N.Y. Insurance Law § 6602: Classification of insurers; foreign and alien insurers

§ 6602. Classification of insurers; foreign and alien insurers. (a)

Cooperative property/casualty insurance companies operating under or

subject to this article shall be either advance premium co-operative

property/casualty insurance companies or assessment co-operative

property/casualty insurance companies.

(b) (1) "Advance premium corporation" means an advance premium

co-operative property/casualty insurance company which charges premiums

in advance on the basis of applicable provisions of article twenty-three

of this chapter and which maintains unearned premium reserves as

required by section one thousand three hundred five of this chapter and

loss and loss expense reserves as required by section four thousand one

hundred seventeen of this chapter.

(2) "Assessment corporation" means an assessment co-operative

property/casualty insurance company which levies upon its members

regular assessments, the amount of which is determined by giving due

cognizance, along with other relative factors, either to the incurred

liabilities of such insurer, or to its estimated liabilities likely to

become incurred before the next regular assessment, or both, and which

maintains unearned premium reserves as required by section one thousand

three hundred five of this chapter and loss and loss expense reserves as

required by section four thousand one hundred seventeen of this chapter.

(c) No insurer operating under or subject to the provisions of this

article shall do a part of its business on the advance premium plan and

another part on the assessment plan; but this shall not be construed to

affect the contingent liability of members of advance premium

corporations nor to affect the liability of members of assessment

corporations for extraordinary assessments, as hereinafter provided.

(d) No foreign or alien insurer or insurance organization shall be

licensed or permitted to do in this state any kind or kinds of insurance

business specified in this article on the assessment plan, or on any

mutual plan, other than as a mutual property/casualty insurance company

or as a reciprocal insurer as elsewhere provided in this chapter.