N.Y. ISC Law § 4113

* § 4113. Mutual companies; non-assessable policies. (a) Every mutual\nproperty/casualty insurance company licensed to do business in this\nstate, if its charter or by-laws permit or are amended to permit the\nissuance of policies without contingent mutual liability of the\npolicyholder for assessment, may with the permission of the\nsuperintendent issue non-assessable policies in this state upon\ncompliance with the following requirements:\n (1) It shall maintain a surplus, as determined from its latest filed\nstatement, which together with its unearned premium reserve from its\nlatest filed statement is at least equal to the surplus to policyholders\nrequired to be maintained by a domestic stock property/casualty\ninsurance company licensed to write the same kind or kinds of insurance.\n (2) It shall have submitted a copy of its proposed non-assessable\npolicy or policies for approval of the superintendent, and shall have\nobtained his approval.\n (b) Every policy issued by any such company shall clearly state\nwhether or not the holder of the policy is subject to a liability for\nassessment.\n (c) Any surplus required for the purposes specified in this section\nshall be inclusive of any surplus required by any other sections of this\nchapter.\n (d) A mutual property/casualty insurance company subject to paragraph\ntwo of subsection (a) of section four thousand one hundred seven of this\narticle and subject to subsection (d) of section four thousand one\nhundred eleven of this article may with the prior approval of the\nsuperintendent amend its charter and by-laws to permit the issuance of\npolicies without contingent mutual liability of the policyholder and may\nwith the permission of the superintendent issue non-assessable policies\nin this state upon compliance with the requirements of this section.\n (e) The financial requirement specified in paragraph one of subsection\n(a) hereof shall be reduced by fifty percent for a mutual\nproperty/casualty insurance company initially licensed to do business in\nthis state prior to July first, nineteen hundred eighty-two.\n * SPECIAL NOTE.--Notwithstanding that Chapter 585 of the Laws of 1984:\n Bill sections 2, 3, 5, 6, 7, and 9 of such chapter amend provisions of\nthe former Insurance Law that are not possible to juxtapose at this time\ndue to the highly technical nature of such changes and will need future\ncorrective legislation to implement such provisions into the new\nInsurance Law as enacted by such Chapter 367 of the Laws of 1984.\n