N.Y. Insurance Law § 5410: Reimbursement fund

§ 5410. Reimbursement fund. (a) The superintendent shall assess each

member of the association an amount sufficient to provide reimbursement

payments, pursuant to the provisions of section 1223(a)(1) of the

federal Urban Property Protection and Reinsurance Act of 1968, to the

agency of the federal government administering the act in an aggregate

amount not to exceed five per centum of the aggregate property insurance

premiums earned in the state during the preceding calendar year on those

lines of insurance reinsured under such act during the calendar year.

(b) The total amount of any assessment on each such member shall be in

the proportion that the premiums earned during the preceding calendar

year by each such member in this state bear to the aggregate premiums

earned in this state during the preceding calendar year on those lines

of insurance reinsured under the federal act during the current year by

all members of the association. Assessments shall be collectible from

all members on and after the forty-fifth day following receipt of a

claim from the federal agency.

(c) The superintendent shall receive all assessments payable on

account of the claim of the federal agency and make all disbursements in

carrying out this section from the riot reinsurance revolving fund which

is continued. Notwithstanding any other law, rule or regulation

requiring that money received for or on behalf of the state shall be

paid into the state treasury, the superintendent shall deposit the

assessments in a separate bank account or accounts in a trust company or

bank having trust powers within the state. All deposits shall be secured

by obligations of the United States or this state and all banks and

trust companies are authorized to give the same. The monies of the fund

may, at the discretion of the superintendent, be invested in obligations

of or guaranteed by this state or the United States. Any income or

earnings derived from such investments shall be deposited in the fund.

(d) The monies in the fund shall be paid on the order of the

superintendent solely for reimbursement payments as provided in

subsection (a) hereof after any investigation the superintendent deems

appropriate to verify the correctness of the claim. Any balance

remaining shall be retained by the superintendent in the fund and used

only for the purpose of meeting future claims of the federal agency.

(e) The superintendent may at any time require any member to furnish

information he deems necessary to determine if the member has complied

with the provisions of this section.

(f) The comptroller shall have the power and authority to audit the

accruals, the receipts, the payments and the expenditure of all monies

of the fund.