This text of New York § 6615 (Annual assessments; borrowed money) 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.
§ 6615. Annual assessments; borrowed money.
(a)(1) Every assessment\ncorporation may, if so directed by its board of directors levy an\nassessment upon all of its members. Such assessment shall be sufficient\nto provide for the payment of losses, expenses, and other obligations,\nincurred, or likely to be incurred during the fiscal year for which the\nassessment is levied.\n (2) If issuing policies on but one class of property, such assessment\nshall be in proportion to the several amounts of insurance held by each\nmember.\n (3) If issuing policies on more than one class of property, rates of\nassessment shall be in proportion to the several amounts of insurance\nheld by each member and on the basis of classifications adopted by its\nboard of directors to express the relative hazards
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§ 6615. Annual assessments; borrowed money. (a) (1) Every assessment\ncorporation may, if so directed by its board of directors levy an\nassessment upon all of its members. Such assessment shall be sufficient\nto provide for the payment of losses, expenses, and other obligations,\nincurred, or likely to be incurred during the fiscal year for which the\nassessment is levied.\n (2) If issuing policies on but one class of property, such assessment\nshall be in proportion to the several amounts of insurance held by each\nmember.\n (3) If issuing policies on more than one class of property, rates of\nassessment shall be in proportion to the several amounts of insurance\nheld by each member and on the basis of classifications adopted by its\nboard of directors to express the relative hazards of the properties\ninsured.\n (b) (1) Every such corporation may borrow money, except by means of a\nmortgage, to pay incurred losses and expenses; but in the calculation of\nits next assessment following the time, or times, at which such a loan\nor loans were effected, due provision shall be made for the liquidation\nof such loan or loans.\n (2) An assessment corporation may borrow money for a period of more\nthan one year with the written approval of the superintendent and under\nsuch conditions as he may prescribe.\n (c) (1) Every such corporation may levy annual assessments in advance\nsufficient to discharge its estimated losses, expenses, and other valid\nobligations for which it may reasonably be expected to become liable\nduring the period prior to the end of its fiscal year.\n (2) At any time after the institution of such assessments, new members\nmay be admitted to any such corporation upon paying such fees and other\nsums as may be provided for by the corporation's by-laws and upon paying\ntheir proportionate shares of the last preceding assessment.\n (d) On and after the effective date of any change from the post\nassessment basis to the advance assessment basis as permitted herein,\nevery assessment corporation may collect advance assessments, as herein\nprovided, from each person applying for or renewing a policy or policies\nand only those persons who were admitted as new members during the\nperiod prior to such effective date and subsequent to the levying of the\nfinal post assessment shall be assessed on a pro rata basis for the\nlosses, expenses, and other valid obligations incurred during such\nperiod.\n