N.Y. Insurance Law § 5507: Participation

§ 5507. Participation. (a) Every member of the association shall

participate in its writings, expenses, servicing allowance, management

fees and losses in the proportion that the net direct premiums of the

member (excluding that portion of premiums attributable to the operation

of the association) written during the preceding calendar year bears to

the aggregate net direct premiums written in this state by all members

of the association. Each member's participation in the association shall

be determined annually on the basis of such net direct premiums written

during the preceding calendar year, as reported in the annual statements

and other reports filed by the member with the superintendent.

(b) In the event that sufficient funds are not available for the

payment of losses and expenses incurred under policies issued by the

association, the board of directors may require all members to

contribute, on a temporary basis pending recoupment as provided in

subsection (c) of this section, to the financial requirements of the

association in the manner provided for in subsection (a) of this

section.

(c) Any contribution made by members pursuant to subsection (b) of

this section shall be reimbursed to them by payment from the

stabilization reserve fund pursuant to the plan of operation.