N.Y. Insurance Law § 6105: Licensing

§ 6105. Licensing. (a) No person, firm, corporation or association as

an underwriter or underwriters, and no reciprocal insurer, shall do any

insurance business in this state, nor shall any person, firm,

corporation or association as attorney-in-fact or other representative

of any reciprocal insurer do or cause to be done within this state any

act which effects, aids or promotes the doing of an insurance business

in this state by any reciprocal insurer, unless authorized so to do

pursuant to the provisions of this article.

(b) Every license to do an insurance business issued by the

superintendent to any reciprocal insurer pursuant to the provisions of

this article shall specify its name, the location of its principal

office, the name and principal address of its attorney-in-fact, and the

kind or kinds of insurance business, specified in terms of subsection

(a) of section one thousand one hundred thirteen of this chapter, which

it is authorized to do in this state.

(c) No person shall act in the capacity of an attorney-in-fact for a

subscriber whose risk is located in this state or for a reciprocal

licensed to do business in this state, unless such person is authorized

as such by the superintendent.

(d) The superintendent may require the attorney-in-fact, or any person

to which its functions, in whole or in part, have been delegated, unless

wholly owned or controlled by the reciprocal to:

(1) provide a bond issued by an insurer and in an amount acceptable to

the superintendent for the protection of the subscribers to the

reciprocal; and

(2) maintain an errors and omissions policy, providing coverage in an

amount and issued by an insurer acceptable to the superintendent.

(e) The attorney-in-fact authorized as such pursuant to subsection (c)

of this section shall not, merely by virtue of such authorization, be

thereby deemed to be doing business in this state within the meaning of

any laws of this state applicable to general business corporations.

(f) An attorney-in-fact of a reciprocal insurer licensed in this state

shall, on or before June first of each year, file with the

superintendent an audited financial report of its financial condition

and the results of its operations as related to its management of the

reciprocal, covering the previous calendar year, prepared in accordance

with generally accepted accounting principles by an independent

certified public accountant who certified to the reciprocal's annual

statement pursuant to section three hundred seven of this chapter. In

lieu of such a report, an attorney-in-fact of a foreign reciprocal who

is an individual, shall file a statement prepared by such independent

certified public accountant stating that its audit of the reciprocal

discloses any direct or indirect compensation or benefit paid by the

reciprocal to the attorney-in-fact. The report or statement filed

pursuant to this subsection shall be a confidential document, not

subject to disclosure pursuant to this chapter or article six of the

public officers law.

(g) An attorney-in-fact of a reciprocal licensed in this state shall

submit to examination by order of the superintendent for the purposes of

determining compliance with this article and all other relevant

provisions of this chapter relating to the operations of the reciprocal

or its attorney-in-fact, which the superintendent determines (as

specified in the order) cannot be obtained by examination of the

reciprocal. The cost of the examination shall be assessed against the

attorney-in-fact and no portion thereof shall be reimbursed directly or

indirectly by the reciprocal or its subscribers.

(h) The advisory committee shall meet at least annually and shall

consist of at least nine individuals elected by the subscribers, at

least two-thirds of whom are subscribers or officers or directors of

subscribers and, except for a municipal reciprocal or a reciprocal which

wholly owns its attorney-in-fact, not more than one-third of whom may

be:

(1) the attorney-in-fact; or

(2) an employee, officer, director, or affiliate of the

attorney-in-fact; or

(3) any person having a financial interest in the attorney-in-fact; or

(4) any person representing any of the foregoing.

(i) Members of the advisory committee may be elected and re-elected to

a term of office of not less than one year nor more than four years, and

terms may be staggered to provide for continuity.

(j) The chair of the advisory committee of a domestic reciprocal, who

shall not be any of those persons enumerated in paragraphs one through

four of subsection (h) of this section, shall be elected by the other

members of the committee and the committee of a domestic reciprocal

shall adopt rules consistent with its purposes, as approved by the

superintendent.

(k) Special meetings of the advisory committee may be called by the

attorney-in-fact, the chair of the committee, any three members of the

committee, or a signed petition of at least one percent of the

subscribers as of the most recent annual report of the reciprocal.