Section 4111. Mutual companies; assessments

(a) Except as provided in
  section four thousand  one  hundred  thirteen  of  this  article,  every
  domestic mutual property/casualty insurance company shall in its by-laws
  and  policies  prescribe  the contingent mutual liability of its members
  for the payment of assessments, in such a way that each member shall  be
  liable   to  pay  the  member's  proportionate  share,  subject  to  the
  limitations hereinafter specified, of the amount of  any  assessment  or
  assessments  permitted  for  any  purpose  under  any provisions of this
  chapter or necessary to make good an impairment of the  minimum  surplus
  of  such company. The contingent liability of a member may be limited to
  an amount not less than one additional annual  premium  on  each  policy
  held by a member. The aggregate amount of all assessments whether levied
  by  the  board  of directors of such insurer or by the superintendent as
  liquidator or rehabilitator of the insurer, or otherwise,  shall  be  no
  greater  amount than that specified in the by-laws and policies.  Except
  as provided in section  four  thousand  one  hundred  thirteen  of  this
  article,  no  such  insurance  company  shall make, issue or deliver any
  policy of insurance, which does not prescribe the  contingent  liability
  of  the  policyholder in clear and explicit language printed in type not
  smaller than eight point.
    (b) If any domestic mutual property/casualty  insurance  company  does
  not  have  admitted  assets at least equal in amount to the aggregate of
  its liabilities and its minimum surplus as required by the provisions of
  this chapter, and if such impairment is not  otherwise  made  good,  the
  board  of  directors  of  the  company  may,  with  the  approval of the
  superintendent  and  within  such  time  as  he  prescribes,  order   an
  assessment  in  the  manner specified in the by-laws for an amount which
  will provide sufficient funds to make good the impairment,  except  that
  no  member  shall  be  liable  for  an  assessment  exceeding  the limit
  specified in his policy in accordance with subsection (a) hereof.    All
  orders  of assessment made by the board of directors shall be filed with
  the superintendent and shall not take effect unless and  until  approved
  by  him.  The  superintendent  may  refuse  any such approval if, in his
  judgment, refusal will best promote the interests of  the  policyholders
  and  creditors  of  the  company,  and  of  the insuring public.   Every
  assessment shall be made upon all members liable to assessment  therefor
  in   the   proportion  hereinafter  specified.  Every  person,  firm  or
  corporation who or which was a member of such company at any time during
  one year prior to the making of an order of assessment by the  board  of
  directors   shall   be   liable  to  pay  and  shall  pay  the  member's
  proportionate share of any assessment which may be  made  in  accordance
  with  law,  if  the member is notified of the assessment within one year
  after making of an order of assessment. A member's proportionate part of
  any assessment shall be determined by applying to the premium earned  on
  the  member's  policy  or  policies in force during a period of one year
  next preceding the order of assessment the ratio of the total assessment
  to the total premiums earned during such period on all policies  subject
  to assessment.
    (c)  Unless  specifically authorized by the provisions of this chapter
  to issue non-assessable  policies  in  this  state,  no  foreign  mutual
  property/casualty   insurance   company  shall  be  or  continue  to  be
  authorized to do business in this state unless its by-laws and  policies
  issued  in  this state contain provisions for the levying and collection
  of assessments upon members, at least for  the  payment  of  losses  and
  expenses, which conform in substance to subsection (b) hereof.
    (d)  In  the  case  of  a  mutual  property/casualty insurance company
  subject to paragraph two of subsection (a) of section four thousand  one
  hundred  seven of this article, an assessment authorized by this section

  shall be made when, in  addition  to  the  grounds  set  forth  in  this
  section,  if  the  ratio  of  net premium writings to surplus as regards
  policyholders is four to one or greater,  based  upon  the  last  annual
  statement  or  any  quarterly  statement  projected  on an annual basis,
  subject to the approval of the superintendent, and if, at any time, upon
  examination, the superintendent determines that an assessment should  be
  made   pursuant   to  subsection  (b)  hereof  or  this  subsection  the
  superintendent shall make an appropriate order that  the  assessment  be
  made.