N.Y. Insurance Law § 6112: Subscribers' accounts

§ 6112. Subscribers' accounts. (a) The attorney-in-fact, in addition

to the books of account of the collective transactions of all

subscribers of the reciprocal insurer, shall keep and maintain a

separate account for each individual subscriber setting forth the

entries determining the operating reserve, if any, of such subscriber.

(b) Each subscriber's account shall be credited with the premiums

earned by him as an underwriter on the policies issued by the insurer,

and charged with his proper share of all losses incurred under such

policies as well as with the expenses incurred by the insurer.

(c) Earnings and interest income from investments of all subscribers'

operating reserves shall be apportioned and credited to subscribers on

the basis of their accumulated operating reserves and all other interest

and investment income may be apportioned and credited to the subscribers

on the basis of their premiums earned as underwriters.

(d) The subscriber's agreement of an authorized reciprocal insurer may

with the permission of the superintendent contain provisions which

modify the credits, charges and apportionments to the subscribers'

account, as required by subsections (b) and (c) of this section.