2019 New York Laws
ISC - Insurance
Article 61 - Reciprocal Insurers and Lloyds Underwriters
6111 - Assets, Liabilities and Surplus.

§  6111. Assets, liabilities and surplus. (a) All of the assets of any
reciprocal insurer including subscribers' operating  reserves  shall  be
liable  primarily  for  payment  of  all  liabilities incurred under its
policies or other contracts.
  (b) No part of the surplus funds of such reciprocal insurer  shall  be
subject  to  the  claims  of  general creditors of any of the individual
subscribers of such insurer until all  policies  under  which  any  such
subscriber  is obligated have been terminated and in no event beyond the
amount of such subscriber's operating reserve.
  (c) The contingent liability of subscribers for additional premiums or
assessments shall not be included as an asset in the financial statement
of a reciprocal insurer.
  (d) Subscribers' operating reserves for which notice of withdrawal has
been given shall be reported as liabilities until paid.
  (e) In any statement  or  report  of  the  financial  condition  of  a
reciprocal  insurer  filed  in this state, the surplus to policyholders,
after providing for the unearned premium  reserves,  loss  reserves  and
other  liabilities,  as  required  by this chapter, shall be reported as
follows:
  (1) special contingent surplus;
  (2) subscribers' operating reserves, if required;
  (3) all other surplus, if any.
  (f) Unless the reciprocal is subject  to  the  provisions  of  article
fifteen  of  this  chapter  or  substantially similar legislation in its
state of domicile,  all  material  transactions  between  or  among  the
reciprocal,  its  subscribers, the attorney-in-fact and any affiliate of
the attorney-in-fact shall not be entered into, unless  they  have  been
filed with the superintendent at least thirty days prior thereto and the
superintendent  has  not  disapproved  them; provided, however, that any
such transaction involving five percent  or  more  of  the  reciprocal's
admitted assets shall be subject to prior approval of the superintendent
and all transactions shall meet the following standards:
  (1) The terms shall be fair and equitable;
  (2) Charges or fees for services performed shall be reasonable; and
  (3)  Expenses incurred and payments received shall be allocated to the
reciprocal on an equitable basis in conformity with statutory  insurance
accounting practices consistently applied.