Section 7709. Assessments

(a)  For  the  purpose  of providing the funds
  necessary to carry out the powers and duties  of  the  corporation,  the
  board of directors shall assess the member insurers, separately for each
  account,  at such time and for such amounts as the board finds necessary
  in accordance with the provisions of paragraph three of  subsection  (c)
  of  this  section. Assessments shall be due on the date set by the board
  which shall be not less than thirty days nor more than sixty days  after
  prior  written  notice  to the member insurers. Assessments shall accrue
  interest at the maximum rate allowed by subdivision one of section 5-501
  of the general obligations law on and after the due date.
    (b) There shall be three classes of assessments, as follows:
    (1) Class A assessments shall be  made  for  the  purpose  of  meeting
  administrative costs and other general expenses.
    (2) Class B assessments shall be made to the extent necessary to carry
  out  the  powers  and  duties  of  the  corporation  under section seven
  thousand seven hundred eight of this article with regard to an  impaired
  or insolvent domestic insurer.
    (3) Class C assessments shall be made to the extent necessary to carry
  out  the  powers  and  duties  of  the  corporation  under section seven
  thousand seven hundred eight of this article with regard to an  impaired
  or insolvent foreign or alien insurer.
    (c)  (1)  The  amount of any class A assessment shall be determined by
  the board and may be made on a non pro rata basis. Such assessment shall
  be credited against future impairment  or  insolvency  assessments.  The
  maximum  such assessment against any member insurer in any calendar year
  shall be determined, in accordance with the table set  forth  below,  on
  the  basis  of  its  admitted  assets  as  shown on its annual statement
  required by this chapter for the year next preceding the  date  of  such
  assessment:
 
  Companies with Admitted Assets of                   Maximum Assessment
  Up to $50,000,000                                           $200
  $50,000,000 to $1,000,000,000                              $1000
  $1,000,000,000 or more                                     $2000
 
    (2) The amount of any class B or class C assessment shall be allocated
  for  assessment  purposes  among the accounts in the proportion that the
  premiums received by the impaired or insolvent insurer on  the  policies
  or  contracts  covered  by  each  account  for  the  last  calendar year
  preceding the assessment in which  the  impaired  or  insolvent  insurer
  received  premiums  bears  to  the premiums received by such insurer for
  such calendar year  on  all  covered  policies.  Class  B  and  class  C
  assessments  against  member  insurers  for each account shall be in the
  proportion that the premiums received on business in this state by  each
  assessed  member  insurer  on  policies  covered by each account for the
  three calendar years preceding the assessment  bears  to  such  premiums
  received  on  business  in  this  state  for  such calendar years by all
  assessed member insurers.
    (3) Assessments for funds to meet the requirements of the  corporation
  with  respect to an impaired or insolvent insurer shall be made within a
  reasonable  time  after  deemed  necessary  by  the  superintendent   to
  implement  the  purposes  of this article.  Classification of assessment
  under subsection (b) of this  section  and  computation  of  assessments
  under  this  subsection  shall  be  made  with  a  reasonable  degree of
  accuracy, recognizing  that  exact  determinations  may  not  always  be
  possible.
    (d)  The  corporation  may  abate  or  defer, in whole or in part, the
  assessment of a member insurer if, in the opinion of the board,  payment

  of  the  assessment  would endanger the ability of the member insurer to
  fulfill its contractual obligations. In the event an assessment  against
  a  member insurer is abated, or deferred in whole or in part, the amount
  by  which  such assessment is abated or deferred may be assessed against
  the other member insurers in a manner  consistent  with  the  basis  for
  assessments set forth in this section.
    (e)  (1)  The  total  assessment  against  all member insurers for all
  impairments and insolvencies, less the amount of refunds (not  including
  interest) to member insurers pursuant to subsection (f) of this section,
  shall not exceed five hundred million dollars.
    (2)  The  total  of  all  assessments  upon  a member insurer for each
  account shall not in any one calendar year exceed two  percent  of  such
  insurer's  premiums  received  in  this  state  during the calendar year
  preceding the assessment on the policies covered by the account. If  the
  maximum assessment, together with the other assets of the corporation in
  either  account,  does  not provide in any one year in either account an
  amount sufficient to carry out the responsibilities of the  corporation,
  the  necessary  additional funds shall be assessed as soon thereafter as
  permitted by this article.
    (f) The board may, by an equitable method as established in  the  plan
  of  operation,  refund to member insurers, by retirement of certificates
  of contribution in proportion to the contribution  of  each  insurer  to
  that  account,  the amount by which the assets of the account exceed the
  amount the board finds necessary to carry out during the coming year the
  obligations of the corporation with regard to  that  account,  including
  assets  accruing  from  net  realized  capital  gains  and  income  from
  investments. A reasonable amount may  be  retained  in  any  account  to
  provide  funds  for  the  continuing expenses of the corporation and for
  future losses if refunds are impractical.
    (g) It shall be proper for any  member  insurer,  in  determining  its
  premium  rates  and  policy  owner dividends as to any kind of insurance
  within the scope of this article,  to  consider  the  amount  reasonably
  necessary  to  meet  its  assessment obligations under this article with
  respect to insurers which have become impaired or insolvent.
    (h) The corporation shall issue to each insurer paying  an  assessment
  under  this  article,  other than a class A assessment, a certificate of
  contribution, in a form prescribed by the superintendent, for the amount
  of the assessment so paid. All  outstanding  certificates  shall  be  of
  equal dignity and priority irrespective of amounts or dates of issue.  A
  certificate of contribution may be shown by the insurer in its financial
  statement  as  an  asset  in  such form and for such amount, if any, and
  period of time as the superintendent may approve.