New York Laws
Article 42 - Life Insurance Companies and Accident and Health Insurance Companies and Legal Services Insurance Companies
4209 - Mutual Life Insurance Companies, Mutual Accident and Health Insurance Companies; Assessments.

(2) No foreign or alien life insurance company shall do business in
this state if it does business anywhere on any assessment plan.
(b) (1) Except as provided in subsection (c) hereof, every domestic
mutual accident and health insurance company shall provide in its
policies that every member shall be liable for an assessment, in
addition to the amount of premiums paid or payable, in an amount not
exceeding the maximum named therein, which shall be not less than one
annual premium on the policy; if the assessment liability is unlimited
the policy shall so provide.
(2) If any domestic mutual accident and health insurance company does
not have admitted assets at least equal to the aggregate of its
liabilities, reserves and its minimum surplus as required by this
chapter, and if such impairment is not otherwise rectified, the board of
directors of such company may, with the approval of the superintendent
and within such time as he prescribes, order an assessment as specified
in its by-laws for an amount which will provide sufficient funds to
rectify such impairment, except that no member of such company shall be
liable for an assessment exceeding the limit specified in his policy.
(3) All such orders of assessment shall be filed with the
superintendent and shall not take effect unless and until approved by
him. The superintendent may refuse any such approval if, in his
judgment, such refusal will best promote the interests of the
policyholders and creditors of such company, and of the insuring public.
Such assessment shall be made upon all members liable to assessment
therefor in proportion to their several liabilities.
(4) Every person who was a member of such company at any time during
two years prior to the making of an order of assessment by the board of
directors shall pay his proportionate part of any such assessment if he
is notified of such assessment within one year after the making of an
order of assessment. A member's proportionate part of any assessment
shall be determined by applying to the premium earned on the member's
policy or policies during the period to be covered by the assessment the
ratio of the total assessment to the total premiums earned during such
period on all policies subject to assessment.
(c) Every mutual accident and health insurance company licensed to do
business in this state, if its charter or by-laws permit or are amended
to permit the issuance of policies without contingent mutual liability
of the policyholders for assessment, may with the permission of the
superintendent issue non-assessable policies in this state. Every such
company shall submit a copy of its proposed non-assessable policy or
policies for approval of the superintendent, and shall have obtained his
approval thereof. Every policy issued by any such company shall clearly
state whether or not the holder of such policy is subject to a liability
for assessment.
(d) (1) Any foreign mutual accident and health insurance company which
complies with the requirements of subsection (c) hereof for the issuance
of non-assessable policies may do an insurance business in this state
without complying with the requirements of subsection (b) hereof.
(2) No such company which does not comply with the requirements of
subsection (c) hereof shall do an insurance business in this state
unless its by-laws and its policies issued in this state contain

provisions for the levying and collection of assessments upon members,
at least for the payment of losses and expenses, which conform in
substance to the requirements of subsection (b) hereof.