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2017 New York Laws
ISC - Insurance
Article 66 - Co-Operative Property/casualty Insurance Companies
6620 - Non-Assessable Policies; Advance Premium Corporations.

Universal Citation: NY Ins L § 6620 (2017)
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 6620. Non-assessable policies; advance premium corporations. (a) Any
  advance  premium  corporation may issue insurance contracts which do not
  impose any liability upon members for any assessments in addition to the
  advance premium paid upon compliance with the following requirements:

(1) If authorized to issue non-assessable policies prior to the  first
  day  of  January,  nineteen hundred eighty-seven, such a corporation may
  issue such contracts if:

(A) It shall have and at all times maintain a surplus to policyholders
  of at least one hundred thousand dollars.

(B) It shall maintain a deposit of an amount  equal  to  its  unearned
  premium reserves but not less than one hundred thousand dollars nor more
  than  two  hundred  fifty thousand dollars, subject to the provisions of
  article thirteen of this chapter.

(2) If authorized to issue non-assessable policies subsequent  to  the
  first  day of January, nineteen hundred eighty-seven, such a corporation
  may issue such contracts if:

(A) It shall maintain a surplus as determined from  its  latest  filed
  statement,  which  together  with  its unearned premium reserve from its
  latest filed statement is at least equal to the surplus to policyholders
  required  to  be  maintained  by  a  domestic  stock   property/casualty
  insurance company licensed to write the same kind or kinds of insurance.

(B)  It  shall  maintain  a  deposit  of five hundred thousand dollars
  subject to the provisions of article thirteen of this chapter.

(C) It shall have submitted a  copy  of  its  proposed  non-assessable
  policy  or  policies  for approval of the superintendent, and shall have
  obtained his approval.

(b) Every policy issued by any such corporation  shall  clearly  state
  whether  or  not  the holder of the policy is subject to a liability for
  assessment.

(c) Any surplus or deposit required for the purposes specified in this
  section shall be inclusive of any surplus required by any other sections
  of this chapter.

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