N.Y. Insurance Law § 6616: Extraordinary assessments; assessment corporations

§ 6616. Extraordinary assessments; assessment corporations. (a) The

members of every assessment corporation shall be contingently liable for

extraordinary assessments sufficient to remove any impairment in the

reserves required by this article.

(b) Any assessment corporation if issuing policies on but one class of

property, may levy an extraordinary assessment upon all its members in

proportion to the several amounts of insurance held by each.

(c) Any assessment corporation if issuing policies on more than one

class of property, may levy an extraordinary assessment at rates of

assessment determined in proportion to the amounts of insurance held by

each on the basis of classifications adopted by its board of directors

to express the relative hazards of the properties insured.

(d) Any assessment corporation if collecting assessments in advance on

the initial and anniversary dates of policies may levy an extraordinary

assessment determined by applying to the assessment earned on the

members' policy or policies in force during the fiscal year next

preceding the levy of additional assessment, the ratio of the total

additional assessment to the total assessment earned during said period

on all policies.

(e) No extraordinary assessment shall be made by any such assessment

corporation until after approval by the superintendent and if made shall

be in each case, an amount equal to the members' proportionate share of

such impairment as specified herein.

(f) Any assessment corporation which levies annual assessments in

advance may if its by-laws provide, limit the contingent liability of a

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

the annual assessment which would be charged for insurance for one year.