Section 6605. Organization of assessment corporations

(a) An assessment
  corporation may be organized and licensed in the  manner  prescribed  in
  section  six  thousand  six hundred three of this article and may do, in
  addition to the  kind  of  insurance  specified  in  paragraph  four  of
  subsection  (a)  of  section  one  thousand one hundred thirteen of this
  chapter, any one  or  more  of  the  kinds  of  insurance  specified  in
  paragraphs  five,  six,  seven  and  eight  of such subsection solely in
  conjunction with fire  insurance  written  under  the  same  policy  and
  covering  the  same  premises  and  insurance  against loss or damage to
  property caused by aircraft or vehicles in compliance with the following
  prerequisites:
    (1) It shall have not less than two hundred bona fide applications for
  insurance of such kind or kinds on  real  property  located  within  the
  territory in which it desires to be licensed as above provided, and from
  not  less  than  two  hundred  separate  applicants  who shall have paid
  advance payments  of  estimated  annual  assessments  of  at  least  two
  thousand  dollars  for  insurance  aggregating not less than two hundred
  thousand dollars in each county of such territory and each member  shall
  be  subject  to  assessments,  in addition to required advance payments,
  sufficient to meet incurred losses, expenses and other legal obligations
  for such insurer.
    (2) It shall have a cash  organization  fund  of  not  less  than  one
  hundred fifty thousand dollars, which may be used in the manner provided
  for  in  paragraph  nine  of  subsection (a) of section one thousand two
  hundred one of this chapter, and shall maintain at all times, a  surplus
  of  at least one hundred thousand dollars. For an assessment corporation
  licensed to do the kinds of insurance specified  in  paragraph  nine  of
  subsection  (a)  of  section  one  thousand one hundred thirteen of this
  chapter, except as herein provided, the  corporation  must  maintain  an
  additional  surplus of fifty thousand dollars. The additional surplus is
  not necessary if the whole risk  for  this  peril  is  reinsured  in  an
  insurance  company  authorized  to  do  business in this state, or in an
  accredited reinsurer, as  defined  in  subsection  (a)  of  section  one
  hundred seven of this chapter.
    (3)  Any assessment corporation licensed on the effective date of this
  article which does not possess surplus of one hundred  thousand  dollars
  shall  be restricted to the kinds of insurance for which it was licensed
  immediately prior to the effective date of this article until such  time
  as  the  required  minimum  surplus  specified in paragraph two above is
  accumulated. In no event shall the  surplus  of  such  corporation  fall
  below fifty thousand dollars.
    (b)  Any  licensed assessment corporation may amend its charter and be
  licensed to do the kinds of  insurance  specified  in  paragraphs  nine,
  thirteen,  fourteen and fifteen (except workers' compensation insurance)
  of subsection (a) of section one thousand one hundred thirteen  of  this
  chapter solely in conjunction with fire insurance written under the same
  policy  and  covering  the  same  premises and may be licensed to do the
  kinds of insurance specified in paragraphs twelve,  nineteen  (excluding
  aircraft  physical  damage insurance) and twenty (inland marine only) of
  such subsection.
    (c) An assessment corporation may also be organized  and  licensed  in
  the  manner prescribed in section six thousand six hundred three of this
  article to do within all the counties of the state (except the  counties
  of  New York, Kings, Queens, Bronx and Richmond) as an assuming insurer,
  reinsurance business of a kind or kinds referred  to  in  this  section,
  and,  as  specified  in  its  charter,  on compliance with the following
  prerequisites:

    (1) It shall have  not  less  than  ten  bona  fide  applications  for
  reinsurance  of  such kind or kinds on real property located within such
  counties, and from  not  less  than  ten  separate  applying  assessment
  corporations of this state providing for the payment of advance payments
  in  the  form  of  estimated  annual  assessments  of  not less than ten
  thousand dollars, and providing that each such ceding insurer shall,  as
  a  member of such assuming insurer, be subject to additional assessments
  sufficient to meet incurred losses, expenses and other legal obligations
  for such insurer.
    (2) It shall comply with  the  financial  requirements  set  forth  in
  paragraph two of subsection (a) of this section.
    (3)  Such  a  corporation shall, pursuant to such license, do only the
  business of reinsurance, and may not at any time  qualify  as  a  direct
  writing assessment corporation.