2013 New York Consolidated Laws
ISC - Insurance
Article 61 - (6101 - 6116) RECIPROCAL INSURERS AND LLOYDS UNDERWRITERS
6105 - Licensing.

 
    §  6105. Licensing. (a) No person, firm, corporation or association as
  an underwriter or underwriters, and no reciprocal insurer, shall do  any
  insurance   business   in  this  state,  nor  shall  any  person,  firm,
  corporation or association as attorney-in-fact or  other  representative
  of  any  reciprocal insurer do or cause to be done within this state any
  act which effects, aids or promotes the doing of an  insurance  business
  in  this  state  by  any  reciprocal insurer, unless authorized so to do
  pursuant to the provisions of this article.
    (b)  Every  license  to  do  an  insurance  business  issued  by   the
  superintendent  to  any reciprocal insurer pursuant to the provisions of
  this article shall specify its  name,  the  location  of  its  principal
  office,  the name and principal address of its attorney-in-fact, and the
  kind or kinds of insurance business, specified in  terms  of  subsection
  (a)  of section one thousand one hundred thirteen of this chapter, which
  it is authorized to do in this state.
    (c) No person shall act in the capacity of an attorney-in-fact  for  a
  subscriber  whose  risk  is  located  in  this state or for a reciprocal
  licensed to do business in this state, unless such person is  authorized
  as such by the superintendent.
    (d) The superintendent may require the attorney-in-fact, or any person
  to which its functions, in whole or in part, have been delegated, unless
  wholly owned or controlled by the reciprocal to:
    (1) provide a bond issued by an insurer and in an amount acceptable to
  the  superintendent  for  the  protection  of  the  subscribers  to  the
  reciprocal; and
    (2) maintain an errors and omissions policy, providing coverage in  an
  amount and issued by an insurer acceptable to the superintendent.
    (e) The attorney-in-fact authorized as such pursuant to subsection (c)
  of  this  section  shall not, merely by virtue of such authorization, be
  thereby deemed to be doing business in this state within the meaning  of
  any laws of this state applicable to general business corporations.
    (f) An attorney-in-fact of a reciprocal insurer licensed in this state
  shall,   on   or   before  June  first  of  each  year,  file  with  the
  superintendent an audited financial report of  its  financial  condition
  and  the  results  of its operations as related to its management of the
  reciprocal, covering the previous calendar year, prepared in  accordance
  with   generally   accepted  accounting  principles  by  an  independent
  certified public accountant who certified  to  the  reciprocal's  annual
  statement  pursuant  to section three hundred seven of this chapter.  In
  lieu of such a report, an attorney-in-fact of a foreign  reciprocal  who
  is  an  individual,  shall file a statement prepared by such independent
  certified public accountant stating that its  audit  of  the  reciprocal
  discloses  any  direct  or  indirect compensation or benefit paid by the
  reciprocal to the attorney-in-fact.    The  report  or  statement  filed
  pursuant  to  this  subsection  shall  be  a  confidential document, not
  subject to disclosure pursuant to this chapter or  article  six  of  the
  public officers law.
    (g)  An  attorney-in-fact of a reciprocal licensed in this state shall
  submit to examination by order of the superintendent for the purposes of
  determining  compliance  with  this  article  and  all  other   relevant
  provisions  of this chapter relating to the operations of the reciprocal
  or  its  attorney-in-fact,  which  the  superintendent  determines   (as
  specified  in  the  order)  cannot  be  obtained  by  examination of the
  reciprocal. The cost of the examination shall be  assessed  against  the
  attorney-in-fact  and no portion thereof shall be reimbursed directly or
  indirectly by the reciprocal or its subscribers.
    (h) The advisory committee shall meet  at  least  annually  and  shall
  consist  of  at  least  nine  individuals elected by the subscribers, at

  least two-thirds of whom are subscribers or  officers  or  directors  of
  subscribers and, except for a municipal reciprocal or a reciprocal which
  wholly  owns  its  attorney-in-fact, not more than one-third of whom may
  be:
    (1) the attorney-in-fact; or
    (2)   an   employee,   officer,   director,   or   affiliate   of  the
  attorney-in-fact; or
    (3) any person having a financial interest in the attorney-in-fact; or
    (4) any person representing any of the foregoing.
    (i) Members of the advisory committee may be elected and re-elected to
  a term of office of not less than one year nor more than four years, and
  terms may be staggered to provide for continuity.
    (j) The chair of the advisory committee of a domestic reciprocal,  who
  shall  not  be any of those persons enumerated in paragraphs one through
  four of subsection (h) of this section,  shall be elected by  the  other
  members  of  the  committee  and  the committee of a domestic reciprocal
  shall adopt rules consistent with  its  purposes,  as  approved  by  the
  superintendent.
    (k)  Special  meetings  of the advisory committee may be called by the
  attorney-in-fact, the chair of the committee, any three members  of  the
  committee,  or  a  signed  petition  of  at  least  one  percent  of the
  subscribers as of the most recent annual report of the reciprocal.