§ 6616 — Extraordinary assessments; assessment corporations

New York § 6616

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

Text

§ 6616. Extraordinary assessments; assessment corporations. (a) The\nmembers of every assessment corporation shall be contingently liable for\nextraordinary assessments sufficient to remove any impairment in the\nreserves required by this article.\n (b) Any assessment corporation if issuing policies on but one class of\nproperty, may levy an extraordinary assessment upon all its members in\nproportion to the several amounts of insurance held by each.\n (c) Any assessment corporation if issuing policies on more than one\nclass of property, may levy an extraordinary assessment at rates of\nassessment determined in proportion to the amounts of insurance held by\neach on the basis of classifications adopted by its board of directors\nto express the relative hazards of the properties insured.\n (d) Any assessment corporation if collecting assessments in advance on\nthe initial and anniversary dates of policies may levy an extraordinary\nassessment determined by applying to the assessment earned on the\nmembers' policy or policies in force during the fiscal year next\npreceding the levy of additional assessment, the ratio of the total\nadditional assessment to the total assessment earned during said period\non all policies.\n (e) No extraordinary assessment shall be made by any such assessment\ncorporation until after approval by the superintendent and if made shall\nbe in each case, an amount equal to the members' proportionate share of\nsuch impairment as specified herein.\n (f) Any assessment corporation which levies annual assessments in\nadvance may if its by-laws provide, limit the contingent liability of a\nmember thereof to not less than once the amount of and in addition to\nthe annual assessment which would be charged for insurance for one year.\n