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§7603
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§7603 . Property/casualty insurance security fund.
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§7603(a)
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(a)
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§7603(a)(1)
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(1) The property/casualty insurance security fund shall be used in the payment of allowed claims remaining unpaid, in whole or in part, by reason of the inability due to insolvency of an authorized insurer to meet its insurance obligations under policies:
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§7603(a)(1)(A)
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(A) on account of claims from motor vehicle accidents as defined in subsection §7602(f) of this article,
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§7603(a)(1)(B)
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(B) for all of the kinds of insurance specified in paragraphs 4 through 14, 16, 19 through 21, 24 and subparagraphs §1113(a)(26)(A) and §1113(a)(26)(B) of this chapter with respect to coverage of property or risks located or resident in this state, or outside this state but within the United States, its possessions and territories, and Canada,
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§7603(a)(1)(C)
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(C) for the kind of insurance providing disability benefits pursuant to article 9 of the workers' compensation law issued by an authorized insurer licensed under article 41, 61 or 66 of this chapter with respect to coverage of risks located or resident in this state,
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§7603(a)(1)(D)
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(D) in the kind of insurance providing workers' compensation insurance pursuant to subsection §3420(j) of this chapter,
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§7603(a)(1)(E)
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(E) for the insurance provided by the medical malpractice insurance association,
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§7603(a)(1)(F)
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(F) for the insurance provided pursuant to subdivision 2- a §76 of the workers' compensation law if and when operative,
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§7603(a)(1)(G)
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(G) for the kinds of credit insurance as defined in subparagraphs §1113(a)(17)(B) and §1113(a)(17)(C) of this chapter, and
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§7603(a)(1)(H)
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(H) any obligation for the return of unearned premiums on any policy specified in (sub¶ (A)) , (sub¶ (B)) , (sub¶ (C)) , (sub¶ (D)) , (sub¶ (E)) , (sub¶ (F)) and (sub¶ (G)) hereof, which shall, for the purposes of this article, be deemed to include the obligations of an insurer and the medical malpractice insurance association under medical malpractice claims-made policies to pay to successor entities the actuarially appropriate amounts for the provision of coverage to comply with the requirements of subsections §3436(b) , §3436(c) and §3436(d) and paragraphs §5504(f)(2) , §5504(f)(3) and §5504(f)(4) of this chapter.
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§7603(a)(2)
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(2) No payment from the property/casualty insurance security fund shall be made to any person who owns or controls 10% or more of the voting securities of the insolvent insurer and no payment on any 1 claim shall exceed $1,000,000, provided that the amount of payment on a claim and the aggregate for all claims shall be further limited by the provisions of paragraph §7602(g)(2) of this article.
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§7603(b)
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(b)
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§7603(b)(1)
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(1) Contributions to the property/casualty insurance security fund shall be determined on the basis of net direct written premiums on policies insuring property or risks located or resident in this state.
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§7603(b)(2)
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(2) Every insurer shall pay into such fund, upon filing each quarterly return pursuant to §7605 of this article, 0.5% of its net direct written premiums as shown for the period covered by such return.
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§7603(c)
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(c)
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§7603(c)(1)
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(1) Whenever the superintendent determines, pursuant to §7606 of this article, that the net value of the property/casualty insurance security fund is at least $150,000,000, no further contributions shall be made after the fund year in which the determination is 1st made, but if thereafter the superintendent determines that payments made from the fund by the commissioner to the superintendent acting as liquidator, rehabilitator or conservator have reduced the net value to an amount less than such amount, the superintendent shall cause contributions to be resumed until the end of the fund year in which he 1st determines that such net value exceeds such amount.
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§7603(c)(2)
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(2) If contributions are so resumed, they shall be apportioned:
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§7603(c)(2)(A)
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(A) ratably among those kinds of insurance as to which the commissioner made payments during the fund year in which the net value of the property/casualty insurance security fund was reduced below such amount, and
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§7603(c)(2)(B)
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(B) among insurers in accordance with their respective amounts of net direct premiums written in each such kind of insurance.
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§7603(d)
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(d)
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§7603(d)(1)
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(1) All income earned on moneys in the fund (after deducting any amounts paid for allowed claims and administrative expenses during the preceding year) shall be credited, upon certification by the superintendent to the commissioner, to the general fund of the state treasury; except that with respect to all such income earned on or after July 1st, 1979 such moneys shall be distributed annually in the following manner:
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§7603(d)(1)(A)
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(A) Pursuant to regulations of the superintendent, the deficit from the operations of the New York property insurance underwriting association shall be credited with such income earned, upon certification by the superintendent to the commissioner, in a sum not exceeding such total income earned or the sum of $15,000,000 whichever is the lesser in any 1 year. Such credit shall be in lieu of a transfer of such funds to the general fund of the state treasury.
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§7603(d)(1)(B)
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(B) Any balance of earned income shall be credited, upon certification by the superintendent to the commissioner, to the general fund of the state treasury; but only when the value of the fund exceeds the sum of $240,000,000.
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§7603(d)(2)
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(2) The superintendent, after consultation with the commissioner, may by regulation provide for contributions to be made in the form of acceptable securities, and for the management and disposition of such securities. The income from such securities shall be included in the distribution outlined in (¶ (1)) hereof.
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§7603(d)(3)
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(3) The superintendent is authorized to use the income earned on the moneys of the fund to offset the deficit of the New York property insurance underwriting association in accordance with subsection §5405(d) of this chapter, provided that any income earned on the moneys of the fund which in any 1 year exceeds $15,000,000 or which the superintendent has not utilized for the purposes of such subsection shall be credited to the corpus of the fund until the superintendent determines that its net value is $240,000,000, and thereafter shall be credited, upon certification by the superintendent to the commissioner, to the general fund of the state treasury.
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§7603(e)
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(e)
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§7603(e)(1)
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(1)
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§7603(e)(1)(A)
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(A) Notwithstanding any other provision of law to the contrary, the superintendent shall annually no later than November 1st in each year submit to the director of the budget a request for an appropriation of $90,000,000. The governor shall include such amount in a budget bill for the next state fiscal year. The state comptroller shall encumber the amount so appropriated before the end the fiscal year for which any such appropriation is made. If for any fiscal year commencing on or after April 1st, 1983, the governor fails to submit a budget bill containing an appropriation in the amount requested by the superintendent or the legislature fails to appropriate the amount in a budget bill submitted by the governor for such fiscal year, the amount appropriated for and encumbered during the preceding fiscal year shall be payable forthwith to the fund on July 1st of such year in the manner prescribed by law, provided, however, that such amount shall not exceed the amount of moneys transferred to the general fund from the fund pursuant to the provisions of chapter 55 of the laws of 1982.
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§7603(e)(1)(B)
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(B) Any appropriation made to the fund pursuant to (this §) shall be included as an asset for the purposes of computing the value or net value of the fund pursuant to (this §) .
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§7603(e)(1)(C)
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(C) Any transfer of moneys from the fund to the general fund in accordance with the provisions of chapter 55 of the laws of 1982 is deemed a proper and prudent legal undertaking for any state officer with the responsibility for the custody or the investment of the assets of the fund, notwithstanding any other provision of law to the contrary.
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§7603(e)(2)
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(2) Upon certification by the superintendent that further sums, not exceeding $50,000,000 in the aggregate, are required by the public motor vehicle liability security fund to meet its obligations and accomplish the purposes of this article the commissioner shall transfer from the assets of the property/casualty insurance security fund to the public motor vehicle liability security fund amounts to be specified by the superintendent. Such sums, not exceeding $50,000,000 in the aggregate, shall be a liability of the public motor vehicle liability security fund and shall be repaid to the property/casualty insurance security fund pursuant to a plan of repayment to be prescribed by the superintendent which may provide for an increase in the level of payments into the fund provided for in subsection §7604(b) of this article. Source Data downloaded: 2009-04-09 15: 56: 01; Processed: 2009-05-08 15: 36: 34
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