S T A T E   O F   N E W   Y O R K
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                                  6948

                            I N  S E N A T E

                              March 1, 2010
                               ___________

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 subscribers agreements
  of reciprocal insurers

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Paragraph 2 of subsection (a) of section 6106 of the insur-
ance law is amended to read as follows:
  (2)  Every  subscriber's agreement shall be identical in terms, except
as to the date and the name and address  of  the  subscriber,  with  all
other  subscriber's  agreements  currently  in force and effect with all
other subscribers of such reciprocal insurers. However, in the  case  of
any  reciprocal  insurer authorized pursuant to section six thousand one
hundred eight of this article to issue non-assessable policies or agree-
ments, OR HAVING  A  CORPORATE  ATTORNEY-IN-FACT  WHOLLY  OWNED  BY  THE
SUBSCRIBERS  AT  SUCH  RECIPROCAL INSURER, the acceptance of a policy or
binder of insurance containing the subscriber's agreement printed at the
end of the standard policy provisions or the binder, as the case may be,
preceded by the words printed upon the policy or binder:
      "The acceptance of this policy or  binder  shall  constitute
      that  insured  designated  therein  is  a  subscriber of the
      reciprocal insurer and shall constitute  the  execution  and
      delivery  by the insured of the subscriber's agreement which
      is appended to this policy or binder, and hereby made a part
      thereof",
shall constitute the execution and delivery of said subscriber's  agree-
ment  by  that  insured  as  fully and to the same extent as though said
agreement had been signed and acknowledged by that insured.
  S 2. Paragraph 4 of subsection (d) of section 6107  of  the  insurance
law is amended to read as follows:
  (4)  Notwithstanding paragraphs one, two and three hereof, in the case
of any reciprocal insurer which shall have issued its policies, or bind-
ers,  with  the  subscriber's  agreement  and  statement printed thereon
pursuant to paragraph two of subsection (a) of section six thousand  one

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
              

                                                           LBD15411-01-0

S. 6948                             2

hundred  six of this article, OR A RECIPROCAL INSURER HAVING A CORPORATE
ATTORNEY-IN-FACT WHOLLY OWNED BY  THE  SUBSCRIBERS  AT  SUCH  RECIPROCAL
INSURER  WHO  PROVIDES  WITH  SUCH SUBMISSION A COPY OF THE SUBSCRIBER'S
AGREEMENT  IN FORCE, the failure of any subscriber at such reciprocal to
object in writing thereto within sixty  days  after  the  date  of  such
submission shall constitute such subscriber's acceptance of such change,
amendment  or  modification  as  fully  and to the same extent as though
acceptance of such change, amendment or modification had been signed and
acknowledged by that subscriber and such change, amendment or  modifica-
tion  shall  take  effect,  as to all subscribers at such reciprocal who
have not objected thereto in writing, at the expiration  of  sixty  days
from  the  date  of  submission.   Any subscriber at such reciprocal who
objects in writing, within sixty days from the date of such  submission,
to  such change, amendment or modification shall be deemed to have with-
drawn from membership in such reciprocal.
  S 3. This act shall take effect immediately.