(a) Underwriting members shall be subject to the provisions of all sections of article IV of the Insurance Law, except as follows:

1. (i) subdivisions 1-4 of section 40;
2. (ii) subdivision 5 of section 40, except that whenever the superintendent shall determine, after notice and hearing, that any underwriting member is doing business in a manner detrimental to the people of this State, or its further conduct of business may jeopardize the interests of other members, associate brokers or policyholders or has failed or refused to take such steps as may be necessary to remove from office any officer or director of such underwriting member whom the superintendent has found, after notice and hearing, to be a dishonest or untrustworthy person, he may remove, with respect to such underwriting member, any exemptions granted in this Subpart and proceed according to article XVI of the Insurance Law; the superintendent shall furnish the exchange with a copy of any notice issued pursuant to this subparagraph;
3. (iii) subdivisions 6 and 7 of section 40; or
4. (iv) subdivision 9 of section 40, except that no entity which is controlled through stock ownership, by management contract or otherwise, by another state of the United States or by a foreign government or by any political subdivision of either, or which is an agency of any such state, government or subdivision, may become an underwriting member of the exchange without the prior approval of the superintendent; provided, however, that no underwriting member which was not so controlled at the time it was admitted as an underwriting member of the exchange, and which thereafter becomes so controlled, may continue as an underwriting member of the exchange unless it has received the prior approval of the superintendent.
5. (2) section 42;
6. (3) section 43, except that no individual underwriting member shall be permitted to do business in the exchange under a corporate or fictitious name or under any name, style or title other than the true name of such individual;
7. (4) sections 44; 44-a; 45;

8. (5) section 48, provided that if the applicant for underwriting membership is a corporation the following conditions are met:

   1. (i) that this exemption is for the limited purpose of permitting formation of a corporation under section 402 of the New York Business Corporation Law or for the limited purpose of granting a foreign corporation authority to do business in this State under section 1304 of said law;
   2. (ii) that the corporate name of such corporation shall not include the word exchange, reinsurance or any word prohibited by section 301(a)(5) of the New York State Corporation Law;
   3. (iii) that this exemption neither authorizes nor licenses said corporation to transact an insurance business in this State, except to participate as or to be a participant in an underwriting member of the exchange;
   4. (iv) that this exemption shall terminate simultaneously with the termination of the authority granted to the corporate underwriting syndicate pursuant to the constitution; and
   5. (v) that upon termination of the underwriting member's authority granted pursuant to the constitution, the certificate of incorporation of the member shall be amended to delete the corporate purpose to participate as an underwriting member of the exchange;
9. (6) sections 48-a; 49; 51; 52; 53; 53-a; section 59, provided that each underwriting member designates the exchange as its lawful agent for receipt of service upon any such underwriting member; sections 59-a; 62-a; 63; 64; and 66.

(1)