N.Y. Insurance Law § 7602: Definitions

§ 7602. Definitions. In this article, unless the context or subject

matter otherwise requires:

(a) "Fund" means either the property/casualty insurance security fund

or the public motor vehicle liability security fund.

(b) "Fund year" means the calendar year.

(c) "Insurer" means any insurer (other than an insolvent insurer, or a

municipal reciprocal insurer which issues policies not covered by the

property/casualty insurance security fund, or a risk retention group as

defined in article fifty-nine of this chapter, or a provider of service

contracts pursuant to article seventy-nine of this chapter) authorized

to transact the kinds of business specified in paragraphs four through

fourteen, sixteen, seventeen, nineteen through twenty-one of subsection

(a) of section one thousand one hundred thirteen of this chapter.

(d) "Policy" means a policy issued by an insurer authorized to do

business in this state, including a policy or surety bond filed pursuant

to article six or seven of the vehicle and traffic law, insuring against

legal liability arising out of the ownership, operation or maintenance

of motor vehicles, including surety bonds or insurance policies issued

to meet the requirements of section three hundred seventy of the vehicle

and traffic law.

(e) "Net direct written premiums" means direct gross premiums written

on policies subject to this article, insuring:

(1) property or risks located or resident in this state,

(2) legal liability arising out of the ownership, operation or

maintenance of motor vehicles which are principally garaged in this

state, less return premiums thereon and dividends paid to policyholders

on such direct business.

For the purposes of this article premiums written by any authorized

insurer on policies issued to self insurers, whether or not designated

as reinsurance contracts, shall be deemed "net direct written premiums".

(f) "Motor vehicle accident" means either an accident occurring within

or without this state arising out of the ownership, operation or

maintenance of a motor vehicle which is principally garaged in this

state or an accident occurring within this state arising out of the

ownership, operation or maintenance of a motor vehicle which is not

principally garaged in this state.

(g) "Allowed claim" means a claim that has been allowed by the

superintendent in a proceeding under article seventy-four of this

chapter or, if such claim exceeds twenty-five thousand dollars, has been

allowed by the court in a proceeding under article seventy-four of this

chapter, and which is based upon:

(1) a policy insuring property or risks located or resident in this

state, or

(2) a policy issued in this state to a resident of this state insuring

property or risks, located or resident outside this state but within the

United States, its possessions and territories, and Canada, provided

that, with respect to policies covered under this paragraph:

(A) irrespective of the amount of claim that has been allowed, no

person shall recover any amount from this fund until such person has

exhausted all rights of recovery from any security fund, guaranty

association, or the equivalent in the jurisdiction where such property

or risks are located or resident; and, thereafter, such person's

recovery from this fund, when combined with amounts recovered or

recoverable from any other security fund, guaranty association, or the

equivalent in such jurisdiction, shall not exceed the maximum limit

available to a qualified claimant for a recovery solely from such other

security fund, guaranty association, or the equivalent; and

(B) the aggregate limit for all claims arising out of any one policy,

excluding claims with respect to property or risks located or resident

in this state, shall not exceed the lesser of the aggregate limit of the

policy or five million dollars.

(h) "Injured party claim" means a claim of a person, other than a

policyholder or assured, who suffered an injury to his person or

property arising out of an insured incident within the coverage of the

policy.

(i) "Policyholder claim" means a claim of a policyholder or assured

within the coverage of the policy, wherein such person suffered loss or

damage under the coverage of the policy or where such person has paid an

injured party claim, subject to allowance of such policyholder claim in

a proceeding under article seventy-four of this chapter.

(j) "Commissioner" means the commissioner of taxation and finance of

this state.