§ 6620 — Non-assessable policies; advance premium corporations

New York § 6620

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

Text

§ 6620. Non-assessable policies; advance premium corporations. (a) Any\nadvance premium corporation may issue insurance contracts which do not\nimpose any liability upon members for any assessments in addition to the\nadvance premium paid upon compliance with the following requirements:\n (1) If authorized to issue non-assessable policies prior to the first\nday of January, nineteen hundred eighty-seven, such a corporation may\nissue such contracts if:\n (A) It shall have and at all times maintain a surplus to policyholders\nof at least one hundred thousand dollars.\n (B) It shall maintain a deposit of an amount equal to its unearned\npremium reserves but not less than one hundred thousand dollars nor more\nthan two hundred fifty thousand dollars, subject to the provisions of\narticle thirteen of this chapter.\n (2) If authorized to issue non-assessable policies subsequent to the\nfirst day of January, nineteen hundred eighty-seven, such a corporation\nmay issue such contracts if:\n (A) It shall maintain a surplus as determined from its latest filed\nstatement, which together with its unearned premium reserve from its\nlatest filed statement is at least equal to the surplus to policyholders\nrequired to be maintained by a domestic stock property/casualty\ninsurance company licensed to write the same kind or kinds of insurance.\n (B) It shall maintain a deposit of five hundred thousand dollars\nsubject to the provisions of article thirteen of this chapter.\n (C) 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.\n (b) Every policy issued by any such corporation shall clearly state\nwhether or not the holder of the policy is subject to a liability for\nassessment.\n (c) Any surplus or deposit required for the purposes specified in this\nsection shall be inclusive of any surplus required by any other sections\nof this chapter.\n