§ 7604. Public motor vehicle liability security fund. (a) The purpose
of the public motor vehicle liability security fund is to secure the
benefits contemplated by section three hundred seventy of the vehicle
and traffic law in those cases where a policy of insurance or corporate
surety bond, therein described, of a solvent and responsible insurer is
accepted by the commissioner of motor vehicles as a compliance with such
section. The fund shall be used to pay allowed claims of injured parties
and policyholders under insurance policies or surety bonds, remaining
unpaid, in whole or in part, by reason of the insurer's insolvency or
its inability to meet its insurance obligations (including any
obligation for the return of unearned premiums) provided the insurer has
made payments to the fund as required by subsection (b) hereof.

(b) (1) Contributions to this fund shall be determined on the basis of
net direct written premiums on insurance policies or surety bonds issued
to meet the requirements of section three hundred seventy of the vehicle
and traffic law.

(2) Every insurer issuing such policies or bonds, upon filing its
quarterly return pursuant to section seven thousand six hundred five of
this article, shall pay into the fund three percent of its net direct
written premiums as shown for the period covered by such return.