N.Y. Insurance Law § 6610: Limitation of risk

§ 6610. Limitation of risk. (a) Subject to the other provisions of

this section, the maximum amount of insurance less reinsurance in other

authorized insurers or in accredited reinsurers as defined in subsection

(a) of section one hundred seven of this chapter which may be assumed by

a co-operative property/casualty insurance company on a single risk for

every kind of insurance it is authorized to write shall not exceed, in

accordance with section one thousand one hundred fifteen of this

chapter, ten percent of its surplus to policyholders as shown in its

last sworn statement filed with the superintendent.

(b) The maximum amount of insurance less reinsurance in other

authorized insurers or in accredited reinsurers as defined in subsection

(a) of section one hundred seven of this chapter which may be assumed by

an advance premium corporation on property not protected by automatic

sprinklers, situated within the boundaries of one city block or on one

group of buildings composed of attached or adjacent buildings which have

less than sixty feet of clear space at all points between such buildings

and other buildings, shall not exceed ten percent of its surplus to

policyholders as shown in its last sworn statement filed with the

superintendent.

(c) The maximum amount of insurance less reinsurance in other

authorized insurers or in accredited reinsurers as defined in subsection

(a) of section one hundred seven of this chapter which may be assumed by

an assessment corporation on a single risk for the kinds of insurance

listed below shall not exceed three percent of its surplus as shown in

its last sworn statement filed with the superintendent or fourteen

thousand dollars, whichever is greater.

Kinds of insurance specified in the following numbered paragraphs of

subsection (a) of section one thousand one hundred thirteen of this

chapter:

(4) fire insurance;

(5) miscellaneous property insurance (excluding insurance against

windstorm, tornado, cyclone, flood, earthquake or volcanic eruption);

(6) water damage insurance;

(7) burglary and theft insurance;

(8) glass insurance;

(9) boiler and machinery insurance;

(12) collision insurance;

(20) marine and inland marine insurance (inland marine insurance only;

except insurance within paragraph twenty against windstorm, tornado,

cyclone, flood, earthquake or volcanic eruption).

The term "risk" means property which is situate less than sixty feet

from other property except property consisting of or located in a

building of fire resistive construction or fully protected by automatic

sprinklers.

(d) The maximum amount of insurance (including the obligation to pay

outside loss adjustment expense) less reinsurance in other authorized

insurers or accredited reinsurers as defined in subsection (a) of

section one hundred seven of this chapter which may be assumed by an

assessment corporation on a single risk for the kinds of insurance

listed below shall not exceed two percent of its surplus as shown in its

last sworn statement filed with the superintendent.

Kinds of insurance specified in the following numbered paragraphs of

subsection (a) of section one thousand one hundred thirteen of this

chapter:

(13) personal injury liability insurance;

(14) property damage liability insurance;

(15) workers' compensation and employers' liability insurance

(excluding workers' compensation insurance, but not excluding workers'

compensation insurance required by subsection (j) of section three

thousand four hundred twenty of this chapter);

(19) motor vehicle and aircraft physical damage insurance (excluding

aircraft physical damage insurance).

(e) The maximum amount of insurance less reinsurance in other

authorized insurers or in accredited reinsurers as defined in subsection

(a) of section one hundred seven of this chapter which may be assumed by

an assessment corporation on a single risk for insurance against

windstorm, tornado, cyclone, flood, earthquake or volcanic eruption

shall not exceed two percent of its surplus as shown in its last sworn

statement filed with the superintendent, provided however, that the

aggregate amount incurred, after deducting such reinsurance, with

respect to losses due to a single occurrence of such insured peril which

exceeds ten percent of the company's surplus as shown in its last sworn

statement filed with the superintendent shall be reinsured in other

authorized insurers or in accredited reinsurers as defined in subsection

(a) of section one hundred seven of this chapter. The term "single

occurrence" means all losses occasioned by the perils of windstorm,

tornado, cyclone, flood, earthquake or volcanic eruption arising from

the same continuous atmospheric disturbance or other physical

disturbance occurring within a seventy-two hour period.