This text of New York § 6108 (Contingent liability; non-assessable policies) is published on Counsel Stack Legal Research, covering New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
§ 6108. Contingent liability; non-assessable policies.
(a)Every\ncontract of insurance and subscriber's agreement under or by which\ncontracts of insurance are issued or exchanged by any authorized\nreciprocal insurer shall provide for a contingent several liability for\nassessment of the subscriber as an inter-insurer on the risks of every\nother subscriber in an amount not less than one nor more than ten times\nthe annual premium and in addition to the annual premium expressed in\nsuch contracts of insurance issued to the subscriber by the reciprocal\ninsurer.\n (b) If the admitted assets of any such insurer are at any time\ninsufficient for the payment of losses and expenses after providing for\nall other liabilities of such insurer and the minimum surplus to\npolicyholders required
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§ 6108. Contingent liability; non-assessable policies. (a) Every\ncontract of insurance and subscriber's agreement under or by which\ncontracts of insurance are issued or exchanged by any authorized\nreciprocal insurer shall provide for a contingent several liability for\nassessment of the subscriber as an inter-insurer on the risks of every\nother subscriber in an amount not less than one nor more than ten times\nthe annual premium and in addition to the annual premium expressed in\nsuch contracts of insurance issued to the subscriber by the reciprocal\ninsurer.\n (b) If the admitted assets of any such insurer are at any time\ninsufficient for the payment of losses and expenses after providing for\nall other liabilities of such insurer and the minimum surplus to\npolicyholders required by this chapter, the advisory committee shall,\nwithin thirty days thereafter, order an assessment for the amount\nnecessary to pay such losses and expenses, and authorize the\nattorney-in-fact to collect from each subscriber liable therefor a pro\nrata share of the amount of such assessment, subject to the limit\nspecified in the contract of such subscriber and to maintain an action\ntherefor in the name of the attorney-in-fact.\n (c) Every policy issued by any such insurer shall clearly state\nwhether or not the holder of the policy is subject to liability for\nassessment. All policies issued by any such insurer which are subject to\nliability for assessment shall contain a clear statement of the\nliability of the policyholder for payment of a proportionate share of\nany deficiency or impairment as provided by law within the limit\nprovided by the policy, and shall further state that any assessment\nshall be for the exclusive benefit of holders of policies which provide\nfor such a contingent liability, and the holders of policies subject to\nassessment shall not be liable to assessment in an amount greater in\nproportion to the total deficiency than the ratio that the deficiency\nattributable to the assessable business bears to the total deficiency.\n (d) Any reciprocal insurer, except a municipal reciprocal insurer\nwhich issues policies not covered by the property/casualty insurance\nsecurity fund, may with the permission of the superintendent issue\nnon-assessable policies or agreements in this state upon compliance with\nthe following requirements:\n (1) It shall have and maintain a surplus to policyholders at least\nequal to one hundred fifty percent of the amount of surplus to\npolicyholders which such insurer is required to maintain by the\nprovisions of section six thousand one hundred two of this article. Such\nsurplus shall be inclusive of any surplus required by any other sections\nof this chapter.\n (2) It shall have submitted a copy of its proposed non-assessable\npolicy or policies for approval of the superintendent, and shall have\nobtained his approval thereof.\n