New York Laws
Article 66 - Co-Operative Property/casualty Insurance Companies
6615 - Annual Assessments; Borrowed Money.

(2) If issuing policies on but one class of property, such assessment
shall be in proportion to the several amounts of insurance held by each
member.
(3) If issuing policies on more than one class of property, rates of
assessment shall be in proportion to the several amounts of insurance
held by each member and on the basis of classifications adopted by its
board of directors to express the relative hazards of the properties
insured.
(b) (1) Every such corporation may borrow money, except by means of a
mortgage, to pay incurred losses and expenses; but in the calculation of
its next assessment following the time, or times, at which such a loan
or loans were effected, due provision shall be made for the liquidation
of such loan or loans.
(2) An assessment corporation may borrow money for a period of more
than one year with the written approval of the superintendent and under
such conditions as he may prescribe.
(c) (1) Every such corporation may levy annual assessments in advance
sufficient to discharge its estimated losses, expenses, and other valid
obligations for which it may reasonably be expected to become liable
during the period prior to the end of its fiscal year.
(2) At any time after the institution of such assessments, new members
may be admitted to any such corporation upon paying such fees and other
sums as may be provided for by the corporation's by-laws and upon paying
their proportionate shares of the last preceding assessment.
(d) On and after the effective date of any change from the post
assessment basis to the advance assessment basis as permitted herein,
every assessment corporation may collect advance assessments, as herein
provided, from each person applying for or renewing a policy or policies
and only those persons who were admitted as new members during the
period prior to such effective date and subsequent to the levying of the
final post assessment shall be assessed on a pro rata basis for the
losses, expenses, and other valid obligations incurred during such
period.