2012 New York Consolidated Laws
ISC - Insurance
Article 54 - (5401 - 5414) NEW YORK PROPERTY INSURANCE UNDERWRITING ASSOCIATION
5410 - Reimbursement fund.

 
    §  5410.  Reimbursement fund. (a) The superintendent shall assess each
  member of the association an amount sufficient to provide  reimbursement
  payments,  pursuant  to  the  provisions  of  section  1223(a)(1) of the
  federal Urban Property Protection and Reinsurance Act of  1968,  to  the
  agency  of  the federal government administering the act in an aggregate
  amount not to exceed five per centum of the aggregate property insurance
  premiums earned in the state during the preceding calendar year on those
  lines of insurance reinsured under such act during the calendar year.
    (b) The total amount of any assessment on each such member shall be in
  the proportion that the premiums earned during  the  preceding  calendar
  year  by  each  such member in this state bear to the aggregate premiums
  earned in this state during the preceding calendar year on  those  lines
  of  insurance reinsured under the federal act during the current year by
  all members of the association. Assessments shall  be  collectible  from
  all  members  on  and  after  the forty-fifth day following receipt of a
  claim from the federal agency.
    (c) The  superintendent  shall  receive  all  assessments  payable  on
  account of the claim of the federal agency and make all disbursements in
  carrying out this section from the riot reinsurance revolving fund which
  is   continued.  Notwithstanding  any  other  law,  rule  or  regulation
  requiring that money received for or on behalf of  the  state  shall  be
  paid  into  the  state  treasury,  the  superintendent shall deposit the
  assessments in a separate bank account or accounts in a trust company or
  bank having trust powers within the state. All deposits shall be secured
  by obligations of the United States or this  state  and  all  banks  and
  trust  companies are authorized to give the same. The monies of the fund
  may, at the discretion of the superintendent, be invested in obligations
  of or guaranteed by this state or  the  United  States.  Any  income  or
  earnings derived from such investments shall be deposited in the fund.
    (d)  The  monies  in  the  fund  shall  be  paid  on  the order of the
  superintendent  solely  for  reimbursement  payments  as   provided   in
  subsection  (a)  hereof after any investigation the superintendent deems
  appropriate  to  verify  the  correctness  of  the  claim.  Any  balance
  remaining  shall  be retained by the superintendent in the fund and used
  only for the purpose of meeting future claims of the federal agency.
    (e) The superintendent may at any time require any member  to  furnish
  information  he  deems necessary to determine if the member has complied
  with the provisions of this section.
    (f) The comptroller shall have the power and authority  to  audit  the
  accruals,  the  receipts, the payments and the expenditure of all monies
  of the fund.