Section 6602. Classification of insurers; foreign and alien insurers

(a)
  Cooperative property/casualty insurance  companies  operating  under  or
  subject  to  this  article  shall be either advance premium co-operative
  property/casualty  insurance  companies   or   assessment   co-operative
  property/casualty insurance companies.
    (b) (1) "Advance   premium   corporation"  means  an  advance  premium
  co-operative property/casualty insurance company which charges  premiums
  in advance on the basis of applicable provisions of article twenty-three
  of  this  chapter  and  which  maintains  unearned  premium  reserves as
  required by section one thousand three hundred five of this chapter  and
  loss  and loss expense reserves as required by section four thousand one
  hundred seventeen of this chapter.
    (2) "Assessment  corporation"   means   an   assessment   co-operative
  property/casualty  insurance  company  which  levies  upon  its  members
  regular assessments, the amount of which is  determined  by  giving  due
  cognizance,  along  with  other relative factors, either to the incurred
  liabilities of such insurer, or to its estimated liabilities  likely  to
  become  incurred  before the next regular assessment, or both, and which
  maintains unearned premium reserves as required by section one  thousand
  three hundred five of this chapter and loss and loss expense reserves as
  required by section four thousand one hundred seventeen of this chapter.
    (c)  No  insurer  operating under or subject to the provisions of this
  article shall do a part of its business on the advance premium plan  and
  another  part on the assessment plan; but this shall not be construed to
  affect  the  contingent  liability  of  members   of   advance   premium
  corporations  nor  to  affect  the  liability  of  members of assessment
  corporations for extraordinary assessments, as hereinafter provided.
    (d) No foreign or alien insurer or  insurance  organization  shall  be
  licensed or permitted to do in this state any kind or kinds of insurance
  business  specified  in  this  article on the assessment plan, or on any
  mutual plan, other than as a mutual property/casualty insurance  company
  or as a reciprocal insurer as elsewhere provided in this chapter.