§ 5906 — Security funds and compulsory associations

New York § 5906

• Jurisdiction: New York
• Law ISC: Insurance
• Art. 59: Risk Retention Groups and Purchasing Groups

Text

§ 5906. Security funds and compulsory associations. (a) No risk\nretention group shall be required or permitted to join or contribute\nfinancially to any insurance insolvency security fund, or similar\nmechanism, in this state, nor shall any risk retention group, or its\ninsureds or claimants against its insureds receive any benefit from any\nsuch fund for claims arising under the insurance policies issued by such\nrisk retention group.\n (b) When a purchasing group obtains insurance covering its members'\nrisks from an insurer not authorized in this state or a risk retention\ngroup, no such risks wherever resident or located shall be covered by\nany insurance insolvency security fund or similar mechanism in this\nstate.\n (c) The superintendent may require risk retention groups not chartered\nin this state to participate, and may exempt domestic risk retention\ngroups from participation, in any mechanism established or authorized\nunder the law of this state for the equitable apportionment among\ninsurers of liability insurance risks or of liability insurance losses\nand expenses incurred on policies written through such mechanism, and\nsuch risk retention groups shall submit sufficient information to the\nsuperintendent to enable the superintendent to apportion on a\nnon-discriminatory basis the risk retention group's proportionate share\nof such risks or of such losses and expenses.\n