Assembly Bill A10178A

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

                                10178--A

                          I N  A S S E M B L Y

                              March 9, 2010
                               ___________

Introduced  by M. of A. MORELLE -- read once and referred to the Commit-
  tee on  Insurance  --  committee  discharged,  bill  amended,  ordered
  reprinted as amended and recommitted to said committee

AN  ACT  to amend the insurance law, in relation to the amendment of the
  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

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

                                                           LBD15503-03-0

A. 10178--A                         2

pursuant to paragraph two of subsection (a) of section six thousand  one
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.