Section 5402. Joint underwriting association

(a) The joint underwriting
  association known  as  the  New  York  property  insurance  underwriting
  association is continued, consisting of all insurers authorized to write
  and  engaged  in  writing within this state, on a direct basis, fire and
  extended coverage insurance, including insurers covering such perils  in
  homeowners  and commercial multiple peril package policies but excluding
  assessment cooperative fire  insurance  companies  transacting  business
  pursuant  to article sixty-six of this chapter. Every such insurer shall
  be and remain a  member  of  the  association  as  a  condition  of  its
  authority to continue to transact fire, extended coverage and homeowners
  insurance in this state.
    (b)  The  association  shall  be  governed  by  a  board  of  thirteen
  directors, ten of whom shall be elected annually by cumulative voting by
  the members of the association, whose votes in such  election  shall  be
  weighted  in  accordance  with each member's net direct premiums written
  during the preceding calendar year. The remaining three directors  shall
  be  appointed  annually  by  the  superintendent  and  be  duly licensed
  insurance agents or brokers representative  of  broad  segments  of  the
  public obtaining insurance through the association.
    (c)  The association shall, pursuant to the provisions of this article
  and the plan of operation and with respect to fire  insurance,  extended
  coverage,  broad form coverage issued pursuant to subsection (g) of this
  section, coverage for additional perils, and homeowners insurance should
  the same be made available through the association in accordance with  a
  determination  of  necessity  made  by  the  superintendent  pursuant to
  section five thousand four hundred twelve of this article  on  insurable
  property, have the power on behalf of its members:
    (i) to cause policies of insurance to be issued to applicants;
    (ii) to assume reinsurance from its members; and
    (iii) to cede reinsurance.
    (d)  The  association  shall adhere to a plan of operation, consistent
  with the provisions of this  article,  approved  by  the  superintendent
  after consultation with affected individuals and organizations. The plan
  shall provide for economical, fair and non-discriminatory administration
  and  prompt  and  efficient  provision of fire, extended coverage, broad
  form coverage pursuant to subsection (g) of this section and  homeowners
  insurance,   when   a   determination   of  necessity  is  made  by  the
  superintendent pursuant to section five thousand four hundred twelve  of
  this  article to promote orderly community development. It shall contain
  other matters including, but not limited  to,  provision  for  necessary
  facilities;  management  of  the  association;  assessment of members to
  defray losses and  expenses;  commission  arrangements;  reasonable  and
  objective  underwriting standards; acceptance and cession of reinsurance
  and procedures for determining amounts of insurance to  be  provided  by
  the  association. The amounts shall not be in excess of one million five
  hundred thousand dollars for the insurable real property or the tangible
  personal property thereon.
    (e) The directors of the association may, on their own  initiative  or
  at the request of the superintendent, amend the plan subject to approval
  by the superintendent.
    (f)  The  association  shall offer homeowners insurance, as defined in
  subsection (h) of section five thousand four hundred one of this article
  upon a determination of necessity having been made by the superintendent
  pursuant to section five thousand four hundred twelve of this article.
    (g) In addition to fire insurance,  extended  coverage,  coverage  for
  additional  perils  and  homeowners  insurance  should  the same be made
  available through the association in accordance with a determination  of
  necessity  pursuant to section five thousand four hundred twelve of this

  article, the association may offer broad  form  coverage  to  applicants
  seeking to insure real property at fixed locations of this state, or the
  tangible  personal  property  located thereon. The association may offer
  broad  form coverage for a period of five years after the effective date
  of this subsection. The superintendent shall require the association  to
  report  to  him  or  her annually during that five-year period as to the
  number of policies written pursuant to  this  subsection  and  paragraph
  three  of  subsection  (f) of section five thousand four hundred five of
  this article in  the  previous  year,  and  any  other  information  the
  superintendent  may require. The superintendent shall then report to the
  governor and the legislature regarding the  number  of  policies  issued
  pursuant  to  this  subsection and such paragraph annually for the first
  four years such coverage is offered. On or  before  January  first,  two
  thousand  thirteen,  the  superintendent  shall make a final, cumulative
  report  to  the  governor  and  the  legislature  which  shall   include
  recommendations as to the continuation of such insurance offerings.
    (i) Not less than once every thirty days, the association shall report
  to  the  superintendent,  the speaker of the assembly, and the temporary
  president of the senate on the number, location  and  type  of  policies
  written through a coastal market assistance program.