N.Y. Insurance Law § 7604: Public motor vehicle liability security fund

§ 7604. Public motor vehicle liability security fund. (a) The purpose

of the public motor vehicle liability security fund is to secure the

benefits contemplated by section three hundred seventy of the vehicle

and traffic law in those cases where a policy of insurance or corporate

surety bond, therein described, of a solvent and responsible insurer is

accepted by the commissioner of motor vehicles as a compliance with such

section. The fund shall be used to pay allowed claims of injured parties

and policyholders under insurance policies or surety bonds, remaining

unpaid, in whole or in part, by reason of the insurer's insolvency or

its inability to meet its insurance obligations (including any

obligation for the return of unearned premiums) provided the insurer has

made payments to the fund as required by subsection (b) hereof.

(b) (1) Contributions to this fund shall be determined on the basis of

net direct written premiums on insurance policies or surety bonds issued

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

and traffic law.

(2) Every insurer issuing such policies or bonds, upon filing its

quarterly return pursuant to section seven thousand six hundred five of

this article, shall pay into the fund three percent of its net direct

written premiums as shown for the period covered by such return.