NY Ins L § 7709 (2021)
2021 New York Laws ISC - Insurance Article 77 - The Life Insurance Company Guaranty Corporation of New York Act 7709 - Assessments.

§  7709.  Assessments.  (a)  For  the  purpose  of providing the funds necessary to carry out the powers and duties  of  the  corporation,  the board of directors shall assess the member insurers, separately for each account,  at such time and for such amounts as the board finds necessary in accordance with the provisions of paragraph three of  subsection  (c) of  this  section. Assessments shall be due on the date set by the board which shall be not less than thirty days nor more than sixty days  after prior  written  notice  to the member insurers. Assessments shall accrue interest at the maximum rate allowed by subdivision one of section 5-501 of the general obligations law on and after the due date.  (b) There shall be three classes of assessments, as follows:  (1) Class A assessments shall be  made  for  the  purpose  of  meeting administrative costs and other general expenses.  (2) Class B assessments shall be made to the extent necessary to carry out  the  powers  and  duties  of  the  corporation  under section seven thousand seven hundred eight of this article with regard to an  impaired or insolvent domestic insurer.  (3) Class C assessments shall be made to the extent necessary to carry out  the  powers  and  duties  of  the  corporation  under section seven thousand seven hundred eight of this article with regard to an  impaired or insolvent foreign or alien insurer.  (c)  (1)  The  amount of any class A assessment shall be determined by the board and may be made on a non pro rata basis. Such assessment shall be credited against future impairment  or  insolvency  assessments.  The maximum  such assessment against any member insurer in any calendar year shall be determined, in accordance with the table set  forth  below,  on the  basis  of  its  admitted  assets  as  shown on its annual statement required by this chapter for the year next preceding the  date  of  such assessment:  Companies with Admitted Assets of                   Maximum Assessment Up to $50,000,000                                           $200 $50,000,000 to $1,000,000,000                              $1000 $1,000,000,000 or more                                     $2000  (2) The amount of any class B or class C assessment shall be allocated for  assessment  purposes  among the accounts in the proportion that the premiums received by the impaired or insolvent insurer on  the  policies or  contracts  covered  by  each  account  for  the  last  calendar year preceding the assessment in which  the  impaired  or  insolvent  insurer received  premiums  bears  to  the premiums received by such insurer for such calendar year  on  all  covered  policies.  Class  B  and  class  C assessments  against  member  insurers  for each account shall be in the proportion that the premiums received on business in this state by  each assessed  member  insurer  on  policies  covered by each account for the three calendar years preceding the assessment  bears  to  such  premiums received  on  business  in  this  state  for  such calendar years by all assessed member insurers.  (3) Assessments for funds to meet the requirements of the  corporation with  respect to an impaired or insolvent insurer shall be made within a reasonable  time  after  deemed  necessary  by  the  superintendent   to implement  the  purposes  of  this article. Classification of assessment under subsection (b) of this  section  and  computation  of  assessments under  this  subsection  shall  be  made  with  a  reasonable  degree of accuracy, recognizing  that  exact  determinations  may  not  always  be possible.  (d)  The  corporation  may  abate  or  defer, in whole or in part, the assessment of a member insurer if, in the opinion of the board,  payment  of  the  assessment  would endanger the ability of the member insurer to fulfill its contractual obligations. In the event an assessment  against a  member insurer is abated, or deferred in whole or in part, the amount by  which  such assessment is abated or deferred may be assessed against the other member insurers in a manner  consistent  with  the  basis  for assessments set forth in this section.  (e)  (1)  With  respect to a member insurer that is a domestic insurer and is subject to an order of rehabilitation under article  seventy-four of  this  chapter  as  of  March  first,  two thousand twelve, the total assessment against all member insurers for impairments and insolvencies, less the amount of refunds (not including interest) to  member  insurers pursuant  to  subsection  (f)  of  this  section,  shall be five hundred fifty-eight million dollars; provided, however, that such  five  hundred fifty-eight  million  dollar  total  shall be subject to reduction in an amount, if any, determined by the superintendent, on a date not  earlier than  twelve  months  after  the  entry  of an order of liquidation with respect to such domestic insurer, to be not needed for  the  corporation to  be able to pay its obligations and reasonable expenses in connection with the liquidation of such domestic insurer, but  in  no  event  shall such reduction exceed fifty-eight million dollars.  (2)  The  total  of  all  assessments  upon  a member insurer for each account shall not in any one calendar year exceed two  percent  of  such insurer's  premiums  received  in  this  state  during the calendar year preceding the assessment on the policies covered by the account. If  the maximum assessment, together with the other assets of the corporation in either  account,  does  not provide in any one year in either account an amount sufficient to carry out the responsibilities of the  corporation, the  necessary  additional funds shall be assessed as soon thereafter as permitted by this article.  (f) The board may, by an equitable method as established in  the  plan of  operation,  refund to member insurers, by retirement of certificates of contribution in proportion to the contribution  of  each  insurer  to that  account,  the amount by which the assets of the account exceed the amount the board finds necessary to carry out during the coming year the obligations of the corporation with regard to  that  account,  including assets  accruing  from  net  realized  capital  gains  and  income  from investments. A reasonable amount may  be  retained  in  any  account  to provide  funds  for  the  continuing expenses of the corporation and for future losses if refunds are impractical.  (g) It shall be proper for any  member  insurer,  in  determining  its premium  rates  and  policy  owner dividends as to any kind of insurance within the scope of this article,  to  consider  the  amount  reasonably necessary  to  meet  its  assessment obligations under this article with respect to insurers which have become impaired or insolvent.  (h) The corporation shall issue to each insurer paying  an  assessment under  this  article,  other than a class A assessment, a certificate of contribution, in a form prescribed by the superintendent, for the amount of the assessment so paid. All  outstanding  certificates  shall  be  of equal dignity and priority irrespective of amounts or dates of issue.  A certificate of contribution may be shown by the insurer in its financial statement  as  an  asset  in  such form and for such amount, if any, and period of time as the superintendent may approve.