N.Y. Insurance Law § 6104: Qualifications of subscribers

§ 6104. Qualifications of subscribers. (a) (1) No authorized

reciprocal insurer shall make any new agreement for insurance containing

a provision for contingent liability of subscribers with any subscriber

who or which does not have assets in his, their or its own right in an

amount not less than fifty thousand dollars in excess of liabilities as

shown by a commercial agency report as hereinafter provided, or by a

sworn statement on file with the attorney-in-fact, verified by such

subscriber or by an officer of a corporation subscriber.

(2) (A) Before renewing a contract of insurance with a subscriber,

containing a provision for contingent liability of subscribers, similar

proof of financial responsibility shall be required unless the

subscriber has accumulated and maintains the subscriber's operating

reserve required by section six thousand one hundred nine of this

article.

(B) The report of an established commercial agency having one hundred

thousand or more subscribers shall be deemed presumptive evidence of the

financial condition of a subscriber.

(b) (1) All corporations and the directors or any representative

thereof and all persons, firms or corporations holding property in trust

may insure the same in reciprocal insurers and by so doing such

directors, representatives or trustees, in their representative

capacity, may assume the liabilities and be entitled to the rights of a

subscriber of such reciprocal insurer.

(2) Such directors, representatives or trustees shall not be

personally liable as individuals upon such contract of insurance or

subscriber's agreement.