This text of New York § 6613 (Limitation of expenses; co-operative property/casualty insurance companies) 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.
§ 6613. Limitation of expenses; co-operative property/casualty\ninsurance companies.
(a)The expenses of management of any co-operative\nproperty/casualty insurance company shall not exceed in any one calendar\nyear forty-two and one-half percent of its net premiums written for such\nyear. The term "net premiums written" means direct premiums written plus\nreinsurance assumed less return premiums and reinsurance ceded. In the\nevent expenses incurred in making a new system upgrade result in this\nsubsection's management expenses limit being exceeded, then the insurer\nshall inform the superintendent sixty days in advance of the expense\nlimit being exceeded. Subject to approval by the superintendent, the\nlimit shall be temporarily raised to the amount necessary to encompass\nthe aforest
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§ 6613. Limitation of expenses; co-operative property/casualty\ninsurance companies. (a) The expenses of management of any co-operative\nproperty/casualty insurance company shall not exceed in any one calendar\nyear forty-two and one-half percent of its net premiums written for such\nyear. The term "net premiums written" means direct premiums written plus\nreinsurance assumed less return premiums and reinsurance ceded. In the\nevent expenses incurred in making a new system upgrade result in this\nsubsection's management expenses limit being exceeded, then the insurer\nshall inform the superintendent sixty days in advance of the expense\nlimit being exceeded. Subject to approval by the superintendent, the\nlimit shall be temporarily raised to the amount necessary to encompass\nthe aforestated new system upgrade, provided that in no event shall the\nlimit be raised more than five percentage points and shall not be in\neffect for more than three years, and provided further that an insurer\nmay submit to the superintendent, for the superintendent's prior\napproval, a written request to temporarily raise the limit for up to an\nadditional three years, for a total of no more than six years. An\ninsurer shall submit such written request to the superintendent at least\nsixty days but not more than one hundred twenty days before the\nexpiration of the initial period during which the limit was raised. The\ninsurer shall not increase premiums solely as a result of the management\nexpenses cap limit being exceeded. For purposes of this subsection, a\nnew system upgrade is defined as the acquisition of electronic data\nprocessing apparatus and related equipment constituting a data\nprocessing, record keeping or accounting system and operating and\nnon-operating software.\n (b) Management expenses shall include all the expenses of such\ncompany, except expenses incurred in the investigation, adjustment and\nsettlement of claims, taxes, fees, expenses of examination, and taxes,\nrepairs, and expenses on real estate.\n (c) This section shall not apply to any assessment corporation which\nis limited to the business permitted under subsection (a) of section six\nthousand six hundred five of this article. Furthermore, the\nsuperintendent may grant an annual exemption from compliance with the\nprovisions of subsection (a) of this section to any co-operative\nproperty/casualty insurance company which, in the next preceding\ncalendar year, had net premiums written of less than three million\ndollars. A written application for such an exemption must be submitted\nby the first day of June in the year for which the exemption is\nrequested and shall contain such information as is deemed necessary by\nthe superintendent.\n