§ 6614 — Contingent liability of members; advance premium corporations

New York § 6614

• Jurisdiction: New York
• Law ISC: Insurance
• Art. 66: Co-operative Property/casualty Insurance Companies

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§ 6614. Contingent liability of members; advance premium corporations.\n(a) Any advance premium corporation may limit the contingent liability\nof a member thereof to not less than once the amount of, and in addition\nto, the premium which would be charged for insurance for one year or the\nadvance premium stated in the policy, whichever is the lesser.\n (b) The contingent liability of a member of an advance premium\ncorporation shall be subject to enforcement and collection by the\ncorporation for the purpose of removing any impairment in the reserves\nrequired by this article. Such contingent liability shall apply only to\nsuch impairments which occur during the member's tenure as a\npolicyholder.\n (c) No assessment premised upon the contingent liability of members\nshall be made by any such corporation until after approval by the\nsuperintendent and shall, subject in all cases to the limitation\ncontained in the contracts thereby affected, as to the maximum amount of\nsuch contingent liability, be in each case an amount equal to the\nmember's proportionate share of such impairment.\n