N.Y. Insurance Law § 6614: Contingent liability of members; advance premium corporations

§ 6614. Contingent liability of members; advance premium corporations.

(a) Any advance premium corporation may limit the contingent liability

of a member thereof to not less than once the amount of, and in addition

to, the premium which would be charged for insurance for one year or the

advance premium stated in the policy, whichever is the lesser.

(b) The contingent liability of a member of an advance premium

corporation shall be subject to enforcement and collection by the

corporation for the purpose of removing any impairment in the reserves

required by this article. Such contingent liability shall apply only to

such impairments which occur during the member's tenure as a

policyholder.

(c) No assessment premised upon the contingent liability of members

shall be made by any such corporation until after approval by the

superintendent and shall, subject in all cases to the limitation

contained in the contracts thereby affected, as to the maximum amount of

such contingent liability, be in each case an amount equal to the

member's proportionate share of such impairment.