NY Ins L § 6605 (2021)
2021 New York Laws ISC - Insurance Article 66 - Co-Operative Property/casualty Insurance Companies 6605 - Organization of Assessment Corporations.

§  6605.  Organization  of  assessment corporations. (a) An assessment corporation may be organized and licensed in the  manner  prescribed  in section  six  thousand  six hundred three of this article and may do, in addition to the  kind  of  insurance  specified  in  paragraph  four  of subsection  (a)  of  section  one  thousand one hundred thirteen of this chapter, any one  or  more  of  the  kinds  of  insurance  specified  in paragraphs  five,  six,  seven  and  eight  of such subsection solely in conjunction with fire  insurance  written  under  the  same  policy  and covering  the  same  premises  and  insurance  against loss or damage to property caused by aircraft or vehicles in compliance with the following prerequisites:  (1) It shall have not less than two hundred bona fide applications for insurance of such kind or kinds on  real  property  located  within  the territory in which it desires to be licensed as above provided, and from not  less  than  two  hundred  separate  applicants  who shall have paid advance payments  of  estimated  annual  assessments  of  at  least  two thousand  dollars  for  insurance  aggregating not less than two hundred thousand dollars in each county of such territory and each member  shall be  subject  to  assessments,  in addition to required advance payments, sufficient to meet incurred losses, expenses and other legal obligations for such insurer.  (2) It shall have a cash  organization  fund  of  not  less  than  one hundred fifty thousand dollars, which may be used in the manner provided for  in  paragraph  nine  of  subsection (a) of section one thousand two hundred one of this chapter, and shall maintain at all times, a  surplus of  at least one hundred thousand dollars. For an assessment corporation licensed to do the kinds of insurance specified  in  paragraph  nine  of subsection  (a)  of  section  one  thousand one hundred thirteen of this chapter, except as herein provided, the  corporation  must  maintain  an additional  surplus of fifty thousand dollars. The additional surplus is not necessary if the whole risk  for  this  peril  is  reinsured  in  an insurance  company  authorized  to  do  business in this state, or in an accredited reinsurer, as  defined  in  subsection  (a)  of  section  one hundred seven of this chapter.  (3)  Any assessment corporation licensed on the effective date of this article which does not possess surplus of one hundred  thousand  dollars shall  be restricted to the kinds of insurance for which it was licensed immediately prior to the effective date of this article until such  time as  the  required  minimum  surplus  specified in paragraph two above is accumulated. In no event shall the  surplus  of  such  corporation  fall below fifty thousand dollars.  (b)  (1) Any licensed assessment corporation may amend its charter and be licensed to do the kinds of insurance specified in  paragraphs  nine, thirteen,  fourteen and fifteen (except workers' compensation insurance) of subsection (a) of section one thousand one hundred thirteen  of  this chapter solely in conjunction with fire insurance written under the same policy  and  covering the same premises, except as provided in paragraph two of this subsection, and may be licensed to do the kinds of insurance specified in paragraphs twelve, nineteen  (excluding  aircraft  physical damage insurance) and twenty (inland marine only) of such subsection.  (2) An assessment corporation licensed to write the kinds of insurance specified  in  paragraphs  thirteen  and  fourteen  of subsection (a) of section one thousand one hundred thirteen of this chapter is  authorized to write personal or commercial umbrella liability insurance.  (c)  An  assessment  corporation may also be organized and licensed in the manner prescribed in section six thousand six hundred three of  this article  to do within all the counties of the state (except the counties of New York, Kings, Queens, Bronx and Richmond) as an assuming  insurer,  reinsurance  business  of  a  kind or kinds referred to in this section, and, as specified in its  charter,  on  compliance  with  the  following prerequisites:  (1)  It  shall  have  not  less  than  ten  bona fide applications for reinsurance of such kind or kinds on real property located  within  such counties,  and  from  not  less  than  ten  separate applying assessment corporations of this state providing for the payment of advance payments in the form of  estimated  annual  assessments  of  not  less  than  ten thousand  dollars, and providing that each such ceding insurer shall, as a member of such assuming insurer, be subject to additional  assessments sufficient to meet incurred losses, expenses and other legal obligations for such insurer.  (2)  It  shall  comply  with  the  financial requirements set forth in paragraph two of subsection (a) of this section.  (3) Such a corporation shall, pursuant to such license,  do  only  the business  of  reinsurance,  and  may not at any time qualify as a direct writing assessment corporation.  (d) An assessment corporation licensed to write the kinds of insurance specified in paragraphs thirteen  and  fourteen  of  subsection  (a)  of section  one thousand one hundred thirteen of this chapter authorized to write personal or commercial umbrella liability insurance shall maintain an additional surplus of six hundred thousand dollars if the corporation writes personal or commercial umbrella liability insurance.  (e) Nothing in this  section  shall  prohibit  a  licensed  assessment corporation  from  writing coverage pursuant to subsection (a) or (b) of this section for any leaseholder of the premises.