N.Y. Insurance Law Section 5906
Security funds and compulsory associations

(a)

No risk retention group shall be required or permitted to join or contribute financially to any insurance insolvency security fund, or similar mechanism, in this state, nor shall any risk retention group, or its insureds or claimants against its insureds receive any benefit from any such fund for claims arising under the insurance policies issued by such risk retention group.

(b)

When a purchasing group obtains insurance covering its members’ risks from an insurer not authorized in this state or a risk retention group, no such risks wherever resident or located shall be covered by any insurance insolvency security fund or similar mechanism in this state.

(c)

The superintendent may require risk retention groups not chartered in this state to participate, and may exempt domestic risk retention groups from participation, in any mechanism established or authorized under the law of this state for the equitable apportionment among insurers of liability insurance risks or of liability insurance losses and expenses incurred on policies written through such mechanism, and such risk retention groups shall submit sufficient information to the superintendent to enable the superintendent to apportion on a non-discriminatory basis the risk retention group’s proportionate share of such risks or of such losses and expenses.

Source: Section 5906 — Security funds and compulsory associations, https://www.­nysenate.­gov/legislation/laws/ISC/5906 (updated Sep. 22, 2014; accessed Dec. 21, 2024).

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Accessed:
Dec. 21, 2024

Last modified:
Sep. 22, 2014

§ 5906’s source at nysenate​.gov

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