Bill Text: NY S06948 | 2009-2010 | General Assembly | Introduced
Bill Title: Enacts provisions relating to reciprocal insurers having a corporate attorney-in-fact wholly owned by subscribers at the reciprocal insurers.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2010-08-13 - SIGNED CHAP.404 [S06948 Detail]
Download: New_York-2009-S06948-Introduced.html
S T A T E O F N E W Y O R K
________________________________________________________________________
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:
1 Section 1. Paragraph 2 of subsection (a) of section 6106 of the insur-
2 ance law is amended to read as follows:
3 (2) Every subscriber's agreement shall be identical in terms, except
4 as to the date and the name and address of the subscriber, with all
5 other subscriber's agreements currently in force and effect with all
6 other subscribers of such reciprocal insurers. However, in the case of
7 any reciprocal insurer authorized pursuant to section six thousand one
8 hundred eight of this article to issue non-assessable policies or agree-
9 ments, OR HAVING A CORPORATE ATTORNEY-IN-FACT WHOLLY OWNED BY THE
10 SUBSCRIBERS AT SUCH RECIPROCAL INSURER, the acceptance of a policy or
11 binder of insurance containing the subscriber's agreement printed at the
12 end of the standard policy provisions or the binder, as the case may be,
13 preceded by the words printed upon the policy or binder:
14 "The acceptance of this policy or binder shall constitute
15 that insured designated therein is a subscriber of the
16 reciprocal insurer and shall constitute the execution and
17 delivery by the insured of the subscriber's agreement which
18 is appended to this policy or binder, and hereby made a part
19 thereof",
20 shall constitute the execution and delivery of said subscriber's agree-
21 ment by that insured as fully and to the same extent as though said
22 agreement had been signed and acknowledged by that insured.
23 S 2. Paragraph 4 of subsection (d) of section 6107 of the insurance
24 law is amended to read as follows:
25 (4) Notwithstanding paragraphs one, two and three hereof, in the case
26 of any reciprocal insurer which shall have issued its policies, or bind-
27 ers, with the subscriber's agreement and statement printed thereon
28 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
1 hundred six of this article, OR A RECIPROCAL INSURER HAVING A CORPORATE
2 ATTORNEY-IN-FACT WHOLLY OWNED BY THE SUBSCRIBERS AT SUCH RECIPROCAL
3 INSURER WHO PROVIDES WITH SUCH SUBMISSION A COPY OF THE SUBSCRIBER'S
4 AGREEMENT IN FORCE, the failure of any subscriber at such reciprocal to
5 object in writing thereto within sixty days after the date of such
6 submission shall constitute such subscriber's acceptance of such change,
7 amendment or modification as fully and to the same extent as though
8 acceptance of such change, amendment or modification had been signed and
9 acknowledged by that subscriber and such change, amendment or modifica-
10 tion shall take effect, as to all subscribers at such reciprocal who
11 have not objected thereto in writing, at the expiration of sixty days
12 from the date of submission. Any subscriber at such reciprocal who
13 objects in writing, within sixty days from the date of such submission,
14 to such change, amendment or modification shall be deemed to have with-
15 drawn from membership in such reciprocal.
16 S 3. This act shall take effect immediately.
