N.Y. Insurance Law § 6621: Unabsorbed portions of premium payments

§ 6621. Unabsorbed portions of premium payments. (a) Subject to the

requirements of this article for the accumulation and maintenance of

minimum surplus, the surplus of any advance premium corporation shall be

eligible for equitable distribution to its members as unabsorbed

portions of premium payments; but no unabsorbed portion of premium

payments shall be returned or distributed until authorized by the

corporation's board of directors nor until approved by the

superintendent.

(b) In authorizing any such return of unabsorbed portion of premium

payments, the board of directors of such a corporation may provide for

an apportionment thereof among separate groups of members on the basis

of earned premiums equitably classified according to major kinds of

insurance.

(c) This section shall not prohibit the return of the unabsorbed

portion of premium payments on an equitable basis to policyholders in

other states or under reinsurance contracts.