N.Y. Insurance Law § 6620: Non-assessable policies; advance premium corporations

§ 6620. Non-assessable policies; advance premium corporations. (a) Any

advance premium corporation may issue insurance contracts which do not

impose any liability upon members for any assessments in addition to the

advance premium paid upon compliance with the following requirements:

(1) If authorized to issue non-assessable policies prior to the first

day of January, nineteen hundred eighty-seven, such a corporation may

issue such contracts if:

(A) It shall have and at all times maintain a surplus to policyholders

of at least one hundred thousand dollars.

(B) It shall maintain a deposit of an amount equal to its unearned

premium reserves but not less than one hundred thousand dollars nor more

than two hundred fifty thousand dollars, subject to the provisions of

article thirteen of this chapter.

(2) If authorized to issue non-assessable policies subsequent to the

first day of January, nineteen hundred eighty-seven, such a corporation

may issue such contracts if:

(A) It shall maintain a surplus as determined from its latest filed

statement, which together with its unearned premium reserve from its

latest filed statement is at least equal to the surplus to policyholders

required to be maintained by a domestic stock property/casualty

insurance company licensed to write the same kind or kinds of insurance.

(B) It shall maintain a deposit of five hundred thousand dollars

subject to the provisions of article thirteen of this chapter.

(C) It shall have submitted a copy of its proposed non-assessable

policy or policies for approval of the superintendent, and shall have

obtained his approval.

(b) Every policy issued by any such corporation shall clearly state

whether or not the holder of the policy is subject to a liability for

assessment.

(c) Any surplus or deposit required for the purposes specified in this

section shall be inclusive of any surplus required by any other sections

of this chapter.