Section 6613. Limitation of expenses; co-operative property/casualty insurance companies

(a) The expenses of management of any  co-operative  property/casualty insurance company shall not exceed in any one calendar
  year forty-two and one-half percent of its net premiums written for such
  year. The term "net premiums written" means direct premiums written plus
  reinsurance assumed less return premiums and reinsurance ceded.
    (b)  Management  expenses  shall  include  all  the  expenses  of such
  company, except expenses incurred in the investigation,  adjustment  and
  settlement  of  claims, taxes, fees, expenses of examination, and taxes,
  repairs, and expenses on real estate.
    (c) This section shall not apply to any assessment  corporation  which
  is limited to the business permitted under subsection (a) of section six
  thousand   six   hundred   five   of   this  article.  Furthermore,  the
  superintendent may grant an annual exemption from  compliance  with  the
  provisions  of  subsection  (a)  of  this  section  to  any co-operative
  property/casualty  insurance  company  which,  in  the  next   preceding
  calendar  year,  had  net  premiums  written  of less than three million
  dollars. A written application for such an exemption must  be  submitted
  by  the  first  day  of  June  in  the  year  for which the exemption is
  requested and shall contain such information as is deemed  necessary  by
  the superintendent.