§ 6602. Classification of insurers; foreign and alien insurers. (a)
Cooperative property/casualty insurance companies operating under or
subject to this article shall be either advance premium co-operative
property/casualty insurance companies or assessment co-operative
property/casualty insurance companies.

(b) (1) "Advance premium corporation" means an advance premium
co-operative property/casualty insurance company which charges premiums
in advance on the basis of applicable provisions of article twenty-three
of this chapter and which maintains unearned premium reserves as
required by section one thousand three hundred five of this chapter and
loss and loss expense reserves as required by section four thousand one
hundred seventeen of this chapter.

(2) "Assessment corporation" means an assessment co-operative
property/casualty insurance company which levies upon its members
regular assessments, the amount of which is determined by giving due
cognizance, along with other relative factors, either to the incurred
liabilities of such insurer, or to its estimated liabilities likely to
become incurred before the next regular assessment, or both, and which
maintains unearned premium reserves as required by section one thousand
three hundred five of this chapter and loss and loss expense reserves as
required by section four thousand one hundred seventeen of this chapter.

(c) No insurer operating under or subject to the provisions of this
article shall do a part of its business on the advance premium plan and
another part on the assessment plan; but this shall not be construed to
affect the contingent liability of members of advance premium
corporations nor to affect the liability of members of assessment
corporations for extraordinary assessments, as hereinafter provided.

(d) No foreign or alien insurer or insurance organization shall be
licensed or permitted to do in this state any kind or kinds of insurance
business specified in this article on the assessment plan, or on any
mutual plan, other than as a mutual property/casualty insurance company
or as a reciprocal insurer as elsewhere provided in this chapter.