S T A T E O F N E W Y O R K
2009-2010 Regular Sessions
I N S E N A T E
April 27, 2009
Introduced by Sen. BRESLIN -- read twice and ordered printed, and when
printed to be committed to the Committee on Insurance
AN ACT to amend the insurance law, in relation to organization of domes-
tic reciprocal insurers
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Subsection (a) of section 6102 of the insurance law, as
amended by chapter 220 of the laws of 1986, is amended to read as
(a) Twenty-five or more persons, firms and corporations, each having
the qualifications of subscribers as prescribed in this article, may
organize a reciprocal insurer to do any one or more of the basic kinds
of insurance set forth in subsection (a) of section four thousand one
hundred one of this chapter or, in the alternative, twenty-five or more
New York counties, towns, cities, villages, district corporations (as
defined in paragraph three of section 2.00 of the local finance law), or
school districts and boards of cooperative educational services, each
having the qualifications of subscribers as prescribed in this article,
may organize statewide municipal reciprocal insurers to provide any one
or more of the basic kinds of insurance set forth in subsection (a) of
section four thousand one hundred one of this chapter, except workers'
compensation and employers' liability, fidelity and surety OTHER THAN
OFFICIAL UNDERTAKINGS CONDITIONED FOR THE FAITHFUL PERFORMANCE OF OFFI-
CIAL DUTIES AS REFERENCED IN SECTION ELEVEN OF THE PUBLIC OFFICERS LAW
AND REQUIRED BY RELATED PROVISIONS OF THE COUNTY, TOWN, AND VILLAGE
LAWS, credit and marine and inland marine (except as authorized by the
provisions of paragraph two of subsection (b) of section four thousand
one hundred two of this chapter) insurance. Such an insurer shall be
called, for purposes of this chapter, a "municipal reciprocal insurer"
and shall be subject to all the provisions of this chapter applicable to
a reciprocal insurer, except where the context otherwise requires.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
S. 5110 2
However, any reciprocal insurer authorized to do the business of work-
ers' compensation insurance shall be deemed to be a mutual carrier with-
in the meaning of the definition of that term in section one hundred six
of the workers' compensation law and shall be subject to the provisions
of article six-A of such law.
S 2. This act shall take effect immediately.