2013 New York Consolidated Laws
ISC - Insurance
Article 61 - (6101 - 6116) RECIPROCAL INSURERS AND LLOYDS UNDERWRITERS
6104 - Qualifications of subscribers.

 
    §   6104.   Qualifications  of  subscribers.  (a)  (1)  No  authorized
  reciprocal insurer shall make any new agreement for insurance containing
  a provision for contingent liability of subscribers with any  subscriber
  who  or  which does not have assets in his, their or its own right in an
  amount not less than fifty thousand dollars in excess of liabilities  as
  shown  by  a  commercial  agency report as hereinafter provided, or by a
  sworn statement on file with  the  attorney-in-fact,  verified  by  such
  subscriber or by an officer of a corporation subscriber.
    (2)  (A)  Before  renewing  a contract of insurance with a subscriber,
  containing a provision for contingent liability of subscribers,  similar
  proof   of   financial  responsibility  shall  be  required  unless  the
  subscriber has accumulated  and  maintains  the  subscriber's  operating
  reserve  required  by  section  six  thousand  one  hundred nine of this
  article.
    (B) The report of an established commercial agency having one  hundred
  thousand or more subscribers shall be deemed presumptive evidence of the
  financial condition of a subscriber.
    (b)  (1)  All  corporations  and  the  directors or any representative
  thereof and all persons, firms or corporations holding property in trust
  may insure the  same  in  reciprocal  insurers  and  by  so  doing  such
  directors,   representatives   or   trustees,  in  their  representative
  capacity, may assume the liabilities and be entitled to the rights of  a
  subscriber of such reciprocal insurer.
    (2)   Such   directors,  representatives  or  trustees  shall  not  be
  personally liable as individuals upon  such  contract  of  insurance  or
  subscriber's agreement.