2013 New York Consolidated Laws
ISC - Insurance
Article 61 - (6101 - 6116) RECIPROCAL INSURERS AND LLOYDS UNDERWRITERS
6109 - Subscriber's operating reserve.

 
    § 6109. Subscriber's operating reserve. (a) (1) Every subscriber of an
  authorized  reciprocal  insurer  in  which  subscribers  are  subject to
  contingent liability shall accumulate a minimum operating reserve, to be
  credited to such subscriber on the books and records of such  reciprocal
  insurer,  by  authorizing the attorney-in-fact to credit to such account
  at the end of the fiscal year of such reciprocal insurer, an amount  not
  less  than one quarter of such subscriber's underwriting earnings during
  such period.
    (2) Such accumulation shall be  made  so  long  as  such  subscriber's
  operating  reserve  is  less than twice the amount of annual premiums in
  force.
    (3)  Notwithstanding  the  foregoing,  the  superintendent  may,  upon
  application   from  the  attorney-in-fact,  approve  other  methods  for
  accumulating such subscriber's operating reserve.
    (b) Any authorized reciprocal insurer may, pursuant to  the  terms  of
  the  subscriber's  agreement and to any action of its advisory committee
  authorized   thereunder,   require   its   subscribers   to   accumulate
  subscriber's  operating  reserves  in excess of the minimum specified in
  subsection (a) hereof and may require a longer period of notice for  the
  withdrawal  of  all  or  any  part  of  such  reserve  than  that herein
  specified.
    (c) (1) No subscriber shall have a secured or preferred claim  against
  any  assets  of  the  reciprocal  insurer  arising out of such operating
  reserve, but all assets held by such insurer shall be available for  the
  payment  of  claims  of  policyholders  and creditors of such reciprocal
  insurer in preference to any claim for withdrawal  by  a  subscriber  as
  such.
    (2)  Any  subscriber's  operating  reserve  accumulated  by  any  such
  reciprocal insurer shall be maintained  at  all  times,  except  that  a
  subscriber  may, upon withdrawal from membership and cancellation of all
  insurance contracts held by him in such insurer, and after giving to the
  attorney-in-fact written notice of withdrawal at  least  sixty  days  in
  advance,  withdraw  the  amount  of  his  operating  reserve  less  such
  surrender charges as  may  be  deducted  pursuant  to  the  subscriber's
  agreement.
    (3)   No  such  withdrawal  shall  be  permitted  after  an  order  of
  liquidation of, or the appointment of a receiver or liquidating  trustee
  for, any such reciprocal insurer.