reglab/statecodes huggingface dataset:
2023 New York Laws › ISC - Insurance › Article 55 - Medical Malpractice Insurance Association › 5505 - Rates.

§  5505.  Rates.  (a)  The  rates,  rating plans, rating rules, rating
classifications, territories and statistics applicable to the  insurance
written  by  the association shall be subject to article twenty-three of
this chapter, giving due consideration to the past and prospective  loss
and  expense experience for medical malpractice insurance written and to
be written in this state,  trends  in  the  frequency  and  severity  of
losses,  the  investment  income  of  the  association,  and  such other
information as the superintendent may require.
(b) All rates shall be on an actuarially sound basis, be calculated to
be self-supporting, be based upon reasonable  standards,  and  may  give
consideration  to  such  factors  as  the  experience  of  the  insured,
geographical area and specialties of practice. The superintendent  shall
take all appropriate steps to make available to the association the loss
and   expense   experience   of   insurers  previously  writing  medical
malpractice insurance in this state. The premiums shall be fixed at  the
lowest possible rates consistent with the maintenance of solvency of the
association and of reasonable reserves and surplus therefor.
(c)  The  association's  rates,  rating plans, rating rules and rating
classifications  may  provide  for  premium  discounts  for  physicians,
dentists,   certified   nurse-midwives,   certified   registered   nurse
anesthetists or podiatrists commencing practice or conducting a  limited
practice as set forth in the plan of operation.
(d) In filing rates, the association may include in its experience the
annuity payments received, the then present value of annuity payments to
which  it  is entitled, and lump sum payments made by the association in
accordance with subdivision (b) of section five thousand  thirty-six  of
the civil practice law and rules.
2023 New York Laws › ISC - Insurance › Article 55 - Medical Malpractice Insurance Association › 5506 - Procedures.

§  5506.  Procedures. (a) Any licensed physician, dentist, podiatrist,
certified  nurse-midwife,  certified  registered  nurse  anesthetist  or
hospital  is  entitled to apply to the association for coverage pursuant
to this article. Application may be made directly to the association  by
the  applicant,  in  which event no service fee shall be charged. If the
applicant authorizes a broker or agent to make the application, the only
charge for such service shall be a service fee as limited by the plan of
operation  and  in  compliance  with  the   procedure   established   in
subsections  (c) and (d) of section two thousand one hundred nineteen of
this chapter.
(b) A policy shall be issued when the association determines that  the
applicant  is  duly  licensed  and  receives  the premium or the portion
prescribed in the plan of operation.
2023 New York Laws › ISC - Insurance › Article 55 - Medical Malpractice Insurance Association › 5507 - Participation.

§  5507.  Participation.  (a)  Every  member  of the association shall
participate in its writings, expenses, servicing  allowance,  management
fees  and  losses  in the proportion that the net direct premiums of the
member (excluding that portion of premiums attributable to the operation
of the association) written during the preceding calendar year bears  to
the  aggregate  net direct premiums written in this state by all members
of the association. Each member's participation in the association shall
be determined annually on the basis of such net direct premiums  written
during the preceding calendar year, as reported in the annual statements
and other reports filed by the member with the superintendent.
(b)  In  the  event  that  sufficient  funds are not available for the
payment of losses and expenses incurred under  policies  issued  by  the
association,   the  board  of  directors  may  require  all  members  to
contribute, on a temporary  basis  pending  recoupment  as  provided  in
subsection  (c)  of  this  section, to the financial requirements of the
association in the  manner  provided  for  in  subsection  (a)  of  this
section.
(c)  Any  contribution  made  by members pursuant to subsection (b) of
this  section  shall  be  reimbursed  to  them  by  payment   from   the
stabilization reserve fund pursuant to the plan of operation.
2023 New York Laws › ISC - Insurance › Article 55 - Medical Malpractice Insurance Association › 5508 - Directors.

§ 5508. Directors. (a) The association shall be governed by a board of
twenty-one   directors.   The  superintendent  or  his  duly  authorized
representative shall serve as a non-voting director. Two directors shall
be appointed by the governor. Two directors shall be  appointed  by  the
temporary  president  of the senate and two directors shall be appointed
by the speaker of the assembly. Eight  directors  shall  be  elected  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.  Four  directors
shall   be   appointed  by  the  superintendent  as  representatives  of
physicians and hospitals. The  superintendent  shall  also  appoint  two
directors   as   representatives   of  the  public,  who  shall  not  be
representatives  of  physicians  or  hospitals,  or  representatives  of
insurers  or  insurance producers. The eight member companies serving on
the board shall be elected annually at a meeting of the members.
(b) The directors  shall  serve  without  compensation  but  shall  be
reimbursed  for  their  actual  and  necessary  expenses incurred in the
performance of their duties under this article.
2023 New York Laws › ISC - Insurance › Article 55 - Medical Malpractice Insurance Association › 5510 - Appeals.

§  5510. Appeals. Any applicant to the association, any person insured
  under this article, or their representatives, or any  affected  insurer,
  may  appeal  to  the superintendent within thirty days after any ruling,
  action or decision by or on behalf of the association, with  respect  to
  those items the plan of operation defines as appealable matters.
2023 New York Laws › ISC - Insurance › Article 55 - Medical Malpractice Insurance Association › 5511 - Annual Statement.

§  5511.  Annual  statement. (a) The association shall annually file a
statement in the office of the superintendent on or before the first day
of March. The statement shall be in  a  form  approved  by  and  contain
information  prescribed  by  the  superintendent  with  respect  to  its
transactions, condition, operations and  affairs  during  the  preceding
year.
(b)  The  superintendent  may, at any time, require the association to
furnish  additional  information  with  respect  to  its   transactions,
condition  or  any  matter  connected therewith which he considers to be
material and which will assist him in evaluating  the  scope,  operation
and experience of the association.
(c)  The  association shall include as an asset the then present value
of  annuity  payments  to  which  it  is  entitled  in  accordance  with
subdivision  (b)  of  section  five  thousand  thirty-six  of  the civil
practice law and rules.
2023 New York Laws › ISC - Insurance › Article 55 - Medical Malpractice Insurance Association › 5512 - Examinations.

§ 5512. Examinations. (a) The superintendent shall make an examination
into  the  affairs of the association at least annually. The examination
shall be conducted and the report filed  in  the  manner  prescribed  in
article three of this chapter.
(b)  The  expenses of the examination shall be paid by the association
in the manner prescribed by  section  three  hundred  thirteen  of  this
chapter.
2023 New York Laws › ISC - Insurance › Article 55 - Medical Malpractice Insurance Association › 5513 - Immunity.

§  5513. Immunity. No liability or cause of action shall exist against
  the association, its agents or  employees,  the  superintendent  or  his
  authorized  representatives  or  any  licensed  agent  or broker for any
  statements made  in  good  faith  by  them  during  any  proceedings  or
  concerning any matters within the scope of this article.
2023 New York Laws › ISC - Insurance › Article 55 - Medical Malpractice Insurance Association › 5515 - Federal Program.

§  5515.  Federal  program.  In addition to any other powers conferred
  upon him by this or any other law, the superintendent is  authorized  to
  do  all  things  necessary  to  enable  this  state, the association and
  members and policyholders of the association to participate fully in any
  federal program of reinsurance  adopted  for  purposes  similar  to  the
  purposes of this article.
2023 New York Laws › ISC - Insurance › Article 55 - Medical Malpractice Insurance Association › 5516-D - Further Transfer of Association Funds.

§  5516-d.  Further transfer of association funds. Notwithstanding any
  other provision of law, the association and all officers  and  directors
  with  responsibility  for  custody  or  investment  of the association's
  assets are authorized and directed to further transfer and  deposit  six
  million  dollars to the credit of the medical assistance program general
  fund - local assistance account before January first,  nineteen  hundred
  ninety-six.
2023 New York Laws › ISC - Insurance › Article 55 - Medical Malpractice Insurance Association › 5516-F - Further Transfer of Moneys of the Association.

§   5516-f.  Further  transfer  of  moneys  of  the  association.  (a)
Notwithstanding any other provision of  law,  the  association  and  all
officers  and directors with responsibility for custody or investment of
the association's assets are authorized and directed to further transfer
and deposit two hundred  fifty  million  dollars  to  the  miscellaneous
special  revenue fund on or before September thirtieth, nineteen hundred
ninety-nine.
(b) Notwithstanding any other provision of law,  the  association  and
all officers and directors with responsibility for custody or investment
of  the  association's  assets  are  authorized  and directed to further
transfer  and  deposit  all   revenues   generated   pursuant   to   the
association's dissolution pursuant to paragraph two of subsection (c) of
section   five  thousand  five  hundred  two  of  this  article  to  the
miscellaneous special revenue fund on or before December thirtieth,  two
thousand.
(c)  Notwithstanding  any other provision of law, no director, officer
or employee of the association, nor  the  association,  nor  any  public
officer  or  employee,  nor  any  actuary,  attorney,  or advisor to the
association or to the superintendent shall incur or suffer any liability
whatsoever to  any  person  by  reason  of  actions  taken  pursuant  to
authorizations or directions of the provisions of subsections (a) or (b)
of  this  section pursuant to which any of the moneys of the association
are transferred to the miscellaneous special revenue  fund.  Any  action
which  could  have been brought against any of the persons or parties or
entities noted herein, but for the provisions of this section, shall  be
brought against the state.
2023 New York Laws › ISC - Insurance › Article 55 - Medical Malpractice Insurance Association › 5517 - Transfer of Association Funds; Reinsurance Evaluation.

§  5517. Transfer of association funds; reinsurance evaluation. (a) In
the event that the association has not caused the  transfer  of  certain
assets  on or before May first, nineteen hundred ninety-two, pursuant to
the provisions of section fifty-five hundred sixteen  of  this  article,
the   board   shall  undertake  an  evaluation  of  the  procurement  of
reinsurance, upon so much of its book of business as is attributable  to
policies  of  excess coverage or equivalent excess coverage purchased on
behalf of physicians and dentists, as is authorized by paragraph five of
subsection (e) of  section  fifty-five  hundred  two  of  this  article,
specifically  assessing  the  ability of any such reinsurance program to
yield such funds as are necessary to effectuate the transfer of  assets,
in  the  form  and  amount  provided  for  in section fifty-five hundred
sixteen of this article.
(b) Any such plan of reinsurance developed pursuant to the  evaluation
undertaken  pursuant  to subsection (a) of this section shall be subject
to the final, non-reviewable determination of the superintendent  as  to
its  sufficiency  in  meeting  the  objectives  provided  for in section
fifty-five hundred sixteen of this article, that the plan of reinsurance
provides for the ceding of risks to one or more reinsurers  approved  by
the  superintendent,  that  the  plan of reinsurance in no way adversely
affects  the  solvency  of  the  association,  and  that  the  plan   of
reinsurance  to be effectuated through the association's engaging one or
more such reinsurers in a contract for the ceding of risk not later than
July first, nineteen hundred ninety-two.
(c) The amounts provided for in section fifty-five hundred sixteen  of
this  article,  constituting  the  assets  to  be  transferred, shall be
transferred not later than August first, nineteen hundred ninety-two and
only after actuarial certification that such assets constitute  "surplus
surplus",  or  that  portion  of surplus not otherwise necessary for the
payment of claims. Upon such certification of such  assets  as  "surplus
surplus",  and  not  otherwise necessary for the payment of claims, such
assets shall be transferred not later than the date provided for herein.
Such transfer shall be deemed to be a transfer authorized by  subsection
(a) of section five thousand five hundred sixteen of this article.
(d)  In  the  event that the association has failed to comply with the
provisions of this section by the time periods provided for herein,  the
association  shall be prohibited from pursuing any such reinsurance plan
as a method of averting the imposition  of  the  provisions  of  section
ninety-one hundred ten of this chapter.
2023 New York Laws › ISC - Insurance › Article 56 - Health Care Arbitrations › 5602 - Professional Liability Policies; Arbitration Coverage.

§  5602.  Professional  liability  policies; arbitration coverage. Any
  professional liability policy issued or  delivered  in  the  state  that
  provides   coverage   for   physicians,   dentists,  health  maintenance
  organizations, hospitals or health care providers  shall  be  deemed  to
  include  coverage  for  and  defense  of  claims  subject to arbitration
  pursuant to section thirty hundred forty-five or article  seventy-five-A
  of  the civil practice law and rules or section forty-four hundred six-a
  of the public health law.
2023 New York Laws › ISC - Insurance › Article 56 - Health Care Arbitrations › 5603 - Arbitration Administration Fund and Expenses.

§  5603.  Arbitration  administration  fund and expenses. (a) There is
established within the department  an  arbitration  administration  fund
which  shall  be considered to be an expense of the department and shall
be funded by order  of  the  superintendent,  pursuant  to  section  two
hundred  six  of  the  financial services law in such amount as shall be
sufficient  to  defray  the  actual  administrative  expenses   of   the
department and the arbitration administrator for the projected number of
arbitration  proceedings  for  a  twelve-month period, after taking into
consideration any excessive or insufficient amounts  from  the  previous
assessments,  any appropriation of public funds for this purpose and any
funds collected from claimants participating in the arbitration. If  the
amount  assessed  for  any twelve-month period is insufficient to defray
expenses during that period, a further assessment may be ordered by  the
superintendent. The arbitration administrator shall establish reasonable
fees  for  claimants  who participate in the arbitration, subject to the
approval of the superintendent.
(b) The administrative expenses shall include but not  be  limited  to
the   costs  of  arbitrators,  the  arbitration  administrator  and  the
department.
2023 New York Laws › ISC - Insurance › Article 56 - Health Care Arbitrations › 5604 - Arbitration Forms, Brochures, and Materials.

§  5604.  Arbitration forms, brochures, and materials. The arbitration
  administrator  shall  submit  to  the  superintendent,  for  review  and
  approval,  required  forms  of  agreement  and explanatory brochures and
  materials  to  be  used  for  the  arbitrations  authorized  by  section
  forty-four   hundred   six-a  of  the  public  health  law  and  article
  seventy-five-A of the civil practice law and rules.
2023 New York Laws › ISC - Insurance › Article 56 - Health Care Arbitrations › 5605 - Review of Health Maintenance Organization Arbitration Experience.

§   5605.   Review  of  health  maintenance  organization  arbitration
  experience. No health maintenance organization shall offer enrollees the
  option of electing arbitration of claims pursuant to section  forty-four
  hundred   six-a   of   the  public  health  law  without  notifying  the
  superintendent of an intention  to  offer  the  arbitration  option  and
  obtaining   the  superintendent's  approval.  The  superintendent  shall
  approve such requests, subject to the limitations of this section and in
  a manner that allows for sufficient geographical and  program  diversity
  to  permit  an  effective  evaluation of the arbitration experience. The
  superintendent of financial services shall  require  health  maintenance
  organizations  to  submit,  on a quarterly basis, information concerning
  the numbers of enrollees who elect the arbitration  option,  along  with
  such    other   information   as   the   superintendent   may   require.
  Notwithstanding the provisions of section forty-four  hundred  six-a  of
  the  public  health law, no health maintenance organization shall permit
  new enrollees to elect the arbitration of claims after  December  first,
  nineteen  hundred  ninety-one  or  after  such  organizations  have been
  notified by the superintendent that five hundred thousand  persons  have
  elected  to  arbitrate  claims, whichever event first occurs. Within one
  hundred twenty days of such date  or  event,  the  superintendent  shall
  submit  a  report  to  the  governor  and the legislature describing the
  experience of health maintenance organization enrollee  arbitration  and
  including any recommendations for the future of such program.
2023 New York Laws › ISC - Insurance › Article 59 - Risk Retention Groups and Purchasing Groups › 5901 - Title and Purpose.

§  5901.  Title  and  purpose.  This article may be cited as the "risk
  retention groups and purchasing groups act." The purpose of this article
  is to regulate the formation and/or operation  in  this  state  of  risk
  retention groups and purchasing groups formed pursuant to the provisions
  of  the  federal  Liability  Risk Retention Act of 1986 (Public Law 99 -
  563), to the extent permitted by such law.
2023 New York Laws › ISC - Insurance › Article 59 - Risk Retention Groups and Purchasing Groups › 5903 - Domestic Risk Retention Groups.

§  5903. Domestic risk retention groups. (a) A domestic risk retention
group shall, pursuant to the provisions of this  chapter,  be  chartered
and  licensed  as  a  domestic  property/casualty  insurer to write only
liability insurance pursuant to this article  and,  except  as  provided
elsewhere   in  this  article,  shall  comply  with  all  of  the  laws,
regulations  and  orders  applicable   to   property/casualty   insurers
organized and licensed in this state.
(b)  Before  it  may  offer insurance in any state, each domestic risk
retention group shall submit to the superintendent for approval  a  plan
of  operation  or  feasibility  study, and shall also submit a completed
National Association of Insurance Commissioners  risk  retention  report
form  to  the  superintendent.  Such  group  shall submit an appropriate
revision in the event of any subsequent material change in any  item  of
the  plan  of operation or feasibility study within ten days of any such
change. Such group shall not offer any  additional  kinds  of  liability
insurance  in  any  state until a revision of the plan or study has been
approved by the superintendent.
(c) The submission of a plan of operation or feasibility  study  shall
not  be required with respect to any kind or classification of liability
insurance which was:
(1) defined in the federal Product Liability  Risk  Retention  Act  of
1981  (Public Law 97-45) before October twenty-seventh, nineteen hundred
eighty-six; and
(2) offered before such date by any risk  retention  group  which  had
been  chartered  and operating for not less than three years before such
date.
(d) Immediately upon receipt of any application  for  licensing  as  a
domestic  risk retention group, the superintendent shall provide summary
information  concerning  the  filing  to  the  National  Association  of
Insurance Commissioners.
(e)  The  name  under  which  a  domestic  risk retention group may be
chartered and licensed shall be a brief description  of  its  membership
followed   by  the  phrase  "Risk  Retention  Group",  and,  unless  its
membership consists solely of insurers, shall not include the use of the
terms "insurance", "insurance company", "mutual", "reciprocal",  or  any
similar terms.
2023 New York Laws › ISC - Insurance › Article 59 - Risk Retention Groups and Purchasing Groups › 5905 - Risk Retention Groups; Notice, Prohibited Solicitation, Coverage and Ownership.

§  5905.  Risk  retention  groups;  notice,  prohibited  solicitation,
coverage and ownership. (a) Notice to purchasers.  (1)  Every  insurance
policy  issued by a risk retention group shall contain in ten point type
on the front page and on the declaration page, the following notice:
NOTICE
This policy is issued by your risk retention  group.
Your  risk retention group may not be subject to all
of the insurance laws and regulations of your state.
State insurance insolvency guaranty  funds  are  not
available for your risk retention group.
(2)  Every application for insurance from a risk retention group shall
prominently contain a similar notice.
(b) Prohibited acts regarding solicitation or sale. The following acts
by a risk retention group are prohibited:
(1) The solicitation or sale of insurance to any  person  who  is  not
eligible for membership in such group; and
(2)  The solicitation or sale of insurance by, or operation of, a risk
retention group that  is  in  a  hazardous  financial  condition  or  is
financially impaired.
(c)  Prohibited  coverage. The terms of any insurance policy issued or
issued for delivery in this state by any such risk retention group shall
not provide, or be construed to provide, coverage  prohibited  generally
by  statute  of  this state or declared unlawful by the highest court of
this state whose law applies to such policy.
(d) Prohibition on ownership by an insurer. No  risk  retention  group
shall  do business in this state if an insurer is directly or indirectly
a member or owner of such risk retention group, other than in  the  case
of a risk retention group all of whose members are insurers.
2023 New York Laws › ISC - Insurance › Article 59 - Risk Retention Groups and Purchasing Groups › 5906 - Security Funds and Compulsory Associations.

§  5906.  Security  funds  and  compulsory  associations.  (a) No risk
retention group shall be required or permitted  to  join  or  contribute
financially  to  any  insurance  insolvency  security  fund,  or similar
mechanism, in this state, nor shall any risk  retention  group,  or  its
insureds  or claimants against its insureds receive any benefit from any
such fund for claims arising under the insurance policies issued by such
risk retention group.
(b) When a purchasing group obtains insurance  covering  its  members'
risks  from  an insurer not authorized in this state or a risk retention
group, no such risks wherever resident or located shall  be  covered  by
any  insurance  insolvency  security  fund  or similar mechanism in this
state.
(c) The superintendent may require risk retention groups not chartered
in this state to participate, and may  exempt  domestic  risk  retention
groups  from  participation,  in any mechanism established or authorized
under the law of  this  state  for  the  equitable  apportionment  among
insurers  of  liability insurance risks or of liability insurance losses
and expenses incurred on policies written through  such  mechanism,  and
such  risk  retention  groups shall submit sufficient information to the
superintendent  to  enable  the  superintendent  to   apportion   on   a
non-discriminatory  basis the risk retention group's proportionate share
of such risks or of such losses and expenses.
2023 New York Laws › ISC - Insurance › Article 59 - Risk Retention Groups and Purchasing Groups › 5907 - Purchasing Groups; Exemption From Certain Laws.

§  5907.  Purchasing groups; exemption from certain laws. A purchasing
group and its insurer shall be subject to all applicable  laws  of  this
state,  except  that a purchasing group and its insurer shall be exempt,
in regard to liability insurance for the purchasing group and any of its
members, from any law that would:
(a) prohibit the establishment of a purchasing group;
(b) make it unlawful for an insurer to provide  or  offer  to  provide
liability  insurance  on a basis providing, to a purchasing group or its
members, advantages, based on their loss  and  expense  experience,  not
afforded to other persons with respect to rates, policy forms, coverages
or other matters;
(c)  prohibit  a  purchasing  group  or  its  members  from purchasing
liability insurance on a group basis described in subsection (b) of this
section;
(d) prohibit a purchasing group from obtaining liability insurance  on
a  group basis because the group has not been in existence for a minimum
period of time or because any member has not belonged to the group for a
minimum period of time;
(e) require that a purchasing group must  have  a  minimum  number  of
members, common ownership or affiliation, or a certain legal form;
(f)  require  that  a  certain  percentage  of a purchasing group must
obtain liability insurance on a group basis; or
(g) otherwise discriminate against a purchasing group or  any  of  its
members.
2023 New York Laws › ISC - Insurance › Article 59 - Risk Retention Groups and Purchasing Groups › 5909 - Restrictions on Insurance Obtained by Purchasing Groups.

§ 5909. Restrictions on insurance obtained by purchasing groups. (a) A
purchasing  group  located  in  this  state shall not purchase liability
insurance from a risk retention group not chartered in a state  or  from
an insurer not authorized in this state, unless the purchase is effected
pursuant  to  section  two thousand one hundred eighteen of this chapter
through an excess line broker licensed pursuant to section two  thousand
one  hundred  five  of  this  chapter,  except where otherwise permitted
pursuant to section two thousand one hundred seventeen of this chapter.
(b) The terms of any liability insurance policy issued or  issued  for
delivery in this state to a purchasing group or any of its members shall
not  provide,  or be construed to provide, insurance coverage prohibited
generally by state statute or declared unlawful by the highest court  of
the  state  whose  law  applies to such policy. If the law of this state
applies to an insurance policy obtained by a purchasing group, the terms
of that policy shall not provide or be construed  to  provide  insurance
coverage  prohibited  generally by state statute or declared unlawful by
the highest court of this state which has construed such coverage.
(c) A purchasing group  which  obtains  liability  insurance  from  an
insurer  not  authorized  in  this state or a risk retention group shall
inform each of the members of such group which have a risk  resident  or
located  in  this  state that such risk is not protected by an insurance
insolvency security fund in this state, and  that  such  risk  retention
group  or  such  insurer  may  not  be subject to all insurance laws and
regulations of this state.
(d) No liability insurance policy issued or  issued  for  delivery  in
this  state  to a purchasing group or a member of such group with a risk
resident or located within this state shall provide for a deductible  or
self-insured   retention   shared  among  purchasing  group  members  or
applicable to the group itself.
2023 New York Laws › ISC - Insurance › Article 59 - Risk Retention Groups and Purchasing Groups › 5910 - Administrative and Procedural Authority Regarding Risk Retention Groups and Purchasing Groups.

§   5910.  Administrative  and  procedural  authority  regarding  risk
  retention groups and purchasing groups. The superintendent is authorized
  to make use of any of the powers,  established  under  this  chapter  to
  enforce  the  laws  of  this  state,  not  specifically preempted by the
  federal Liability Risk Retention Act of 1986. Such  powers  include  the
  superintendent's   administrative   authority   to   investigate,  issue
  subpoenas,  conduct  depositions  and  hearings,  issue  orders,  impose
  penalties  and seek injunctive relief. With regard to any investigation,
  administrative proceeding, or litigation, the superintendent may rely on
  the procedural law and regulations of this state.
2023 New York Laws › ISC - Insurance › Article 59 - Risk Retention Groups and Purchasing Groups › 5911 - Insurance Agents, Insurance Brokers and Excess Line Brokers.

§  5911.  Insurance agents, insurance brokers and excess line brokers.
(a) The provisions of article twenty-one of this chapter shall apply  to
any  risk  retention group not chartered and licensed in this state as a
property/casualty insurer but which is doing business in this state. Any
such risk retention group shall for such purposes  be  deemed  to  be  a
licensed foreign insurer.
(b)  If any person, firm, association, or corporation does an act with
respect to a purchasing group or any member thereof, which act  if  done
with  respect  to  any  other  person  or  entity would require that the
person, firm, association, or corporation doing such act be licensed  as
an  insurance  agent  or broker, then such person, firm, association, or
corporation must be appropriately licensed pursuant to this chapter.
(c) Every person, firm, association, or corporation licensed  pursuant
to  the  provisions  of  article  twenty-one  of  this chapter shall, on
business placed by such licensee with a risk retention group or with  an
unauthorized  insurer  on  behalf  of  a  purchasing group or any of its
members, inform each prospective insured of the provisions of the notice
required by subsection (a) of section five thousand nine hundred five of
this article in the case of a risk retention group and subsection (c) of
section five thousand nine hundred nine of this article in the case of a
purchasing group.
2023 New York Laws › ISC - Insurance › Article 59 - Risk Retention Groups and Purchasing Groups › 5912 - Binding Effect of Orders Issued in United States District Court.

§  5912.  Binding  effect  of  orders issued in United States district
  court. An order issued by  any  district  court  of  the  United  States
  enjoining  a  risk retention group from soliciting or selling insurance,
  or operating in any state (or in all  states  or  in  any  territory  or
  possession of the United States), upon a finding that such a group is in
  hazardous   financial   condition   or  financially  impaired  shall  be
  enforceable in the courts of this state.
2023 New York Laws › ISC - Insurance › Article 59 - Risk Retention Groups and Purchasing Groups › 5913 - Financial Responsibility.

§ 5913. Financial responsibility. Except as provided in sections three
  hundred eleven and three hundred seventy of the vehicle and traffic law,
  wherever pursuant to the laws of this state or any political subdivision
  of this state a demonstration of financial responsibility is required as
  a  condition  for  obtaining  a license or permit to undertake specified
  activities, if any such requirement may not be  satisfied  by  obtaining
  insurance coverage from an insurer not authorized to do business in this
  state,  such  requirement  may  not be satisfied by purchasing insurance
  from a risk retention group not chartered in this state. Every insurance
  policy issued by a risk retention group  not  chartered  in  this  state
  pursuant  to  sections three hundred eleven and three hundred seventy of
  the vehicle and traffic law  shall  contain  the  notice  set  forth  in
  section five thousand nine hundred five of this article.
2023 New York Laws › ISC - Insurance › Article 61 - Reciprocal Insurers and Lloyds Underwriters › 6101 - Definitions.

§ 6101. Definitions. In this article:
(a)  "Advisory  committee"  means  any official body, by whatever name
called, which is chosen by the subscribers of a reciprocal  insurer  and
which  has,  subject  to  the  articles  of  association and subscribers
agreement, ultimate power  and  responsibility  in  the  management  and
control of the affairs of a reciprocal insurer.
(b)  "Attorney-in-fact"  means  a  person  designated and appointed by
subscribers to a reciprocal insurer to act for and bind the  subscribers
in  all  transactions  relating to or arising out of the operations of a
reciprocal insurer, subject to limitations as may be lawfully provided.
(c) "Books, accounts and records" means all working  papers,  ledgers,
and  other  relevant  documents  which demonstrate, disclose and support
transactions of  the  reciprocal  and  each  individual  subscriber,  as
distinguished  from  the  attorney-in-fact,  and  which  relate  to  the
operations and activities of the reciprocal. The phrase "books, accounts
and records" shall not mean or include working papers, ledgers, or other
relevant  documents  which  relate  exclusively  to  the  operation  and
activities of the attorney-in-fact as a separate entity.
(d)  "Financial  interest"  means  that  a  person  owns,  directly or
indirectly, more than one  percent  of  the  outstanding  stock  in  the
attorney-in-fact,  has  any outstanding loans from the attorney-in-fact,
or earns a commission or  other  compensation  as  a  producer  for  the
reciprocal.
(e)  "Material  transaction"  means  a  transaction,  other than claim
payments, that involves  more  than  one-half  of  one  percent  of  the
reciprocal's  admitted  assets as of the thirty-first day of December of
the prior year.
(f) "Person" means  an  individual,  partnership,  firm,  association,
corporation, not-for-profit corporation, joint-stock company, trust, any
similar entity, or any combination of the foregoing acting in concert.
(g)  "Subscriber"  means  a  person  who  has  become  a  member  of a
reciprocal through the execution of a subscriber's agreement.
(h)  "Subscriber's  agreement"  means  a  document  executed  by   the
subscriber  which  designates and appoints, through a power of attorney,
the  attorney-in-fact  and,  either  within  the  agreement  or  via   a
management  agreement  or an appended set of bylaws, that sets forth the
duties of the attorney-in-fact.
2023 New York Laws › ISC - Insurance › Article 61 - Reciprocal Insurers and Lloyds Underwriters › 6103 - Deposits.

*  §  6103.  Deposits.  (a)  Before  being  licensed,  every  domestic
reciprocal insurer shall comply with the provisions of subsection (a) of
section four thousand one hundred four of this chapter  imposed  upon  a
domestic  property/casualty  insurance  company  doing  the same kind or
kinds of  insurance.  Notwithstanding  the  foregoing,  every  municipal
reciprocal  insurer may comply with such provisions within one year from
the date a license to do business was granted.
(b) Before being licensed pursuant to subsection (h)  of  section  six
thousand  one  hundred  two  of  this  article  to do insurance on risks
outside of the United States, its territories and possessions, or to  do
reinsurance,  a  domestic  reciprocal  insurer  shall  comply  with  the
provisions of subsection (b) of section four thousand one  hundred  four
of  this  chapter  imposed  upon  a domestic property/casualty insurance
company.
(c) Before being licensed to issue non-assessable policies pursuant to
section six thousand one hundred  eight  of  this  article,  a  domestic
reciprocal insurer shall comply with the provisions of subsection (c) of
section  four  thousand  one  hundred  four of this chapter imposed on a
domestic mutual property/casualty insurance company.
(d) The financial requirements of subsections (a) and (c) hereof shall
be reduced by fifty percent for a reciprocal insurer initially  licensed
to  do  business  in  this  state  prior to July first, nineteen hundred
eighty-two.
(e) Before being granted any license or renewal license, every foreign
reciprocal insurer shall comply with the provisions of subsection (d) of
section four thousand one hundred four of  this  chapter  imposed  on  a
foreign property/casualty insurance company.
* SPECIAL NOTE.--Notwithstanding that Chapter 585 of the Laws of 1984:
Bill sections 2, 3, 5, 6, 7, and 9 of such chapter amend provisions of
the former Insurance Law that are not possible to juxtapose at this time
due  to the highly technical nature of such changes and will need future
corrective  legislation  to  implement  such  provisions  into  the  new
Insurance Law as enacted by such Chapter 367 of the Laws of 1984.
2023 New York Laws › ISC - Insurance › Article 61 - Reciprocal Insurers and Lloyds Underwriters › 6104 - Qualifications of Subscribers.

§   6104.   Qualifications  of  subscribers.  (a)  (1)  No  authorized
reciprocal insurer shall make any new agreement for insurance containing
a provision for contingent liability of subscribers with any  subscriber
who  or  which does not have assets in his, their or its own right in an
amount not less than fifty thousand dollars in excess of liabilities  as
shown  by  a  commercial  agency report as hereinafter provided, or by a
sworn statement on file with  the  attorney-in-fact,  verified  by  such
subscriber or by an officer of a corporation subscriber.
(2)  (A)  Before  renewing  a contract of insurance with a subscriber,
containing a provision for contingent liability of subscribers,  similar
proof   of   financial  responsibility  shall  be  required  unless  the
subscriber has accumulated  and  maintains  the  subscriber's  operating
reserve  required  by  section  six  thousand  one  hundred nine of this
article.
(B) The report of an established commercial agency having one  hundred
thousand or more subscribers shall be deemed presumptive evidence of the
financial condition of a subscriber.
(b)  (1)  All  corporations  and  the  directors or any representative
thereof and all persons, firms or corporations holding property in trust
may insure the  same  in  reciprocal  insurers  and  by  so  doing  such
directors,   representatives   or   trustees,  in  their  representative
capacity, may assume the liabilities and be entitled to the rights of  a
subscriber of such reciprocal insurer.
(2)   Such   directors,  representatives  or  trustees  shall  not  be
personally liable as individuals upon  such  contract  of  insurance  or
subscriber's agreement.
2023 New York Laws › ISC - Insurance › Article 61 - Reciprocal Insurers and Lloyds Underwriters › 6111 - Assets, Liabilities and Surplus.

§  6111. Assets, liabilities and surplus. (a) All of the assets of any
reciprocal insurer including subscribers' operating  reserves  shall  be
liable  primarily  for  payment  of  all  liabilities incurred under its
policies or other contracts.
(b) No part of the surplus funds of such reciprocal insurer  shall  be
subject  to  the  claims  of  general creditors of any of the individual
subscribers of such insurer until all  policies  under  which  any  such
subscriber  is obligated have been terminated and in no event beyond the
amount of such subscriber's operating reserve.
(c) The contingent liability of subscribers for additional premiums or
assessments shall not be included as an asset in the financial statement
of a reciprocal insurer.
(d) Subscribers' operating reserves for which notice of withdrawal has
been given shall be reported as liabilities until paid.
(e) In any statement  or  report  of  the  financial  condition  of  a
reciprocal  insurer  filed  in this state, the surplus to policyholders,
after providing for the unearned premium  reserves,  loss  reserves  and
other  liabilities,  as  required  by this chapter, shall be reported as
follows:
(1) special contingent surplus;
(2) subscribers' operating reserves, if required;
(3) all other surplus, if any.
(f) Unless the reciprocal is subject  to  the  provisions  of  article
fifteen  of  this  chapter  or  substantially similar legislation in its
state of domicile,  all  material  transactions  between  or  among  the
reciprocal,  its  subscribers, the attorney-in-fact and any affiliate of
the attorney-in-fact shall not be entered into, unless  they  have  been
filed with the superintendent at least thirty days prior thereto and the
superintendent  has  not  disapproved  them; provided, however, that any
such transaction involving five percent  or  more  of  the  reciprocal's
admitted assets shall be subject to prior approval of the superintendent
and all transactions shall meet the following standards:
(1) The terms shall be fair and equitable;
(2) Charges or fees for services performed shall be reasonable; and
(3)  Expenses incurred and payments received shall be allocated to the
reciprocal on an equitable basis in conformity with statutory  insurance
accounting practices consistently applied.
2023 New York Laws › ISC - Insurance › Article 61 - Reciprocal Insurers and Lloyds Underwriters › 6112 - Subscribers' Accounts.

§  6112.  Subscribers' accounts. (a) The attorney-in-fact, in addition
to  the  books  of  account  of  the  collective  transactions  of   all
subscribers  of  the  reciprocal  insurer,  shall  keep  and  maintain a
separate account  for  each  individual  subscriber  setting  forth  the
entries determining the operating reserve, if any, of such subscriber.
(b)  Each  subscriber's  account  shall  be credited with the premiums
earned by him as an underwriter on the policies issued by  the  insurer,
and  charged  with  his  proper  share of all losses incurred under such
policies as well as with the expenses incurred by the insurer.
(c) Earnings and interest income from investments of all  subscribers'
operating  reserves  shall be apportioned and credited to subscribers on
the basis of their accumulated operating reserves and all other interest
and investment income may be apportioned and credited to the subscribers
on the basis of their premiums earned as underwriters.
(d) The subscriber's agreement of an authorized reciprocal insurer may
with the permission  of  the  superintendent  contain  provisions  which
modify  the  credits,  charges  and  apportionments  to the subscribers'
account, as required by subsections (b) and (c) of this section.
2023 New York Laws › ISC - Insurance › Article 61 - Reciprocal Insurers and Lloyds Underwriters › 6114 - Application of Other Sections.

§  6114.  Application  of  other  sections.  (a)  Except  as otherwise
provided in  this  article,  and  except  where  the  context  otherwise
requires, all of the provisions of this chapter relating to all insurers
and  those  relating  to  insurers transacting the same kind or kinds of
insurance which reciprocal insurers are permitted to transact, shall  be
applicable  to  reciprocal  insurers  authorized  to do business in this
state.
(b) Where any of such sections refer  to  a  corporation,  company  or
insurer,  the  same, when read in connection with and applicable to this
article, shall mean a reciprocal insurer.
2023 New York Laws › ISC - Insurance › Article 61 - Reciprocal Insurers and Lloyds Underwriters › 6115 - Merger.

§  6115.  Merger.  (a)  (1)  Two or more reciprocal insurers may, by a
two-thirds affirmative vote of the subscribers of each insurer, merge in
accordance with the provisions of article seventy-one of this chapter.
(2) The powers of such new reciprocal insurer under this article shall
not be greater than those possessed hereunder by the merging insurers.
(3) The operating reserve accumulations of the respective  subscribers
shall  be transferred and credited to such subscribers as members of the
new reciprocal insurer and all other reserves, guaranty funds and  other
undistributed funds shall be transferred to the corresponding reserve or
guaranty fund accounts of the new insurer.
(b) (1) If after examination, the superintendent finds that the merger
of  any  such  insurers  is  in  conformity  with  law, and that the new
reciprocal insurer meets with the requirements of this chapter,  he  may
issue  a  license to such insurer to do business under the provisions of
this  chapter.  Thereupon,  the  remaining  assets  shall  be  forthwith
transferred  to  it, and the predecessor reciprocal insurers shall cease
to  have  authority  to  do  business  as  such  and  shall  be   deemed
extinguished.
(2)  Every  such  new reciprocal insurer formed by merger shall assume
and succeed to all of the obligations and liabilities of the  respective
merging  reciprocal  insurers  and  shall  be  held  liable  to  pay and
discharge all such debts and liabilities in the same manner as  if  they
had  been  incurred  or  contracted  by  it, but the subscribers of such
predecessor reciprocal  insurers  shall  continue  subject  to  all  the
liabilities,  claims  and  demands  which shall then exist, or which may
thereafter accrue against them,  or  any  of  them,  by  reason  of  any
obligations  incurred  by  them  or  on their behalf as such subscribers
before the date of merger.
(3) Upon the merger of any reciprocal insurer, dissenting  subscribers
shall  be  entitled  to  the conditional withdrawal of their accumulated
operating reserves on deposit with the predecessor  insurer  as  of  the
date  of merger but a sufficient amount thereof shall be retained by the
new reciprocal insurer  as  a  deposit  until  all  of  the  obligations
incurred on their behalf have been extinguished.
(4)  When  all  of  such  obligations  have  been  paid, discharged or
terminated, and the superintendent after an examination  shall  have  so
certified,  the  said  subscribers'  deposits  or  the  balances thereof
remaining to their credit shall be returned and released, whereupon  the
powers   of  the  attorney-in-fact  relating  thereto  shall  cease  and
terminate.