§ 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, except for
assessments related to long-term care insurance, 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. The amount of any class B or
class C assessment for long-term care insurance written by the impaired
or insolvent insurer shall be allocated according to a methodology
included in the plan of operation and approved by the superintendent.
The methodology shall provide for fifty percent of the assessment to be
allocated to health insurance company member insurers and fifty percent
to be allocated to life insurance company member insurers; provided,
however, that a property/casualty insurer that writes health insurance
shall be considered a health insurance company member for this purpose.
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. Class B and Class C assessments against
member insurers for the health insurance account shall be further
reduced for not-for-profit member insurers pursuant to a methodology
included in the plan of operation and approved by the superintendent.
Such methodology shall reduce the assessments imposed on not-for-profit
member insurers in an amount that, when accounting for appropriate
factors, including the value of the tax credits and a factor for the
time value of money, results in a percentage of net assessments to
premiums that is equivalent for not-for-profit member insurers and
for-profit 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) With respect to a member insurer that is a domestic insurer
and is subject to an order of rehabilitation under article seventy-four
of this chapter as of March first, two thousand twelve, the total
assessment against all member insurers for impairments and insolvencies,
less the amount of refunds (not including interest) to member insurers
pursuant to subsection (f) of this section, shall be five hundred
fifty-eight million dollars; provided, however, that such five hundred
fifty-eight million dollar total shall be subject to reduction in an
amount, if any, determined by the superintendent, on a date not earlier
than twelve months after the entry of an order of liquidation with
respect to such domestic insurer, to be not needed for the corporation
to be able to pay its obligations and reasonable expenses in connection
with the liquidation of such domestic insurer, but in no event shall
such reduction exceed fifty-eight 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.