N.Y. Insurance Law § 5402: Joint underwriting association

§ 5402. Joint underwriting association. (a) The joint underwriting

association known as the New York property insurance underwriting

association is continued, consisting of all insurers authorized to write

and engaged in writing within this state, on a direct basis, fire and

extended coverage insurance, including insurers covering such perils in

homeowners and commercial multiple peril package policies but excluding

assessment cooperative fire insurance companies transacting business

pursuant to article sixty-six of this chapter. Every such insurer shall

be and remain a member of the association as a condition of its

authority to continue to transact fire, extended coverage and homeowners

insurance in this state.

(b) The association shall be governed by a board of thirteen

directors, ten of whom shall be elected annually by cumulative voting by

the members of the association, whose votes in such election shall be

weighted in accordance with each member's net direct premiums written

during the preceding calendar year. The remaining three directors shall

be appointed annually by the superintendent and be duly licensed

insurance agents or brokers representative of broad segments of the

public obtaining insurance through the association.

(c) The association shall, pursuant to the provisions of this article

and the plan of operation and with respect to fire insurance, extended

coverage, broad form coverage issued pursuant to subsection (g) of this

section, coverage for additional perils, and homeowners insurance should

the same be made available through the association in accordance with a

determination of necessity made by the superintendent pursuant to

section five thousand four hundred twelve of this article on insurable

property, have the power on behalf of its members:

(i) to cause policies of insurance to be issued to applicants;

(ii) to assume reinsurance from its members; and

(iii) to cede reinsurance.

(d) The association shall adhere to a plan of operation, consistent

with the provisions of this article, approved by the superintendent

after consultation with affected individuals and organizations. The plan

shall provide for economical, fair and non-discriminatory administration

and prompt and efficient provision of fire, extended coverage, broad

form coverage pursuant to subsection (g) of this section and homeowners

insurance, when a determination of necessity is made by the

superintendent pursuant to section five thousand four hundred twelve of

this article to promote orderly community development. It shall contain

other matters including, but not limited to, provision for necessary

facilities; management of the association; assessment of members to

defray losses and expenses; commission arrangements; reasonable and

objective underwriting standards; acceptance and cession of reinsurance

and procedures for determining amounts of insurance to be provided by

the association. The amounts shall not be in excess of one million five

hundred thousand dollars for the insurable real property or the tangible

personal property thereon.

(e) The directors of the association may, on their own initiative or

at the request of the superintendent, amend the plan subject to approval

by the superintendent.

(f) The association shall offer homeowners insurance, as defined in

subsection (h) of section five thousand four hundred one of this article

upon a determination of necessity having been made by the superintendent

pursuant to section five thousand four hundred twelve of this article.

(g) In addition to fire insurance, extended coverage, coverage for

additional perils and homeowners insurance should the same be made

available through the association in accordance with a determination of

necessity pursuant to section five thousand four hundred twelve of this

article, the association may offer broad form coverage to applicants

seeking to insure real property at fixed locations of this state, or the

tangible personal property located thereon. The association may offer

broad form coverage until June thirtieth, two thousand twenty-eight. On

or before October first, two thousand twenty-seven the superintendent

shall require the association to report to the superintendent as to the

number of policies written pursuant to this subsection and paragraph

three of subsection (f) of section five thousand four hundred five of

this article, and any other information the superintendent may require.

On or before January first, two thousand twenty-eight, the

superintendent shall report to the governor and the legislature

regarding the number of policies issued pursuant to this section and

such paragraph and shall include recommendations as to the continuation

of such insurance offerings.

(i) Not less than once every thirty days, the association shall report

to the superintendent, the speaker of the assembly, and the temporary

president of the senate on the number, location and type of policies

written through a coastal market assistance program.