent shall annually no later than November first in each year submit to the director of  the  budget  a  request  for  an appropriation of ninety million dollars. The governor shall include such amount  in  a  budget  bill  for  the  next state fiscal year. The state comptroller shall encumber the amount so appropriated before the end  of the  fiscal  year  for  which any such appropriation is made. If for any fiscal year  commencing  on  or  after  April  first,  nineteen  hundred eighty-three,  the  governor fails to submit a budget bill containing an  appropriation in the amount  requested  by  the  superintendent  or  the legislature  fails  to appropriate the amount in a budget bill submitted by the governor for such fiscal year, the amount  appropriated  for  and encumbered  during  the preceding fiscal year shall be payable forthwith to the fund on July first of such year in the manner prescribed by  law, provided,  however,  that  such  amount  shall  not exceed the amount of moneys transferred to the general fund from the  fund  pursuant  to  the provisions  of  chapter  fifty-five  of  the  laws  of  nineteen hundred eighty-two.  (B) Any appropriation made to the fund pursuant to this section  shall be  included  as an asset for the purposes of computing the value or net value of the fund pursuant to this section.  (C) Any transfer of moneys from  the  fund  to  the  general  fund  in accordance  with  the  provisions  of  chapter fifty-five of the laws of nineteen hundred  eighty-two  is  deemed  a  proper  and  prudent  legal undertaking  for  any  state  officer  with  the  responsibility for the custody or the investment of the assets of the fund, notwithstanding any other provision of law to the contrary.  (2) Upon certification by the superintendent that  further  sums,  not exceeding  fifty  million  dollars in the aggregate, are required by the public motor vehicle liability security fund to meet its obligations and accomplish the purposes of this article the commissioner shall  transfer from  the assets of the property/casualty insurance security fund to the public motor vehicle liability security fund amounts to be specified  by the  superintendent.  Such  sums, not exceeding fifty million dollars in the aggregate,  shall  be  a  liability  of  the  public  motor  vehicle liability  security  fund  and  shall be repaid to the property/casualty insurance security fund pursuant to a plan of repayment to be prescribed by the superintendent which may provide for an increase in the level  of payments  into  the fund provided for in subsection (b) of section seven thousand six hundred four of this article.