§ 6621. Unabsorbed portions of premium payments. (a) Subject to the requirements of this article for the accumulation and maintenance of minimum surplus, the surplus of any advance premium corporation shall be eligible for equitable distribution to its members as unabsorbed portions of premium payments; but no unabsorbed portion of premium payments shall be returned or distributed until authorized by the corporation's board of directors nor until approved by the superintendent.

Terms Used In N.Y. Insurance Law 6621

  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Equitable: Pertaining to civil suits in "equity" rather than in "law." In English legal history, the courts of "law" could order the payment of damages and could afford no other remedy. See damages. A separate court of "equity" could order someone to do something or to cease to do something. See, e.g., injunction. In American jurisprudence, the federal courts have both legal and equitable power, but the distinction is still an important one. For example, a trial by jury is normally available in "law" cases but not in "equity" cases. Source: U.S. Courts

(b) In authorizing any such return of unabsorbed portion of premium payments, the board of directors of such a corporation may provide for an apportionment thereof among separate groups of members on the basis of earned premiums equitably classified according to major kinds of insurance.

(c) This section shall not prohibit the return of the unabsorbed portion of premium payments on an equitable basis to policyholders in other states or under reinsurance contracts.

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