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New York Insurance - Article 52 - § 5207 Assessments Against Members

Legal Research Home > New York Laws > New York Insurance (ISC) > New York Insurance - Article 52 - § 5207 Assessments Against Members

 
    § 5207. Assessments against members. (a) If at any time in the opinion
  of  the  board, the corporation shall require funds for the operation of
  its business, the board shall levy an assessment against the members  of
  the corporation.
    (b) Each member shall be liable to the corporation for that portion of
  the  assessment  which  the  net  direct written premiums written by the
  member, namely the gross direct written premiums less return premiums on
  such direct business, for  policies  insuring  against  legal  liability
  arising out of the ownership, operation or maintenance of motor vehicles
  which  are principally garaged in this state, shall bear to the total or
  aggregate of such net direct premiums written by  all  members  in  this
  state  in the last complete calendar year as shown by the records of the
  superintendent.
    (c) In this section "member" also includes a former member  which  has
  withdrawn  from the state or whose license has been revoked or which has
  been merged into another corporation or has been placed in  liquidation,
  and  such  member  or  its successor shall be liable for all assessments
  under this section based upon premiums written by it in New  York  prior
  to the liquidation, withdrawal, revocation of license or merger.
    (d)  The  assessment  of  self-insurers  under  sections three hundred
  sixteen and three hundred seventy of the vehicle and traffic  law  shall
  be based upon the amount determined by dividing the amount of the annual
  assessment  on  insurers  by the number of insured vehicles for the year
  preceding the determination.

Last modified: February 16, 2012