§ 6101 — Definitions

New York § 6101

• Jurisdiction: New York
• Law ISC: Insurance
• Art. 61: Reciprocal Insurers and Lloyds Underwriters

Text

§ 6101. Definitions. In this article:\n (a) "Advisory committee" means any official body, by whatever name\ncalled, which is chosen by the subscribers of a reciprocal insurer and\nwhich has, subject to the articles of association and subscribers\nagreement, ultimate power and responsibility in the management and\ncontrol of the affairs of a reciprocal insurer.\n (b) "Attorney-in-fact" means a person designated and appointed by\nsubscribers to a reciprocal insurer to act for and bind the subscribers\nin all transactions relating to or arising out of the operations of a\nreciprocal insurer, subject to limitations as may be lawfully provided.\n (c) "Books, accounts and records" means all working papers, ledgers,\nand other relevant documents which demonstrate, disclose and support\ntransactions of the reciprocal and each individual subscriber, as\ndistinguished from the attorney-in-fact, and which relate to the\noperations and activities of the reciprocal. The phrase "books, accounts\nand records" shall not mean or include working papers, ledgers, or other\nrelevant documents which relate exclusively to the operation and\nactivities of the attorney-in-fact as a separate entity.\n (d) "Financial interest" means that a person owns, directly or\nindirectly, more than one percent of the outstanding stock in the\nattorney-in-fact, has any outstanding loans from the attorney-in-fact,\nor earns a commission or other compensation as a producer for the\nreciprocal.\n (e) "Material transaction" means a transaction, other than claim\npayments, that involves more than one-half of one percent of the\nreciprocal's admitted assets as of the thirty-first day of December of\nthe prior year.\n (f) "Person" means an individual, partnership, firm, association,\ncorporation, not-for-profit corporation, joint-stock company, trust, any\nsimilar entity, or any combination of the foregoing acting in concert.\n (g) "Subscriber" means a person who has become a member of a\nreciprocal through the execution of a subscriber's agreement.\n (h) "Subscriber's agreement" means a document executed by the\nsubscriber which designates and appoints, through a power of attorney,\nthe attorney-in-fact and, either within the agreement or via a\nmanagement agreement or an appended set of bylaws, that sets forth the\nduties of the attorney-in-fact.\n