NY A05638

Establishes the New York Flood Insurance Association as a mandatory membership organization for all insurers authorized to write flood and homeowners insurance in the state.

Requires the association to be governed by a 13-member board consisting of 10 directors elected by members based on net direct premiums written and 3 directors appointed by the superintendent representing public segments.

Sets rate caps for flood and homeowners insurance at 120-140% of rates recommended by principal rate service organizations, depending on property type and occupancy.

Limits individual coverage amounts to a maximum of $1.5 million for real property or tangible personal property and allows the superintendent to activate the association for additional markets (commercial, public entity, and professional liability insurance) when necessary.

Requires member participation in association's writings, expenses, profits and losses proportional to net direct premiums written, with deficit reimbursement capped at 1% of each member's surplus to policyholders.