§ 6105. Licensing. (a) No person, firm, corporation or association as
an underwriter or underwriters, and no reciprocal insurer, shall do any
insurance business in this state, nor shall any person, firm,
corporation or association as attorney-in-fact or other representative
of any reciprocal insurer do or cause to be done within this state any
act which effects, aids or promotes the doing of an insurance business
in this state by any reciprocal insurer, unless authorized so to do
pursuant to the provisions of this article.

(b) Every license to do an insurance business issued by the
superintendent to any reciprocal insurer pursuant to the provisions of
this article shall specify its name, the location of its principal
office, the name and principal address of its attorney-in-fact, and the
kind or kinds of insurance business, specified in terms of subsection
(a) of section one thousand one hundred thirteen of this chapter, which
it is authorized to do in this state.

(c) No person shall act in the capacity of an attorney-in-fact for a
subscriber whose risk is located in this state or for a reciprocal
licensed to do business in this state, unless such person is authorized
as such by the superintendent.

(d) The superintendent may require the attorney-in-fact, or any person
to which its functions, in whole or in part, have been delegated, unless
wholly owned or controlled by the reciprocal to:

(1) provide a bond issued by an insurer and in an amount acceptable to
the superintendent for the protection of the subscribers to the
reciprocal; and

(2) maintain an errors and omissions policy, providing coverage in an
amount and issued by an insurer acceptable to the superintendent.

(e) The attorney-in-fact authorized as such pursuant to subsection (c)
of this section shall not, merely by virtue of such authorization, be
thereby deemed to be doing business in this state within the meaning of
any laws of this state applicable to general business corporations.

(f) An attorney-in-fact of a reciprocal insurer licensed in this state
shall, on or before June first of each year, file with the
superintendent an audited financial report of its financial condition
and the results of its operations as related to its management of the
reciprocal, covering the previous calendar year, prepared in accordance
with generally accepted accounting principles by an independent
certified public accountant who certified to the reciprocal's annual
statement pursuant to section three hundred seven of this chapter. In
lieu of such a report, an attorney-in-fact of a foreign reciprocal who
is an individual, shall file a statement prepared by such independent
certified public accountant stating that its audit of the reciprocal
discloses any direct or indirect compensation or benefit paid by the
reciprocal to the attorney-in-fact. The report or statement filed
pursuant to this subsection shall be a confidential document, not
subject to disclosure pursuant to this chapter or article six of the
public officers law.

(g) An attorney-in-fact of a reciprocal licensed in this state shall
submit to examination by order of the superintendent for the purposes of
determining compliance with this article and all other relevant
provisions of this chapter relating to the operations of the reciprocal
or its attorney-in-fact, which the superintendent determines (as
specified in the order) cannot be obtained by examination of the
reciprocal. The cost of the examination shall be assessed against the
attorney-in-fact and no portion thereof shall be reimbursed directly or
indirectly by the reciprocal or its subscribers.

(h) The advisory committee shall meet at least annually and shall
consist of at least nine individuals elected by the subscribers, at
least two-thirds of whom are subscribers or officers or directors of
subscribers and, except for a municipal reciprocal or a reciprocal which
wholly owns its attorney-in-fact, not more than one-third of whom may
be:

(1) the attorney-in-fact; or

(2) an employee, officer, director, or affiliate of the
attorney-in-fact; or

(3) any person having a financial interest in the attorney-in-fact; or

(4) any person representing any of the foregoing.

(i) Members of the advisory committee may be elected and re-elected to
a term of office of not less than one year nor more than four years, and
terms may be staggered to provide for continuity.

(j) The chair of the advisory committee of a domestic reciprocal, who
shall not be any of those persons enumerated in paragraphs one through
four of subsection (h) of this section, shall be elected by the other
members of the committee and the committee of a domestic reciprocal
shall adopt rules consistent with its purposes, as approved by the
superintendent.

(k) Special meetings of the advisory committee may be called by the
attorney-in-fact, the chair of the committee, any three members of the
committee, or a signed petition of at least one percent of the
subscribers as of the most recent annual report of the reciprocal.