N.Y. Insurance Law § 5906: Security funds and compulsory associations

§ 5906. Security funds and compulsory associations. (a) No risk

retention group shall be required or permitted to join or contribute

financially to any insurance insolvency security fund, or similar

mechanism, in this state, nor shall any risk retention group, or its

insureds or claimants against its insureds receive any benefit from any

such fund for claims arising under the insurance policies issued by such

risk retention group.

(b) When a purchasing group obtains insurance covering its members'

risks from an insurer not authorized in this state or a risk retention

group, no such risks wherever resident or located shall be covered by

any insurance insolvency security fund or similar mechanism in this

state.

(c) The superintendent may require risk retention groups not chartered

in this state to participate, and may exempt domestic risk retention

groups from participation, in any mechanism established or authorized

under the law of this state for the equitable apportionment among

insurers of liability insurance risks or of liability insurance losses

and expenses incurred on policies written through such mechanism, and

such risk retention groups shall submit sufficient information to the

superintendent to enable the superintendent to apportion on a

non-discriminatory basis the risk retention group's proportionate share

of such risks or of such losses and expenses.