N.Y. ISC Law § 6111

§ 6111. Assets, liabilities and surplus. (a) All of the assets of any\nreciprocal insurer including subscribers' operating reserves shall be\nliable primarily for payment of all liabilities incurred under its\npolicies or other contracts.\n (b) No part of the surplus funds of such reciprocal insurer shall be\nsubject to the claims of general creditors of any of the individual\nsubscribers of such insurer until all policies under which any such\nsubscriber is obligated have been terminated and in no event beyond the\namount of such subscriber's operating reserve.\n (c) The contingent liability of subscribers for additional premiums or\nassessments shall not be included as an asset in the financial statement\nof a reciprocal insurer.\n (d) Subscribers' operating reserves for which notice of withdrawal has\nbeen given shall be reported as liabilities until paid.\n (e) In any statement or report of the financial condition of a\nreciprocal insurer filed in this state, the surplus to policyholders,\nafter providing for the unearned premium reserves, loss reserves and\nother liabilities, as required by this chapter, shall be reported as\nfollows:\n (1) special contingent surplus;\n (2) subscribers' operating reserves, if required;\n (3) all other surplus, if any.\n (f) Unless the reciprocal is subject to the provisions of article\nfifteen of this chapter or substantially similar legislation in its\nstate of domicile, all material transactions between or among the\nreciprocal, its subscribers, the attorney-in-fact and any affiliate of\nthe attorney-in-fact shall not be entered into, unless they have been\nfiled with the superintendent at least thirty days prior thereto and the\nsuperintendent has not disapproved them; provided, however, that any\nsuch transaction involving five percent or more of the reciprocal's\nadmitted assets shall be subject to prior approval of the superintendent\nand all transactions shall meet the following standards:\n (1) The terms shall be fair and equitable;\n (2) Charges or fees for services performed shall be reasonable; and\n (3) Expenses incurred and payments received shall be allocated to the\nreciprocal on an equitable basis in conformity with statutory insurance\naccounting practices consistently applied.\n