N.Y. Insurance Law § 7609: Rights of funds against insolvent insurers

§ 7609. Rights of funds against insolvent insurers. (a) The

commissioner as custodian of each of the funds shall be entitled to a

valid claim against an insurer which becomes insolvent or unable to meet

its insurance obligations, or its liquidator, rehabilitator,

conservator, receiver, or trustee in bankruptcy, in an amount equal to

the liabilities, including loss adjustment expenses relating to such

liabilities, of the insurer paid from the fund less the net payments

paid into the fund by such insurer.

(b) All moneys recovered through the prosecution of claims in the

liquidation, rehabilitation or conservation proceeding shall be

forthwith placed to the credit of the appropriate fund by the

commissioner.