§ 7604 — Public motor vehicle liability security fund

§ 7604. Public motor vehicle liability security fund. (a) The purpose\nof the public motor vehicle liability security fund is to secure the\nbenefits contemplated by section three hundred seventy of the vehicle\nand traffic law in those cases where a policy of insurance or corporate\nsurety bond, therein described, of a solvent and responsible insurer is\naccepted by the commissioner of motor vehicles as a compliance with such\nsection. The fund shall be used to pay allowed claims of injured parties\nand policyholders under insurance policies or surety bonds, remaining\nunpaid, in whole or in part, by reason of the insurer's insolvency or\nits inability to meet its insurance obligations (including any\nobligation for the return of unearned premiums) provided the insurer has\nmade payments to the fund as required by subsection (b) hereof.\n (b) (1) Contributions to this fund shall be determined on the basis of\nnet direct written premiums on insurance policies or surety bonds issued\nto meet the requirements of section three hundred seventy of the vehicle\nand traffic law.\n (2) Every insurer issuing such policies or bonds, upon filing its\nquarterly return pursuant to section seven thousand six hundred five of\nthis article, shall pay into the fund three percent of its net direct\nwritten premiums as shown for the period covered by such return.\n