2023 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 until June thirtieth, two thousand twenty-eight. On
or before October first, two thousand  twenty-seven  the  superintendent
shall  require the association to report to the superintendent 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  twenty-eight,  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.