§ 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 until June thirtieth, two thousand twenty-eight. On
or before October first, two thousand twenty-seven the superintendent
shall require the association to report to the superintendent 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, and any other information the superintendent may require.
On or before January first, two thousand twenty-eight, the
superintendent shall report to the governor and the legislature
regarding the number of policies issued pursuant to this section and
such paragraph and 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.